(1) The property owner of record or the property owner's agent must make application to the local department office, in order to obtain a property tax exemption. An application must be filed, on a form available from the local department office, before April 15 of the year for which the exemption is sought. Applications postmarked after April 15 will not be considered for that tax year unless the agent of the department determines the following conditions are met:

(a) the applicant successfully qualified during the preceding 12 months prior to the application date of the current tax year; and

(b) the applicant was unable to apply for the current year due to hospitalization, physical illness, infirmity, or mental illness. These impediments must be demonstrated to have existed at significant levels from January 1 of the current year to the time of application. Telephone extensions and written extensions will be granted through July 1 of the current year for the above-listed reasons. Willful misrepresentation of facts pertaining to income or the impediments that prevent timely application filing will result in the automatic rejection of the application.

(2) The following documents must accompany the application:

(a) letter from the Veterans' Administration which verifies that the applicant is currently rated 100% disabled or is paid at the 100% disabled rate; and

(b) copies of the applicant's federal income tax return for the preceding calendar year. For example, complete copies (including all schedules) of the appropriate 2008 tax year return must accompany a 2009 application for the disabled American veteran application which is due by April 15, except that for tax year 2009 it was due 30 days after the taxpayer received their assessment notice. For the 2010 tax year, and subsequent tax years, the disabled American veteran application is due by April 15. An applicant that is not required to file income tax for the preceding calendar year must determine what their federal adjusted gross income would have been had they been required to file.

(3) The department or its agent will review the application and the supporting documents and may perform a field evaluation. The department or its agent will approve or deny the application. The applicant will be advised in writing of the decision.

(4) The residence of the disabled veteran or the surviving spouse of a disabled veteran is defined as "that house or dwelling owned by the applicant on the date of application of the tax year for which exemption is sought, which is used by the applicant for more than six months per year, and which may include a garage whether attached or detached." All other buildings, outbuildings or improvements shall not be exempt.

(5) A lot for purposes of the property tax exemption will be defined as the land beneath and immediately adjacent to the residence not to exceed five acres. Land in excess of five acres will not be exempt.

(6) Tax exemptions for qualified veterans or their surviving spouses may not be prorated, except as provided for in (c):

(a) If a qualified veteran or their surviving spouse purchases a home and applies for the exemption by the deadline, they would receive the exemption for the full year.

(b) If a qualified veteran or their surviving spouse purchases a home after the application deadline, they would not receive the exemption for that year.

(c) If a qualified veteran or their surviving spouse has the exemption on a home and sells it, the taxes are prorated and assessed to the new owner for the remainder of the year based on 15-16-203, MCA.

(7) The application referred to in (1) must be submitted on an annual basis unless a review of income tax records demonstrates that an individual who met the provisions of (1)(a) had no significant change in income level. In that situation the annual application required may be waived by the department or its agent. If the department or its agent does not receive an annual application from the property owner and the property owner is not eligible for the previously described waiver, the property tax exemption will be rescinded.