Sign in Subscribe
Local government

Calumet's Tax Dispute Leaves Local Governments in Tough Spots

Strategic Insights

— 2 min read

Great Falls Public Schools will likely request the tax proceeds from Calumet, its largest taxpayer, at the risk of paying back some of the money later. Calumet has challenged its state property valuations for 2022, 2023, and 2024, paying at least $6.5 million in property taxes in protest. This money is held in escrow until the company's appeals with the Montana Department of Revenue are resolved. The disputed property valuations have put local governments in a difficult position, as they have had to budget around the missing revenue.

Key Takeaways:

  • Calumet has challenged its state property valuations for 2022, 2023, and 2024, resulting in at least $6.5 million in property taxes being held in escrow.
  • The money would have otherwise gone to local governments, but they have had to budget around the missing revenue.
  • Great Falls Public Schools will likely request the tax proceeds from Calumet to avoid a budget deficit.
  • Calumet's tax appeal cases are awaiting hearings before the Montana Tax Appeal Board in May 2026.
  • The city of Great Falls has opted to budget around the expected revenue from Calumet, missing out on $1.1 million in 2024 and $662,000 for the 2025 budget.
  • Calumet and its subsidiary, Montana Renewables, are still major taxpayers with multi-million-dollar property tax bills.
  • The appeal process is available to any property owner, and local officials have acknowledged the balance between budget implications and Calumet's status as a major taxpayer and employer.
  • Calumet has received four kinds of tax breaks, with one additional still under review for Montana Renewables, and can also benefit from federal biofuel production tax credits.

Statistics:

  • $6.5 million: the amount Calumet has paid in property taxes in protest
  • $1.1 million: the amount the city of Great Falls missed out on in 2024 due to the tax protest
  • $662,000: the amount the city of Great Falls missed out on for the 2025 budget
  • $675,340: the school's share of the protested taxes this year
  • $16.9 million: the original tax liability of Calumet for 2017-2019
  • $11 million: the amount Calumet settled for in 2020
  • $224 million: the state's initial appraisal of the refinery's value in 2024
  • $115 million: the company's argument for the refinery's value in 2024
  • $299 million: the state appraisal of the refinery's value in 2023
  • $100 million: the company's argument for the refinery's value in 2024
  • $67 million: the value of the equipment at Montana Renewables that was given a full tax exemption

Sources:

  • Montana Free Press
  • Great Falls Tribune
  • Cascade County Treasurer's Office
  • Montana Department of Revenue
  • Montana Tax Appeal Board
  • Browning, Kaleczyc, Berry and Hoven (law firm)
  • Steve Fitzpatrick (Great Falls legislator)
  • Kim Beatty (Calumet's lead attorney)
  • Brendan Beatty (Director of the Montana Department of Revenue)
  • Scott Mendenhall (Deputy Director of the Montana Department of Revenue)

Read more