HOME    SEARCH    ABOUT US    CONTACT US    HELP   
           
This is an obsolete version of the rule. Please click on the rule number to view the current version.

42.20.102    APPLICATIONS FOR PROPERTY TAX EXEMPTIONS

(1) The property owner of record, the property owner's agent, or a federally recognized tribe, must file an application for a property tax exemption on a form available from the local department office before March 1, except as provided in ARM 42.20.118 for 2012, of the year for which the exemption is sought or within 30 days after receiving an assessment notice, whichever is later. Applications postmarked after March 1 or more than 30 days of receiving the assessment notice, whichever is later, will be considered for the following tax year only, unless the department determines any of the following conditions are met:

(a) the taxpayer receives notice by way of an AB-34 (Removal of Property Tax Exemption) that the property will be placed on the tax roll. The taxpayer shall have 30 days after receipt of the notice to submit an application for exemption; or

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

(2) The following documents must accompany all applications:

(a) if the applicant is incorporated, a copy of the applicant's articles of incorporation;

(b) if the applicant is not incorporated, a copy of the applicant's constitution or by-laws;

(c) if the applicant has been granted tax-exempt status by the Internal Revenue Service (IRS), a copy of the applicant's tax-exempt status letter (501 determination);

(d) a letter:

(i) identifying the parcel by geocode, assessor code, legal description, or physical address; and

(ii) explaining how the organization, or society, believes it qualifies for property tax exemption and the specific use of the real or personal property.

(3) For an exemption application of a federally recognized tribe, the following documents must accompany all applications:

(a) a tribal resolution identifying the fee land, by legal description;

(b) language stating the type of exemption the tribe is requesting;

(c) language stating how the property qualifies for that type of exemption; and

(d) a statement regarding the specific and exclusive use of the real or personal property.

(4) For personal property exemption applications, the following documents must accompany all applications:

(a) a copy of the title of motor vehicle or mobile home or letter of explanation if title is not applicable, a letter identifying ownership; and

(b) photograph of the property.

(5) For real property exemption applications, the following documents must accompany the applications:

(a) a copy of a fully executed deed, contract for deed, or notice of purchaser's interest or security agreement identifying ownership.

(6) For real property exemption applications where the applicant is requesting exemption of property used for religious purposes, the following documents must accompany the application:

(a) if the application seeks exemption for parsonage, proof that the resident of the building identified as a parsonage is a member of the clergy; or

(b) if the applicant is a federally recognized tribe, a copy of the tribal resolution identifying the fee land as sacred land to be used exclusively for religious purposes, by legal description, language stating the type of exemption the tribe is requesting, and language stating how the property qualifies for this type of exemption, not to exceed 15 acres.

(7) For real property exemption applications where the applicant is requesting exemption of property used for educational purposes, the following documents must accompany the application:

(a) documentation verifying the entity is not operated for gain or profit;

(b) a copy of the applicant's attendance policy;

(c) a copy of the applicant's curriculum which identifies the applicant's systematic course of instruction;

(d) for property, of any acreage, owned by a tribal corporation created for the sole purpose of establishing schools, colleges, and universities (a) through (c) must accompany the tribe's application; and

(e) if the applicant is a federally recognized tribe, a copy of the tribal resolution identifying the fee land to be used exclusively for educational purposes, by legal description, language stating the type of exemption the tribe is requesting, and language stating how the property qualifies for this type of exemption.

(8) For real property exemption applications where the applicant is requesting exemption of property used for nonprofit healthcare facilities, the following documents must accompany the application:

(a) a copy of the health care facility's license from the Department of Public Health and Human Services; or

(b) if the applicant is a federally recognized tribe, a copy of the tribal resolution identifying the fee land to be used exclusively for health care services, by legal description, language stating the type of exemption the tribe is requesting, and language stating how the property qualifies for this type of exemption.

(9) For real property exemption applications where the applicant is requesting exemption of property used solely in connection with a cemetery or cemeteries, the following documents must accompany the application:

(a) proof of a permanent care and improvement fund;

(b) verification that the entity is not operated for gain or profit; and

(c) if the applicant is a federally recognized tribe, a copy of the tribal resolution identifying the fee land to be used exclusively as a cemetery or cemeteries, by legal description, language stating the type of exemption the tribe is requesting, and language stating how the property qualifies for this type of exemption.

(10) For real property exemption applications submitting use for parks and recreational facilities, the following documents must accompany the applications:

(a) documentation verifying the park and/or recreational facility is open to the general public; or

(b) if a federally recognized tribe, a tribal resolution identifying the fee land to be used exclusively for parks and recreational facilities, by legal description, language stating the type of exemption the tribe is requesting, and language stating how the property qualifies for this type of exemption, not to exceed 15 acres.

(11) Upon receipt of the application and supporting documents, the local department office will perform a field evaluation. The department will approve or deny the application. The applicant and the local department office will be advised, in writing, of the decision.

(12) If the property is owned by a governmental entity (such as city, county, or state), the federal government (unless Congress has passed legislation allowing the state to tax property owned by a federal entity), tribal government, nonprofit irrigation districts organized under Montana law, municipal corporations, public libraries, or rural fire districts and other entities providing fire protection under Title 7, chapter 33, MCA, the department will employ the following exemption criteria for real property when considering exemption claims based upon 15-6-201, MCA:

(a) the properties will be tax-exempt as of the purchase date that is reflected on the deed or security agreement;

(b) if a property is tax-exempt as of January 1 of the current tax year and is sold to a nonqualifying purchaser after January 1 of the current tax year, it becomes taxable upon the transfer of the property. The tax is prorated according to 15-16-203, MCA;

(c) if a property is tax-exempt, as stated in (12)(b), and is sold as tax-deed property to a nonqualifying purchaser after January 1 of the current tax year, it becomes taxable on January 1 following the execution of such contract or deed as provided in 7-8-2307, MCA; and

(d) if a tribal government is requesting an exemption of an essential government service, as provided by statute, that service must be identified in the application.

(13) The department will employ the following exemption criteria for real properties when considering exemption claims based upon 15-6-201, 15-6-203, 15-6-209, 15-6-211, 15-6-216, 15-6-221, and 15-6-230, MCA.

(a) Real property purchased by a qualifying exemption applicant after January 1 of the current tax year will become exempt on the date of acquisition as evidenced by the deed and realty transfer certificate, if an application (if one is required for the exemption) is filed by the application deadline for that tax year and the property meets statutory requirements.

History: 15-1-201, 15-6-230, MCA; IMP, 7-8-2307, 15-6-201, 15-6-203, 15-6-209, 15-6-211, 15-6-216, 15-6-221, 15-6-230, 15-7-102, MCA; NEW, 1985 MAR p. 2019, Eff. 12/27/85; AMD, 1988 MAR p. 737, Eff. 4/15/88; AMD, 1990 MAR p. 1714, Eff. 8/31/90; AMD, 1991 MAR p. 2042, Eff. 11/1/91; AMD, 2002 MAR p. 3723, Eff. 12/27/02; AMD, 2003 MAR p. 1886, Eff. 8/29/03; AMD, 2006 MAR p. 3103, Eff. 12/22/06; AMD, 2012 MAR p. 627, Eff. 3/23/12.

Home  |   Search  |   About Us  |   Contact Us  |   Help  |   Disclaimer  |   Privacy & Security