Tax Relief and Assistance for Loss Due to Natural Disaster, Including Fires, Floods and Drought
The Department of Revenue expresses sincere sympathy to those Montanans whose homes, lands and other property have been damaged or destroyed by a natural disaster. Please let us help. If you are a Montana property owner who has experienced a loss of your dwelling, other buildings, or forestland due to a natural disaster, you may be eligible for property tax relief or an income tax filing extension.
We can provide you with necessary information, as well as issue replacement copies of property records, past-year tax returns or other revenue-related information.
|Real property dwellings||All or partially destroyed|
|Real property improvements||All or partially destroyed|
|Manufactured housing and mobile homes||All or partially destroyed|
|Business equipment||All or partially destroyed|
The property must have been rendered unsuitable for its previous use to qualify for property tax relief. The relief is prorated based on the number of days in the tax year that the property was unsuitable for its previous use. The relief is available for the current tax year.
You can apply by completing a Natural Disaster Application (Form AB-25).
Forest lands upon which trees are destroyed so that the lands affected will not meet the minimum stocking requirements.
If the landowner shows that the forest lands have been destroyed to the point that minimum stocking requirements are not met, the Department of Revenue must reduce the value of the forest land by 50% of the original forest productivity value per year. The adjustment will be made for the first 20 tax years following the loss. The first relief will apply to the tax year following the loss, not to the current tax year.
You can apply by completing a Form AB-26.
Federal Income Tax Deduction
Property owners may also be eligible for a federal income tax casualty loss deduction on Schedule A, Itemized Deductions. The same Form 4684, Casualties and Thefts, is required for both the Montana state return and the federal Form 1040. Additional information is available by visiting the Internal Revenue Service website, and typing "Tax Topic 507" in the search box.
Last updated 6/6/2013 11:51:32 AM