42.19.401    PROPERTY TAX ASSISTANCE PROGRAM (PTAP) AND MONTANA DISABLED VETERAN (MDV) PROPERTY TAX ASSISTANCE PROGRAM; APPLICATION PROCESS; DETERMINATIONS; PROGRAM COMPLIANCE

(1) A qualifying applicant, as defined in ARM 42.19.405, must apply to the department in accordance with, and subject to the eligibility requirements of 15-6-302, MCA, and this rule to receive the PTAP benefit provided in 15-6-305, MCA, or the MDV benefit provided in 15-6-311, MCA.

(2) The PTAP benefit is administered as a reduced property tax rate that applies up to the appraised market value limit authorized by and adjusted under 15-6-305, MCA, of the qualifying applicant's primary residence.

(a) A primary residence is defined in 15-6-301, MCA, as a dwelling where the qualifying applicant lived for at least seven months of the tax year for which benefits are claimed. Provided, a primary residence may include more than one dwelling and the time of residency in each may be combined to meet the seven-month requirement.

(b) When the appraised market value of a primary residence exceeds the statutory limit, as adjusted, the department will apply the reduced tax rate up to that limit and then apply the standard tax rate to the difference between the limit and the residence's appraised value.

(3) The MDV benefit is administered as a reduced property tax rate for the primary residence of a qualified veteran or qualified veteran's spouse as provided in 15-6-301 and 15-6-311, MCA, and is based on a statutory schedule of qualifying income for an applicant or an applicant's spouse.

(4) The department will accept an application, in the form provided by the department, through U.S. mail or electronic mail, in person, or by telephone. If a qualifying applicant applies by telephone, the department may assist the applicant in its completion and note telephonic submission of the application in the property assessment records. 

(a) Mailed applications must be postmarked by April 15 of the year first claimed. Mailed applications received after April 15 will be processed for the following tax year. 

(i) The application deadline does not apply for a first-time applicant submission occurring within 30 days from the date on their classification and appraisal notice. 

(ii) The department may waive the application deadline when a substantiated hardship case exists. The department must document its justification for a deadline waiver.   (b) A qualifying applicant is not required to reapply for each succeeding year but is subject to the annual verification process described in 15-6-301, MCA, and in (7), (10), and (11).

(5) Except as provided in (6), PTAP and MDV benefits may not apply to separately described or assessed parcels of land that do not support the primary residential improvements.

(6) If the primary residence is a mobile home or manufactured home that is assessed separately from the land, the mobile home or manufactured home and the land may qualify for a benefit if they are both owned by the qualifying applicant. If the land is not owned by the qualifying applicant, a benefit applies only to the mobile home or manufactured home. 

(7) A qualifying applicant must attest to property ownership upon initial application and in connection with an annual verification.  The department may request proof of residency to ensure the property applied for under the PTAP or MDV programs qualifies as a primary residence under (2). 

(a) Examples of acceptable proof of residency include:

(i) federal or state tax returns, a driver's license, car registrations, hunting or fishing licenses, or a voter registration that lists the address of the primary residence;

(ii) employment records listing the primary residence as the place of residence; or

(iii) copies of bills and correspondence sent to the primary residence address.

(b) Temporary residency changes, such as admission to a hospital, nursing home, or similar facilities do not change an applicant's primary residence for the purposes of PTAP or MDV benefits.

(8) The department will apply a benefit to the primary residence for the entire tax year when:

(a) a qualifying applicant owns and lives in the primary residence when the department provides the tax roll to the county treasurer for billing. If ownership changes between that time and the end of the calendar year, the benefit remains on the primary residence for the entire tax year; or

(b) in the case of a separately assessed mobile home or manufactured home, a qualifying first-time applicant receives a classification and appraisal notice from the department, applies for a benefit pursuant to the requirements of 15-6-302, MCA, and this rule, and receives written approval from the department.

(9) When a change in ownership of the primary residence occurs before the department provides the tax roll to the county treasurer for billing, the department will apply a benefit as follows:

(a) if a qualifying applicant lived in a primary residence for less than seven months of the tax year, the department will remove the benefit from the tax rolls. However, a benefit may be combined as described in (2) and transferred to another primary residence; or

(b) if a qualifying applicant lived in the primary residence for at least seven months of the tax year, the department will apply the benefit on a per-day basis using the date of sale. Once the qualifying applicant no longer owns the primary residence, the property will be assessed at the full tax rate for the remaining portion of the tax year from the date of sale.

(10) Each year after the application deadline, the department will:

(a) verify the qualifying income and eligibility of PTAP and MDV program participants;

(b) approve, renew, or deny applicant benefits, in writing; and

(c) notify PTAP and MDV program participants of their right to appeal the department's determination to the Montana Tax Appeal Board within 30 days of receiving a determination letter.

(11) In accordance with 15-6-302, MCA, the department may:

(a) investigate the information provided in an application and an applicant's continued eligibility;

(b) request an applicant to verify occupancy of their primary residence; and

(c) review, on a case-by-case basis, any applicant or program participant for whom the verification process finds no source of income and document the same.

(12) The department may address unusual circumstances of ownership and income that arise in administering the PTAP and MDV programs such as:

(a) property ownership issues when a person dies and title to the property has not yet been transferred to their spouse; or

(b) one-time increases in income used for funeral or medical expenses.

(13)  The department may also consider the additional unusual circumstances for MDV program eligibility described in 15-6-302, MCA.

 

History: 15-1-201, 15-6-302, MCA; IMP, 15-6-301, 15-6-302, 15-6-305, 15-6-311, 15-6-312, MCA; NEW, 1988 MAR p. 734, Eff. 4/15/88; AMD, 1991 MAR p. 2041, Eff. 11/1/91; AMD, 1993 MAR p. 2967, Eff. 12/10/93; AMD, 1996 MAR p. 1171, Eff. 4/26/96; AMD, 2004 MAR p. 490, Eff. 2/27/04; AMD, 2006 MAR p. 3102, Eff. 12/22/06; AMD, 2009 MAR p. 2499, Eff. 12/25/09; AMD, 2010 MAR p. 655, Eff. 3/12/10; AMD, 2011 MAR p. 336, Eff. 3/11/11; AMD, 2012 MAR p. 511, Eff. 3/9/12; AMD, 2014 MAR p. 401, Eff. 2/28/14; AMD, 2014 MAR p. 2795, Eff. 11/7/14; AMD, 2015 MAR p. 2041, Eff. 11/13/15; AMD, 2016 MAR p. 1865, Eff. 10/15/16; AMD, 2017 MAR p. 2201, Eff. 11/25/17; AMD, 2019 MAR p. 2387, Eff. 12/28/19; AMD, 2023 MAR p. 1895, Eff. 12/23/23.