Personal Property Tax Montana has no sales tax. The city of Billings, Yellowstone County, and School District #2 collect property taxes in the Billings area. The State of Montana also collects a property tax which is used to fund the state university system and equalize per student costs statewide. County government and all schools are funded primarily by the property tax. Approximately 65 cents of every property tax dollar goes to education.
All property, except agricultural land, has an assessed value equal to its market value as determined by the Department of Revenue. Agricultural land is valued based on its productive capacity.
The actual property tax is a function of the taxable value of the property and the total mill levy. Taxable value is determined by applying a property class percentage to the assessed value. The taxable value is multiplied by the mill levy resulting in the tax due. Mill Levy and Property Classes may change annually.