The property tax is not like other taxes in the state. A reduction in the tax rate or exempting property from the tax base does not generally reduce revenue for government services; instead, these actions shift the tax liability to other property taxpayers, mostly in the same locality. Property tax bills are determined by both the value of the property and the level of services that are provided to that property.

Calculating Tax

An individual taxpayer’s property tax is calculated using two variables - taxable value and the millage rates. The taxable value is determined by applying legislative policy to the assessed market value of the property. The millage rates are based on the level of goods and services provided by local governments, their budget. They are calculated so that local governments generate enough revenue to meet their budgets.

• Property Taxes Paid = (Taxable Value x Mills) / 1,000

Mills

In Montana, millage rates are usually discussed in terms of numbers called mills. One mill will generate $1 for each $1,000 in taxable value.

• Mills = Millage Rate x 1,000
• Millage Rate = Mills / 1,000

Revenue Raised

You can calculate the amount of revenue raised by the Tax Levy doing the following. The Value of One Mill is found by taking the 2016 Total Taxable Value from the appropriate 2016 Certified Taxable Valuation Information Form for the County Fund you are calculating multiplied by 1, as shown in the example below.

• Madison County General Fund 1000
  1 Mill = $85,960,669 x 1 = $85,960.67
• Amount of Revenue Raised
  $85,960.67 x 54.27 mills = $4,665,085.56

All County Revenues raised by the 2016 Certified Taxable Valuation Information Forms can be calculated from the above formula.