Montana Property Taxes Are Getting Very Weird This Year

Why Montana Property Tax Bills Could Change So Much This Year

There is a very good chance your property tax bill is going to look different this year, and depending on the dollar amount, that could be good news or it could be some really bad news.

Montana's new property tax system is moving into its second year, and one of the biggest changes is how your property is classified.

Nearly 40% Of Montana Homes Were Classified At The Higher Tax Rate

According to the Missoulian, primary homes and qualifying long-term rentals can get a lower rate through the state's homestead exemption, while second homes and short-term rentals can face a higher rate.

State officials say close to 40% of Montana's residential properties were classified under the higher 1.9% rate for second homes and short-term rentals. For long-term rentals, missing the exemption could mean waiting until next year to get the lower rate, and those higher costs can eventually get passed along to renters.

Officials say there are more than 2,500 properties still in the process of applying for the homestead exemption, but here's where the story gets strange for some homeowners.

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Some Of Montana's Most Expensive Homes Could Actually Pay Less

State officials gave the example of a $62 million home in Madison County that is expected to see its taxable value drop by $162,000. Meanwhile, some other properties could see their taxable values jump significantly.

Oh, and if that's confusing enough, taxable value isn't the same thing as your final property tax bill. Counties still calculate the final bill using local mills, schools, cities and other taxing districts, with your final property tax bills still being figured out this fall.

So basically, Montana property taxes have somehow become even more complicated.

Good luck, everybody.