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Montana Property Tax Assistance Program

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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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2008 Taxable Value Rate Table
For Low Income
Property Tax Assistance Reduction
Single Person
Married Couple or
Head of Household
Percent
Multiplier
$0 - $7,703
$0 - $10,270
20%
     $7,704 - $11,811    $10,271 - $17,973
50%
   $11,812 - $19,257   $17,974 - $25,676
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 income, including otherwise tax exempt income, must not exceed $19,257 for a single person or $25,676 for a married couple or a person filing as "head of household."  Items included in income to determine eligibility for low-income status:

  • Wages, fees, bonuses, capital gains, ordinary income, interest and dividends;
  • Total income from business, partnerships, rents, royalties;
  • Payments and interest on federal, state, county and municipal bonds;
  • Alimony, public assistance, unemployment and tax refunds; and
  • All pensions and annuities, including railroad retirement, PERS, veteran's disability and social security. Social Security income paid to a nursing home is not considered income.

Applications: The owner must apply for the reduction before March 15 of each year.

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 (406) 444-6900.

Computation: The reduction is determined using the property owner's total income.  (See Income above for items included in 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 passed by the 2003 Montana Legislature. The program offers a reduction to the tax rate used to determine tax liability on specific residences and up to five acres of appurtenant land for those persons or entities who meet the following four specific criteria:

  • Taxable value of the property must have increased by more than 24% as a result of the 2003 reappraisal;
  • Property tax liability must have the potential to increase by $250 or more (based on use of the 2002 mill levy);
  • Property owner must have owned the residence as of December 31, 2002, and;
  • Owners' total household income may not exceed $75,000.

The filing deadline is April 15 each year.

Disabled American Veterans Exemption (MCA 15-6-211) 

Residential property owned by a disabled veteran, or the surviving spouse of a deceased veteran, may be exempt from property taxation if certain criteria is met.

Disabled Veterans
A real property residence (including the lot on which it is built up to five acres) or a mobile home 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 adjusted gross income, as reported on the latest federal income tax return, of less than $34,051 if single, or $40,861 if married.
  • An incremental property tax reduction is also available if the adjusted gross income exceeds these limits, but is less than $44,266 if single, or $51,076 if married. (see chart below)

Surviving Spouse of Disabled Veteran
A real property residence (including the lot on which it is built up to five acres) or a mobile home owned by the surviving spouse 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 adjusted gross income, as reported on the latest federal income tax return, of less that $28,376.
  • An incremental property tax reduction is also available if the adjusted gross income exceeds this limit, but is less than $37,678. (see chart below):

    Single
    Married
    Surviving Spouse
    %
    Class Codes
    $0 $34,051 $0 $40,861 $0 $28,376 00 2140 3145 6245
    $34,052 $37,456 $40,862 $44,266 $28,377 $31,781 20 2141 3146 6246
    $37,457 $40,861 $44,267 $47,671 $31,782 $35,186 30 2142 3147 6247
    $40,862 $44,266 $47,672 $51,076 $35,187 $38,591 50 2143 3148 6248

An application must be completed and submitted to the local Department of Revenue office by March 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.

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