Certified Property Values and Mill Levies

Overview

The certified values are total taxable property values determined by the Department of Revenue for each tax jurisdiction.

These values are provided to tax jurisdictions every year on the first Monday in August.

Full details, including the certified values for every tax jurisdiction and statewide totals, are available at Property.MT.gov.

Local governments use these certified taxable values to:

  • Establish their budgets
  • Set mill levies for property tax calculation and collection

Calculating Levies and Property Tax

To calculate the number of mills in each jurisdiction and property tax due, follow the steps below. This procedure is outlined in 15-10-420, MCA.

The current year’s Adjusted Property Tax Revenue (APTR) equals the previous year’s property tax revenue increased by one-half of the average inflation rate over the past three years.

Formula:

APTR = Previous Year’s APTR × (1 + (3 Years Inflation / 2))

Next, find the jurisdiction’s Maximum Mills.

This is 1,000 times the Adjusted Property Tax Revenue (APTR) divided by the Certified Taxable Value minus the Newly Taxable Value, rounded down to the third decimal.

Formula:

Maximum Mills = 1,000 × (APTR / (Certified Taxable Value - Newly Taxable Value))

Find the Millage Rate. This is the total number of mills from all jurisdictions for your property divided by 1,000.

Formula:

Millage Rate = Total Mills / 1,000

Finally, multiply the Taxable Value by the Millage Rate to find the estimated property tax.

Formula:

Property Tax = Taxable Value × Millage Rate

Note: This is an estimate of general property taxes. Local governments may also assess special fees and assessments. Property owners should contact their County Treasurer for more information on special assessments or fees.

Example Levies and Property Tax

For this example, we will look at a property with a $2,793 Taxable Value, in one tax jurisdiction with:

  • Previous Year's Property Tax Revenue: $1,000,000
  • Three Year Inflation: 2%
  • Current Year Certified Taxable Value: $2,000,000
  • Newly Taxable Value: $100,000

We will also assume a second tax jurisdiction with 304 mills.

APTR = Previous Year's APTR × (1 + (3 Years Inflation/2))

APTR = $1,000,000 × (1 + (0.02/2))

APTR = $1,000,000 × 1.01

APTR = $1,010,000

Adjusted Property Tax Revenue: $1,010,000

Maximum Mills = 1,000 × (APTR/(Certified Taxable Value - Newly Taxable Value))

Maximum Mills = 1,000 × ($1,010,000/($2,000,000 - $100,000))

Maximum Mills = 1,000 × ($1,010,000/$1,900,000)

Maximum Mills = 1,000 × (0.531)

Maximum Mills = 531

Maximum Mills: 531

Millage Rate = Total Mills/1,000

Millage Rate = (531+304)/1,000

Millage Rate = 835/1,000

Millage Rate = 0.835

Millage Rate: 0.835

Property Tax = Taxable Value × Millage Rate

Property Tax = $2,793 × 0.835

Property Tax = $2,332.16

Estimated Property Tax: $2,333