BILLINGS - A West End Billings homeowner says a simple mistake in state property records led to years of higher property taxes and she now believes other homes in her neighborhood may have been affected, too.
Melissa McCroskey discovered the issue while preparing to sell her home in the Copper Ridge subdivision.
“We really have loved this house,” she said. “We are selling it, but we really have loved this house.” McCroskey said.
The error, she later learned, stemmed from a simple mistake in state property records with the Montana Department of Revenue.
The agency released a statement regarding the issue on Tuesday, stating it had reviewed its records and "already issued revised notices."
Watch: Billings woman describes how she found an error in her property valuation:
McCroskey was told an assessor checked a box indicating the home had an additional story, inflating its recorded square footage and taxable value.
For the McCroskey family, the house has been more than just property.
“This is our little bubble that we created out here,” McCroskey said. “We have two kids; we have two middle schoolers.”
But while preparing the listing, something caught her attention.
“We went to list the house and my realtor, and I were looking at all the details,” McCroskey said.
The home was built just three years ago, and she initially assumed the property records were correct.
Then she noticed the square footage listed by the Montana Department of Revenue.
“Our house was being listed as if it was almost 5,000 square feet, and we are definitely not 5,000 square feet,” McCroskey said.
The Department of Revenue reassesses home values every two years using sales data, property details, and market trends to determine taxable value.
McCroskey’s corner-lot home is a single-story house with a walkout basement.
But according to state assessment records, it was classified differently.
“And we realized that our house was actually being taxed as it was three stories,” McCroskey said.
After struggling to get the issue corrected, she reached out to her local legislator, Rep. Nelly Nicol.
“It was a surprise. It was not something I ever thought of.” Nicol said.
Nicol said she contacted the Department of Revenue to flag the issue.
“Within 48 hours they had already contacted Melissa and gave me the progress on what changes they were going to make,” Nicol said.
According to McCroskey, the problem came down to a simple mistake during the property assessment.
An assessor had checked a box indicating the home had a second story, significantly increasing the home’s taxable value.
But the discovery didn’t stop there.
“I started looking at other houses,” McCroskey said.
As she reviewed nearby homes with similar layouts, she noticed something concerning.
“And I found other house, so two more not just us, just on our block,” McCroskey said.
Now, as she waits for a property tax refund, McCroskey and Nicol are encouraging homeowners across Montana to review their property records carefully.
“I would really urge everyone go to the DOR website and check in on your property - you have the proper square footage, everything looks good, acreage is correct and find those numbers and double check,” Nicol said.
In a statement released to MTN News on Tuesday, a Department of Revenue spokesperson said the agency had reviewed McCroskey's appraisal records and issued revised notices to three properties.
Here's the full statement:
“After reviewing the appraisal record, a data entry error was identified that affected the total square footage calculation. When the property was classified as a 2-story home, our system’s processing rules automatically assigned the same square footage as the first floor. We have already issued revised notices to three homeowners and are currently reviewing seven additional properties for accuracy. Our goal is to ensure every Montana homeowner is taxed fairly based on accurate data. We’ve implemented a new verification step to identify any properties that may need additional review and correct any discrepancies before they impact a homeowner’s assessment. We are also improving training to reduce the likelihood of this occurring in the future.”
