GREAT FALLS — Tax protests by Calumet Montana Refining have left nearly $2 million in escrow that Great Falls Public Schools counted on during recent budget cycles.
When companies protest their property taxes in Montana, the Department of Revenue holds the money in escrow until the case is resolved. Local governments and schools can request to use those funds in the meantime, but if the state later rules in favor of the taxpayer, counties may have to refund part of the money. That could lead to a special levy on other taxpayers to cover the difference.
Aneesa Coomer reports - watch the video:
Business Operations Director for the Great Falls Public School District Luke Diekhans says the immediate impact on classrooms is limited because the district can still access escrowed funds. But the long-term challenge comes once the Department of Revenue issues a final valuation.
He explains, “Where it's going to affect the district is when the protests, the taxes, that process comes to an end and a settlement is reached. That's the point where we have to work with the county very closely on what the amount is going to be - the difference - that's going to have to be levied through a permissive levy with the county to all the other property owners out there to balance it up.”
Calumet emphasized that it has continued to pay its full tax obligations while pursuing appeals for the 2022, 2023, and 2024 tax years.
According to Calumet, their total tax bill between Calumet and Montana Renewables has gone up nearly tenfold since 2012, jumping from $1.4 million to $9.9 million in 2024.
From 2021 to 2024, their production remained the same, while their taxes nearly doubled. Calumet says that is not a sustainable rate of inflation, and is protesting around $8.2 million in taxes during that time, of that total, about $1.875 million affects GFPS directly.
Calumet provided MTN News with this statement:
Montana Department of Revenue did not value our business correctly and the appeal seeks to correct that. Our total tax bill has gone up almost tenfold since we bought the refinery in 2012. That is not a sustainable rate of inflation for us, or for anybody.
We understand that property valuation, especially for complex industrial facilities, is challenging. We have every sympathy for DOR’s assessors. However, when the DOR’s standardized methods don’t reflect the realities of specialized infrastructure and market conditions, the appeals process uses third party experts to correct the unfairness.
Finally, we have more than tripled employment since we bought this business in 2012, and the University of Montana’s Bureau of Business and Economic Research says we support an estimated 3,100 regional jobs through indirect economic activity. We are proud to be such an impactful part of the Great Falls community and economy.
We hope the conversation can move beyond “why isn’t Calumet paying more” to a more balanced dialogue about how business taxpayers, school districts, local governments, and the state can work together to ensure sustainable funding for essential services without relying disproportionately on any one entity.
School leaders say they recognize Calumet’s role in the community and economy, but remain cautious in their planning until the appeals are resolved.
Diekhans says, “I think what the community doesn't see is that there are other small individuals that maybe do protesting in taxes each year. They don't have the same effect as a company like Calumet, but we just continue to work with them. They're also a partner of ours, we understand they have a business model they need to follow and do what they can do for their business. But we also have to be proactive for our district to make sure we're getting what we need for our students to educate.”
For families in Great Falls, that means schools will continue to operate as normal, but the uncertainty over how much taxpayers might eventually need to contribute remains until the state issues a final decision.
