Missoula County approves 2026 budget with 8% property tax increase

Missoula County commissioners this week approved the 2026 budget that increases property taxes by 8% to raise an additional $4.6 million, mostly needed to fund wage increases and cover lost revenue and increased costs for the detention center, officials said. 

Even with the increase, many homeowners will see decreases to their tax bills because of the Legislature’s changes to tax rates, said Chris Lounsbury, the county’s chief administrative officer, during the meeting Thursday.

“We are in a very fiscally constrained situation, and I think this budget will basically keep the status quo and allow us to continue delivering the level of services we have been delivering with very few exceptions to that,” Commissioner Dave Strohmaier said Thursday. 

The county plans to spend about $280.6 million and raise about $287.6 million, with 27%, or $80.5 million, from property taxes. The budget includes funds for countywide services, such as the general fund and sheriff’s office, county-only funds like roads, small taxing districts and mostly separate entities like Partnership Health Center and the Missoula Public Library. 

The budget increased about 9.3% over last year’s $256.8 million. Lounsbury said the increase is largely driven by increasing wages for county employees, increased medical costs at the jail and a loss of revenue from housing state inmates. 

For homeowners outside city limits, the county taxes make up about 28% of their tax bill, Lounsbury said. About 27% of the county taxes go to the sheriff’s office and jail, and 25% goes to the general fund, which includes the county attorney’s office, 911 center, emergency management, elections and justice court, he said. 

Of the $7.6 million in proposed one-time requests, the commissioners approved $6.2 million, including money to remodel parts of the courthouse and administration building, replace 911 dispatcher computers, purchase new permitting software and move the bathrooms from the Johnson Street shelter to the Temporary Safe Outdoor Space. Those requests are not funded by property taxes and are paid for by grants or other revenue, including an anticipated $600,000 tax remittance from the Missoula Redevelopment Agency. 

The commissioners approved about $660,000 in new ongoing requests paid for by property taxes. That includes $190,853 for two grant positions, $128,000 to fund the crime victim advocates program, $79,046 to fund one of two requested positions for the Calibrate program, previously paid for by grants, and $78,500 for server replacement and new software.  

The budget also includes a new health sanitarian, GIS specialist and building code contracted services that will be funded by related fees and not affect property taxes, Lounsbury said. 

The commissioners approved $188,800 in ongoing requests paid for without an increase in property taxes, according to the county’s budget website. That includes $108,615 for a new position to oversee targeted economic development districts paid for by the tax increment financing revenue from the districts and $60,000 for a mental health wellness pilot program for sheriff’s deputies, detention officers and 911 dispatchers covered by the department’s existing budget. 

In discussions throughout August, the commissioners denied several requests for new staff positions. Strohmaier cited the county’s “structural imbalance” of costs outpacing property tax revenue. 

If the Legislature hadn’t adjusted tax rates, property taxes would have increased even if the county didn’t levy more mills because of increases in market and taxable value, Lounsbury said. 

With the 8% increase, taxes go up $43.19 for a $300,000 home and $99.26 for a $600,000 home, Lounsbury said. However, the legislative changes to the tax rates will mean that most homeowners will see a decrease in their tax bills, he said. 

Even with the county’s increase, a $300,000 home will see a decrease of about $355 in county taxes and a $600,000 home will see a $526 decrease from 2025, Lounsbury said. 

A median home that saw its market rate increase from $399,000 to $507,000 but a decreased taxable value will pay about 8% less in county taxes if it is located in city limits and 12% less if it’s outside the city, Lounsbury said. 

If a home’s taxable value increased, a property owner may still see an increase in property taxes, Lounsbury said. For example, a home in Missoula’s South Hills that saw a 28% increase in market value and a 1% increase in taxable value would see a 13% increase in county taxes, he said. 

“In the past, under the old system, that 28% market value change would have also been reflected in its county tax change; it would have also gone up by about 28%,” Lounsbury said. “While it still increases in this year, the increase is minimized by those changes in tax law that occurred in the 2025 legislative session.” 

Commissioner Josh Slotnick applauded the legislative changes. 

“In a bipartisan way, they created a bill that did indeed for many, many people lower property taxes by adjusting tax rates,” he said. “I’m thankful that for many people the intent of that law will be realized.” 

Homeowners will receive final property tax bills in the mail this fall.

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