If you're a homeowner in Montana, you should have already received your 2023 appraisal notice from the Department of Revenue. If you were shocked by the state's value of your home and estimated taxes, you're not alone. Most homeowners are left with more questions than answers after receiving this letter — that's why we're here to help answer those questions and provide advice on what next steps should be taken.

Step 1: Take a deep breath

The notice is not a bill and the figures are not final. The property value is considered final unless you choose to appeal. (More on that in Step 2.) The assessed taxes are an estimate based on the property valuation and last year's taxes, which don't account for rising property values. It's really complicated as to how taxes and millage rates work and counties across the state are still a few months away from finalizing what tax bills will actually looks like. If you want to learn more about how tax assessments work, we recommend this video from Gallatin County Commissioner Zach Brown. (The explanation applies no matter what county you live in.) For an in-depth read on tax assessments, check out "Property taxes, explained — with pictures" from the Montana Free Press.

Step 2: Look at the facts

Before you narrow in on the assessed value of your property, make sure the state has the facts right. Did you recently let a state appraiser into your home? Probably not. Unless you recently purchased your home, the state is making a best guess on the value of the property based on data they believe to be true. But guess what? That data can be wrong more often than what you'd think. Confirm items like square footage and lot size are accurate. Data is available at property.mt.gov. If any facts are incorrect, we recommend you request an official appraisal review with appropriate documentation, which we will discuss in Step 4.

Step 3: Phone a friend

Everybody knows that property values have gone up rapidly over the past few years. But did it go up as much as the state thinks? If you're questioning the assessed value, it's time to call a professional. This is where your ERA Landmark agent can help. We evaluate home prices every day and can give you a sense of whether the state's figure is reasonable or not. We've talked to many homeowners already and some valuations are fairly accurate. However, some are not. If your gut feeling is that the state has grossly overvalued your home, we can provide a price opinion based on the MLS data of six months prior to January 2022, which is the date range the Montana Department of Revenue used to formulate the assessment. This takes some time and skill so please contact us sooner than later to start this process.

Step 4: File your case

If you decide to appeal, file the Request for Informal Classification and Appraisal Review (Form AB-26) available on the Montana Department of Revenue website. As stated on the site, the form “must be submitted within 30 days from the date on your classification and appraisal notice.” Once you file the form with the appropriate documentation, such as a previous appraisal showing correct measurements of the home or sales data from your ERA Landmark real estate agent, you wait. We do not know how the process will go this year, but in the past, homeowners have been called to a hearing to review the information in front of a panel before an adjustment is made.

Step B: Ask questions

Wait, we're on letters now? Yes. At any point during the above steps, you should reach out to your local field office by calling the phone number at the top of your appraisal notice. You should also take advantage of the town hall meetings that are being conducted across the state of Montana by the Department of Revenue. This is intended to "help taxpayers understand the property valuation process and how the department determined the new values on their classification and appraisal notices." A few of our agents have already attended some of these events and have appreciated the information the appraisers have shared. View the complete schedule here. Once tax bills are finalized and you find yourself unable to afford the increase, know that there are property tax assistance programs available - learn more here.

Step Red: A word of caution

We strongly encourage you to have solid documentation to support your opinion before filing for a review. Property values have gone up. Taxes will go up when voters approve new tax measures for schools, law enforcement, etc. Filing an appeal because you don't like how much they have gone up is not a good strategy. Filing may trigger an on-site property inspection and, short of any other data to prove your claim, the appraisers may adjust your property value in the other direction.

The Good News: Property Tax Rebates

Owners who paid property taxes in 2022 can file to receive up to $675 back! House Bill 222 provides a rebate for property taxes paid in tax years 2022 and 2023. Eligible taxpayers can begin to claim the rebate through the Montana TransAction Portal beginning August 15, 2023, through October 1, 2023. Owners should receive notices in the mail regarding the process, but if you missed it, visit about it here. This process will repeat itself in 2024 for a 2023 property tax rebate. One would think the state could do some math and knock the rebate off the top, but no. [Insert joke about government bureaucracy here.]

We all know the natural beauty, quiet pace, and variety of outdoor recreation opportunities make Montana an excellent place to live. The property taxes may seem high at first glance but when you consider all the benefits we enjoy, it's a small price to pay to live in "The Last Best Place."