Anaconda Deer Lodge County delays decision on tax-exemption application for 611 Walnut Street

Eric Hoiland, the county chief financial officer, told the Anaconda Deer Lodge County Commission at its May 12 work session that Cathryn Stillman of ICW Montana submitted an application seeking a residential tax exemption tied to an estimated $125,000 remodel of property at 611 Walnut Street. Hoiland said the property's current market value is $110,000 and that, without the exemption, a $125,000 increase would produce an approximate $1,700 tax bill; with the five-year phased exemption the initial annual bill would be about $654.

"If you add the $125,000, they would have a $1,700 tax bill but with the tax break the actual bill would come out to be $654," said Eric Hoiland, County CFO. He also said his office had not yet received an inspection or final guidance from the Department of Revenue (DOR) on the anticipated change in taxable value.

County Attorney Morgan Smith said the statute applicable to this application contemplates residential properties and that the DOR is responsible for determining whether the post-remodel value increases by the statutory threshold. She also noted the administrative rules treat the application and permit timeline in a specific way: an application should be filed prior to completion of a building permit or commencement of construction, and the DOR typically performs a site determination.

"Part of the process contemplates a response from the DOR; they are who will make the determination," County Attorney Morgan Smith said, adding that the county has 120 days from receipt of the application to approve or deny it and that the commission's statutory decision date falls toward the end of June.

CEO Bill Everett and multiple commissioners raised concerns that approving one residential exemption could set a precedent and questioned how the county would distinguish between homeowner projects and larger infrastructure or commercial projects that the CFO and other counties have treated differently. Hoiland said he had consulted other treasurers who told him the exemption is typically used for larger projects and infrastructure-type incentives rather than routine household remodels.

The required public hearing was opened at 6:18 p.m. and closed at 6:19 p.m.; no members of the public spoke. Commissioners agreed, under the pleasure of the commission, to re-list the item on a future work-session agenda to allow staff to gather DOR guidance and clarify whether building permits existed and whether construction had begun. Chairman Kevin Hart noted the commission has three business meetings before the statutory deadline and expected the item to appear on a June 2 or June 16 agenda for further action.

Next steps: staff and the county attorney will seek DOR input on the valuation determination and verify permit records; the commission will revisit the application at a future meeting prior to the June 26 decision deadline.