Missoula’s County Commissioners agreed to nix a $1.7 million tax levy to increase the county’s infrastructure budget Tuesday, deciding to wait for potential property tax changes from the state Legislature this spring.
Commissioner Josh Slotnick said the Legislature could significantly change the local government tax system, with the hopes of freeing up more money for infrastructure that doesn’t burden home and business owners.Â
“What I would like to recommend is that we give the Legislature a chance to do what they say they are going to do, which is real property tax reform,” Slotnick said. “And if they don’t, then we revisit this. The need still absolutely exists, and if they don’t fix things in the property tax world that make space for us to tend to our roads and bridges, then we will have to use this as the final option.”
The commissioners placed the levy on the November ballot on Aug. 8, telling the public that more money was needed to supplement the county’s road and bridge fund.Â
People are also reading…
The levy would have cost $6.75 per $100,000 of home value, which would first hit tax bills in fall 2025 (technically fiscal year 2026).Â
Several bridges that the county maintains need to be fixed or replaced, including the Boy Scout Bridge in Seeley Lake and the Lolo Street Bridge in the upper Rattlesnake neighborhood.Â
County officials previously said its Public Works Department has a $600,000 budget for capital improvements, but needs roughly $4 million to sustain all the infrastructure maintenance.Â
By pulling the levy, Slotnick said the county can wait to see if the Legislature changes the tax system to either fund more infrastructure statewide, or limit the share of taxes that homeowners and businesses have to pay.Â
Slotnick railed on “centrally assessed” businesses, which are larger companies like NorthWestern Energy that pay taxes based on a wholistic value of the company, rather than for each parcel of land or equipment they own.Â
“What I would like to see is (a shift) away from homeowners and renters and onto the other property tax classes, which will make a real difference in what you pay,” Slotnick said.
Last week, Gov. Greg Gianforte’s property tax task force unveiled several recommendations to curb increases for homeowners. One proposal would create a “homestead exemption” for someone’s primary home or for long-term rentals.Â
The commissioners said they can still consider the tax increase vote sometime in 2025, after the Legislature has finished its session.Â
The commissioners agreed to remove the levy, but must also formally vote to remove the levy at its next public meeting, which was not immediately available.Â
The county proposed keeping taxes for fiscal year 2025 under 3.4%, and will finalize its budget on Sept. 5.
Griffen Smith is the local government reporter for the Missoulian.