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Exemption Forms


AB-14  - Tax Incentive Assessment of Energy Generating Property Application

AB-30A - Ammunition Manufacturing Tax Exemption Application
AB-30P - Personal Property Tax Exemption Application
AB-30R - Real Property Tax Exemption Application
AB-30T - Temporary Tribal Tax Exemption Application
AB-56A - Application for Tax Exemption and Reduction for the Remodeling, Reconstruction or Expansion of Existing Commercial Buildings or Structures
AB-74 - Gray Water System Application for Tax Abatement

PIRA - Purchase Incentive Rental Agreement Reporting Form


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Ammunition Manufacturing Tax Exemption


To be eligible for this exemption, the applicant/business must answer yes to the following questions:
 

- Is your primary business the manufacturing of ammunition components? (Primary business is defined as: “a manufacturer in which more than one-half of its product produced is and more than one-half of its gross income comes from sales of ammunition components. Ammunition components means propellants, primers and cartridge cases.”)
 

- Are the ammunition components you manufacture made available to commercial and individual consumers in Montana?
 

- Do you sell your manufactured ammunition components to in-state commercial and individual consumers for a price no greater than that for out-of-state purchases, including any products that leave the state regardless of destination or purchaser?
 

- Does or will your business enter into any agreements or contracts that could actually or potentially command or commit all of its production to out-of-state consumers or interfere with or prohibit sale and provision of products to in-state consumers?
 

  • For tax year 2016, submit ammunition manufacturing tax exemption application by November 1, 2016. For 2017 and later, submit application by March 1.

  • Mail completed application to: Department of Revenue, PO Box 8018, Helena MT 59604-8018.

  • If approved, this tax exemption will apply only to property taxes levied on class eight personal property and to the mills levied on real property for state education purposes.

  • For additional information, refer to 30-20-204, MCA.


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Non-Fossil Fuel Energy Generating Systems


The Non-Fossil Fuel Energy Generation Exemption provides a property assessment exemption for qualifying non-fossil fuel energy generating systems installed in residential and commercial structures. The maximum exemption amount per year is $20,000 for residential property and $100,000 for commercial property. The value of the qualifying non-fossil fuel energy generating system must be included in the assessed value of the property prior to its exemption.

If the system has been exempted by its exclusion from the assessed value of the property, no additional exemption can be granted. The exemption lasts for no more than 10 years from the year of the system’s installation. To apply for the exemption, property owners must complete and submit  Form AB-14 by March 1 following the installation of the system.


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Gray Water Systems


Residential dwellings under construction, newly constructed dwellings and newly constructed multiple dwelling projects that have a gray water system can be taxed at 91% of its taxable market value during the course of the construction and for ten years after completion. To review the law regarding gray water systems, click on 15-24-3202 and 15-24-3203, MCA.

To receive a tax abatement on property under construction or newly constructed property, taxpayers need to submit an AB-74 application form by April 15 of the current tax year or within one year of completion of construction. Please return the completed form to your local Department of Revenue office along with a certification from the local board of health that the residential dwelling is under construction or was constructed with a gray water system, 50-2-116 and 75-5-327, MCA .


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Temporary Tribal


In 2011 the Montana State Legislature enacted 15-6-230, MCA to provide a temporary tax exemption on property owned in fee by a federally recognized Indian tribe located within the state of Montana when there is a federal trust application pending. The temporary exemption applies only for the timeframe during which a decision on the trust application is officially pending before the United State Department of Interior, Bureau of Indian Affairs, but the exemption may not exceed a period of five years and ceases earlier if the United States denies the trust application.

The Temporary Tribal Tax Exemption Application (Form AB-30T) must be submitted by March 1 of the current tax year in order to be considered for that tax year. Please submit the application to the local Department of Revenue office in the county in which the property is located.

For tax years following the department’s approval of the exemption, the tribe shall annually certify to the department that the trust application is still under consideration by the United States Department of Interior, Bureau of Indian Affairs and has not been denied.


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Commercial Building Structures


Information coming soon!


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Real Property



We are still processing real property tax exemption applications. As soon as we complete processing applications, we will notify organizations about the status of their tax exemption. Thank you for your patience. 

 


A new state law required owners of tax exempt real property in exempt status before 2014 to submit an application by March 1, 2016. All nonprofit organizations and other tax exempt property owners needed to reapply for property tax exemption.

All nonprofit organizations and other tax exempt property owners who have acquired real property by January 1, 2017 must apply for real property tax exemption by March 1, 2017 to qualify for an exemption for tax year 2017. Tax exempt property owners need to submit the real property tax exemption application, (AB-30R), all required documentation, and a small application fee by March 1, 2017. The fee is $15 for a vacant land parcel, $25 for a land parcel with structures. There is no application fee for nonprofits with total gross receipts less than $5,000.

Applicants should mail the application materials to Montana Department of Revenue, PO Box 8018, Helena, MT 59624-8018.

 


In the state of Montana, the following types of property do not require an application for a real property tax exemption with the Department of Revenue:
 

- property owned by the federal, state and local governments
- public libraries
- irrigation districts not operated for gain or profit
- municipal corporations
- fire districts and some volunteer fire departments
- special districts created pursuant to Title 7, chapter 11, part 10
- property owned by a federally recognized tribe located within the exterior boundaries of the reservation and used for essential governmental services
 


Any other person, firm, corporation, partnership, association, or other group seeking to qualify real property as tax exempt, must apply to the Department of Revenue. To be considered for the current tax year, the Real Property Tax Exemption Application (Form AB-30R) must be submitted to the local Department of Revenue office where the property is located by March 1 of the current tax year. Click here for a complete list of addresses and phone numbers for the department's 56 local offices.
 

Organizations that need to apply for a real property tax exemption include:
 

- Churches that own less than 15 acres of property used for religious worship, clergy, or for educational or youth recreational activities (if open to the general public), 
- Non-profit agricultural and horticultural societies
- Organizations with specific educational facilities that do not exceed 80 acres of land
- Non-profit organizations for low-income housing
- Organizations with non-profit health care facilities and vehicles of certain healthcare professionals
- Cemeteries
- Institutions of purely public charity
- Public museums, art galleries, zoos and observatories operating as not-for-profit
- Non-profit organizations that leases railroad right-of-way land
- Owners of land that is within 660 feet on either side of a qualifying transmission right-of-way constructed after January 1, 2007
- Organizations that have non-profit veteran's clubhouses
- Organizations that have non-profit facilities used in international sports and athletic event competitions or used in training and practicing for such competitions
- Non-profit corporations organized to furnish potable water to its members (other than ag irrigation)
- Non-profit corporations providing care for the developmentally disabled, mentally ill, vocationally handicapped, retired, aged or chronically ill


The following supporting documentation must be submitted with the application form for all types of exemptions:

- Articles of Incorporation – Full signed copy

- Constitution or By-Laws (if organization is not incorporated)
- Internal Revenue Tax Exempt Status letter (e.g. 501(c)3)
- Deed, Contract for Deed or Notice of Purchaser’s Interest (Real Property)
- Title of mobile home
- Photograph of the property (omit if furniture and fixtures)
- A letter of specific use explaining how the property is used, e.g. as place of worship, parsonage, low income housing, etc.)
 

Required supporting documentation needed in addition to those listed above for certain types of exemptions:
 

- Clergy residence (parsonage) – Proof occupant is member of the clergy (e.g. Certificate of Ordination, License, etc.)

- Education – Copy of attendance policy and proof of a definable curriculum with systematic instruction

- Healthcare facility – License from the Department of Health & Human Services

- Cemetery – Proof of a permanent care and improvement fund

- Tribal religious – Copy of tribal resolution that sets aside the land and designates it as sacred land to be used exclusively for religious purposes

- Tribal cemetery – Copy of tribal resolution that sets aside the land and designates it as a cemetery, and proof of a permanent care and improvement fund

- Tribal park or recreational facility – Copy of tribal resolution designating the property as a park or as a recreational facility opens to the general public

- Tribal education – Copy of attendance policy and proof of a definable curriculum with systematic instruction


Please refer to 15-6-Part 2, (statutes 15-6-201 – 15-6-229, MCA) for a full description of tax-exempt property. If you have any questions filling out the application form, please call us at (866) 859-2254, (in Helena, 444-6900) or 406-444-5698 to speak to the exemption management analyst.


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Personal Property


In the state of Montana, the following types of personal property are exempt from taxation. Property owners do not need to apply for a tax exemption on these specific types of personal property.
 

- Freeport merchandise and business inventories
- Sprinkler irrigation systems
- Livestock and the unprocessed products of livestock
- Producer-held grain in storage
- Unprocessed agricultural products
- Poultry and the unprocessed products of poultry
- Bees and the unprocessed products of bees
- Biological control insects
- Sugar beet equipment not used for the previous two years, with no available sugar beet contracts within the grower’s marketing area.
- Agricultural implements and machinery valued under $100
- Down-hole equipment in oil and gas wells
- Certain motion picture and television property
- Intangible personal property, including software
- Harness, saddles and other tack
- First $15,000 or less of hand-held tools
- Household goods and furniture
- A bicycle used for personal use
- Personal property intended for rent or lease if specific conditions are met.
- Space vehicles and all associated equipment
- Title plane owned by a title insurer
- Business equipment used in the manufacture of ammunition components
- Machinery and equipment used in a canola seed oil processing facility, malting barley facility, industrial dairy or milk processing, or in the production of ethanol from grain in the first 10 years.
- Small electrical generation equipment with, nameplate capacity of less than 1 megawatt
- Property subject to registration fee (PP attached to vehicle > 1ton)
- Class 8 property belonging to a person or entity whose total amount of class 8 property has an aggregate market value of $100,000 or less.


 

Any person, firm, corporation, partnership, association, or other group seeking to qualify any other personal property as tax exempt, must apply to the Department of Revenue. To qualify for the current tax year, the Personal Property Tax Exemption Application (Form AB-30P) must be submitted to the local Department of Revenue office where the property is located by March 1.


Complete list of addresses and phone numbers for the department's 56 local offices.


Organizations that need to apply for a personal property tax exemption include:
 

- Churches that own less than 15 acres of property used for religious worship, clergy, or for educational or youth recreational activities (if open to the general public), 
- Non-profit agricultural and horticultural societies
- Organizations with specific educational facilities that do not to exceed 80 acres of land
- Non-profit organizations for low-income housing
- Organizations with non-profit health care facilities and vehicles of certain healthcare professionals
- Cemeteries
- Institutions of purely public charity
- Public museums, art galleries, zoos and observatories operating as not-for-profit
- Non-profit organizations that leases railroad right-of-way land
- Owners of land that is within 660 feet on either side of a qualifying transmission right-of-way constructed after January 1, 2007
- Organizations that have non-profit veteran's clubhouses
- Organizations that have non-profit facilities used in international sports and athletic event competitions or used in training and practicing for such competitions
- Non-profit corporations organized to furnish potable water to its members (other than ag irrigation)
- Non-profit corporations providing care for the developmentally disabled, mentally ill, vocationally handicapped, retired, aged or chronically ill
 


The following supporting documentation must be submitted with the application form for all types of exemptions:
 

- Articles of Incorporation – Complete signed copy
- Constitution or By-Laws (if organization is not incorporated)
- Internal Revenue Tax Exempt Status letter (e.g. 501(c)3)
- Title of motor vehicle or Bill of Sale
- Signed copy of lease (personal property only)
- Photograph of the property (omit if furniture and fixtures)
- A letter of specific use explaining how the property is actually used, (e.g. copy school files & transcripts, office furniture used to carry out the administrative duties of the charity, to transport developmentally disabled clients to and from work, etc.)
 

Required supporting documentation needed in addition to those listed above for certain types of exemptions:
 

- Education – Copy of attendance policy and proof of a definable curriculum with systematic instruction

- Healthcare Facility – License from the Department of Health and Human Services
- Cemetery – Proof of a permanent care & improvement fund
- Tribal Education – Copy of attendance policy and proof of a definable curriculum with systematic instruction


Please refer to 15-6-Part 2, (statutes 15-6-201–15-6-229, MCA) for a full description of tax-exempt property. If you have any questions filling out the application form, please call us at (866) 859-2254 (in Helena, 444-6900) or 406-444-5698 to speak to the exemption management analyst.


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Overview


A property tax exemption results in a reduction of the taxable value of the property. This reduction occurs in two ways-by a direct reduction in the taxable value of property or by application of a reduced tax rate to the property’s assessed value.
 

For detailed information on how to apply for a specific type of property exemption, click on the property tax exemptions tabs above.