Montana – Home values are rising for property owners all around Montana, and preliminary calculations suggest that many will soon face increased taxes as a result.
Renters may also be impacted, not only homeowners.
Increased property values don’t always translate into higher taxes, according to experts on property taxes.
However, Cozy Stay Apartments’ landlord Jeremy McCune anticipates greater taxes.
He also claims that his tenants will be impacted by more than simply the taxes.
Many homeowners in Montana are concerned about impending tax increases as a result of the state’s property tax values, which have increased by an average of 40%.
“Everything else has gone up 20 to 30 percent,” said McCune. “I definitely foresee taxes going up in my lifetime. I haven’t seen taxes ever go down.”
McCune is hardly an anomaly, but his impact will be greater than others.
He already understands the effects that a sizable increase in property taxes could have because he owns at least six rental properties across Magic City.
“As far as property taxes, utilities, landlords have to try to keep up with that,” McCune said. “But that ultimately gets passed on to the renters themselves.”
Residential property values are rising by an average of 32% in Yellowstone County, while commercial property values are rising by 17%, according to the Department of Revenue.
Moreover, Yellowstone County Treasurer Sherry Long anticipates hearing from worried locals who worry about how it may affect their property taxes.
“Questions really would need to be then directed to the Department Of Revenue or our finance department, county commissioners,” Long said.
According to Kory Hofland, administrator of the DOR’s property division, Montana hasn’t had rises like these in the past 15 years.
“2008 might have been a little bit bigger as far as a percent increase,” Hofland said. “But back then we were under six-year reappraisal cycles and there was a lot of sticker shock that would occur after six years of sales being compiled and put into models. So they changed it to two years to kind of help with that sticker shock but that’s kind of what we’re seeing.”
Both homeowners and tenants are shocked, with some fearing they would have to move or face a rent increase as a result of higher taxes.
“There’s been quite a few instances where I’ve tried to help our tenants to try to keep their rent low because they are at spot,” McCune said.
