Property Reappraisals Explained

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 received 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. See below for a simplified explanation:

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.

Taxes fund numerous critical community services, from 9-1-1 and law enforcement to roads and other infrastructure. Visit itax.missoulacounty.us 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, click here. The city’s budget website is ci.missoula.mt.us/109/Budget.