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42.19.501    PROPERTY TAX EXEMPTION FOR QUALIFIED DISABLED VETERANS

(1) The property owner of record or the property owner's agent must make application to the local department office, in order to obtain a property tax exemption. An application must be filed, on a form available from the local department office, on or before April 15 of the year for which the exemption is sought. Applications postmarked after April 15 will not be considered for that tax year 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; and

(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.

(2) The department may accept and process the applications and proof of income if submitted or postmarked no later than July 1 of the year for which the benefit is sought. Willful misrepresentation of facts pertaining to income or the impediments that prevent timely application filing will result in the automatic rejection of the application.

(3) The following documents must accompany the application:

(a) letter from the Veterans' Administration which verifies that the applicant is currently rated 100 percent disabled or is paid at the 100 percent disabled rate. If the disability is permanent, the letter need be submitted only once;

(b) copies of the applicant's completed federal income tax return for the preceding calendar year, including all schedules;

(c) 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; and

(d) if the applicant is not required to file an income tax return, the applicant must provide documentation that identifies the applicant's income. Examples of the required documentation include, but are not limited to:

(i) social security statements;

(ii) pension statements; or

(iii) bank statements.

(4) The department or its agent will review the application and the supporting documents and may perform a field evaluation. The department or its agent will approve or deny the application. A decision to deny such an application due to the inability to provide sufficient information will be forwarded to and reviewed by an area manager or regional manager.

(5) The department shall disapprove an application under the following circumstances in which the taxpayer fails to properly apply:

(a) the taxpayer is required to file an income tax return for the year in which the applicant seeks the exemption and does not provide a copy of the return;

(b) the taxpayer is not required to file an income tax return for the year in which the applicant seeks the exemption and does not provide the documentation required in (2);

(c) the taxpayer does not sign the application; or

(d) the department determines an application includes false information.

(6) A taxpayer who provides false information on an application may be charged with fraudulent misrepresentation under 45-6-317, MCA.

(7) 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.

(8) The residence of the disabled veteran or the surviving spouse of a disabled veteran is defined as "that house or dwelling owned by the applicant on the date of application of the tax year for which exemption is sought, which is occupied by the applicant for more than seven months per year, and which may include a garage whether attached or detached." All other buildings, outbuildings, or improvements shall not be exempt.

(9) For purposes of this benefit, the land beneath and immediately adjacent to the residence shall not include any separately described or assessed parcels of land, regardless of whether the parcel is contiguous with or adjacent to the parcel upon which the qualified residence is located. Land in excess of five acres will not be exempt.

(10) In those cases in which the qualified residence is a mobile home that is assessed separately from the land, the benefit provided by 15-6-211, MCA, will apply to the land upon which the qualified residence is located only if the land and the mobile home are owned by the applicant.

(11) Tax exemptions for qualified veterans or their surviving spouses may not be prorated, except as provided for in (c):

(a) If a qualified veteran or their surviving spouse purchases a home and applies for the exemption by the deadline, they would receive the exemption for the full year.

(b) If a qualified veteran or their surviving spouse purchases a home after the application deadline, they would not receive the exemption for that year.

(c) If a qualified veteran or their surviving spouse has the exemption on a home and sells it, the taxes are prorated and assessed to the new owner for the remainder of the year based on 15-16-203, MCA.

(12) The application referred to in (1) must be submitted on an annual basis pursuant to the requirements in (1). If the department or its agent does not receive an annual application from the property owner and the property owner is not eligible for the previously described waiver, the property tax exemption will be rescinded.

History: 15-1-201, MCA; IMP, 15-6-211, MCA; NEW, 1988 MAR p. 737, Eff. 4/15/88; AMD, 1996 MAR p. 3150, Eff. 12/6/96; AMD, 2003 MAR p. 1886, Eff. 8/29/03; AMD, 2004 MAR p. 490, Eff. 2/27/04; AMD, 2004 MAR p. 3156, Eff. 12/17/04; AMD, 2007 MAR p. 2155, Eff. 12/21/07; AMD, 2009 MAR p. 2499, Eff. 12/25/09; AMD, 2011 MAR p. 336, Eff. 3/11/11.

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