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Bill would shorten property appraisal cycle

Jim Mann | Hagadone News Network | UPDATED 11 years, 7 months AGO
by Jim Mann
| April 11, 2013 10:00 PM

A bill that would convert the state’s property appraisal cycle from six years to every two years is advancing in the state Legislature, and Sen. Bruce Tutvedt, R-Kalispell, is confident it will pass largely because of recent court decisions pertaining to the appraisal system.

Tutvedt, the primary sponsor of Senate Bill 398, said three recent district court decisions are basically calling for the shorter appraisal cycle, but the Department of Revenue is appealing them in the Montana Supreme Court.

The common denominator of the decisions, Tutvedt said, is “the ability exists to do tighter appraisal cycles. It’s technologically attainable at this time.”

And Tutvedt thinks the Department of Revenue will not prevail in its appeals because the department cannot deny that the shorter appraisal cycle is technologically possible.

The bill would clear the way for the Department of Revenue to use aircraft equipped with oblique imaging technology to monitor properties, comparing images from prior appraisal cycles.

If a person built an addition on a home, the imaging would capture the improvement. Department of Revenue personnel would continue on-site appraisal inspections of properties every six years, as they have done in the past.

Although the bill comes with an up-front cost of about $4 million, Tutvedt said the annual cost would average out to about half the annual cost of the six-year appraisal system.

“We hope over time to make it even more affordable through technology,” Tutvedt said.

The bill is partly the product of work an interim legislative committee did last year, but it also has support from Democratic Gov. Steve Bullock and adjustments made by Tutvedt to simplify the appraisal process.

The last appraisal came out in 2008, and the next will come out in 2014. If the legislation passes, the next appraisal will be in 2016 and every two years thereafter.

The 2008 appraisal cycle drew considerable criticism, particularly in the Flathead Valley, because many property owners contended that appraised were far above actual market values that were depressed by an economic recession.

Tutvedt said his legislation is coming about with good timing, because market values have been “evening out” with 2008 appraised values.

“We are in a unique time because I think the values across the state, the 2014 values, will be very close to the 2008 values,” he said.

Tutvedt contends that the two-year cycle “will be much more transparent and more clear to the taxpayer.”

The bill cleared the Senate with an odd 28-1 vote April 5, the day Democratic senators attempted to block two referendum bills pertaining to voting. It was announced that Sen. Shannon Augare, D-Browning, was not present, and the Democrats would not vote to excuse him — a parliamentary move to stall floor votes. April 5 was the deadline for voting on referendums and tax bills.

Republicans chose to continue voting on bills, and as they did so, Democrats shouted and pounded on their desks.

Tutvedt said Senate Bill 398 got caught up in the mix.

“They were yelling and screaming and we were voting,” Tutvedt said, adding that the 28 votes for Senate Bill 398 were enough to legally pass it.

Had it been stalled, Tutvedt said the Legislature most likely would have had to return for a special session to pass the bill because court decisions on the appraisal process would require it.

“It’s my belief the state will lose [on appeal], and we would be back for a special session,” he said.

Senate Bill 398 has a hearing before the House Taxation Committee today.

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