Montana Department of Revenue

Property Appraisal Notices Coming from Department of Revenue

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Property Appraisal Notices Coming from Department of Revenue

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The Montana Department of Revenue is mailing notices to all owners of residential, commercial, industrial, and agricultural properties, showing their market and taxable values for the 2019-2020 appraisal cycle.

These notices are not tax bills. They include the department’s determination of market value for your property and will be used by your county treasurer to determine your property tax bills.

“It’s important that Montana property owners review this information thoroughly,” said Gene Walborn, Director of the Montana Department of Revenue. “If property owners wait until property tax bills are sent in November, it will be too late for the department to correct and update property characteristics that may impact the value of the property for the 2019 tax year. So please review the notice as soon as possible and contact us if you have questions.”

If property owners disagree with the department’s determination, they may submit a Request for Informal Classification and Appraisal Review (called Form AB-26) within 30 days of the date on their notice. Owners can electronically submit the form, download it, and find more information on our website.

Contact us for more information.

Owners of Older Mobile Homes May See Property Tax Relief

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Property tax changes are coming for some owners of older mobile homes, and the Montana Department of Revenue wants residents to know what that means for you starting in 2020.

Senate Bill 204, passed this year by the Montana Legislature and signed into law, creates an exemption starting in property tax year 2020 for mobile homes that are:

  • At least 28 years old; and
  • Valued at less than $10,000 per their most recent assessment; and
  • Not an improvement to real property.

A mobile home could be considered an improvement to real property, and therefore ineligible for the exemption, if it is attached to a permanent foundation and its running gear is removed.

Units that are not permanently attached to a foundation, including many units within mobile home parks or other rented lots, are not considered permanent improvements and may qualify for the exemption. However, permanent structures associated with a mobile home, such as carports, sheds, decks, garages, and porches, will still qualify as real property and would be subject to local property taxes.

Owners of the exempt mobile homes will be notified when they receive their 2020 property classification and appraisal notices in the spring of 2020. Qualified mobile homes will be exempt from personal property taxes starting with the payments due to their county treasurer in May and November 2020.

An owner of multiple mobile homes may only qualify for the exemption for his or her two mobile homes with the lowest assessed values.

Owners of exempted mobile homes still may be subject to their local government’s special assessments and fees such as solid waste and street lighting and maintenance.

Learn more about Mobile and Manufactured Homes.

A brightly decorated older trailer home.

Montana Tax Tip: Property Tax Relief for Disabled Veterans

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Montana veterans have through April 15 to apply for the Montana Disabled Veteran Assistance Program, which can provide relief on property taxes.

Veterans with 100 percent service-related disabilities and their unmarried surviving spouses may be eligible.

Single veterans may qualify if their federal adjusted gross income is less than $52,507. That limit is $60,585 for veterans who are married or head of household, and $45,775 for unmarried surviving spouses.

Depending on income, the program can reduce general property taxes by 50 to 100 percent on a primary residence.

As long as the applicant owns and lives in his or her home, that application will remain active and the department will send a letter each year with the homeowner’s current status in the program.

See the Montana Disabled Veteran Property Tax Assistance Program (MDV) for more information.

Download the MDV Application in My Revenue

Changes to the College Contribution Credit

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The college contribution credit a taxpayer may claim on the Montana College Contribution Credit (Form CC) is calculated based on the amount of charitable contribution made by the taxpayer to the foundation or general endowment fund of a college or university located in Montana.

Under the Tax Cut and Jobs Act, charitable deductions are not allowed for payments made to institutions of higher education when the taxpayer receives in return the right to purchase tickets for athletic events at the institution either directly or indirectly.

Other deductible charitable contributions made to a college located in Montana still qualify for the credit. However, if you take the credit for Montana tax purposes, you must reduce your charitable contribution by the corresponding amount.

Miscellaneous Itemized Deductions for Tax Year 2018

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The federal Tax Cuts and Jobs Act suspended all miscellaneous deductions referenced under IRC 67, for the tax years 2018 through 2025.

Miscellaneous itemized deductions are those deductions that would have been subject to the two percent of adjusted gross income limitation.  These deductions are also suspended for Montana income tax purposes.

The suspended deductions include, but are not limited to:

  • Unreimbursed employee expenses
  • Investment fees
  • Tax preparation fees
  • Most casualty and theft loss not related to income producing property

For tax year 2018, line 18 of the Montana Itemized Deductions Schedule refers to miscellaneous deductions that are not subject to the two percent floor and reportable on federal Form 1040, Schedule A, line 16, such as:

  • Net Qualified Disaster Losses, or
  • Deductions for the repayment of under a claim of right amounts such as Social Security benefits.

Casualty and theft losses of income-producing property and gambling losses, which are also deductible on federal Form 1040, Schedule A, line 16, are deductible on lines 15 and 17 respectively on the Montana Itemized Deductions Schedule.

Montana Individual Income Tax Return Form 2 Available in My Revenue

Military Spouse Filing Updates

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On December 31, 2018, the Servicemembers Civil Relief Act was amended so that a taxpayer moving to a state to be with their spouse who is a military servicemember may choose to use the tax residence of the military spouse.

Previously, when a taxpayer was not a resident of the state where his or her spouse was a resident for tax purposes, the Act did not provide protection against gaining tax residency in the state where the taxpayer moved to in order to be with their spouse.

A servicemember’s spouse can now elect to be protected by the Act by choosing the tax residency of the servicemember when filing their state income tax return.

The Act also exempts spouses who are not residents of Montana for tax purposes from paying income tax on the wages they earn in the state. The protection does not apply to a spouse that is already a resident of Montana or who elects to be a resident of Montana.