Montana Administrative Register Notice 42-2-918 No. 18   09/18/2014    
Prev Next





In the matter of the amendment of ARM 42.19.401, 42.19.406, and  42.19.1211 pertaining to property classification and property tax assistance programs







TO: All Concerned Persons


1. On October 14, 2014, at 3 p.m., the Department of Revenue will hold a public hearing in the Third Floor Reception Area Conference Room of the Sam W. Mitchell Building, located at 125 North Roberts, Helena, Montana, to consider the proposed amendment of the above-stated rules. The conference room is most readily accessed by entering through the east doors of the building.


2. The Department of Revenue will make reasonable accommodations for persons with disabilities who wish to participate in this public hearing or need an alternative accessible format of this notice. If you require an accommodation, please advise the department of the nature of the accommodation needed, no later than 5 p.m. on October 3, 2014. Please contact Laurie Logan, Department of Revenue, Director's Office, P.O. Box 7701, Helena, Montana 59604-7701; telephone (406) 444-7905; fax (406) 444-3696; or e-mail lalogan@mt.gov.


3. The rules proposed to be amended provide as follows, stricken matter interlined, new matter underlined:


42.19.401 PROPERTY TAX ASSISTANCE PROGRAM (PTAP) (1) remains the same.

(2) The benefit is a reduction in taxable value that applies to the first $100,000 or less of the taxable market value of any improvement on real property, including trailers, manufactured homes, or mobile homes, and appurtenant land not exceeding 5 acres owned or under contract for deed and actually occupied for at least 7 months a year as the primary residential dwelling of one or more qualified applicants. The 7-month occupancy requirement does not apply to an otherwise qualified applicant who lives in a nursing home or long-term care facility.

(3) through (14) remain the same.


AUTH15-1-201, MCA

IMP15-6-134, MCA


REASONABLE NECESSITY: The department proposes amending ARM 42.19.401(2) to allow otherwise eligible applicants, who live in a nursing home or long-term care facility, to be exempt from the 7-month occupancy requirement. This proposed rule amendment allows such applicants to satisfy the program requirements even though they are unable to occupy their home due to a heightened need for care, which at times, may be temporary.


42.19.406 EXTENDED PROPERTY TAX ASSISTANCE PROGRAM (EPTAP) (1) The During the first year of the reappraisal cycle, the department will determine which identify taxpayers who may qualify for extended property tax assistance and the dwellings of those taxpayers that are used as primary residences, as defined in ARM 42.19.405., are potentially eligible for the EPTAP and The department will mail EPTAP applications to those taxpayers. The department determines the taxpayers who are potentially eligible during the first year of the reappraisal cycle Identification of potential eligibility is based upon the following requirements set forth in 15-6-193, MCA:

(a) the qualified residence must be the same residence as was have been 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 in market value 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.; and

(d) the property has not experienced a change in value due to new construction or a land use change of greater than 25 percent.

(2) An individual unit of a multiple-unit dwelling that meets the qualification requirements of (1)(a) through (1)(c)(1)(d) 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. The department calculates the benefit for the qualifying unit only, not the entire dwelling. If the occupancy requirement is not met for the qualifying unit, 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 at least one of the owners must actually occupy that residence or in combination with another residence in Montana, for at least 7 months of the preceding calendar year.

(4) In order to 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) The benefit applies only to the land:

(a) beneath and immediately adjacent to the residence, up to 1 acre; and

(b) excludes 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; unless,

(i) the applicant owns the land and a mobile or manufactured home situated on the land;

(ii)  the mobile or manufactured home is assessed separately from the land; and

(iii) the applicant's primary residence is the mobile or manufactured home.

(5) and (6) remain the same, but are renumbered (6) and (7).

(7)(8) 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)(7) that prevented timely filing of the application.

(8)(9) 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)(7) or (7)(8); 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) through (11) remain the same, but are renumbered (10) through (12).

(12)(13) Income for an entity includes those shown in (10)(11) 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) remains the same but is renumbered (14).

(14)(15) 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. All tax return information will be treated as confidential by the department.

(15)(16) 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 check the "extension requested" box on the application for EPTAP relief and provide alternative proof of income with the application. Alternative proof of income may include but is not limited to the list in (17). Once completed and available, the applicant must forward the completed income tax return to the address in (4).

(16)(17) 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)(10)Examples of acceptable Acceptable documentation include includes, but are is not limited to:

(a) social security statements;

(b) pension statements; or

(c) bank statements.

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

(18) through (20) remain the same, but are renumbered (19) through (21).

(21)(22) For tax year 2009 2015, 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)(23) Beginning with tax year 2010 2016, 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) and (24) remain the same but are renumbered (24) and (25).


AUTH15-1-201, MCA

IMP15-6-193, MCA


REASONABLE NECESSITY: The department proposes amending ARM 42.19.406(1) to make it clear that the department determines the potential EPTAP eligible taxpayers and forwards an application to those applicants. The department will not know whether an applicant actually qualifies until the applicant responds with the appropriate income documentation and occupancy verification.

The proposed changes in (2) and (3) also point to how the benefit applies to multi-dwelling units and occupancy. Proposed new (5) explains how the benefit applies to land and to mobile and manufactured home owners who own the land. The remaining sections are renumbered accordingly. Proposed amendments to the newly numbered (16) require the applicant to submit income information with the application even though a completed tax return is not available at the time of application. The confidentiality statement is proposed to be stricken from newly numbered (18) and added to a more appropriate location in newly numbered (15). Newly numbered (22) and (23) are proposed to be updated for the coming years.


42.19.1211 PERIOD OF CLASSIFICATION AS NEW INDUSTRIAL PROPERTY (1) The taxable classification of all qualifying new industry industrial property becomes effective beginning on the first assessment date falling on or after the initial commencement date of operations.

(2) The new industry industrial property taxable classification runs for a three consecutive year period years after commencement of operations. This period runs to its expiration date uninterrupted by additions of property to the new industry endeavor, expansion of operations, changes of operations (other than changes that would disqualify the new industry endeavor from classification as new industry industrial property) or cessation or curtailment of operations.

(3) Prior to and after the three-year period of classification as new industry property, the property in question is taxable as other similar property.

(4) For all property other than migratory personal property, the taxable year is considered to be the calendar year. Assessment The assessment date within any given calendar year is January 1.

(5) Migratory For migratory personal property that enters Montana after the regular assessment date and comes to rest and becomes a part of the general property within any county of the state, has an the assessment date falling on is the date the property originally came into entered the state. This property shall be taxed from the time it enters the state until the end of the year. For purposes of assessment year proration on this migratory personal property, any part of a month is considered a month of residency. 


AUTH15-1-201, MCA

IMP15-6-135, 15-6-192, MCA


REASONABLE NECESSITY: The department proposes amending ARM 42.19.1211 as a matter of housekeeping to make grammatical corrections for better clarity.


4. Concerned persons may submit their data, views, or arguments, either orally or in writing, at the hearing. Written data, views, or arguments may also be submitted to: Laurie Logan, Department of Revenue, Director's Office, P.O. Box 7701, Helena, Montana 59604-7701; telephone (406) 444-7905; fax (406) 444-3696; or e-mail lalogan@mt.gov and must be received no later than October 21, 2014.


5. Laurie Logan, Department of Revenue, Director's Office, has been designated to preside over and conduct this hearing.


6. The Department of Revenue maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency. Persons who wish to have their name added to the list shall make a written request, which includes the name and e-mail or mailing address of the person to receive notices and specifies that the person wishes to receive notice regarding particular subject matter or matters. Notices will be sent by e-mail unless a mailing preference is noted in the request. A written request may be mailed or delivered to the person in 4 above or faxed to the office at (406) 444-3696, or may be made by completing a request form at any rules hearing held by the Department of Revenue.


7. An electronic copy of this notice is available on the department's web site at revenue.mt.govSelect the Administrative Rules link under the Other Resources section located in the body of the homepage, and open the Proposal Notices section within. The department strives to make the electronic copy of this notice conform to the official version of the notice, as printed in the Montana Administrative Register, but advises all concerned persons that in the event of a discrepancy between the official printed text of the notice and the electronic version of the notice, only the official printed text will be considered. While the department also strives to keep its web site accessible at all times, in some instances it may be temporarily unavailable due to system maintenance or technical problems.


8. The bill sponsor contact requirements of 2-4-302, MCA, do not apply.


9. With regard to the requirements of 2-4-111, MCA, the department has determined that the amendment of the above-referenced rules will not significantly and directly impact small businesses.


/s/ Laurie Logan                               /s/ Alan Peura acting for

Laurie Logan                                   Mike Kadas

Rule Reviewer                                 Director of Revenue


Certified to the Secretary of State September 8, 2014.





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