Bill would require Department of Revenue to notify counties of large taxable‑value drops

Senator Denley Logie told the House Taxation Committee that Senate Bill 289 was prompted by a lumber mill closure near St. Regis that produced a large, unexpected drop in taxable value and “caught the county off guard.”

Logie said SB 289 would require the Department of Revenue to send electronic notice to counties when proposed property tax adjustments for a parcel or taxpayer exceed $1,500,000 so local budgeting officials are not surprised by sudden declines in the tax base. “It’s basically simply to do that — send out this notification,” he said, adding the measure is intended principally to assist smaller counties that are heavily dependent on a few natural‑resource producers.

Jason Bridal, deputy director of the Montana Association of Counties, testified in support and said the notice would improve county budgeting and allow local officials to request explanations from DOR about valuation methods. “This bill is about communication,” Bridal said. Joette Woods, president of the Montana Association of Counties, Todd Devlin (Prairie County commissioner) and Shelby Demars (Montana Association of Oil, Gas and Coal Counties) also spoke for the bill, emphasizing the disproportionate effect valuation drops can have on counties with small populations and resource‑dependent tax bases.

Jennifer Olsen, government affairs director for the Montana League of Cities and Towns, offered “soft opposition,” asking that municipalities also be copied on any notices to ensure local governments receive the same information. DOR witnesses John Allen (industrial appraiser) and Derek Bell (division administrator, business income tax division) described the department’s capacity to deliver electronic notice and explained the valuation and apportionment timing for centrally assessed properties.

Bell said the department values roughly 2,630 centrally assessed properties and typically values about half of them each year; staff know the taxpayers involved and the agency expects to be able to generate the proposed notifications without a new appropriation. He said the department already must issue preliminary centrally assessed values by rule on June 1 but timing varies and the bill would require an earlier, targeted notice as soon as a valuation falls below the $1,500,000 threshold.

Committee members asked about IT capability, whether the apportionment process could affect which counties are notified, and whether the threshold should apply only after apportionment; witnesses and proponents discussed a friendly amendment to notify counties only after apportionment and to copy municipalities. The bill drew broad support from county and resource‑county representatives; the League of Cities urged an amendment to copy municipalities. No committee vote on SB 289 was recorded in the hearing transcript.