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Current Montana tax system vs CI-121. |
Montana residential property taxes are based on three components - the value of the property (reappraised & reassessed every two years), multiplied by the tax rate, and then divided by the number of mills levied in that tax levy district. This gives you the effective tax rate.
Many Montanans saw a 30%+ increase in their residential property taxes this past year, with an even bigger increase coming due to the pandemic real estate boom for Montana.
C-121 (YES)
All Montana residential property owners have seen their tax burdens go up much faster than the rate of inflation. CI-121’s fiscal note shows a $175M residential property tax increase coming by 2025.
The dramatic increases are caused from how current Montana law 'values' the property, and secondarily because there is no effective rate tax cap.
CI-121 amends the Montana Constitution, moving to an 'Acquisition-Value' property tax system for residential property, with 2019 being the basis or starting year for appraisal value.
This means no reappraisal of the property every two years. Residential property is only reappraised & reassessed when a property changes ownership (sold) or if it's significantly improved.
Property taxes do go up every year, but only by the standard rate of inflation or 2%, whichever is less.
In addition, CI-121 caps the effective residential property tax rate at 1%, which ultimately means there are no workarounds which could lead to higher than 1% effective residential property tax rates.
Many Montanans saw a 30%+ increase in their residential property taxes this past year, with an even bigger increase coming due to the pandemic real estate boom for Montana.
C-121 (YES)
All Montana residential property owners have seen their tax burdens go up much faster than the rate of inflation. CI-121’s fiscal note shows a $175M residential property tax increase coming by 2025.
The dramatic increases are caused from how current Montana law 'values' the property, and secondarily because there is no effective rate tax cap.
CI-121 amends the Montana Constitution, moving to an 'Acquisition-Value' property tax system for residential property, with 2019 being the basis or starting year for appraisal value.
This means no reappraisal of the property every two years. Residential property is only reappraised & reassessed when a property changes ownership (sold) or if it's significantly improved.
Property taxes do go up every year, but only by the standard rate of inflation or 2%, whichever is less.
In addition, CI-121 caps the effective residential property tax rate at 1%, which ultimately means there are no workarounds which could lead to higher than 1% effective residential property tax rates.