Owners of primary residences in the city of Columbia Falls should see their property taxes go down this year, while owners of second homes and short-term rentals will see their taxes go up.

That was the message last week as city council continued its review of the 2026-27 budget.

A primary residence assessed for $600,000 this year will see an estimated city general fund tax bill of about $777, a decrease of about $359 over 2025. That’s due to the resort tax rebate and changes in state property tax formulas.

A $600,000 second home, or short-term rental, will see a tax increase of $558.54.

The state Legislature in 2025 changed the tax formula, which lowered the tax rate on primary residences, but increased it on secondary homes and short-term rentals and other income producing properties.

Long term rentals also enjoy a lower tax rate.

But there are other city taxes in play. The city’s medical levy, for example, amounts to $207 on the same home, the lighting district about $14 and street maintenance about $104.

The street maintenance levy falls far short of what the city needs to maintain its streets, City Manager Eric Hanks noted to council, and it has responded by increasing that levy over the past few years.

The resort tax rebate on $600,000 home is projected to be about $212.

The resort tax netted $1.549 million in the past fiscal year, of which a total  of about $407,000 is paid back to property owners. It also pays for four police officers and 2.5 firefighter positions and about $257,000 for infrastructure, like streets.

The city is expected to finalize the budget at its first meeting in September.