The Flathead County Board of Commissioners on Jan. 24 voted unanimously to amend the amount collected of a statewide school equalization tax for the 2023 fiscal year, returning the amount the county collects to the annual standard of 95 mills.

The commissioners in October voted to reduce the tax amount to 77.9 mills after an unprecedented spike in property values drove an increase in taxes. The county was forced to reverse course and collect the full 95 mills following a November Montana Supreme Court ruling stating that Montana’s 56 counties must collect the full tax amount per a directive by the state.

After an influx of new residents flocked to Montana during the pandemic, fundamentally reshaping its housing market, the median residential property value in the state rose by 46% between 2021 and 2023. The median residential property value increased by 45% in Flathead County; 54% in Glacier County; 59% in Lincoln County; and 44% in Lake County.

Due to the statewide spike in property values, the state’s school equalization levy, which distributes educational funds between tax base-rich and tax base-poor school districts, is set to bring in an additional $99 million in revenue for the 2024 fiscal year.

Citing concerns over rising tax bills, 49 of Montana’s 56 counties this fall collected 77.9 mills, rejecting an order from the Department of Revenue and the Gov. Greg Gianforte administration to collect 95 mills in spite of rising property values.

“Flathead County is not raising property taxes. Residents will pay the amount originally due under 95 mills, with the balance being added to the second payment due in May,” the press release stated.

Flathead Beacon: County to Collect Supplemental Property Taxes Following Court Ruling on 95 Mills