Property taxes in Montana are governed at the state level and the mill levies are set at the local level. The Montana Department of Revenue is responsible for the appraisal, assessment, and equalization of property value for tax purposes. Most appraisals are done by regional offices of the state department of revenue. Local governments including city and county, school districts and others determine their mill levy requirements.
Property taxes in Montana are moderate on a national scale, ranking 29th among the states in 2009 according to the Tax Foundation in terms of property taxes as a percentage of home value, at 0.83%. There is property tax relief available in Montana for low income homeowners, homeowners who have had a considerable increase in the taxable valuation of their property due to a reappraisal, disabled veterans and surviving spouses, and homeowners and renters age 62 or older.
Montana homeowners whose total income is below a certain limit can claim property tax assistance that reduces their property taxes by a percent multiplier from 20% to 70% depending on income. The income limits (in effect based on 2009 income) are $19,968 for single persons and $26,624 for married couples or heads of household. To qualify, you must have occupied the home as your primary residence for at least seven months during the preceding year. To apply for this assistance you need to file Form PPB-8 – Application for Property Tax Assistance Program with the local office of the Montana Department of Revenue before April 15.
After a reappraisal, certain homeowners may see the taxable value of their property increase substantially. The Montana Department of Revenue identifies homeowners whose taxable value has increased by more than 24% and mails them applications for the extended property tax assistance program. This assistance is available for a residential dwelling and up to one acre of land. The application must be returned by April 15. Then the department of revenue reviews the application to determine whether your total household income for the preceding year was less than $75,000 to qualify you for a reduction in the tax rate.
Disabled Veterans
Disabled veterans and surviving spouses of service members killed in action or veterans who died as a result of a service-connected disability can qualify for a reduced property tax rate. The reduction is 20%, 30% or 50% of the normal tax rate, depending on income level. There are income limits that determine who qualifies. A disabled veteran can qualify with adjusted gross income up to $45,930 (based on 2009 income) if single, or $52,996 if married. A surviving spouse who has not remarried qualifies if adjusted gross income is not more than $40,041. You need to submit Form PPB-8A – Disabled American Veteran Application to claim this benefit.
Seniors
Montana homeowners age 62 or older may qualify for a tax credit whether they own or rent their home. To qualify for this credit, you must have resided in Montana for at least nine months during the year, owned or rented a home for at least six months, and have less than $45,000 of gross household income. The maximum credit is $1,000. To claim the credit, you file Form 2EC – Montana Elderly Homeowner/Renter Credit with your Montana state income tax return. If you are not required to file a state income tax return you can still file the form and claim the credit.
Sources: Form 2EC – Montana Elderly Homeowner/Renter Credit – Montana Department of Revenue
Form PPB-8 – Application for Property Tax Assistance Program – Montana Department of Revenue
Form PPB-8A – Disabled American Veteran Application – Montana Department of Revenue
Local Office Locations – Montana Department of Revenue
Property Tax Relief – Montana Department of Revenue
Property Taxes on Owner-Occupied Housing by State, 2004 – 2009 – The Tax Foundation
