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Bozeman commission converts voted mill levies to dollars, sets FY2026 property tax rates to fill budget gap
Summary
Facing an estimated $1.77 million shortfall after state changes to tax rates, the Bozeman City Commission voted 4–0 on Aug. 19 to convert voted fixed mill levies to dollar-based levies, repeal a 2006 restriction on future commissions, and set FY2026 mill levies while holding some mills unassessed and directing staff to make budget reductions.
The Bozeman City Commission on Aug. 19 approved a three-part package to respond to changes in state property‑tax law that reduced the city’s mill value and created a projected general‑fund shortfall.
City Manager Winn and Finance Director Melissa Huttman told the commission the legislature’s recent tax changes reduced the value of a mill in Bozeman from roughly $245,000 to about $218,000 and that the shift produces an estimated $1,770,000 shortfall affecting city services—principally police and fire staffing.
“The bottom line is that the value of a mill in the city has decreased from about $245,000 to about $218,000 due to the changes made by the legislature,” Finance Director Melissa Huttman said. She presented two treatment options for…
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