Bill > HB894

This bill revises how property is appraised for tax purposes in Montana by mandating that property values be calculated using a 10-year average method, excluding the highest and lowest yearly values. Specifically, the bill requires that the market value of most property classes (including residential, commercial, agricultural, and forest lands) be determined by taking the average market value from the current assessment year and the prior 9 years. For newly constructed, remodeled, or reclassified properties, a slightly different approach is used: the first year after construction will be assessed at full market value, and subsequent years will use an average that gradually incorporates more historical data. The bill applies to the reappraisal cycle beginning January 1, 2027, and aims to provide a more stable and consistent method of property valuation by smoothing out year-to-year fluctuations in property values. The goal appears to be creating a more predictable and fair system for property tax assessments by using a longer-term average that reduces the impact of short-term market volatility.

Budget and Finance

https://bills.legmt.gov/#/laws/bill/2/LC1228