About the Department
The Montana Department of Revenue was established in 1972 and has several major responsibilities. The department:
- Administers more than 30 state taxes and fees, including income taxes, natural resource taxes, corporation taxes and miscellaneous taxes
- Establishes values for all taxable property, including agricultural land, residential real estate, commercial real estate, forest land, business equipment, railroads and public utilities
- Supervises the operation of agency liquor stores, manages the state wholesale liquor operations, and administers laws governing the sale, taxation and licensing of alcoholic beverages
- Returns unclaimed property to its rightful owners.
Through a competent, diverse workforce committed to success, the department:
- Provides effective and responsive service to citizens, businesses and nonresidents who participate in Montana’s economy
- Expands cooperation of citizens in making the tax system that they own work well
- Supports equity and integrity in taxation through effective and uniform enforcement, while protecting taxpayer rights and thanking those citizens and businesses who pay their fair share of taxes
- Protects the public health, safety and order in the administration of liquor laws
- Advises, based on sound study and analysis, the Governor, legislature and the public on tax issues
- Cooperates, consistent with its statutory role and responsibilities, with public officials and agencies in local, state, tribal and federal governments to achieve the public good.
More than 650 full-time employees work at the department.
The Director’s Office supports the agency’s director and is composed of nine work units:
1.) Enterprise Planning and Analysis Office (EPA) - The primary goals of the Enterprise Planning and Analysis Office are to ensure that strategic department initiatives are completed successfully by providing a project approval process, managing active projects, and evaluating the strategic needs of the department and providing recommendations to leadership. It also strives to develop a culture of continuous improvement across the enterprise by: serving as a center of knowledge for process improvement, providing process improvement services, and collecting measurement data to show continuous improvement. In addition, the program works to consolidate enterprise data to provide an easily accessible, transparent model of department activities by: providing effective measures of department operations to external entities, gathering a repository of available operational data for analysis and ensuring the department has information required for key operational and strategic decisions.
2.) The Information Technology Office (ITO) - serves as the technological foundation for the Department’s business units. Through a secure and up-to-date computing environment the ITO contributes to the Department’s overall efficiency, ensuring confidentiality, integrity, and availability of taxpayer data. In providing these services, the Office enables the Department to meet its business objectives and facilitates its mission to serve the citizens of Montana. The Office provides application development and support services for all revenue information systems including network services to approximately 650 users from a central office in Helena and to 60 locations in the state’s 56 counties. Depending on need, services are provided either with a site visit or using remote-access technologies. The ITO includes Network Services and the Applications Services Units.
3.) Legal Services - supervises the overall legal efforts of the department, which includes rules, policies, bankruptcy, and disclosure.
4.) Public Information Office (PIO) - serves as the department’s foundation to communicate to the public, news media, partner agencies, other stakeholders and internal employees. Responsibilities include media relations, electronic communications, including web development and operations, writing and editing, graphic design, public education and internal communications. The PIO goal is to communicate as clearly and understandably as possible for the benefit of taxpayers. The PIO includes the public information officer, who supervises the communications office, web developer, communications specialist and writer/editor. The public information officer and web developer are full time positions. The other two positions are part time.
5.) Tax Policy and Research - prepares the legislative fiscal notes that affect revenue, analyzes legislative proposals affecting the department, department economic data and tax compliance.
6.) Office of Taxpayer Assistance - The Office of Taxpayer Assistance is independent of the Department’s divisions so it can provide impartial service. The office works to resolve taxpayer issues after the usual channels of problem solving have been exhausted or communications with the Department have broken down. The office handles a taxpayer’s procedural issues or disputes with the service or inefficiency of the Department, especially those concerning citizen rights guaranteed by the Taxpayer Bill of Rights. The office also receives complaints about improper or abusive behavior by an employee of the Department. The office can help you understand the options and procedures available to resolve your issue. The office does not address issues of fact or law that are considered by the Department’s Office of Dispute Resolution.
7.) The Office of Human Resources - is responsible for a variety of HR duties including organizational and workforce development, employee and labor relations, staffing, employment law, performance management, compensation, and training and development.
8.) Executive Office - includes the Fiscal Administrator and Administrative Support.
9.) The Office of Dispute Resolution - is an independent adjudicatory body within the Department of Revenue that hears and/or mediates cases between the Department and taxpayers, liquor licensees, and other members of the public.
Mike Kadas - Director
On January 7, 2013, Mike Kadas became the 17th Director of Montana Department of Revenue. He was appointed by Governor Steve Bullock.
Over the last 30 years Kadas has served in a variety of private and public positions, most recently as Director of Special Projects at Rivertop Renewables, a Missoula-based company that produces biodegradable chemicals. During his five years in different management positions at Rivertop Renewables, he helped oversee a multimillion-dollar expansion of the company. From 1996 to 2006 he was the mayor of Missoula, where he managed a $100 million budget and hundreds of employees.
Kadas is no stranger to Montana’s Capitol. From 1983 to 1996 he was a Montana State Representative, serving on the House Appropriations Committee for eight of those years. From 1989 to 1996, he owned and operated a small construction company. He holds a B.A. in economics-philosophy and a M.A. in economics from the University of Montana-Missoula. Kadas and his partner Martha Newell have two sons, with whom he enjoys skiing and hiking.
Gene Walborn - Deputy Director
Gene Walborn, a 24-year veteran employee and manager with the Montana Department of Revenue, was named by director Mike Kadas as the department’s new deputy director on November 8, 2014.
Gene has a critical leadership role as the department moves forward with its work in tax administration and liquor control. He assists with all upper level executive and management activities, including planning, budgeting, policy development, taxpayer affairs, personnel, public information and department activities. In addition, Gene will be responsible for coordinating legislative work for the department.
Walborn worked as the department’s Business and Income Tax Division administrator for nine years. He was responsible for the compliance and valuation of the state’s tax programs associated with all state taxpayers. These taxpayers include the largest multi-national businesses, Montana’s Main Street businesses and individual Montanans.
Walborn began his career with the department in 1990 as a centrally assessed property appraiser and has had ever increasing responsibilities since then. Walborn graduated from the University of Montana with a degree in finance.
Other key individuals on the Director's Office Staff
Chief Legal Council
Tax Policy and Research
Taxpayer Assistance Officer
Office of Human Resources
Chief Security Officer
Mary Ann Dunwell
Public Information Officer
Chief Information Officer
Information Technology Office
Enterprise Planning and Analysis
Administrative Law Judge
Office of Dispute Resolution
Business and Income Tax
Administrator: Lee Baerlocher
The Business and Income Taxes Division is committed to success through supporting equity and integrity in taxation through effective and uniform enforcement of Montana’s tax laws and providing effective and responsive service.
The Business and Income Taxes Division is responsible for the administration, compliance, collection and valuation of approximately 30 tax types. These tax types include corporation income, individual income, withholding, combined oil and gas, coal severance, other natural resource taxes, cigarette, retail telecommunications, lodging facilities, other miscellaneous taxes, industrial and centrally assessed property valuation.
The Division includes the following areas:
The Administrative Team - Oversees the daily management of the division. This staff consists of the administrator, management analysts, management officer, lead division support staff and research technicians.
The Business Tax and Valuation Bureau - Responsible for the daily management and compliance for the large-taxpayer tax types. There are more than 25 different tax programs managed by the bureau. The tax programs include corporate income, natural resource taxes, most of the state’s miscellaneous taxes, and valuation of centrally assessed and industrial property. The bureau is currently staffed by a bureau chief, corporation tax unit manager, natural resource tax unit manager, miscellaneous tax unit manager, industrial and centrally assessed unit manager, auditors and appraisers.
The Income and Withholding Taxes Bureau - Responsible for the daily management and compliance for individual, pass-through entities and withholding taxes. The bureau works with individuals, pass-through entities, fiduciaries and employers. In total, the bureau manages more than 500,000 individual taxpayer accounts, more than 40,000 pass-through entities and more than 30,000 employer accounts. The bureau is currently staffed by a bureau chief, pass-through entities unit manager, withholding unit manager, compliance unit manager, field audit unit manager, taxpayer accounting unit manager and auditors.
Administrator: Steve Austin
It is the mission of the Citizen Services and Resource Management Division to provide excellent customer service to its internal and external customers; ensure the safety of department resources; properly account for state revenues and expenditures; assist taxpayers in understanding the state’s tax system; increase cooperation of citizens to make their tax system effective; and to provide services to taxpayers so they can interact easily with the department and fulfill their filing obligations.
Citizen Services/Financial and Asset Management Bureau - Assists taxpayers through the call center; eStop business licensing coordination; forms design and disbursing unclaimed property. The bureau also provides support services to the department by managing accounting, purchasing, safety, security and statewide facility functions.
Collections Bureau - Responsible for collection of the department’s delinquent debts, bankruptcy administration and collection services of bad debts for other state agencies and local government entities.
Information Management Bureau - Processes department mail and deposits of payments received including tax return imaging and data verification for input into Gentax; account maintenance; records management; and eServices management of electronic filing and payment options.
Management Services - Provides administrative support to assist the division in meeting its day-to-day responsibilities including coordinating HR matters, temporary services and assisting visitors of the Donovan Building. Management Services also provides technical support, research and analysis of CSRM programs and projects.
To provide effective and efficient administration of the Montana alcoholic beverage code with an emphasis in customer service and public safety by applying uniform and fair regulations while ensuring an orderly system for the convenient distribution and responsible consumption of alcoholic beverages.
The Liquor Control Division is organized into the following bureaus:
The Liquor Distribution Bureau - Manages state wholesale liquor operations, including warehouse shipping and receiving, accounts receivable and payable, inventory management, liquor order processing, agency contract management and customer service.
The state maintains franchise contracts with 98 agency stores that sell liquor products to the public for off-premise consumption, and to Montana’s 1500+ all-beverage licensees. The state liquor warehouse held bailed and/or state owned inventories for approximately 936 regular list products and 1124 special order products. Gross sales were $102.7 million in fiscal year 2010, with nearly $30 million in liquor revenues going into the general fund.
The Liquor Licensing Bureau - Charged with all licensing and regulatory responsibilities for all entities intending to produce, import, distribute or sell alcoholic beverages in Montana. Liquor licensing processes applications, renewals, transfers and registrations, as applicable, for retail and wholesale alcoholic beverage licenses and permits. Liquor licensing is responsible for monitoring the activities of existing licenses and permit holders and for providing information and explanation about licensing activity or related law, rule, policy and procedures.
The bureau issued a total of 4,973 licenses for fiscal year 2010, including license renewals for retail sale for distilled spirits, breweries, special beer and wine permits and connoisseurs licenses. The bureau transferred and issued 511 new licenses, which are not included in the 4,973 licenses.
The department retains license and fee revenues from these sources in the liquor enterprise fund. The administrative and compliance expenses of the Department of Revenue and the Department of Justice associated with enforcing the liquor laws of Montana that are paid from the liquor enterprise fund. The balance remaining in the fund at the end of the fiscal year is deposited in the state general fund.
Administrator: Shauna Helfert
The Property Assessment Division (PAD) is responsible for administering Montana’s property tax laws, including the valuation of all taxable property for property tax purposes.
The division’s staff located in its 56 county field offices ensure that the property classes for agricultural land, residential and commercial property, forest land, and business equipment are valued uniformly and equally within each class throughout the state.
The division’s work is critical to the local governments’ property tax billing process. The department annually provides the total taxable value of property to each taxing jurisdiction in the state. The local governments use the certified values to calculate the amount of mills they can levy for property taxes which fund important services, including public schools, law enforcement, fire protection, road and bridge construction and maintenance, transportation, weed control and public assistance.
PAD is comprised of a central office located in Helena and four geographically distinct regions. There is a local office in each county seat within the regional areas.