MISSOULA - Missoula city and county officials are providing information to help explain more about the property reappraisal notices that people have recently received in the mail.
The new set of property valuations is causing heartburn for homeowners across Montana, with proposed property taxes hovering around a 40% increase for 2023.
Below is information provided by Missoula city and county officials.
- The state Department of Revenue (DOR), not Missoula County or the City, calculates residential property appraisals every two years and sends out notices to property owners across the state. Local governments are not involved in this process.
- 2023 is a reappraisal year. Residents will receive notices in the coming weeks with the updated appraised value of their home or property. Click here to see an example of an appraisal notice.
- This process occurs every two years. For those who have lived here for a long time, that may seem frequent. That’s because it is — until 2015, DOR appraised property every six years.
- However, this left homeowners vulnerable to market busts, like the 2008 recession. In the early 2010s, Montana homeowners were paying high taxes on houses whose values had dropped significantly.
- So, the Legislature approved a new two-year reappraisal cycle to protect taxpayers from market volatility. But this pendulum swings the other way with a market boom, like we have seen since mid-2020.
- The County and City have control over how many mills we levy, with limitations (sometimes referred to as the mill cap). When overall property values in an area increase, so does the value of a mill, which is the unit of measurement local governments use to levy taxes. When a mill is worth more, it means a local government can levy fewer of them to bring in the same amount of revenue.
- The estimated taxes you see on the DOR notice are based on the number of mills levied last year. Because appraisal values will be much higher this year due to the real estate market and other factors, mill values will also be higher. This means Missoula County and City may be able to levy fewer mills, so the increase to the County and City portion of your taxes will be less than the estimated amount on your DOR notice.
- Missoula County Public Schools operate under a different system that does not use mills; they instead levy to a specific dollar amount. Property values do not affect how much a school district can levy. Additionally, MCPS is a local agency separate from the City and County.
Frequently Asked Questions
My assessment isn’t correct, or I do not agree with the assessed value. Who do I contact?
You can view your property record card, which shows the characteristics, buildings and other details online. File an appeal as soon as you receive your notice; do not wait until you get your tax bill in the fall, because by then it’s too late. There are two ways to file an appeal:
- By submitting a Request for Informal Classification and Appraisal Review (Form AB-26) to DOR online at mtab.mt.gov/appealform.
- By appealing directly to the local County Tax Appeal Board (CTAB). In Missoula County, you can fill out that application online at mtab.mt.gov/appealform.
What are the City and County spending tax money on?
- Taxes fund numerous critical community services, from 9-1-1 and law enforcement to roads and other infrastructure. Click here to see a breakdown of how your property taxes are spent.
- Residents can have a say in how tax dollars are spent by getting involved in the City and County budget process this summer. Again, don’t wait until you get your tax bill in October; by then it’s too late.
- The County will hold public hearings throughout the budget process in July and August. Check missoulacountyvoice.com this summer for information on how you can get involved. City budget process follows this same timeline. Visit engagemissoula.com for more information.
- For more information on the County budget, visit missoula.co/budgets. The city’s budget website is ci.missoula.mt.us/109/Budget.
When will I know how many mills the County and City will levy for 2024?
The number of mills (also called the millage rate) is determined along with the final budget for fiscal year 2024. Both City and County budgets are finalized by mid-September. Budget hearings are open to the public.
Why has the County portion of my property taxes gone up so much recently?
County property taxes include both non-voted levies like the general fund (which includes dozens of departments, from 9-1-1 to the Elections Office) and countywide voted levies, which are approved by residents during an election. Since 2013, voters have approved levy requests like the 2014 Parks & Trails Bond, the 2016 Library Bond and the 2022 Missoula Aging Services levy. As these levy requests are countywide, they increase the county portion of your taxes.
Additionally, as the County population grows, there is an expanded need for services. Missoula County also is the only urban county in the state that has just one incorporated municipality. This means Missoula County is responsible for providing services to all residents outside the City of Missoula, which differs from counties with multiple incorporated towns or cities, which levy their own taxes to provide essential services. These factors, plus market changes within the last 10 years, can help explain the increases.
I have questions about my reappraisal notice. Who can I talk to?
Call the Montana State Department of Revenue at 406-329-1400.
