Assessment notice. Montana property taxpayers typically receive an assessment notice in June of the first year of the two-year property tax reappraisal cycle. However, the actual tax bill is not sent by the county treasurer until October and the following May. Thus, property owners may delay challenging the property tax assessment until the tax bill arrives in the fall, rather than when the tax assessment notice arrives in June. This is a bad idea.
Property tax valuation and classification are the bedrock principles upon which the property tax bill is based. The Montana Department of Revenue is the agency that determines property tax value and classification, not the county treasurer. If the taxpayer disagrees with value and classification, those issues must be resolved with the Montana Department of Revenue, not with the county treasurer that sends the tax bills.
Deadline to contest. Montana law imposes strict deadlines for challenging property tax assessment notices. The taxpayer typically has two options for challenging property tax assessment notices:
- Request informal review of the assessment notice with the Montana Department of Revenue. This process will be discussed in Part 4 of this series. Or,
- Appeal the property tax value directly to the County Tax Appeal Board. Appeals to the County Tax Appeal Board will be discussed in Part 5 of this series.
However, for each of these appeal options, there are strict deadlines for invoking the tax appeal:
- Informal review: Must be requested within 30 days from the date of the property assessment notice.[1]
- Direct appeal to County Tax Appeal Board: Must be made to the county clerk and recorder within 30 days of the date on the tax assessment notice or for the second year of the reappraisal cycle, by June 1 if no assessment notice is provided.[2]
While there are some exceptions to these deadlines for the second year of the cycle or for property outside of typical residential or commercial property (which are not discussed in this article), the taxpayer should not delay in seeking an informal review or an appeal.
Practice Point. Too often, taxpayers do not seek a review of property tax assessments until the tax bill is sent late in the year. This delay often takes the tax appeal out of the ordinary course of the tax appeal and either requires that the taxpayer identify legal issues to pursue in courts or bars the challenge of classification or value until a future year.
Taxpayers with questions about property taxation may contact Jared Le Fevre to discuss.
About the Author. Jared M. Le Fevre is a Partner in the Tax, Trusts and Estates Practice Group of Crowley Fleck PLLP. Mr. Le Fevre represents taxpayers before the IRS, IRS Independent Office of Appeals, Tax Court, Federal District Court and state tax agencies throughout Montana, Wyoming, North Dakota, Idaho, and Utah. Mr. Le Fevre is involved in federal, state and local tax audits, appeals, and tax resolution throughout these western states. Mr. Le Fevre also advises clients on the tax effects of business and real estate transactions.
[1] Mont. Code. Ann. § 15-7-102(3).
[2] Mont. Code. Ann. 15-15-102(3), § 15-7-102(3).