How to Read a Property Tax Bill

Taken from Montana OPI "Understanding Montana School Finance - Winter 2022"

Property taxes are based on the market value of the property and the taxable rate. The Montana Constitution

places the responsibility for property tax values on the state. All taxing jurisdictions must use the assessed

valuation of property established by the state (Article VIII, Sections 1 and 4). The Department of Revenue is

responsible for the appraisal, assessment, and equalization of the value of all property in the state for taxation.

The Legislature establishes various classes of property and the rate of tax on each class. Local governments

(counties, cities, school districts, fire districts, etc.) determine the mill levy requirements for each taxing

jurisdiction. By the later of the first Thursday in September or within 30 calendar days after receiving certified

Q: What is property tax liability?

A: It is the amount of taxes a property owner must pay to the county treasurer each year. The first half is due in

November and the second half is due in May. Property tax liability depends on the taxable value of property

owned by the taxpayer and the number of mills levied.

A: Taxable value is the market value of a piece of property times the tax rate for that property. Taxable value

times the number of mills levied by the different taxing jurisdictions (i.e., school districts, cities, counties, state) will

determine the property tax liability.

Taxable Value = Market Value × Tax Rate

Taxable Value × .001 = Mill Value

or visit

the Revenue - Property Assessment Division.

A: A mill is one-thousandth (.001) of a dollar. School districts can determine how much a mill will raise by taking

the total taxable value in a district (an amount provided to the school district by the county assessor) and

multiplying it by .001. This result is equal to what one mill will raise.

Example: The taxable value of property in an elementary district is $46,000,000. This amount multiplied by .001

equals $46,000. In other words, the amount of money raised by levying one mill would be $46,000. If this district

needs to raise $2,500,000, it would divide $2,500,000 by $46,000, thus determining that 54.34 mills are needed.

taxable value in FY2023 would be $1,350 and the mill value would be $1.35 figured as follows:

A: Several different properties are not subject to property taxes. Examples include:

• Disabled Veterans’ Land

• School, City, Local Governments, and County Lands

• Churches

• U.S. Government Land

• Municipal Corporations

• Some Nonprofit Organizations (such as nonprofit health care facilities)

Taxpayers also pay 33 mills for elementary county equalization and 22 mills for high school county equalization,

and 6 mills to support the university system. Counties also assess mills to support school retirement and county

transportation expenditures.

Q: What is the purpose of state and county equalization levies?

A: Every property owner in the state is assessed a 40-mill state equalization levy and a 55-mill county equalization

levy. Money raised by these levies goes to the State General Fund. The purpose of these levies is to support

statewide funding of school districts in the form of direct state aid, guaranteed tax base (GTB) aid, state

transportation aid, and state special education funding.

A: In districts where there are large industrial plants, high personal property valuation of business property