There is a perception that, because property taxes went up and a large portion of that was directed towards school funding, somehow school districts received a windfall of money. However, this is just not true.

• The taxable value in our elementary district increased by $34.4 million and the taxable value in our high school district increased by $69.2 million. This increase in taxable value did not result in any additional tax revenue to MCPS.

• When taxable values increase, so do mill values. With the recent increase in taxable value, the elementary district mill value increased by $34,400 and the high school district mill value increased by $69,200.  When the mill value increased, MCPS levied fewer mills. MCPS levied 11.5 fewer mills in the elementary general fund and 6.6 fewer mills in the high school general fund.  

• Not all taxing jurisdictions reduce their mills when mill values increase. The state will collect the same 95 mills under the school equalization obligation reflected on your tax statement. Collecting the same mills means a significant increase in property taxes paid to the state. MCPS taxpayers will send a total of $9.8 million more to the state as part of the 95 mill state equalization obligation, beginning this year.

• Despite receiving $9.8 million more from MCPS taxpayers, the state sent the MCPS elementary district $50,000 less and the high school district $491,000 more. In other words, the state netted $9.75 million from MCPS taxpayers in FY24.

• Looking towards next year (FY25), however, it is anticipated that the state will send an additional $2.3 million in support of the MCPS general funds. This is significantly higher than the total budgeting increases to the General Fund as it allows under Montana law. That means that the local levies in support of the MCPS general funds will decrease in 2025. Even if the two operating levies pass - approximately $105,000 in the Elementary District and $403,000 in the High School District - local taxpayer levies in the general fund are estimated to go down by more than $1 million in total.   

• Levies in support of all of the district’s nine budgeted funds do not increase as a result of increases in property tax values. They increase and decrease based upon the following factors: approval of levies; expiration of levies; reductions in bonded indebtedness; and changes in state funding. In the past six years, total levies went down twice in the Elementary District and three times in the High School District.  The FY24 increase in the Elementary District was $2.8 million, which is significantly higher than any other year during the recent six years. The larger increase in FY24 levies is tied to the following: less state funding and more local levies in the general fund; more levies to support the increased transportation; and the voter-approved $700,000 levy in the Building Reserve Fund.  Other than the Transportation Fund, it is not anticipated that levies in these funds will increase significantly in FY25.   

Additional property tax analysis can be viewed by downloading this document.