The City of Bozeman claims that a new Montana state law reducing property taxes has caused a $1.77 million budget deficit in Bozeman’s general fund, primarily affecting police and fire department staffing. The law lowered the city’s total taxable value by nearly 9% and reduced the value of a mill from $245,000 to $218,000. To address the shortfall, Bozeman commissioners approved using 4.5 of nine previously untouched mills, set aside in 2006 to ease taxpayer burdens, and cut the general fund budget by $810,000 through delaying non-essential expenses and keeping vacant positions open. The decision was justified by changing city needs, as the 2006 assumptions no longer apply. Commissioners also converted fixed mill levies for police and fire staffing to dollar amounts for consistency with other voter-approved levies. As a result, the property tax bill for a median home (assessed at $671,800) will decrease by about $126, with the total tax bill, including services like water and parks, set at $3,427.28, slightly lower than last year.

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