Written by: Alexander Clark
On March 13, 2023, Governor Gianforte signed into law a property tax rebate for Montana homeowners. Rebates are available for the 2022 and 2023 years. Each rebate is worth up to $500, depending on how much you paid in property taxes for each year. Here is what you need to know about Montana’s property tax rebate.
ELIGIBILITY
You may qualify for a rebate for your principal home for 2022 and 2023 for each year that you:
- were billed and paid Montana property taxes;
- owned the home for which you claim a rebate for at least seven months;
- lived in the home for which you claim the rebate for at least seven months;
- had property taxes, including special assessments and other fees, billed on the residence; and
- paid those property taxes on the home for which you claim a rebate.
WHAT IF I MOVED?
You may still qualify for the rebate as long as you:
- owned and lived in the principal home for seven consecutive months;
- were billed and paid property taxes on the home; and
- the residence is in Montana.
HOW MUCH IS THE REBATE?
The rebate is worth up to $500 but may not exceed the amount you paid in property taxes for the year you claim. For example, if you paid only $400 in property taxes for 2022, you may only qualify for a rebate of $400. However, if you paid over $500 in property taxes in 2022, you may qualify for the full $500 rebate.
HOW DO I GET THE REBATE?
You must apply this year for the 2022 rebate and again next year for the 2023 rebate. Beginning August 15, 2023, you can apply two ways: online or by mail. The deadline to apply is October 1. The Department of Revenue will set up an online application on its website to apply online. More information on how to apply by mail will be available shortly on the Department of Revenue website. All mail applications must be postmarked by October 1.
The Montana Department of Revenue will mail two notices about the rebate, in June and July. If you do not receive a notice, you may still qualify. Receiving a notice does not mean that you are automatically eligible.
The Department of Revenue will begin accepting applications for the 2023 rebate on August 15, 2024, and the deadline will be October 1, 2024.
IS THE REBATE TAXED?
The property tax rebate is not subject to Montana income tax. The IRS is reviewing the rebate for federal income tax liability.
WHAT IF THE TAXPAYER IS DECEASED?
A deceased taxpayer may qualify for the rebate. The deceased taxpayer must have otherwise qualified for the rebate, i.e., they must have owned and resided at the home for which the rebate is claimed for seven months of the year.
WHAT IF THE PROPERTY IS HELD IN TRUST?
The trustee of a grantor revocable trust may also claim the rebate on behalf of the trust if the home meets the definition of a principal residence for the grantor.
WHERE CAN I FIND MORE INFORMATION?
The Montana Department of Revenue will post updates and the online application to its website. Please contact the experienced tax attorneys at Worden Thane P.C. with your questions about real property, taxes, estate planning, and more.