A Snarky Stroll Through Montana’s Property Tax Circus

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.