Proposal Notice: MAR No. 2026-175.1

Notice Of Proposed Rulemaking

MAR Notice No. 2026-175.1

Summary

Proposed Amendment of ARM 42.20.173 Regarding the Transfer of the Right to Informal Review

Hearing Date and Time 

Monday, August 31, 2026, at 10:30 a.m.

Hearing Information

Third Floor Reception Area Conference Room of the Sam W. Mitchell Building, located at 125 North Roberts, Helena, Montana

Comments

Comments may be submitted using the contact information below. Comments must be received by Tuesday, September 8, 2026, at 5:00 p.m. 

Accommodations

The agency will make reasonable accommodations for persons with disabilities who wish to participate in this rulemaking process or need an alternative accessible format of this notice. Requests must be made by Friday, August 14, 2026, at 5:00 p.m.

Contact

Todd Olson, Rule Reviewer - Department of Revenue, Legal Services Office

(406) 444-7905

todd.olson@mt.gov

Rulemaking Actions

Amend

The rules proposed to be amended are as follows, stricken matter interlined, new matter underlined:

42.20.173 Class Three, Four, or Ten Property Taxpayer Requests for Informal Classification and Appraisal Reviews and Related Deadlines 

1. All taxable property within class three, four, or ten must be revalued every two years, as required by 15-7-111, MCA.
2. A class three, four, or ten property taxpayer (taxpayer) dissatisfied with the department's appraised value of their property may submit a Request for Informal Classification and Appraisal Review, Form AB-26 (Form AB-26), which is available at deleted: http://www.mtrevenue.gov, end deleted inserted: revenue.mt.gov , end insertedor through a department field office.  The Form AB-26 must be submitted to a department field office within 30 days from the date on the classification and appraisal notice for any valuation adjustments to be considered for both years of the valuation cycle.
3. If a taxpayer misses the 30-day deadline in (2), they may object to the department's appraised value of their property for the second year of the valuation cycle only by submitting a completed Form AB-26 by June 1 of the second year.
   1. A Form AB-26 submitted to the department after June 1 of the second year of the valuation cycle is untimely and the taxpayer's next opportunity to submit a Form AB-26 will be the following year after they receive the classification and appraisal notice for the next two-year valuation cycle.
   2. Any valuation adjustments under the circumstances under (3) apply only to the second year of the valuation cycle.
4. As provided in 15-7-102, MCA, a taxpayer may also request an informal review by checking a box found on their classification and appraisal notice and returning the request to the department.  For this purpose, the department has incorporated the check box request into a detachable ticket on the classification and appraisal notice.  Upon receipt of the taxpayer's returned ticket, the department will mail a Form AB-26 to the taxpayer with a cover letter stating the Form AB-26 must be postmarked or hand-delivered to the department within 15 business days of the date on the letter or within 30 days of the date shown on the taxpayer's classification and appraisal notice, whichever is later.
5. There are no retroactive adjustments to the appraised value for prior years.
6. A taxpayer may submit a Form AB-26 as described in (2) and (3), but only once during the valuation cycle, unless a new classification and appraisal notice is generated due to a change in property ownership, classification, or valuation, or the addition or subtraction of personal property affixed to the land, as provided in 15-7-102, MCA.  The taxpayer then has 30 days from the date on the new classification and appraisal notice to submit a Form AB-26.
7. inserted: If a change in ownership of the property occurs after a taxpayer has submitted an original Form AB-26 and before the department has issued a final determination, the new owner may elect to continue the prior taxpayer’s informal classification and appraisal review process as the new taxpayer, provided the requirements under 15-7-102, MCA, have been met.  This election by the new taxpayer must be made by submitting a Form CAB-26 to the department prior to the department issuing a final determination on the original Form AB-26, and within 30 days of the close of the transaction in which they acquired the property.  If the new taxpayer fails to submit the Form CAB-26 within the prescribed period, the provisions of (3) apply., end inserted
8. deleted: (7), end deletedinserted: (8), end inserted During the informal review process, the department may attempt to contact a taxpayer by telephone, email, and/or a property site visit to schedule an appointment or request additional documentation.  If attempts to contact the taxpayer are unsuccessful, the department will send a written request to the taxpayer, who must respond within 15 business days from the date on the letter.  If the taxpayer does not respond within the prescribed time, the department will deny the deleted: Form AB-26, end deleted inserted: informal review , end insertedand notify the taxpayer in writing.

Authorizing statute(s): 15-1-201, MCA

Implementing statute(s): 15-7-102, 15-7-111, MCA

Reasonable Necessity Statement

The department proposes to amend ARM 42.20.173 through a new (7) and a minor amendment to (8) to clarify that an informal classification and appraisal review initiated by a property owner under a Form AB-26 with the department (an “informal review”) is a right that may be transferred to a new owner of the property before the department renders a final determination on the informal review from the original Form AB-26.

The department believes the amendment is necessary based on actual occurrences where an owner of residential property has initiated an informal appeal challenging the department’s assessed market value for tax purposes then sells the property to a new owner before the final determination process is complete. 

While the department has operated under differing policies in the past, allowing the right of informal review to pass between seller and buyer - via a clearly stated provision in rule within a specified time frame - ensures the equitable treatment of taxpayers, upholds the integrity of the review process, and affirms a new owner’s intent to maintain an informal review.

The department is also amending (2) to the reflect the department’s current website address.

Small Business Impact

With regard to the small business impact analysis requirements of 2-4-111, MCA, as amended by HB 592 (2025), the department has analyzed the proposed rule amendments and the groups or class of businesses directly affected by this rulemaking if they meet the definition of a small business under 2-4-102(13), MCA.

The department contends that small businesses could be directly impacted as a result of the proposed rulemaking if properties subject to an informal review are owned by small businesses. However, the department believes extending appeal rights from the rulemaking would be viewed as positive.

Documentation of the small business impact analysis is available upon request.

Bill Sponsor Notification

The bill sponsor contact requirements of 2-4-302, MCA, do not apply.

Interested Persons

The Department of Revenue maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency.  Persons who wish to have their name added to the list shall make a written request, which includes the name and e-mail or mailing address of the person to receive notices and specifies that the person wishes to receive notice regarding particular subject matter or matters.  Notices will be sent by e-mail unless a mailing preference is noted in the request.  A written request may be mailed or delivered to the contact person in this notice or may be made by completing a request form at any rules hearing held by the Department of Revenue.

Rule Reviewer

Todd Olson

Approval

Brendan Beatty, Director of Revenue