Proposal would let eligible homeowners claim 2024 property tax rebates

Eligible taxpayers could claim a rebate of up to $400, limited to the property taxes they paid. It would cover 2024 property taxes paid on a home the taxpayer owned and used as their principal residence. The rebate would be $400 or the amount of property taxes paid, whichever is less. It would apply to property taxes assessed and paid from January 1 through December 31, 2024.

Taxpayers would need to file a claim to seek the rebate; false or fraudulent claims could bring penalties. The claim rules apply to taxpayers seeking the rebate, with exceptions for an estate representative or a trustee of a grantor's revocable trust. A taxpayer generally would need to have owned and lived in the home for at least seven months in 2024, paid its property taxes, and claimed no other home. The bill also allows claims for qualifying deceased taxpayers through an estate representative and for qualifying homes held in a grantor's revocable trust. Homes owned by an entity generally would not qualify. The state could use the rebate to pay debts owed to it. False or fraudulent claims could lead to prosecution, repayment, a penalty of 300% of the rebate claimed, and 12% annual interest. Online claims would be accepted from August 15 through October 1, 2025. Mailed claims would need to be postmarked by October 1. The department could allow extra time for good cause, but could not process claims or extension requests received after December 1, 2025.

The text provides for subtracting the rebate amount from federal taxable income when calculating Montana taxable income. This applies to a property tax rebate received under the proposal.