EBS STAFF
Editor’s Note: This story has been updated to indicate Gallatin County as responsible for calculating taxes. The story previously listed both the Big Sky Fire Department and Gallatin County as responsible for tax calculations, which was incorrect.
Gallatin County taxpayers funding the Big Sky Fire Department could see up to a 50% reduction on their fire department taxes in the future after a miscalculation led to higher-than-intended assessments.
In a Sept. 25 press release, the Big Sky Fire Department noted the error occurred when Gallatin County calculated the total tax levy for the fire department by applying the number of voter-approved mills, instead of subjecting the dollar amount levied to the property tax cap set by Montana legislation.
“Transparency, integrity, and fiscal responsibility are core values of the Big Sky Fire Department,” Big Sky Fire Chief Dustin Tetrault stated in the release. “When we discovered the issue, we acted quickly to ensure the calculations were being applied correctly. Preliminary estimates show this correction could save Gallatin County taxpayers up to 50% on their fire department tax assessment going forward.”
The reduction in tax bills however, will result in a 15% reduction in total revenue this fiscal year and $2.3 million less available in the department’s budget compared to last year. The miscalculation also results in a “significant” reduction in planned revenue this year.
“After careful review and numerous program cuts, the department still expects an operating deficit of nearly $500,000 this year, which will necessitate using operating reserves while leadership and trustees determine long-term solutions for adequate funding to maintain service levels,” the release stated.
“Our community deserves accuracy and fairness in taxation,” stated Department Board Chair Carol Collins in the release. “We are proud that we uncovered this issue, and we are equally grateful that the correction directly benefits taxpayers. At the same time, the reduction in revenues will challenge the Department’s ability to maintain the same level of service, and we will be working diligently to balance fiscal responsibility with public safety.”
Madison County taxpayers will not be affected by the change as the county calculated the number of mills correctly, separate from Gallatin County’s tax calculation process.
While the error occurred at the county level, BSFD maintains that the mistake was unintentional and that both BSFD and the county are committed to correcting the process moving forward, the release stated. Jim Doar, the Gallatin County Administrator, told EBS that the internal process will be improved by building systems for more review, as well as investments in new software. The press release also noted ongoing collaboration to ensure accurate levies.
“BSFD will continue collaborating with Gallatin and Madison County officials to ensure levy calculations are correct, maintaining consistency between Gallatin and Madison Counties, and protecting taxpayer contributions,” the release stated.
Residents can look out for a future public meeting and Q&A with county and fire department officials that will be scheduled soon.
