Montana has been experimenting with property taxes for well over a century, and the results have all the charm of a dentist’s drill without Novocain. Let’s recap how your house (and wallet) have been “valued” over the years:
The Early Days (1889 Constitution)
1889: The brand-new state constitution basically said, “Hey, let’s tax your land, but not too much.” County assessors eyeballed your property and came up with a number. Translation: If your assessor was in a good mood, you got a break. If not, better hope you liked beans for dinner.
The Big Shift (1972 Constitution)
1972: The state swooped in and said, “Enough of this county-level nonsense—we’ll decide how much your home is worth.” Enter the Department of Revenue (DOR), Montana’s official wallet inspector.
1975: Lawmakers cooked up a 5-year reappraisal cycle, meaning every five years you got to rediscover just how much more “valuable” your same old house had become.
1975 (again): Property was assessed at 40% of full cash value. Effective tax rate? 12%. Basically, a tithe to Caesar.
1977: They cranked it up to 100% market value because apparently the state needed new wallpaper for its offices. Different property classes got different rates, because confusing the taxpayers is half the fun.
1978: When property values exploded 47% overnight, lawmakers graciously cut the tax rate from 12% down to 8.55%. Don’t thank them too hard—they still took more money.
The Reforms and Rollercoaster (1980s–1990s)
1981–2015: The reappraisal cycle changed five times. Five. Because stability is boring, and lawmakers really enjoy rearranging deck chairs on the Titanic.
1986: Voters, sick of the nonsense, passed Initiative 105 to cap certain property taxes. Spoiler: politicians immediately found loopholes.
1989: A court ruling forced lawmakers to nearly double school mill levies—from 45 to 95. Because nothing says “equal education” like kneecapping homeowners.
1997: Tax limits were “revised,” which is politician-speak for “we changed the rules so we could keep collecting more.”
1999: They shuffled mill levy formulas, lowered some rates, and added homestead exemptions. Translation: “Here’s a tiny bone, peasants. Now stop complaining.”
Business Equipment Taxes
1989–2024: Cut nine times. That’s right—businesses got relief while homeowners got the joy of funding everything else. You’re welcome, corporations.
The New Era (2025 and beyond)
2025: Lawmakers decided the system needed even more tiers. Two bills (HB 231 & SB 542) created a sliding scale for property taxes. Sounds fair, until you realize “tiered” is just code for “squeeze the middle class like an accordion.”
Here’s the brand-new residential bloodletting menu:
0.76% on the first $400,000 (your starter squeeze).
1.1% on $400,000–$1.5 million (congrats, you’re “rich” now).
2.2% on anything over $1.5 million (the “bend over” tier).
Final Thought:
Montana’s property tax history is like watching a bad sitcom that never gets canceled. Every season, the writers find new ways to torment the characters—you. And just like that sitcom, you can’t turn it off.
Comments
One response to “A Snarky Stroll Through Montana’s Property Tax Circus”
It seems to me that the governor’s tax committee examined all aspects of taxation and came up with a suitable solution for relief from high property taxes ; a $400. rebate ot homeowner whereas the Freedom caucus wnted to give us $280. Those whether here iin the state or outsiders, who own more than ONE house get to assume some of the tax burden.