Montana extends homeowner application period to claim property tax exemption

The Montana Department of Revenue is extending its deadline for property owners to apply for the homestead and long-term rental tax rates, the state announced on Thursday.

The new deadline to apply for the reduced property tax rates is March 20. Previously, the state said it would accept applications until March 1.

The application can be submitted online at homestead.mt.gov. Taxpayers can also contact the Department of Revenue's help line at (406) 444-6900.

Earlier this week, officials announced the number of applications was lagging far behind previous state estimates for properties that qualified for the lower rates.

A press release from DOR said the extension follows "intermittent technical issues" with the department's online application portal due to a huge flow of last-minute filings.

“Our priority is to ensure that no Montanan is penalized due to technical difficulties with our filing systems given the magnitude of last-minute applications,” Department of Revenue Director Brendan Beatty said in a press release. “We believe this has created extenuating circumstances that allow us to waive the application deadline until March 20. This extension provides homeowners and property managers an additional three weeks to ensure their information is submitted accurately.”

Fewer Montana landlords claiming property tax exemption than expected, state says

The reduced rates are part of the property tax reform package passed by the state Legislature last year. Montana is approaching the second phase of those reforms, a key part of which lowers tax rates for primary residents and long-term rental landlords while increasing the rates on second homes and short-term rentals.

Long-term rentals must be leased to tenants for periods of 28 days or longer for at least seven months of the year to qualify.

“Our top priority is delivering permanent and meaningful property tax relief to the hardworking Montanans who call this state home,” Gov. Greg Gianforte said in Thursday's announcement. “State government should be customer-friendly and responsive. Because of the overwhelming number of Montanans utilizing the portal to claim the lower tax rates, we are extending the deadline to ensure that no one is penalized by a technical glitch. I appreciate the work of Montana Department of Revenue staff in assisting Montanans who are claiming the lower rates.”