As discussed in the previous article, the first step for the taxpayer to challenge the property tax is to meet with the Montana Department of Revenue assessor for an informal review of the property. While over 90 percent of property tax disputes are resolved at informal review, the taxpayer retains the right to appeal. The following is the standard process for an appeal to the County Tax Appeal Board (“CTAB”).
- Timely submit appeal. The appeal to CTAB is made on a form that may be obtained from the Montana Tax Appeal Board’s website.[1] The form must be completed by the taxpayer and filed with the county clerk and recorder within 30 days of the date on the assessment notice or, if informal review is elected, within 30 days from the date of the Department of Revenue’s determination.[2]
- Who is CTAB. The County Tax Appeal Board (“CTAB”) is a board of at least three members appointed by the county commissioners to determine tax appeals in each county. Three members of CTAB hear a tax appeal. The CTAB will sit in session during published times each year from July 1-December 31 to hear tax appeals.[3]
- Scheduled hearing. Following the filing of the CTAB appeal, CTAB will schedule the hearing and notify the taxpayer and Montana Department of Revenue of the hearing. The hearing is typically held at the county courthouse. If the taxpayer does not show up for the hearing, the Department of Revenue’s assessment will be sustained.[4]
- Prepare the case. The taxpayer needs to prepare its case well to show the correct value and classification of the property. Preparation could include appraisals, realtor comparative market values, witnesses who can testify as to value, and many other items of information.
- Present the case. Typically, the taxpayer presents the case first. The CTAB typically uses relaxed rules of procedures, but witnesses are sworn, exhibits should be submitted and witnesses questioned. Following the hearing, the CTAB will enter a written order sustaining or modifying the Department of Revenue’s assessed value.[5]
- Further appeal. Following the CTAB ruling, either the taxpayer or the Department of Revenue may appeal the determination to the Montana Tax Appeal Board.[6]
Practice Point. Prepare carefully for the hearing. Taxpayers should determine point by point what they need to prove to win the tax appeal and present evidence in an orderly and persuasive manner.
Property owners who wish to appeal their property tax assessment may contact Jared Le Fevre to discuss filing for the appeal and preparing the case before CTAB.
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] https://mtab.mt.gov/_docs/forms/AppealMTAB401.pdf (accessed 7.5.21).
[2] Mont. Code Ann. § 15-15-102(3), 15-7-102(3)(a), 15-7-102(6).
[3] Mont. Code Ann. § 15-15-101.
[4] Mont. Code Ann. § 15-15-103(1).
[5] Mont. Code Ann. § 15-2-301(1)(a).
[6] Mont. Code Ann. § 15-2-301(1)(b), 15-15-104.