(1) The department will determine which taxpayers are potentially eligible for the extended property tax assistance program and will mail applications to those taxpayers. The department determines the taxpayers who are potentially eligible during the first year of the reappraisal cycle based upon the following requirements set forth in 15-6-193, MCA:

(a) A potentially eligible property is limited to a qualified residence which means any class four residential dwelling in Montana that is a single-family dwelling unit, unit of a multiple-unit dwelling, trailer, manufactured home, or mobile home, and as much surrounding land, not exceeding one acre, as is reasonably necessary for use of such a dwelling. Qualifying land is limited to the legally described parcel upon which the qualified residence is located. The dwelling must be actually occupied by itself or in combination with no more than one other class four residential dwelling in Montana for at least seven months each year;

(b) The qualified residence must be the same residence as was owned by the taxpayer on December 31, of the year prior to the first year of the reappraisal cycle for which the assistance is sought;

(c) The taxable value of the qualified residence must have experienced greater than a 24 percent increase due to reappraisal; and

(d) The property taxes on the qualified residence must have increased by $250 or more between the last year of the prior cycle and the first year of the reappraisal cycle for which the assistance is sought, based upon the mill levy established for the last year of the prior cycle.

(2) An individual unit of a multiple-unit dwelling that meets the qualification requirements of (1)(a) through (1)(d) may be eligible for the benefits allowed under this program, provided that the owner of the individual unit meets the occupancy requirement in (1)(a). The department will mail one application form to the owner of a multiple-unit dwelling to determine if the owner meets the occupancy requirement on an individual unit, and if not, there will be no benefit granted to the owner of a multi-unit dwelling through this program.

(3) For a taxpayer seeking assistance for a property that has more than one owner, only the owner that actually occupies the residence can qualify for the assistance.

(4) In order to receive the tax rate adjustment, the qualified residence property owner of record, the qualified residence property owner's agent, or a qualifying entity of a qualified residence must annually complete and forward an application to the Department of Revenue, P.O. Box 8018, Helena, Montana 59604-8018. Beginning with tax year 2010 and all subsequent tax years, the completed application must be postmarked no later than April 15 in order for an applicant 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 unless:

(a) the applicant was unable to apply for the current year due to hospitalization, physical illness, infirmity, or mental illness;

(b) the taxpayer can demonstrate the impediments listed above, while not necessarily continuous, existed at sufficient levels in the period of January 1 to April 15 to prevent timely filing of the reporting form. The department may waive this requirement, on a case-by-case basis, and upon receipt of a written statement, plus any documentation explaining circumstances where:

(i) an applicant who participated in the program in the prior year, would meet income requirements in the current year;

(ii) confusion due to infirmity may have arisen; and

(c) The department may waive this requirement on a case-by-case basis, if:

(i) the applicant qualified for the program in the prior year; and

(ii) upon receipt of a written statement, plus any documents explaining the circumstances of why the applicant failed to meet the deadline.

(5) The applicant is required to list total household income from all sources, including but not limited to:

(a) net business income;

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

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

(6) 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.

(7) 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.

(8) Income for an entity includes those shown in (4) and also the income of any natural person or entity that is a trustee of, or controls, 25 percent or more of the entity.

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

(10) 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, including all schedules, for the tax year immediately preceding the year of the application. For example: complete copies of the appropriate 2009 tax year return must accompany a 2010 application for the extended property tax assistance program, which is due by April 15, 2010.

(11) If the applicant has applied for an extension of time to file the applicant's income tax return, the applicant must provide a completed individual estimated income tax worksheet (ESW) for the tax year immediately preceding the year of the application. This form is available at the department's web site or at the local revenue office.

(12) If the applicant is not required to file an income tax return, the applicant must provide documentation that identifies the applicant's income as defined in (5). Examples of the required documentation include, but are not limited to: social security statements, pension statements, or bank statements.

(13) Failure to provide the required information in (4) through (12) will result in the application being denied. All tax return information will be treated as confidential by the department.

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

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

(16) The department will advise the applicant of its decision in writing. The date the taxpayer receives the department's determination shall be calculated by adding seven days to the date on the determination letter. An applicant aggrieved by the department's determination may appeal the determination to the State Tax Appeal Board within 30 days of receipt as defined in this section.

(17) For tax year 2009, 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.

(18) Beginning with tax year 2010, 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.

(19) 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.

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