What Do My Taxes Pay For?

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Understanding How Your Property Taxes Are Determined

Missoula County hears from residents regularly about the pressure of property taxes and understands this will be a difficult tax year for many people. We also know there is a lot of confusion and concern about property taxes and a lot of misinformation about how your tax bill is calculated. The number you see on your property tax bill is the result of complex combination of decisions made at the state and local levels. Below is a brief overview of this process and which agency is responsible for what.

Property reappraisals

The state Department of Revenue (DOR), not Missoula County or the City, calculates residential property appraisals and sends out notices to property owners across the state. Local governments are not involved in this process. 

2023 is a reappraisal year, and property owners in Missoula County experienced an average 36% increase in property values. This process occurs every two years, and those increase compound with each cycle. (For those who have lived here for a long time, every two years may seem frequent. That’s because it is – until 2015, DOR appraised property every six years.)

This historic increase in appraised property values means that, even if County taxation had remained steady or decreased in terms of inflation, most homeowners would still see their taxes go up. 

Tax rate

There are more than 16 different classes of property in Montana, which includes a class for residential. Each of those classes pays a different tax rate. The state Legislature sets these tax rates, and historically has adjusted these rates when residential values increase substantially. This year, the Legislature had the option to lower the tax rate on residential properties from 1.35% down to .94%, but chose not to, even with the substantial increase in residential property values. For example, if the tax rate had been adjusted to .94%, it would have saved the owner of a $500,000 house $350 in taxes paid to the County alone.

County budget

The County sets its budget first, which then determines what we'll levy in taxes – not the other way around. Every year, Missoula County goes through an extensive public process to determine the budget for the following fiscal year. Each department presents the costs of maintaining current operations and services, as well as any requests for new money that would improve these services. The commissioners then weigh the benefits of providing these new services with any impact on taxpayers. They also must work within the confines of state law that limits annual property tax increases to half the rate of inflation from the previous three years. Following public hearings, they vote on whether to adopt the final budget.

While the budget determines property taxes, it’s important to note that only about one-third of the County’s budget comes from property taxes, so an increase in the budget does not necessarily correlate to the same increase in property taxes. The County strives to leverage grants, fees and other outside revenue as much as possible to minimize the need for additional funding from property taxes.

Learn more about the County’s FY 24 budget

Tax collection

While you may write a check to Missoula County, not all of those taxes come to us. Missoula County collects and distributes taxes for all taxing jurisdictions within the county, and much of the taxes you see on your tax bill support jurisdictions other than the County, such as the City and schools, as well as special districts that provide fire protection, public transit and other services. Each of these jurisdictions has their own budget process that determines how much they will levy in property taxes. 

What Do All These Taxes Pay For, Anyway? 

So you got your tax bill in the mail, and now you're wondering 'what are all these taxes for, anyway?" While often invisible until you need them, county government provides a range of services, from protecting public safety and paving and plowing roads to running elections and answering 9-1-1 calls. Each line item you see on the County portion of your tax bill helps fund these and other essential community services.

Click on the fund name to find out what County services it helps pay for. (Note that the descriptions below only include the Missoula County taxes you pay, not taxes that go to other jurisdictions.)

Find your tax bill online at https://itax.missoulacounty.us/itax/.

Capital Improvement
Childcare Provider Training
Community & Planning SVC
Community Assistance Fund
Community Justice Department
County Aging Services (Voted)
County Extension Service
County Fair
County H.D. Animal Control
County Health Dept
County Historical Museum (Voted)
County Library (Voted)
County Mental Health Treatment
County Parks & Recreation (Voted)
County Permissive Medical Levy
County Prop & Liab Ins
County Public Safety Fund
County Public Works Bridges
County Public Works Road
County Search/Rescue (Voted)
County Substance Abuse PR (Voted)
County Technology Fund
County Weed Control (Voted)
County/City Planning
Detention Center
District Court
Elections Center
General Fund
Grants and Community Services
Judgement Levy 2019 & 2022
Library GO Bonds (Voted)
LTGO 2017 Bonds
Permissive Medical - Rural
Search/Rescue Seeley (Voted)