Property Tax Relief
 |
Property Tax Assistance Program |
Property Tax Assistance Program
MCA 15-6-134
Form
Form PPB-8 (PTAP) - Property Tax Assistance Program Application
Montana property owners can have their property taxes reduced if they meet certain qualifications. To receive the credit, Form PPB-8 must be filed with the local Department of Revenue office in the county where the property is located.
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2013 Income Guidelines
For Property Tax Assistance Program
|
||
|
Single Person
|
Multiple Applicants or
Head of Household |
Percent
Multiplier |
|
$0 - $8,324
|
$0 - $11,098
|
80%
|
| $8,325 - $12,763 | $11,099 - $19,422 |
50%
|
| $12,764 - $20,809 | $19,423 - $27,745 |
30%
|
Ownership: The home or mobile home must be owned or under contract for deed.
A qualified applicant is someone who is an owner of the property and who occupied the property as their primary residence for at least seven months during the preceding calendar year.
Income: All qualified claimants must report their income. Income to include in determining eligibility for the property tax assistance program:
- Wages, salaries, tips, etc.
- Taxable Interest
- Ordinary and Qualified dividends
- Alimony received
- Capital gains (report losses as 0)
- Other gains (report losses as 0)
- Taxable refunds, credits or offsets of state and local income taxes
- Business and/or Farm income before subtracting losses, depreciation and/or depletion
- Taxable amount of IRA distributions, pensions and annuities
- Rental, royalties, partnerships, S corporations, trust income before subtracting losses, depreciation and/or depletion
- Unemployment compensation
- Taxable amount of Social Security benefits (Do not include Social Security paid directly to a nursing home or social security for dependent children.)
- Other income
Applications: Applications are mailed annually to all prior year applicants. Completed applications must be returned to the local Department of Revenue office on or before April 15 of each year.
Questions: Call your local Department of Revenue office, or call the department's Customer Service Center toll-free 1-866-859-2254 (444-6900 in Helena).
Computation: The benefit is applied through a reduced property tax rate.
Extended Property Tax Assistance Program - EPTAP
15-6-193, MCA
For more information, Frequently Asked Questions - EPTAP
Did you receive a notification letter from us that granted assistance? Learn more here
Did you receive a notification letter from us that denied assistance? Learn more here
This is a program that was reestablished by the 2009 Montana Legislature. The program is not available to all residential property owners, only those who qualify under the statute (see criteria below). Potentially eligible residential property owners identified by the Department of Revenue will be invited to apply for benefits under this program. The initial pool of potentially eligible residential property owners is identified by the Department of Revenue the first year after the end of a reappraisal cycle. The Department then mails application forms each year to those residential property owners who are determined to be potentially eligible based on the criteria listed below. The deadline for filing completed applications is April 15 each year. The program offers a reduction to the tax rate used to determine tax liability on the specific residences and up to one acre of appurtenant land for only those persons or entities who meet the following detailed criteria:
Details of the Extended Property Tax Assistance Program (EPTAP)
Those properties that meet the preliminary criteria to receive applications are determined by the Department of Revenue from valuation information stored on its ORION computer system. To meet the preliminary qualification criteria, affected properties must meet all of the following:
- The properties must be “qualified residential properties” *(see definition below). These are dwellings including up to 1 acre of land associated with the dwellings, and
- The residential dwellings, either by themselves or in combination with no more than one other residential dwelling in Montana, were occupied for at least 7 months during the preceding calendar year, and
- The properties must be under the same ownership as they were on December 31, 2008, and
- The properties (each residential dwelling and up to 1 acre of appurtenant land) must have experienced a greater than 24% increase in taxable valuation due to reappraisal. This is determined by comparing the 2008 Taxable Value with the 2014 Taxable Value (the fully phased-in taxable value for the last reappraisal cycle with the fully phased-in taxable value for the current reappraisal cycle), and
- The properties must have experienced a tax increase of at least $250 or more due to reappraisal (this is based on applying the 2008 mill levy to both the 2008 taxable value and the 2014 taxable value).
Properties that previously received EPTAP benefits (for the last reappraisal cycle 2003 – 2008) will not necessarily be eligible for benefits for this new reappraisal cycle (2009 – 2014).
Applications will automatically be mailed to only those property owners who have been determined to meet the criteria listed above.
Once the completed applications are returned to the DOR, they will be reviewed to determine if the owner(s) total household income for the preceding year **(see definition below) is less than $75,000.
*Qualified residential property
A single-family dwelling unit, unit of a multiple-unit dwelling, trailer, manufactured home and as much of the surrounding land, not exceeding 1 acre, as is reasonably necessary for its use as a dwelling. The dwelling, either by itself or in combination with no more than one other residential dwelling in Montana, must be occupied for at least 7 months during each calendar year. (NOTE: For multi-unit dwellings, the owner or person or persons controlling at least 25% interest in the multi-unit structure must actually occupy one of the units in the structure, in order for the unit to qualify.)
**Total household income
The sum of the income of all members of your household plus the income of all other persons who are owners of the property. It isn’t necessarily the adjusted gross income as listed on your federal income tax returns, though in many instances it may be one and the same. Income includes:
- Income from all sources, including net business income and otherwise tax-exempt income of all types.
- Social security income paid to any owners of the property and to any members of the household, but it does not include social security paid directly to a nursing home.
- If you are self-employed, your net business income is gross income less ordinary expenses but before you deduct depreciation or depletion or both.
The initial pool of potentially eligible residential property owners decreases each year of the reappraisal cycle when any of the following occurs to properties identified in the initial pool:
- The residential property which was owned on December 31, 2008 is sold or transferred to some other party, or
- New construction or remodeling of the residential improvements (buildings) occurs that increases the market value of the improvements by more than 25%, or
- The market value of the appurtenant land increases by more than 25%.
Disabled American Veterans (DAV) Property Tax Benefits
Form
Form PPB-8A (DAV) - Disabled American Veteran Application
Application Requirements
A benefit of a reduced property tax rate is available by application, for Disabled Veterans and the Surviving Spouse of a veteran that was killed while on active duty or died as a result of a service-connected disability. The exemption or reduction applies to the land up to five acres in size, veteran’s residence, and one attached or detached garage. Additional buildings do not receive the reduction or exemption.
- The Disabled American Veteran Application Form and information can be obtained at your local Department of Revenue Office.
- The application form and supporting documentation must be returned to your local Department of Revenue office before April 15th or no exemption or reduction can be allowed.
- Application must be made annually with proof of income and a letter of eligibility from the Veterans Administration
- If your disability rating is permanent, a letter of eligibility need only be submitted once.
Eligibility Requirements As Outlined in Statute
If the veteran is living, the veteran:
- Must have been honorably discharged from active service,
- Must currently be rated 100% disabled or is paid at the 100% disabled rate by the United States Department of Veterans Affairs (VA) for a service connected disability, and;
- Must own and occupy the dwelling or mobile home as a primary residence.
- Adjusted gross income is not more than $47,865 if single or $55,229 if married.
In addition to veterans being eligible for the exemption, a veteran’s surviving spouse can receive the exemption if the veteran was killed while on active duty or died as a result of a service-connected disability. To receive the exemption, the surviving spouse must meet eligibility requirements as outlined below:
- Is the owner/occupant of the home,
- Has remained unmarried,
- Has obtained a letter from the VA indicating the veteran was 100% disabled at the time of death, died while on active duty or as the result of a service-connected disability.
- Adjusted gross income is not more than $ 41,729.
The reduction in tax rate is based on the income of the applicant. Depending on the marital status and income of the homeowner, the tax rate is reduced to 100%, 80%, 70% or 50% of the normal tax rate. The income ranges are established in 15-6-211, MCA and are updated each year for inflation. The following chart shows the adjusted 2013 income limits.
|
Single Person |
Married or
Head of Household |
Surviving Spouse |
Percent |
|
$0 – $36,819 |
$0 - $44,183 |
$0–$30,683 |
100% |
|
$36,820 – $40,501 |
$44,184 - $47,865 |
$30,684 – $34,365 |
80% |
| $40,502 - $44,183 | $47,866 - $51,547 | $34,366 - $38,047 |
70%
|
|
$44,184 - $47,865 |
$51,548 - $55,229 |
$38,048 - $41,729 |
50% |
Elderly Home Owner/Renter Credit
15-30-2337 through 15-30-2341, MCA
An income tax credit is available to qualifying taxpayers. The amount of the credit is based on household income adjusted by the amount of property taxes, fees, special assessments and special improvement districts (SIDs) billed on a residence and land not to exceed one acre.
- Eligibility: An eligible individual is someone who during the tax year:
- reached age 62 or older as of December 31, 2012;
- resided in Montana for 9 months or more of the period;
- occupied one or more dwellings in Montana as an owner, renter, or lessee for 6 months or more; and
- had less than $45,000 of gross household income.
- Qualifications: An individual may qualify for the elderly homeowner/renter credit by owning or renting a residence. For property owners, the credit is computed on the amount of property tax assessed against your home. For renters, the credit is computed on the rent equivalent tax paid.
- Benefits: The credit may not exceed $1,000. If the amount of the credit exceeds the tax liability, the excess amount is refunded. The credit may be claimed even though the individual has no income tax filing responsibility.
- Filing Options:
- Electronically file your Form 2EC for free, or
- File your Form 2EC on paper.
- Filing Deadline: The filing deadline is April 15 each year.
For additional information, please review the Elderly Homeowner/Renter Credit FAQs.
Last updated 2/5/2013 12:07:27 PM