Montana Legislature Approves Property Tax Rebate and Rate Adjustments for Fiscal Year 2026

In a recent public meeting held by the Missoula County Board of Commissioners, significant discussions centered around property taxes and their implications for local residents. The meeting, which took place on July 24, 2025, highlighted the complexities of property tax determination and the recent legislative changes affecting tax rates.

Commissioners reminded attendees that property taxes are influenced by both local and state regulations. The value of properties is assessed by the Montana Department of Revenue, and residents are currently receiving notices regarding these valuations. The tax rate, which varies by property class, is set by the state legislature and has undergone notable changes this year due to new legislation.

One of the key updates is the introduction of a one-time $400 rebate for residents who have owned their primary residence for at least a year. This rebate aims to alleviate some of the financial burden associated with property taxes. Additionally, tax rates for residential and commercial properties have been adjusted. For the fiscal year 2026, the tax rate for properties valued up to $400,000 has decreased from 1.35% to 0.76%. For properties valued between $400,000 and $1.5 million, the rate is set at 1.1%, while properties exceeding $1.5 million will be taxed at 2.2%.

These changes are part of a phased implementation over two years, meaning residents can expect fluctuations in their tax bills as the new rates take effect. The commissioners emphasized that the current budget being presented is a base budget, which includes necessary increases in contracts and personnel costs to maintain existing services without introducing new programs.

As the county awaits certified taxable values from the state, the budget assumes no new revenue from newly taxable properties, despite anticipated growth in property values. This cautious approach reflects the county's commitment to transparency and fiscal responsibility as it navigates the evolving landscape of property taxation.

The discussions from this meeting underscore the importance of understanding property tax dynamics and their direct impact on the community, as residents prepare for the upcoming changes in their tax obligations.