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Inflation Factor for Mill Levy Calculation for FY 2013


Posted Date: 
April 11, 2012
Contact: 
Todd R. Reveley, Economist, Montana Department of Revenue

Mill Levy Computation Form

The inflation factor for FY 2013 is 1.20%.  Per 15-10-420, MCA, “a governmental entity that is authorized to impose mills may impose a mill levy sufficient to generate the amount of property taxes actually assessed in the prior year plus one-half of the average rate of inflation for the prior 3 years.”

Additionally, the Department of Revenue shall, “calculate one-half of the average rate of inflation for the prior 3 years by using the consumer price index (CPI), U.S. city average, all urban consumers, using the 1982-84 base of 100, as published by the bureau of labor statistics of the United States department of labor.”

One-half the average rate of (compounding) inflation was determined by dividing the (U.S. All items, 1982-84=100 - non-seasonally adjusted) CPI for December 2011 (225.672) by the CPI for December 2008 (210.228), cubing the quotient, subtracting one, and multiplying the result by 50%.

One-half the average rate of inflation = (((CPI 2010 / CPI 2007) ^ (1/3)) – 1) * 50%
(((225.672 / 210.228) ^ (1/3)) – 1) * 50% = 1.20%

If you have any other questions, please feel free to contact me by way of email at treveley@mt.gov or by phone at 406-444-6634.

Download the Mill Levy Computation Form Here

Todd R. Reveley | treveley@mt.gov | (406)444-6634