(1) The department will determine which taxpayers are potentially eligible for the extended property tax assistance program and will mail applications to those taxpayers. In order to receive the tax rate adjustment, the property owner of record, the property owner's agent, or a qualifying entity must annually complete and forward an application to the Department of Revenue, P.O. Box 5805, Helena, Montana 59604-5805.

(a) In order for qualifying taxpayers to receive the tax rate adjustment for tax year 2003, the department mailed letters to taxpayers by June 30, 2003, advising them that completed applications must be postmarked on or before July 25, 2003, and returned to the department if they want to be considered for the tax rate adjustment. This notification also advised the applicants that applications postmarked after July 25, 2003, would not be considered for the tax rate adjustment.

(b) Beginning with tax year 2004 and all subsequent tax years, the completed applications must be postmarked on or before April 15 in order for applicants to receive the tax rate adjustment for the year the tax rate adjustment is sought. Applications postmarked after April 15 will not be considered for the tax rate adjustment provided for under this section.

(2) The applicant is required to list total household income from all sources, including:

(a) net business income;

(b) otherwise tax-exempt income of all types; and

(c) income from all other owners of the property.

(3) Total household income includes, but is not limited to:

(a) employment income;

(b) gross business income less ordinary operating expenses but before deducting depreciation and/or depletion allowance;

(c) social security;

(d) railroad pension;

(e) teachers' pension;

(f) employment pension;

(g) veterans' pension;

(h) any other pension;

(i) alimony;

(j) disability income;

(k) unemployment benefits;

(l) welfare payments;

(m) aid to dependent children;

(n) rentals;

(o) interest from investments;

(p) stock/bond interest or dividends;

(q) interest from banks; and

(r) any other income.

(4) Social security income paid directly to a nursing home, food stamps, or direct utility payments paid to the energy share program are not included as income.

(5) Income for an entity includes those shown in (2) and also the income of any natural person or entity that is a trustee of, or controls, 25% or more of the entity.

(6) For single-family rental dwellings, total household income is income made by the property owner, not the income of the tenant.

(7) The completed application form must include:

(a) the applicant's social security number or federal identification number (FEIN) ; and

(b) copies of the applicant's federal individual, partnership, estates or trusts, or corporate income tax return for the tax year immediately preceding the year of the application. For example: complete copies (including all schedules) of the appropriate 2003 tax year return must accompany a 2004 application for the extended property tax assistance program, which is due by April 15, 2004.

(8) Failure to provide the required information in (2) through (7) will result in the application being denied. All tax return information will be treated as confidential by the department.

(9) The department may review income tax or corporate tax records in order to verify accuracy of information submitted in support of the application.

(10) The department will approve or deny the application and will advise the applicant in writing of the decision.

(11) For tax year 2003, assessment notices will be prepared and mailed for all parcels of real property without regard to whether parcels qualify for the program as provided in this rule. The property reappraisal values are not impacted by the provisions of the extended property tax assistance program, and in accordance with 15-7-102 , MCA, the department will not issue or mail revised assessments for those parcels qualifying for the extended property tax assistance program.

(12) Beginning with tax year 2004, and in accordance with 15-7-102 , MCA, the department will not mail assessment notices for parcels when a valuation change is due solely to successful qualification for the extended property tax assistance program, since the market value of the property is not impacted by the program.

(13) All parcels qualifying for the tax rate adjustment will see a reduction in the tax rate used to calculate the taxable valuation for each qualifying parcel.

(14) The new taxable value calculated due to the extended property tax assistance program will be available for review at the local department office.