Montana Tax Changes - October 2024
Week Of 09.30.2024
The Montana Supreme Court has upheld the Department of Revenue's (DOR) mass appraisal sales comparison methodology for valuing lakefront properties.
The court found that the DOR's approach, which considers three variables (price per front foot, lot depth, and a qualitative variable), is a consistent and accepted process for determining market value. The court also noted that the taxpayers failed to prove that the DOR's appraisal was inaccurate.
Week Of 09.30.2024
Montana Property Tax—Montana Supreme Court upholds DOR’s mass appraisal sales comparison methodology.
The Montana Supreme Court has reversed the district court's ruling that the Department of Revenue's mass appraisal sales comparison methodology for valuing lakefront properties was unlawful. The taxpayers argued that the approach only considered three variables (the price per front foot, the depth of the lot, and a "qualitative variable)," while the Department argued that the use of the variable selection is merely part of the process to produce appraisals. Relying on Peretti v. State, Dep't of Revenue, Mont. S. Ct., Dkt. No. DA 15-0526, 383 Mont. 340 (05/10/2016), the Court determined that the Department employed a consistent accepted process for arriving at market value, which was adequate and not arbitrary. The Court also observed that the taxpayers failed to overcome the accuracy of the Department's appraisal. (Solem v. State of Mont., Dept. of Rev., Mont. S. Ct., Dkt. No. DA 23-0030, 09/24/2024.)
Week Of 09.30.2024
Montana Property Tax—Montana Supreme Court upholds DOR’s mass appraisal sales comparison methodology.
The Montana Supreme Court has reversed the district court's ruling that the Department of Revenue's mass appraisal sales comparison methodology for valuing lakefront properties was unlawful. The taxpayers argued that the approach only considered three variables (the price per front foot, the depth of the lot, and a "qualitative variable)," while the Department argued that the use of the variable selection is merely part of the process to produce appraisals. Relying on Peretti v. State, Dep't of Revenue, Mont. S. Ct., Dkt. No. DA 15-0526, 383 Mont. 340 (05/10/2016), the Court determined that the Department employed a consistent accepted process for arriving at market value, which was adequate and not arbitrary. The Court also observed that the taxpayers failed to overcome the accuracy of the Department's appraisal. (Solem v. State of Mont., Dept. of Rev., Mont. S. Ct., Dkt. No. DA 23-0030, 09/24/2024.)