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(1) For property tax exemptions which require a use test, the following criteria apply:

(a) the applicant must state the actual or proposed use of the property in the form of an affidavit or letter;

(b) the applicant shall provide supporting documentation for the stated actual or proposed use of the property;

(c) examples of supporting documentation include, but are not limited to:

(i) site plans;

(ii) soil surveys;

(iii) building permits;

(iv) sewer permits;

(v) environmental studies;

(vi) requests for zoning changes;

(vii) architectural planning;

(viii) grant applications for construction; and

(ix) physical inspections of the property by the local Department of Revenue staff; and

(d) the ratio of the exempt to nonexempt use is used to determine the portion of the property that will receive the exemption.

(2) The documentation shall be sufficient to demonstrate that the property is either currently in, or will be put to, the stated use within a reasonable time period.

(3) An example of the application of the use test in (1) is when 25 percent of a building was used for educational purposes in the current year and the remainder of the building was used for commercial purposes. The applicant owns the property on January 1 and applies for an exemption on March 1 of the current year. For the current year and until the use changes, the property receives a 25 percent exemption for the land and the building.

(4) If the use of a property that is exempt because it has met a prior use test changes during the year, the exemption for the property is reviewed and the exemption adjusted accordingly on January 1 of the tax year following the change in use.

(5) This rule applies to exemptions that require an application for exemption, which includes properties listed in 15-6-201, 15-6-203, and 15-6-209, MCA.

History: 15-1-201, MCA; IMP, 15-6-201, 15-6-203, 15-6-209, 15-24-1208, MCA; NEW, 1993 MAR p. 2968, Eff. 12/10/93; AMD, 2003 MAR p. 1886, Eff. 8/29/03; AMD, 2006 MAR p. 3102, Eff. 12/22/06; AMD, 2015 MAR p. 2041, Eff. 11/13/15.

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