Missoula County adopts budget with 4.2% tax increase

Martin Kidston

(Missoula Current) In the middle of Thursday afternoon, Missoula County adopted its new annual budget, one that includes a 4.2% increase over the prior year.

While the increase is more than the 3.4% increase the county had pledged in early August, commissioners said the $3 million funding increase is needed to maintain current services, wage increases and healthcare increases, among other things.

“We’re going to work to hold any increase people see in their tax bill under the rate of inflation. We’re going to be under that number again this year,” county CAO Chris Lounsbury said during budget discussions.

However, the current rate of inflation is only 2.9%, not 4.2%, according to the U.S. Inflation Calculator.

Residents outside the city limits will pay around $13 more for a home with an assessed value of $100,000, or around $60 a year for a home with an assessed value of $500,000. Residents inside the city limits with pay around $50 more each year for a home valued at $500,000.

However, city residents will also pay an increase in the city’s budget. It includes a tax increase of 5.8%, or 11% if the fire levy is included in the figures. That increase doesn’t include school taxes, or any taxes levied by the state.

Last year, the county worked to fill dozens of vacancies at the detention center, the sheriff’s department and the county attorney’s office, among other departments. Those new hires are driving a $4 million increase in this year’s budget, or 8.6% increase in personnel costs, the county said.

But other categories including operations, debt service, capital improvements and capital outlay, will all see a decrease ranging from 5.3% to 41%. All told, the county’s budget will increase to roughly $73.6 million.

County officials said the new budget also contains about $500,000 in revenue from the 3% local option tax on marijuana. The revenue will go toward the general fund, which includes departments that provide “core government services.”

Both the city and county have blamed a portion of the increases on the state, suggesting that the current tax system is broken and relies too heavily on property taxes.

But the current state administration has suggested that many local governments have “a spending problem.” Both local and state officials are pushing for tax reform, which is likely to be central issues in the 2025 Legislature.