Local legislators got a taste of the Flathead Valley’s anger and confusion about the latest round of property reappraisal last week, as more than 120 property owners gathered for a “town hall” meeting in Bigfork.
Rep. Scott Reichner, R-Bigfork, said the meeting was a venue for residents to air their frustrations about reappraisal, but also to offer solutions. Many people said they were on a fixed income and the state’s assessment increased their property values by unmanageable percentages.
Throughout the meeting, the crowd’s palpable anger was directed at various people seated at the head table, which included Reichner, Rep. Mark Blasdel, R-Somers, Rep. Keith Regier, R-Kalispell and Sen. Verdell Jackson, R-Kalispell. Scott Williams, the regional manager for the Department of Revenue, was also present.
Many landowners said they owned lakefront property, which saw some of the highest value increases during the real estate boom over the last six years.
Dennis McDowell, a Flathead Valley landowner who said his property value has gone up over 400 percent, focused on the responsibilities of local lawmakers. He said that mitigation is not working and instead of placing the blame on the other side of the aisle, elected officials need to come up with a new solution.
“We didn’t hire you to sit back and not solve the problem,” McDowell said.
McDowell also told lawmakers it is unfair that seasonal residents get the same tax breaks as those who live in the valley year round, garnering applause from the crowd.
“We make the community,” McDowell said. “You guys gave us no consideration, none whatsoever.”
The state Constitution requires that all property values must be reappraised every six years, which can cause a jump in property taxes. The Legislature usually answers with mitigation legislation to stave off tax increases, but some property owners are bound to see increases as land values go up.
Residential land values in Flathead County increased by 73 percent in the last six years – a large jump compared to the state average of 55 percent. For residents on a fixed income, a sudden increase in property values could mean losing their homes, Reichner said.
“When we’re taxing people out of their homes, that’s morally wrong,” Reichner said.
Reappraisal is usually a contentious issue for politicians and this year was no exception. Rep. Mike Jopek, D-Whitefish, initially carried the reappraisal mitigation bill during the legislative session, but ended up voting against it. Jopek sent a letter to the Bigfork meeting, saying Senate Republicans are to blame for the current increases because their version of the bill didn’t do enough to mitigate the tax increases.
Blasdel agreed that the reappraisal process is not working, but he said pointing fingers across the aisle would not solve anything.
“I’m disappointed at the political food fight it has become,” Blasdel said. “I realized there was going to be some (property value) increases, but nowhere near what we see today.”
The meeting was eventually steered toward finding solutions. The crowd’s initial suggestions were to create legislation to cap property taxes or to change the mitigation system to include safeguards for the elderly or the poor.
As the two-hour meeting wore on, however, the idea of a class-action lawsuit against the state Department of Revenue began to gather steam. Several landowners stood to support the idea and said they plan on launching a Web site soon. The idea, they said, would be to tie up their property taxes in litigation to force the state to pay attention to their concerns.
Reichner said litigation is one option, along with legislation or a ballot initiative to change the Montana Constitution’s laws on reappraisal. Jackson, who voted for the current reappraisal legislation in the Senate, championed the idea of a constitutional amendment.
“People are concerned about their freedom,” Jackson said. “We can change the constitution to protect our freedom.”
Other proposed solutions from the crowd included replacing all current lawmakers; getting rid of the tax system all together and adopting a flat tax; allowing a higher carbon dioxide particulate count in Montana and develop more coal to take pressure off landowners; and to force the state to buy property from landowners at the appraised price if the landowner can’t pay the taxes.
The lawmakers said they were there to work with the property owners on a solution. And despite the crowd’s outward antagonism, Reichner said he considered the meeting a success. He plans on organizing a larger one at the Flathead County fairgrounds to hear from the rest of the county. That meeting should take place within the next three weeks, Reichner said.
“People are anxious to make a change,” Reichner said.