The following definitions apply to rules in this subchapter.

(1) "Head of household" means a taxpayer who meets the head of household standard for federal income tax purposes.

(2) "Percentage reduction" means the amount by which the property tax rate is reduced based on the income schedules for the property tax assistance program (PTAP) and for the Montana disabled veteran (MDV) property tax assistance program. Those schedules are located in ARM 42.19.402.

(3) "Qualifying applicant" means:

(a) an individual who is the record owner of the land and improvements that are the primary residence of the individual or who is purchasing the property under a contract for deed; or

(b) a revocable trust if the land and improvements are the primary residence of the grantor.

(c) Ownership interests that are not qualifying applicants include, but are not limited to, partnerships, corporations, limited liability corporations, transferrable revocable trusts, and irrevocable trusts.

(4) "Qualifying income" means the federal adjusted gross income of an applicant and an applicant's spouse, excluding capital and income losses as they appear on their Montana income tax return for the prior tax year.

(a) If the applicant did not file a Montana income tax return for the applicable year, qualifying income means the federal adjusted gross income of the applicant and the applicant's spouse, excluding capital income losses as they appear on their federal income tax return, for the applicable year.

(b) If the applicant does not have an income tax filing requirement, the applicant's qualifying income is considered to be zero.