Property Tax Relief

Note: Changes to the law have impacted the reporting requirements for 2009. The updated application is available by clicking on the link to the Property Tax Assistance Program Application (Form PPB-8) below.

Property Tax Assistance Program (MCA 15-6-134)

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.

2009 Taxable Value Rate Table For Low Income Property Tax Assistance Reduction
Single Person	Married Couple or Head of Household	Percent Multiplier
$0 - $7,978	$0 - $10,637	20%
$7,979 - $12,232	$10,638 - $18,614	50%
$12,233 - $19,944	$18,615 - $26,592	70%

Ownership: The home or mobile home must be owned or under contract for deed.

Residency: The owner must occupy the dwelling for at least seven months as their primary residence.

Income: The owner's total federal adjusted gross income is less than $19,944 for a single person, or $26,592 for a married couple or a person filing as "head of household.”

If you are not required to file a federal income tax return, you will need to determine and provide evidence of what your federal adjusted gross income would have been had you been required to file.

Applications: The owner must apply for the reduction before April 15 of each year. For 2009 the deadline has been extended to July 15.

Mailing: Form PPB-8 must be mailed or delivered to the local Department of Revenue office.

Questions: Call your local Department of Revenue office, or call the department's Customer Service Center in Helena at toll-free 1-866-859-2254 or in Helena 444-6900.

Computation: The reduction is determined using the property owner's federal adjusted gross income. The tax rate applied to the market value of the property is reduced depending on the owner's income.

Extended Property Tax Assistance

This is a program that was reestablished by the 2009 Montana Legislature. The program is not available to all residential property owners. Only potentially eligible residential property owners identified by the Department of Revenue are eligible 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 only to those residential property owners who are determined to be potentially eligible based on the criteria listed below. The goal for 2009 is to begin mailing applications on August 3, 2009. The normal deadline for filing completed applications is April 15 each year. However, the deadline for filing completed applications for 2009 has been extended to the due date preprinted on the application form. The program offers a reduction to the tax rate used to determine tax liability on the specific residences and up to five acres of appurtenant land for only those persons or entities who meet the following four specific initial criteria:

Taxable value of the property must have increased by more than 24% as a result of the 2009 reappraisal;
Property tax liability must have the potential to increase by $250 or more (based on use of the 2008 mill levy);
Property owner must have owned the residence as of December 31, 2008, and;
Owners' total household income may not exceed $75,000.

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 Exemption (MCA 15-6-211)

Note: Changes to the law have impacted the reporting requirements for 2009. The updated application is available by clicking on the link to the Disabled American Veteran Application (Form PPB-8A) below.

Residential property owned by a disabled veteran, or the surviving spouse of a deceased disabled veteran, may be eligible for a property tax exemption or reduction if certain criteria is met.

Disabled Veterans
A real property residence or a mobile home (including the lot on which it is built up to five acres) that is owned and occupied by a disabled veteran is exempt from property taxation provided that the veteran:

Has been honorably discharged from active service in any branch of the armed forces.
Is rated 100% disabled or compensated at the 100% disabled rate due to a service-connected disability by the U. S. Department of Veterans Affairs
Has annual federal adjusted gross income, as reported on the federal income tax return for the preceding calendar year, of less than $35,266 if single, or $42,319 if married or filing as “head of household.”
If you are not required to file a federal income tax return you will need to determine and provide evidence of what your federal adjusted gross income would have been had you been required to file.
An incremental property tax reduction is also available if the adjusted gross income exceeds these limits, but is less than $45,846 if single, or $52,899 if married or filing as “head of household". (see chart below)

Surviving Spouse of Disabled Veteran

A real property residence or a mobile home (including the lot on which it is built up to five acres) that is owned by the surviving spouse of a disabled veteran is exempt from property taxation provided that:

The veteran was killed on active duty, or died as the result of a service-connected disability.
The spouse has remained unmarried.
Has annual federal adjusted gross income, as reported on the federal income tax return for the preceding calendar year, of less than $29,388.
If you are not required to file a federal income tax return, you will need to determine and provide evidence of what your federal adjusted gross income would have been had you been required to file.

An incremental property tax reduction is also available if the federal adjusted gross income exceeds this limit, but is less than $39,968. (see chart below)

Single		Married		Surviving Spouse		%	Class Codes
$0	$35,266	$0	$42,319	$0	$29,388	00	2140	3145	6245
$35,267	$38,793	$42,320	$45,846	$29,389	$32,915	20	2141	3146	6246
$38,794	$42,319	$45,847	$49,372	$32,916	$36,442	30	2142	3147	6247
$42,320	$45,846	$49,373	$52,899	$36,443	$39,968	50	2143	3148	6248

Form PPB-8A must be completed and submitted to the local Department of Revenue office by April 15. For 2009 the deadline has been extended to July 15. For an application or more information, contact your local Department of Revenue office.

Elderly Home Owner/Renter Credit (MCA 15-30-171 through 15-30-179)

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. The taxpayer or spouse must be age 62 or older as of December 31 in the tax year for which the credit is claimed.

Form 2EC can be filed with the Montana income tax return, or by itself if the individual is not required to file a tax return. The filing deadline is April 15 each year.