(1) The department will determine which taxpayers and dwellings used as primary residences, as defined in ARM 42.19.405, are potentially eligible for the EPTAP 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) 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;

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

(c) 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)(c) may be eligible for the benefits allowed under the EPTAP, provided that the owner of the individual unit meets the occupancy requirement as defined in ARM 42.19.405. 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 the EPTAP.

(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

PO Box 8018

Helena, Montana 59604-8018.

 

(5) An application must be filed, on or before April 15 of the year for which the benefit is sought, on a form provided by the department. Applications postmarked after April 15 will not be considered.

(6) The department may waive the April 15 deadline if the applicant:

(a) participated in the program in the prior year;

(b) was unable to apply for the current year due to hospitalization, physical illness, infirmity, or mental illness, and can demonstrate:

(i) one or more of the impediments, while not necessarily continuous, existed at sufficient levels between January 1 and April 15 of the tax year in which the applicant is applying, that prevented timely filing of the application; or

(ii) confusion caused by the infirmity may have prevented timely filing of the application.

(7) The department may waive the April 15 deadline, on a case-by-case basis, if the applicant:

(a) qualified for the program in the prior year;

(b) meets income requirements in the current year; and

(c) submits a written statement, plus any documents explaining any circumstances not identified in (6) that prevented timely filing of the application.

(8) The department may waive the April 15 deadline, on a case-by-case basis, if the applicant:

(a) did not previously participate in the EPTAP;

(b) meets the requirements of (6) or (7); and

(c) provides a completed application that is submitted or postmarked no later than July 1 of the year for which the benefit is sought.

(9) 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.

(10) 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.

(11) 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.

(12) Income for an entity includes those shown in (10) and also the income of any natural person or entity that is a trustee of, or controls, 25 percent or more of the entity.

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

(14) The completed application form must include:

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

(b) copies of the applicant's Montana income tax return, including all state and federal schedules, for the tax year immediately preceding the year of the application. For example: complete copies of the appropriate 2013 tax year return must accompany a 2014 application for the extended property tax assistance program, which is due by April 15, 2014.

(15) 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 on the department's web site, revenue.mt.gov, or at the local department office.

(16) 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 (9). Examples of acceptable documentation include, but are not limited to:

(a) social security statements;

(b) pension statements; or

(c) bank statements.

(17) Failure to provide the required information in (4) through (16) will result in the application being denied. All tax return information will be treated as confidential by the department.

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

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

(20) 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 7 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.

(21) 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.

(22) 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.

(23) 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.

(24) The new taxable value calculated due to the EPTAP will be available for review at the local department office.