Montana Property Tax Rebates and Homeowner Relief
Montana Property Tax Rebates and Homeowner Relief
Montana Homeowners Celebrate Property Tax Relief with Rebates and Cuts
Montana homeowners have reason to rejoice as they can now expect both short and long-term property tax relief. Gov. Greg Gianforte recently signed two new laws that will provide eligible homeowners with property tax rebates and long-term tax cuts totaling over $470 million. These initiatives aim to alleviate the burden on homeowners and stimulate the local economy.
Montana Property Tax Rebates
Under the new laws, eligible homeowners are entitled to two property tax rebates, each of up to $675. The first rebate is for property taxes paid in 2022, while the second rebate is for property taxes paid in 2023. However, the rebate amounts may vary for some homeowners. The rebate cannot exceed the taxes paid during the tax year, and $650 is the highest amount one can receive, even if they paid more than that.
For example, if a homeowner paid $500 in property taxes, their rebate will only be $500. On the other hand, if they paid $1,100 in property taxes, their rebate amount will be capped at $650. It’s important to note that receiving a letter from the state regarding the property tax rebate does not guarantee eligibility. The Montana Department of Revenue (DOR) will send a follow-up letter in August with specific eligibility information.
To qualify for the property tax rebate, homeowners must meet the following criteria:
- Owned and lived in the Montana residence for at least seven months
- Have property taxes billed on the residence
- Paid the billed property taxes on the residence
How to Claim Your Montana Property Tax Rebate
Starting from August 15, eligible homeowners can claim their 2022 Montana property tax rebate through the state’s TransAction Portal or by paper. The deadline to claim the rebate for 2022 taxes is October 1, 2023. However, it’s worth noting that applications for 2023 property tax rebates will not be open until August 2024.
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You might wonder, when will you receive your property tax rebate? While Montana hasn’t specified a specific date for sending out the 2022 property tax rebates, the state will issue payments as claims are processed. Therefore, the earlier you claim your rebate, the sooner you may receive the payment.
Long-Term Property Tax Relief
Property tax rebates offer temporary relief, but homeowners in Montana can also expect long-term property tax reductions. Gov. Gianforte also signed a bill that allocates $120 million for long-term property tax relief for Montana residents. This bill establishes a “special revenue school equalization and property tax reduction account,” ensuring public schools receive funding while simultaneously reducing property taxes. The impact of this measure will be noticeable starting from the next fiscal year.
What About the Montana $1,250 Tax Rebate?
It’s worth mentioning that the Montana $1,250 tax rebate, which can reach up to $2,500 for joint filers, is separate from the property tax rebate. This rebate is available to both eligible homeowners and non-homeowners and is based on their 2021 Montana income tax return.
Montana has already begun distributing the income tax rebate payments. If you meet the eligibility criteria listed below, you can expect to receive your payment by the end of August:
- You were not claimed as a dependent on another tax return.
- You filed 2020 and 2021 Montana tax returns by the 2021 tax year deadline (unless an extension was granted).
- You filed a full-year resident 2021 Montana tax return.
- You filed a part-year or full-year 2020 Montana tax return.
- Line 20 of your Montana Form 2 is greater than zero.
In conclusion, the recent property tax relief measures in Montana provide homeowners with much-needed respite. With property tax rebates and long-term reductions, the state aims to alleviate the financial burden on homeowners and stimulate economic growth. It is crucial for eligible homeowners to keep an eye out for further instructions and claim their rebates promptly to secure the associated benefits.
