Department of Revenue Fiscal Year 2026 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 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.

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Strategic Outcomes by Department Division

Director's Office

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.

Track the number of cases the Taxpayer Assistance Office has resolved.
Key measure: Total resolved cases per year.
Create a Public Information Request (PIR) Guide to provide information and instruction for submitting a PIR to employees and citizens.
Key measure: Total cases submitted under Office of Public Information Request versus in-house.
Develop a comprehensive citizen and stakeholder education plan to implement new property tax legislation.
Key measure: Complete by September 2025.

Consolidate the two regulatory divisions into one.
Key measure: Complete by September 1, 2025.

Replace the current antiquated system by transitioning to the Department of Labor and Industry's licensing system.
Key measure: Complete by October 2025.

Town hall meeting with all staff.
Key measure: Quarterly.
Continual refinement of formal professional development processes.
Key measure: Annual update of professional development strategic plan.
All managers meeting, yearly.
Key measure: October.
Review all job descriptions and update as necessary.
Key measure: 25% of job descriptions reviewed each year.
Mastering Management Series, yearly.
Key measure: June.
Mentorship Program, yearly.
Key measure: March.
Implement a formal onboarding guide.
Key measure: December 2025.
Executive leadership personal welcome of all new staff.
Key measure: 100% of new staff welcomed.
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Technology Services Division

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.

Annual disclosure awareness and security awareness trainings.
Key measure: 100% employee completion.
Annual signing of confidentiality and disclosure of information form.
Key measure: 100% employee completion.
Dual approval on all security access and regular audit of access.
Key measure: 100% reporting.
Monitor all systems and perform vulnerability scans.
Key measure: Weekly.
Resolve vulnerabilities within guidelines set by SITSD.
Key measure: 100% within required standards.
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Cannabis & Alcohol Regulation Division

The Cannabis and Alcohol Regulation Division effectively and efficiently administers and enforces Montana cannabis and alcohol laws, with an emphasis on customer service, education, and public safety.

Respond to cannabis licensee inquiries in a timely manner.
Key measure: Respond to all licensee contacts within two business days.
Update the division's webpage with necessary resources including Enterprise Fund reports, fact sheets, and maps.
Key measure: Monthly.
Update the division's webpage with necessary resources including tutorials for worker training and packaging and labeling submissions.
Key measure: Completed by December 31 annually.

Pursue efforts to streamline licensee approval processes through collaboration with the Department of Justice.
Key measure: Reduce the time it takes to process licenses.
Liquor warehouse expansion to improve the efficient operation of the warehouse.
Key measure: Increase capacity of the warehouse to keep up with demand.

Update and enhance user experience for license applications and renewals.
Key measure: Track service requests for annual review to ensure this objective is being met.
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Information Management and Collections Division

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.

Update the Livestock Per Capita Fee webpage.
Key measure: Annually.
Help ensure customers of the offsets program are familiar with the details of the program, especially as turnover occurs in those agencies.
Key measure: Host quarterly webinars for clients of the SABHRS Offset and Bad Debts programs.
Increase electronic correspondence options under HB 91 to enhance taxpayer communication and reduce mailing costs.
Key measure: Complete electronic correspondence option for Statement of Accounts by December 31, 2025.

Timely processing of paper returns.
Key measure: Open paper returns within 5 days of receipt.
Timely processing of money.
Key measure: All money is processed within 2 days of receipt.
Implement mandatory electronic payment for tax liabilities of $50,000 or more, as required under SB 54.
Key measure: Completed by December 31, 2025.
Increase the data accuracy by 25% for W-2s and 1099s using AI for OCR read rates.
Key measure: Complete for Tax Year 2025 (Calendar Year 2026).

Increase the use of the Federal/State Employment Taxes Application Program.
Key measure: Track the number of enhanced or added services and number of users each tax year.
Enhance user experience on the TransAction Portal.
Key measure: Measure number of enhancements and user experience surveys.

Implement customer-level collections to leverage core products, system updates and enhancements, and provide more customer-centric tools and options.
Key measure: Decrease the number of payment plans required for a single citizen with multiple delinquent accounts by 5%.
Contract and implement a new third-party vendor with legal presence in every state.
Key measure: Increase third-party vendor collection recoveries by 5%.
Implement Financial Institution Data Matching (FIDM) files to increase delinquent debt recoveries.
Key measure: Increase recoveries on delinquent collection accounts by 5%.
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Business & Income Tax Division

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.

Improve written communications with citizens.
Key measure: Review letters on a two-year basis; develop a new, standardized process for annual form and instructions review.
Update the division's webpage with current information related to taxes.
Key measure: Review information to ensure it migrates to the new website; create and manage a webpage for rebates and income tax simplification.
Provide taxpayer outreach by presenting at ABC clinics, webinars, and tax forums, and via educational videos about filing requirements.
Key measure: Complete 20 outreach activities per year.
Continue compliance efforts on residency matters by effectively utilizing driver's license data, voting records, and FWP information.
Key measure: Monthly updates to dashboard charting progress.
Reduce tax gap for trust taxes, including withholding and cannabis taxes.
Key measure: Complete project scope by December 31, 2025.
Central assessed property appraisals completed by department deadline.
Key measure: Completed by June 1 annually.
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Property Assessment Division

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.

Mail assessment notices to all property owners for both years of the biennium as required by recent legislation.
Key measure: 100% of notices mailed by the statutorily required deadline.
Meet with county treasurers to strengthen relationships and identify how Property Assessment Division staff can support their needs.
Key measure: Develop a contract to be used during meetings to establish clear expectations for both Property Assessment Division staff and treasurers. Complete by March 1 every reappraisal year.
Open additional offices in Gallatin County.
Key measure: Goal to open by December 31, 2026.
Develop and provide 5-day training in addition to the IAAO and Ag certifications for in-depth training on daily work.
Key measure: Goal to complete by December 31, 2026.
Track appraiser certifications and ensure all statutorily required courses are completed.
Key measure: A tracking spreadsheet has been created and is checked monthly to ensure certifications are completed.
Appraisals of all residential, commercial, industrial, and agricultural and forest land properties in Montana are completed by the statutory deadline.
Key measure: Complete by June 30 every reappraisal year.
Provide accurate and timely certified taxable values to all taxing jurisdictions.
Key measure: Provided to counties no later than the first Monday in August.

Develop exemption, homestead, and long-term rental online application through Smart File.
Key measure: Goal to complete by December 1, 2025.
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