In the summer of 2023, the announcement of new, higher taxable values on many Montana homes kicked off more than a year of questions and concerns about the effects on property taxes. Now, leaders say residential property values are likely to jump again next year though they caution the numbers are far from final.Every two years, the Montana Department of Revenue conducts a reassessment of property values across the state, to take into account things like improvements to the property and changes in the real estate market. Those updated values then determine the taxable value on each property. The next reassessment is scheduled for 2025.On Monday, a Revenue Department economist presented lawmakers on the Revenue Interim Committee with an initial projection for how statewide taxable values might change next year. They said the total taxable value for residential property statewide could increase 21%, the value for commercial property could grow 8% and the value for agricultural property could grow 5%. That means, if tax rates stay as they are, residential properties will bear a larger share of the property tax burden. However, department director Brendan Beatty told MTN you shouldnt take those numbers as set in stone.It's too early, he said. These are very, very preliminary numbers. The department isn't anywhere near done finalizing its valuations of the near-1-million pieces of property in Montana that we have to appraise.The department is required by state law to make this presentation to the interim committee, but Beatty said the timing of the presentation means theres still a lot that could change. In fact, the department hasnt even finalized its models for completing the reassessment.Beatty said it is likely that residential property values are going to rise again, as they did in 2023. One reason is that the new values based on what they would have been Jan. 1, 2024 will account for things like property sales in 2022 and 2023.If the values were still increasing during those years, then that will be reflected in the trend, Beatty said. But again, whether or not the statewide average is going to be 21% when these numbers are fully vetted and cleaned up remains to be seen.Theres also great variation across the state. Revenues projection showed Madison County would see the largest estimated change in market value, at 38%. Many of the other counties with the largest projected increases are in eastern Montana, whereas many western Montana counties saw the biggest increases in 2023. Gallatin County, one of the areas with the largest 2023 spike, has one of the smallest projected 2025 jumps just 10%.Some of our more rural counties did increase in value, but later than the more well-known areas in western Montana, said Beatty.Whatever the final increase in property values, its important to note it wont mean that taxes will increase by the same amount. Local governments will adjust their property tax mill rates down if their taxable value increases, offsetting some of the rise in taxes.In addition, there may be more substantial changes to how property taxes are calculated during the upcoming Montana legislative session. Gov. Greg Gianforte has proposed a homestead exemption, which would raise the base tax rate for residential and commercial property, then provide lower rates for Montanans primary residences, long-term rentals and small commercial properties.I would be surprised if something didn't change in the 2025 session, said Beatty. What it will be and what the final product is, I'm not going to speculate, but I doubt it will be the same that that we're looking at right now.Property owners can expect to see their updated assessment notices in the summer.