Business & Industrial Equipment owners are able to file their personal property reporting form online through the Department of Revenue’s TransAction Portal (TAP).
The department mailed 2017 personal property reporting forms to business owners on January 3, 2017. Business & industrial taxpayers have until March 1, 2017 to submit their personal property reporting forms electronically through TAP or by mailing/delivering the forms to the department. For reporting forms not received by the March 1 deadline, the department assesses a penalty equal to 20% of the depreciated personal property value to the personal property records.
New business and industrial property owners need to submit a written report the first time you report your personal property. A personal property reporting form should be completed and returned to the local Department of Revenue office where the personal property is located. Complete list of addresses and phone numbers for the department's 56 local offices.
A reporting form must be submitted to the department even if there were no changes to the personal property since the previous tax year, or if the business closed or was sold.
Livestock reporting is no longer completed on the personal property reporting form. Livestock reporting forms were mailed January 11, 2017 to livestock owners that reported livestock in 2016. Livestock owners have the option to report livestock and pay per capita fees online at ReportYourLivestock.mt.gov. Montana law requires all livestock owners to report by March 1 of each year the number of livestock owned as of February 1. Livestock per capita fee payments are due May 31.
Signing into the TAP system to electronically file the reporting forms is easy. Click on the personal property reporting button below. This will bring you to the TAP page. Then, click the blue Sign up Now! button and select an account type (either personal property reporting or industrial property reporting) and enter their Montana Account ID. The taxpayers Account ID can be found on the first page of the reporting form mailed to business and industrial equipment owners. The final step of the sign-In process is to enter their FEIN or SSN and provide the required profile information. Within 5-10 minutes, an authorization code will be emailed to them and they can begin completing their reporting forms electronically.
If a taxpayer reported personal property information to the department in the previous tax year, this information will be pre-populated in the online form in TAP. Taxpayers will be able to easily verify their existing information and make any updates, add new property, or delete property that is no longer in service.
If a business or industrial personal property owner already has a TAP account, they simply need to login to that account, and add a business or industrial personal property account to the accounts they already have. Tax preparers and other third party preparers, authorized by the taxpayer, can also access their clients account to complete the reporting requirements.
Personal Property Reporting
Note: Although the videos may look slightly different due to the recent upgrade of a new TAP version, the information provided is still correct. Further, a new version of the video is currently being worked on.
Personal Property Reporting Tutorial Video
Industrial Property Reporting Tutorial Video
Import/Export Spreadsheet Tutorial Video
Personal Property Overview
Personal property includes business equipment, mining and manufacturing machinery, agricultural implements and equipment, furniture, fixtures and all other property not included in any other class of property. Equipment that is depreciated as a business asset for income tax purposes is taxable for property tax purposes. Property that is “depreciated out”’ for income tax purposes remains taxable for property tax purposes.
For a detailed list of the types of equipment to report, click on the equipment categories below.
- Furniture, Fixtures and Miscellaneous Equipment
- Heavy Equipment
- Manufacturing and Mining Equipment
- Farm and Ranch Equipment
- Oil and Gas Equipment
Some terms and definitions commonly used in the personal property assessment process are provided below.
Assessment Date - Personal property that an individual or business owns, possesses or controls at midnight on January 1 is taxable for that year.
Assessment Notice and Tax Billing – Property assessment is a state function performed by Department of Revenue, Property Assessment Division staff. Tax billing and collection is a county function performed by elected county treasurers.
Reporting Deadline – March 1 is the deadline for taxpayers whose aggregate personal property value is greater than the exemption threshold, as determined by the department, to report the installed costs of all personal property to the department. If the department determines that a taxpayer’s statewide aggregate market value of personal property is below the exemption threshold, the property is exempt from taxation, in which case, the taxpayer will not receive an assessment notice or a personal property tax bill. If a taxpayer qualifies for the exemption and then acquires new business equipment or expands their business in subsequent years, the law requires the taxpayer to report the changes to his or her local Department of Revenue office by telephone or in writing.
Department personnel may visit the business, agricultural operation or field site to ensure accurate reporting and to answer any questions regarding the valuation and taxation process. For further information, please refer to 15-6-138, MCA, for the complete text of the law governing class eight personal property assessment.
Non-reporting / late reporting penalty – The department assesses a penalty equal to 20% of the depreciated personal property value to personal property records for which a completed reporting form has not been returned to the department by the deadline.
Valuation method – Personal property depreciation tables for each category of personal property are calculated annually based on the Producer Price Index from the United States Department of Labor, Bureau of Labor Statistics.
Farm machinery and heavy equipment are valued from nationally recognized guides whenever possible. When that information is unavailable, a percent good factor is applied to the FOB or acquired cost. The percent good factors are calculated annually based on the values in the nationally recognized guides.
Current Year Depreciation Schedules.
Detailed descriptions of the valuation methods can be found in chapter 42.21 of the Administrative Rules of Montana.
|Personal property tax calculation example:
|Acquired cost of equipment
|Percent good based on the year new from the appropriate schedule- 75% in this example
|Current tax rate - 1.5% in this example
|Mill levy in the district where the property is located - 0.500 or 500 mills in this example
Aggregation, Exemption and Tax Rate Adjustment Threshold
Fact sheet explaining Montana's personal property assessment calculations.
In an effort to reduce the tax burden on businesses, Montana law exempts a portion of a taxpayer’s class eight personal property value. Additionally, a lower tax rate is applied to the portion of value that is under a second threshold.
The first $100,000 of taxable market value is exempt. This is the exemption threshold.A lower tax rate is applied to the next $6 million of taxable market value. This is the tax rate adjustment threshold (TRAT).
Personal property assessment is based on statewide aggregate value, that is, the combined value from all of a taxpayer’s locations throughout the state. Values are aggregated by taxpayer ID.
The department makes an effort to identify the parent company. A parent company is one that has an ownership interest of 50% or more in another entity. If a parent company is been identified, values are aggregated by the parent company’s taxpayer ID.
Class eight property includes most business equipment.
Market value of class eight property is the depreciated value determined as described in Montana law and administrative rules.
Taxable market value is the total market value minus any exempt market value (total market value – exempt market value = taxable market value).
Aggregate market value is the total market value of class eight property that a person or entity owns at all locations, statewide. The amount of any penalty on a taxpayer’s property assessment record(s) is not included when determining the taxpayer’s aggregate market value.
Aggregate taxable market value is the total market value of class eight property that a person or entity owns at all locations, statewide minus the exempt class eight market value (aggregate market value – exempt market value = aggregate taxable market value).
Migratory and Special Mobile Equipment
Migratory and special mobile equipment fact sheet.
Special mobile permits - Heavy equipment that occasionally moves on, over or across the state highways requires a $5 special mobile permit. The department calculates the taxable value of special mobile equipment because the property taxes must be paid to the county treasurer at the time the permit is acquired. You must provide proof of tax payment to the department to avoid double assessment.
Migratory personal property - Personal property brought into Montana any time during the year is subject to the property tax. The property tax is prorated based upon the date the property enters the state. Click here to view the proration chart.
Property tax refund application - Migratory property that is subsequently removed from the state during the same calendar year may be eligible for a prorated property tax refund. You can obtain applications from the local Department of Revenue office.You must submit the application to the county commissioners of the county in which the property was assessed and where the personal property tax was paid.