Broadwater to Levy Full 95-Mill
 | Author:
MT43 News Staff Reporter
Nancy Marks: MT43 News Secretary and News Editor |
Broadwater to Levy Full 95-Mill
MT43 News Staff Reporter
Broadwater County commissioners voted unanimously to levy the full state school equalization property tax of 95 mills but hold back from the state over $460,000 until legal wrangling plays out in court. The commission took the action at its regular weekly meeting Wednesday, Oct. 11 on the recommendation of County Attorney Cory Swanson.
The tax has become a huge issue over the past several weeks with reportedly more than half of Montana’s counties resolved to levy only 77.89 mills. Also on Oct. 11, the Montana Supreme Court became involved, ordering all 56 of Montana’s counties to respond within 30 days to a lawsuit aimed at requiring all counties to levy the full 95 mills. Gov. Greg Gianforte’s administration claims the 95 mills is legally correct and has sued Missoula County for enforcement.
Swanson recommended to the commissioners that they levy the full 95 mills, which would bring in a calculated $2,591,505, but as taxes are paid the county would send to the state the proportional equivalent of only 77.89 mills, which calculates to $2,124,761. This could leave the county withholding from the state $466,744. Then, should the courts ultimately rule in the state’s favor, the county would have the money to simply pay it off. But if the courts rule the other way, the county will owe the sum to its property taxpayers.
The equalization tax is collected by counties on behalf of the state and is used by the state to provide a level of public support for students in tax-poor school districts from kindergarten through grade 12. It has been on the books at 95 mills for decades.
The lawsuit in the Supreme Court case was filed by the Montana Quality Education Coalition as a petition for a writ of mandate. It asks the high court to require all counties to levy 95 mills in the current fiscal year which started July 1. The organization contends that if counties levy fewer than the 95 mills directed by the state Department of Revenue, school districts will lose millions of dollars. On the other hand, the Montana Association of Counties (MACO) argues that state law limiting the growth of property taxes puts a cap of 77.89 mills on the equalization levy.
Opponents of the 95-mill amount claim that reducing it to 77.89 mills will have no impact on public school funding because the money generated by the tax goes into the state general fund and is subject to appropriation by the legislature. “The schools will still receive the same amount of money they have been appropriated in the past,” MACO’s board wrote in an Oct. 4 letter to Gianforte. “We urge you to take your projected 20 percent increase in revenue year-over-year and make do with what you have.”
In his presentation to the commissioners, Swanson said the law is unclear and he speculated that the courts could rule either way. County Treasurer Melissa Franks emphasized the need for her to mail property tax bills before the end of October to give payers at least 30 days to make payments. First-half payments are due by Nov. 30 and the second half by May 31. If it turns out that the 77.89 amount prevails, Franks suggested the county could refund the excess collected from the 95 mills billed by reducing the second-half payments. She said this would require sending both a letter and a new bill to property taxpayers.
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PhotoCredit: Cory Swanson
Image 1 Caption: County Attorney Cory Swanson
