Department of Revenue Fiscal Year 2025 Annual Plan

About the Department

The Department of Revenue administers approximately 40 Montana taxes and fees to achieve equity and integrity in taxation. Additionally, the department:

  • Values all property as accurately as possible and supervises Montana's property tax system
  • Administers alcohol and cannabis laws to protect public health and safety
  • Receives abandoned property and seeks to return it to its rightful Montana owners
  • Administers unlocatable mineral trusts
  • Informs and advises the governor, the legislature, and the public on tax trends and issues
  • Cooperates with local, state, tribal, and federal governments to advance the public interest under the law

Department Divisions

The Alcoholic Beverage Control Division provides effective and efficient administration of the Montana alcoholic beverage laws, with an emphasis on customer service and public safety.

The Business and Income Taxes Division is responsible for the administration and collection of roughly 40 Montana taxes and fees. The division also determines the valuation of all centrally assessed property in the state.

The Information Management and Collections Division provides consistent service to Montana citizens, businesses, and nonresident taxpayers through electronic data and records management, account registration, collection of delinquent accounts, and data and remittance processing operations.

The Property Assessment Division administers Montana's property tax laws, which includes the valuation and classification of all taxable property. The division ensures all classes of property are valued uniformly and equally throughout the state. These classifications include but are not limited to agricultural and forest land, residential and commercial property, industrial facilities, exempt properties, and business equipment personal property.

The Technology Services Division serves as the technological foundation for the department's business units, leveraging IT systems and services to increase internal business operations efficiencies and optimize citizen services.

The Cannabis Control Division ensures the health and safety of all Montanans through fair administration, education, and enforcement of the Montana Marijuana Regulation and Taxation Act.

Department Goal

The department's primary objective in the coming year is improving its citizen service in order to administer the department's statutory requirements more effectively.

Strategic Outcomes

Mail assessment notices to all property owners every two years per statute.
Key measure: Mail 100% of notices by the statutorily required deadline.
Status: Completed for 2023.
Improve written communications with citizens.
Key measure: Review all department letters on an every two-year basis.
Status: In progress.
Respond to cannabis licensee inquiries in a timely manner.
Key measure: Respond to all licensee contacts within two business days.
Status: In progress.
Communicate personally with five stakeholder entities and division subgroups.
Key measure: Complete five stakeholder meetings by December 31, 2023.
Status: Completed.
Meet personally with five local taxing entities.
Key measure: Complete five meetings with local taxing entities by December 31, 2023.
Status: Completed.
Compile input from stakeholders to improve central assessment and unclaimed property.
Key measure: Compile input from stakeholders by November 15.
Status: Completed centrally assessed stakeholder survey. Drafting unclaimed property program improvement recommendations. Will seek stakeholder input soon.
Create and implement tax rebate packages and communications.
Key measure: Host 60 Town Hall meetings in 2023 on property reassessment; host 26 Town Hall meetings in 2024 on property reassessment.
Status: Completed for 2023; on track for 2024.
Develop citizen outreach surveys to inform and evaluate agency service and efficiency.
Key measure: Create survey by June 30.
Status: Completed.
Implement legislator education series.
Key measure: Hold first education series meeting by December 31, 2023; hold FY 2025 education series meetings by February 15, 2025.
Status: Completed for 2023; on track for FY 2025.
Update the division's webpage with necessary resources including Enterprise Fund reports, fact sheets, and maps.
Key measure: Update division webpage monthly.
Status: On track.
Update the division's webpage with necessary resources including the Taxpayer Valuation, Agricultural, and Forest Land manuals, and the Reappraisal Plan.
Key measure: Complete by December 31 of even years.
Status: Ongoing.
Update the division's webpage with current information related to taxes.
Key measure: Complete by December 31 annually.
Status: Updated website as needed.
Provide taxpayer outreach by presenting at ABC clinics, webinars, and tax forums.
Key measure: Complete 10 outreach activities per year.
Status: On track. Participated in a number of ABC clinics and webinars about the upcoming income tax simplification changes, centrally assessed property, unclaimed property, and cannabis taxation.
Create an education video regarding filing requirements.
Key measure: Complete by December 31, 2023.
Status: Completed and posted numerous webinars.
Meet with production companies at the beginning of their setup process to improve accuracy of MEDIA credit applications.
Key measure: Meet with 100% of production companies.
Status: Sent invitations to all production companies to meet with us, and have met with those who have responded. We are also working on creating a presentation that we can share with industry about the credit.
Update the division's webpage with necessary resources, including tutorials for worker training and packaging and labeling submissions.
Key measure: Complete by December 31 annually.
Status: Completed; reviewed monthly for additional updates.
Update the Livestock Per Capita Fee webpage.
Key measure: Update webpage annually.
Status: Completed January 2024.
Create a collections services webpage.
Key measure: Complete by June 30, 2024.
Status: Completed April 2024.
Update the TransAction Portal webpage with general taxpayer self-help resources.
Key measure: Complete by June 30, 2024.
Status: On track continually.
Host statewide town hall meetings and publish PSAs after property assessment notices.
Key measure: Complete during May–June 2023.
Status: Completed.
Begin implementation of red tape reduction rules.
Key measure: Begin implementation by June 30, 2024.
Status: Completed and ongoing.
Track the number of cases the Taxpayer Assistance Office has resolved.
Key measure: Track total resolved cases per year.
Status: Resolved 148 cases for calendar year 2023.
Develop an online filing application for property exemption requests.
Key measure: Complete by January 1, 2024.
Status: Re-prioritized online filing options. Complete exemptions by July 2025.
Open two additional county offices within the next two years.
Key measure: Opened by December 31, 2024.
Status: Opened Powell County; working on Park County.
Implement legislation permitting DOR/DOJ drivers' license cross match.
Key measure: Complete by February 29, 2024.
Status: MOU signed and project is underway.

Complete appraisals of all residential, commercial, industrial, and agricultural/forest land properties in Montana by the statutory deadline.
Key measure: Completed by May 1, 2023.
Status: Completed for 2023.
Complete centrally assessed property appraisals by department deadline.
Key measure: Complete by June 1 annually.
Status: Completed for 2024.
Provide accurate and timely certified taxable values to all taxing jurisdictions.
Key measure: Provide values to counties no later than the first Monday in August.
Status: Completed for 2023; on track for 2024.

Process alcoholic beverage licenses efficiently to reduce red tape for applicants and licensees.
Key measure: Meet quarterly with DOJ and licensees through our Alcohol Licensing Advisory Committee to determine where efficiencies can be made.
Status: On track.
Complete the liquor warehouse expansion to improve the efficient operation of the warehouse.
Key measure: Complete warehouse expansion project by summer 2025.
Status: On track.

Process paper returns in a timely manner.
Key measure: Open paper returns within 5 days of receipt.
Status: Completed.
Process tax refunds (scanning and keying) in a timely manner.
Key measure: Process all timely filed paper refund returns within 45 days of due date.
Status: Completed for Tax Year 2023.
Process money in a timely manner.
Key measure: Process all money within 2 days of receipt.
Status: Completed.
Implement payroll software vendor approval table.
Key measure: Implement prior to December 31.
Status: Completed.

Increase the use of the WTH Taxes Application Program.
Key measure: Track the number of enhanced or added services in the biennium and the number of users on board.
Status: On track — 2 new vendors for Tax Year 2023; added payments for Tax Year 2023; looking to add 1099s for Tax Year 2024.
Enhance user experience on the TransAction Portal.
Key measure: Measure number of enhancements, using user experience surveys.
Status: On track.

Increase the number of collection cases resolved in under 6 months.
Key measure: Increase 5% in fiscal year 2023.
Status: Completed.
Increase efficiencies in resolving delinquent collection accounts.
Key measure: Create and implement electronic methods for financial institutions, employers, and courts to remit responses and payments.
Status: On track continually.
Develop new payment plan options to allow for a single payment agreement for multiple tax types.
Key measure: Decrease the number of payment plans required for a single citizen with multiple delinquent accounts, increase the payment plan activation percentages, and increase the percentage of resolved delinquent accounts.
Status: On track.

Require annual disclosure awareness and security awareness trainings.
Key measure: Complete by 100% of employees.
Status: On track.
Require annual signing of confidentiality and disclosure of information form.
Key measure: Complete by 100% of employees.
Status: On track.
Require dual approval on all security access and audit access regularly.
Key measure: Report by 100% of employees.
Status: On track.
Monitor all systems and perform vulnerability scans.
Key measure: Monitor on a weekly basis.
Status: On track.

Replace current antiquated software.
Key measure: Working with the Department of Labor and Industry to see if it is viable to move the program to their licensing software system.
Status: On track — MOU in place to move eStop licensing program to the Department of Labor and Industry's licensing system.

Continue regular internal town hall meetings to engage and educate agency personnel across the state.
Key measure: Hold quarterly internal meetings.
Status: On track.
Hold all managers meeting annually.
Key measure: Held October 2023; held October 2024.
Status: Completed for 2023; on track for 2024.
Revamp job postings.
Key measure: Began March 2023.
Status: Completed.
Attend job fairs.
Key measure: Attend three per year.
Status: On track — participated in 4 recruitment events in 2023.
Create "day in the life of" video interviews with staff.
Key measure: Create "day-in-the-life-of" video interviews with staff.
Status: On track.
Offer telework opportunities.
Key measure: Update all job postings by March 2023 to include telework availability language.
Status: Completed.
Implement career ladders.
Key measure: Create career ladders for all appropriate positions by July 1, 2024.
Status: Completed.
Welcome from executive leadership personnel to all new staff on first day of work.
Key measure: Welcome 100% of new employees.
Status: On track.
Implement Professional Development Working Group recommendations.
Key measure: Complete implementation of PDWG recommendations by December 31, 2023.
Status: Completed.
Increase senior management presence in field offices.
Key measure: Complete five field office visits by December 31, 2023.
Status: Completed.
Implement recommendations of climate assessment.
Key measure: Complete implementation of climate assessment improvement plan by December 31.
Status: Completed plan in August 2023, with ongoing efforts.
Communicate agency mission and goals to department personnel.
Key measure: Emphasize agency mission and goals during quarterly town hall meetings.
Status: On track.
Hold monthly director meetings with individual division administrators.
Key measure: Conduct formal monthly check-ins with division administrators.
Status: On track.
Complete semiannual check-ins and annual performance appraisals.
Key measure: Complete 99% of check-ins and performance appraisals.
Status: Completed 68% of check-ins; completed 94% of annual reviews.