Staff recommends that the City Council conduct a public hearing and after council discussion, approve the resolution establishing the mill levies for fiscal year 2026.

The 2025 State of Montana Legislature passed House Bill 231 (section 29), which requires the City of Billings to levy the number of mills in fiscal year 2026 and subsequent tax years that will generate the amount of property taxes assessed in fiscal year 2026, without amending or revising the charter. 

In the first week of August, the City received Certified Taxable Value which showed a decrease in taxable value for the City of 15% over the prior year. 

The total number of mills authorized in the City of Billings Charter (Article I, Sections 1.02-1.05.2) was 203 mills. In fiscal year 2025, the City of Billings levied 201.99 of those authorized mills, assessing approximately $54,421,000 in Real Property tax revenue (excluding General Obligation debt service). The total of the mills in sections 1 & 2 of the attached resolution (excluding G.O. debt service mills in section 3) equals 237.71 mills, an increase of 35.72 mills.

The total Real Property tax revenue estimated to be generated by 237.71 mills in fiscal year 2026 is $54,421,000 based upon the 2025 Certified Taxable Value from the Montana Department of Revenue. This increase in mills is required by HB 231, Section 29, of the 2025 legislature. This bill supersedes local government charters that fix mill levy limits for the purpose of exercising the power to tax while also maintain local government revenue sources without raising taxes on residential taxpayers.

The table below is a shows of the mills levied in FY2025 and revenue generated, compared to the FY2026 amounts, as determined by certified value.
 

Mill Purpose/Fund	FY2025 Mill	FY2025 Real Property Tax Assessed	FY2026 Mill	FY2026 Real Property Tax
General	73.63	19,850,496	86.71	19,850,496
Library	4.98	1,341,265	5.86	1,341,265
Transit	9.95	2,679,836	11.71	2,679,836
Public Safety	111.44	30,014,128	131.09	30,014,128
PS Crime Prevention	1.99	535,967	2.34	535,967
Total Operating Levies	201.99	54,421,693	237.71	54,421,693
G.O. Library	2.61	702,949	3.34	764,667
G.O. Ballpark	2.77	746,040	3.34	764,667
Total Mills	207.37	55,870,682	244.39	55,951,027

The median home in Billings is expected to increase in market value from $308,400 in FY2025 to $345,200 in FY26. This increase in value, combined with the State legislative changes to property tax rates, and the higher mill levies, will result in a decrease in the City of Billings property tax for the median home of $222, compared to the prior year.
 

	FY2026	FY2025	Change
Median Residential Home Value	345,200	308,400	36,800
Taxable Value Rate	0.76%	1.35%
Taxable Value	2,624	4,163	(1,539)
Total Mills	244.39	207.37
City of Billings Property Tax	$641	$863	($222)

 

City Council may:

• Approve; or,
• Not Approve and provide additional guidance to staff 
• Amend and approve the resolutions

Establishing these mills will allow the City's General, Transit, Library and Public Safety Funds to align with the adopted FY26 Budget that was approved by City Council and comply with State law from the 2025 legislative session.

The General Obligation mills are set in order to generate the necessary revenues to make the debt service payments for General Obligation (GO) Debt.  

If approved, the median home valued at $345,200 will pay $641.16 for the City of Billings property tax mill levies in FY26, compared to $863.36 in FY25.