Commercial & Business Property
Montana Commercial Property Tax Appeals
Office, retail, industrial, multifamily, and special-purpose buildings in Montana are frequently over-assessed. Here's how commercial assessments work, the deadline to challenge yours, and what it takes to win.
How commercial is assessed
Montana reappraises on a two-year cycle and applies class-specific tax rates. Commercial value is market-based; a reappraisal jump is the usual appeal trigger.
Burden of proof
The property owner (or their authorized agent) bears the burden of proving the assessment exceeds market value. The assessor's value is presumed correct until rebutted with credible evidence.
Key to a Montana commercial appeal: AB-26 informal review first
File an informal AB-26 request with the Department of Revenue, then the County Tax Appeal Board. Reappraisal years are when commercial values move most.
Montana Filing Deadline & Where to File
File With
County Tax Appeal Board, then State Tax Appeal Board
Deadline
Within 30 days of notice (or by first Monday in June for AB-26 review)
Window Opens
After classification and appraisal notice
Typical Duration
2–6 months
Montana reappraises on a 2-year cycle. Tax rate varies by property class. Informal review (AB-26 request) to Department of Revenue first.
How commercial value is proven
Income-producing commercial property is usually valued by capitalizing net operating income (NOI ÷ market cap rate). The strongest appeals come with a clean rent roll, a trailing-12-month operating statement, current vacancy, and market cap-rate support. Where the property is owner-occupied or special-purpose, the cost and sales-comparison approaches carry more weight.
Evidence that wins a commercial appeal
- Current rent roll and a trailing-12-month operating statement
- Actual vacancy and collection loss (vs the assessor's stabilized assumption)
- Market capitalization rate support for the property type and submarket
- Recent arm's-length sales of comparable commercial buildings
- Evidence of physical, functional, or economic obsolescence
- Any change in use, tenancy, or condition since the assessment date
How to appeal a commercial assessment in Montana
- 1Pull the assessment — confirm the assessed value, the assessment ratio/class, and how the assessor derived it (income, cost, or sales).
- 2Build the valuation — capitalize actual net operating income and gather comparable sales to establish market value as of the assessment date.
- 3File before the deadline — submit to County Tax Appeal Board, then State Tax Appeal Board by Within 30 days of notice (or by first Monday in June for AB-26 review), with the authorization signed by someone able to bind the owning entity.
- 4Present at the hearing — commercial hearings are evidence-driven; a clean income approach and credible comps carry the day.
Think your Montana commercial property is over-assessed?
We pull the assessment, build the income-approach case, and file the appeal. Fee: 20% of first-year savings — only if we win. Nothing upfront, and the reduction can hold for years.
Assessment ratios, class rates, and deadlines in Montana are set by statute and can change year to year, and often vary by county or municipality. Verify current figures and dates with your county assessor or clerk of the board before filing. This page is general information, not legal or tax advice. TaxedFairly is a product of WebLab LLC.