Property Reappraisals: An Explainer
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.
Odd years, like 2025, are reappraisal years. Property owners receive notices in June 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.
FAQs
Multiple jurisdictions use property taxes to generate revenue they require to operate. These include: the State of Montana, City of Missoula, Missoula County, Missoula County Public Schools and all the other rural school districts across the county, the rural fire districts, Rural Special Improvement Districts, and sewer and water districts. When you pay property taxes, you pay one bill to the County, but that bill gets divided up among all those jurisdictions. Each jurisdiction is responsible for their piece of your bill.
According to state law, the County collects property taxes for all the jurisdictions and then distributes the funds accordingly. Click here to find your property. Click here to learn more about Missoula County's tax funds.
Each one of those jurisdictions has a different type of control in determining how much they can tax residents. The state Legislature writes the rules on taxation for every jurisdiction; the jurisdictions must abide by those rules.
Taxes fund numerous critical community services, from 9-1-1 and law enforcement to roads and other infrastructure.
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 holds public hearings throughout the budget process in July and August each year. Check missoulacountyvoice.com this summer for information on how you can get involved. The city budget process follows this same timeline. Visit engagemissoula.com for more information.
The state Dept. of Revenue uses a system called Computer Assisted Mass Appraisal (CAMA) to determine the value of your home. The DOR multiplies the value of your home by a tax rate to come up with your home’s taxable value. Different types of property fall into different classifications (e.g., residential, commercial, industrial). There are 16 different classifications, and each classification has its own tax rate. The state legislature sets these tax rates.
Every two years, DOR uses CAMA to appraise all the real estate in each county, then the Legislature determines the tax rates, and then the DOR does the math to determine the total taxable value of all the real estate in each county. This total number is essential in calculating the value of a mill.
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. In Missoula County, you can fill out that application online at mtab.mt.gov/appealform.
No. Montana law limits how much property tax revenue local governments can bring in each year, often referred to as a "mill cap." Missoula County's FY25 budget is $2 million below this cap for countywide mills. In other words, we could levy an additional $2 million in property taxes this year but are not.
Additional limits to county spending include restrictions on how money is spent, like:
1. Debt limit: County governments are unable to issue debt for more than $2 million for any purpose without voter approval.
2. Restrictions on use of funds: The line items on your tax bill show where county tax revenue goes. Much of our tax revenue is restricted. Money that is collected does not all go into one account that can be divided up. Funds must be spent on the purpose they were collected for. For example, money that is designated for the Public Safety Fund cannot be used for Animal Control or the Fairgrounds. Visit missoula.co/taxes to see a full breakdown of each fund.
3. Restrictions on use of voter-approved funds: When voters approve a bond or levy, the money must be spent in line with the ballot language voters approved. For example, the County cannot decide to use open space bond funds for any other service or expense, like housing or public safety.
The state of Montana Department of Revenue (DOR) uses a system called Computer Assisted Mass Appraisal (CAMA) to determine the value of your home. The DOR multiplies the value of your home by a tax rate to come up with your home’s taxable value. Different types of property fall into different classifications (e.g., residential, commercial, industrial). There are 16 different classifications, and each classification has its own tax rate. The state legislature sets these tax rates.
Every two years, DOR uses CAMA to appraise all the real estate in the County, then the Legislature determines the tax rates, and then the DOR does the math to determine the total taxable value of all the real estate in each county. This total number is essential in calculating the value of a mill.
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.
Call the Montana State Department of Revenue at 406-329-1400.