The Montana Quality Education Coalition filed a lawsuit in the fall of 2023 against Gallatin County, among other counties, for its refusal to levy all 95 mills of the state’s school equalization property tax.
Prior to a November 2023 Montana Supreme Court ruling, the majority of Montana counties pledged to only levy 77.9 mills this year under an alternative interpretation of state tax law. The ruling found that the state had the discretion to direct counties to collect the full 95 mills, but the Montana Association of Counties is urging the state not to enforce collection of the full 95 mills. (Graphic courtesy of the Montana Free Press)
The Montana Quality Education Coalition filed a lawsuit in the fall of 2023 against Gallatin County, among other counties, for its refusal to levy all 95 mills of the state’s school equalization property tax.
Photo illustration by Samuel Wilson/Chronicle
Let the news come to you
Get any of our free daily email newsletters — news headlines, opinion, e-edition, obituaries and more.
In a letter sent to Gov. Greg Gianforte Tuesday, Montana Association of Counties President Ross Butcher urged Gianforte and his administration to let counties levy only 77.9 mills.
“We again ask that the State of Montana live within its means and levy ONLY the maximum amount calculated by your Department of Revenue,” Butcher, who is also a Fergus County commissioner, wrote. “Please exercise discretion and demonstrate the greater fiscal responsibility you’ve asked county commissioners to demonstrate and levy the current year maximum mill levy calculation of 77.9 mills.”
Just before Thanksgiving, the state’s highest court ruled unanimously to uphold the state’s interpretation of property tax law and in clarified that the Department of Revenue has the right to direct what counties levy.
Earlier this year, the revenue department directed counties to levy 95 mills, in order to collect an estimated additional $99 million in tax funds that the state uses to balance funding between tax-base-rich and tax-base-poor school districts.
Though the 95 mills already fund part of the state’s school equalization efforts, rising property values mean the state is expected to collect — and property owners are expected to pay — more.
In recent months, 49 of 56 counties have challenged the state’s directive, pledging to levy fewer than 95 mills this year. Gallatin County was among the 49 that pledged to levy fewer mills.
Prior to a November 2023 Montana Supreme Court ruling, the majority of Montana counties pledged to only levy 77.9 mills this year under an alternative interpretation of state tax law. The ruling found that the state had the discretion to direct counties to collect the full 95 mills, but the Montana Association of Counties is urging the state not to enforce collection of the full 95 mills. (Graphic courtesy of the Montana Free Press)
Eric Dietrich/Montana Free Press
County leaders argue that levying 77.9 mills — the amount levied by most counties this fall — would ensure the state still collects the same amount of funding it collected last year, but would prevent the state from “banking” additional funds, Butcher wrote in Tuesday’s letter.
This county-backed rate would reduce collections by about $80 million a year statewide, producing savings of roughly $104 a year for a home valued at $450,000.
“The State will receive an additional $20 million in revenue this year over last year if you exercise discretion and levy what the current calculations allow. No school funding will be impacted, taxpayers in all classes will save, and you won’t be intentionally taking advantage of increased appraised values by levying more than your current levy authority,” Butcher wrote.
Butcher’s reaction is just one of many following last week’s decision. The court’s ruling came in just one of at last four lawsuits filed before local and state judges around the issue.
Last week, Gallatin County Commissioner Jennifer Boyer said the county would levy the appropriate tax as directed by the state, which could mean property owners see a second bill this fall or an adjusted bill next spring. But Gallatin County officials haven’t clarified how much that will likely cost property owners yet.
Many education advocates support the state’s school equalization funding efforts, arguing it helps support districts with lower property values and ensures the state provides an equal educational opportunity for all students.
Let the news come to you
Get any of our free daily email newsletters — news headlines, opinion, e-edition, obituaries and more.
Send us your thoughts and feedback as a letter to the editor. Submit by email, by post to 2820 W. College St., Bozeman, MT 59718 or use our online form.
Support quality local journalism. Become a subscriber.
Subscribers get full, survey-free access to the Bozeman Daily Chronicle's award-winning coverage both on our website and in our e-edition, a digital replica of the print edition.
