Missoula County backtracks on tax increase for infrastructure construction and repairs

MISSOULA — Missoula County voters will no longer see a tax hike to help fund roads and bridges on the November ballot.

During a Wednesday work session, the Missoula County commissioners decided to remove the five-mill levy from the general election ballot to give the Montana Legislature a chance to implement property tax reform during its 2025 session. The commission will vote on the decision Thursday. 

The commissioners approved the levy — which would have raised about $1.8 million annually for public infrastructure — on Aug. 8. Since then, the state has seen a “growing groundswell” of enthusiasm around property tax reform, Commissioner Josh Slotnick said. 

“It looks like given the level of enthusiasm and interest among legislators and the task force that the Legislature is going to take on property tax reform on a level they haven’t in the past,” he said. “If they are successful, that reduces the need for us to look to this kind of measure to generate money.” 

Following widespread concern about rising property taxes following 2023’s reappraisal cycle, Gov. Greg Gianforte created a task force to make recommendations that could be introduced during the upcoming legislative session. 

Slotnick said if the Legislature takes some tax burden off residential property, small tax increases like the proposed infrastructure levy will not feel as painful to most taxpayers. The commissioner said he would like to see a shift resulting in residents paying less and centrally assessed properties — railroads, airlines, pipelines, telecommunications, utilities — paying more. 

Depending on what tax reform results from the session, the commission may reconsider putting the levy on the ballot next year.  

The public works department estimates it needs another $4.3 million annually in addition to the approximately $7.6 million from property taxes, state gas taxes, and other state and federal sources to fully fund the county’s infrastructure needs. 

Public Works Director Shane Stack said during the Wednesday meeting he understands the strategy and waiting won’t put the department further behind, as the levy would not have taken effect until the 2026 fiscal year. 

The county could put the levy back on the ballot during the school district election in May or the municipal primary election in September, said Chris Lounsbury, the county’s chief administrative officer. It would cost “tens of thousands of dollars” to add the measure to either election, as the county would need to pay to mail ballots to county residents outside the city or school district, he said. 

Taking the levy off the November ballot also risks the Legislature implementing new hurdles to voter-supported tax increases, Lounsbury said. The property tax task force’s final report suggests requiring 60% voter approval to pass mill levies. 

Commissioner Dave Strohmaier said canceling the infrastructure levy is not an easy decision because it offered a potential path for public works to receive at least some of the money it needs, but the move is “probably prudent.” 

The county may get a version of what it wants from legislative changes without having to ask voters to raise their own taxes, Slotnick said. Some task force proposals, such as the homestead exemption — which would reduce property taxes for houses used as primary residences or long-term rentals and increase taxes on second homes and short-term rentals — are “pretty cool,” Slotnick said. 

“But we’ll see,” he said. “It’s a long way from task force recommendation to passed law.”