Montana § 15-6-411 - Rental Property Reduced Tax Rate -- Application -- Limitations

§ 15-6-411. Rental Property Reduced Tax Rate -- Application -- Limitations

(Effective January 1, 2026) Rental property reduced tax rate -- application -- limitations. (1) There is a rental property reduced tax rate provided for in 15-6-134 (3)(b) for a long-term rental as provided in this section. (2) (a) Beginning in tax year 2026, the owner of a long-term rental may apply to the department to receive the rental property reduced tax rate. The application must be made by an individual owner or, for an entity owner, by an authorized representative of the entity. (b) The department shall mail a notice to potential claimants by October 30, 2025, for tax year 2026. Receipt of a notice does not establish that a taxpayer or property owner is eligible to receive the rental property reduced tax rate, and a taxpayer who does not receive a notice may still be eligible to claim the rental property reduced tax rate. All taxpayers, regardless of the receipt of notice, shall apply for a reduced rate as provided in this subsection (2). (c) To receive the rental property reduced tax rate for the tax year in which the application is first made, the owner or authorized representative shall apply electronically through the department's website or by mail on a form prescribed by the department between December 1 of the immediately preceding year and March 1. Applications received electronically or postmarked after March 1 apply to the following tax year. (d) Once approved, the rental property reduced tax rate remains effective until the end of the tax year in which any of the following events occur: (i) there is a change in ownership of the property; (ii) the property is no longer rented to tenants as a dwelling; (iii) the terms of the lease change and the property no longer qualifies as a long-term rental as defined in 15-6-402 ; or (iv) the owner fails to submit a reapplication to the department as required in subsection (4). (e) If a rental property reduced tax rate is terminated pursuant to subsection (2)(d) or 15-6-415 , any remaining property taxes due for the year in which the rental property reduced tax rate is terminated must be based on the tax rate in effect on January 1 of the year in which the rental property reduced tax rate was terminated. (3) An application for a rental property reduced tax rate must be submitted on a form prescribed by the department and must contain: (a) a written declaration made under penalty of perjury that the applicant owns and maintains the land and improvements as a long-term rental as defined in 15-6-402 . The application must state the penalty provided for in 15-6-415 . (b) the geocode or other property identifier for the long-term rental for which the applicant is requesting the rental property reduced tax rate; (c) the social security number or taxpayer identification number of the applicant; (d) the income and expense information for the long-term rental for the immediately preceding year, including the amount of rent charged each month; and (e) any other information required by the department that is relevant to the applicant's eligibility. (4) To continue receiving the rental property reduced tax rate, the owner of a qualifying long-term rental shall reapply as required by the department. Beginning in 2028, the department shall require reapplication of 20% of long-term rentals each year. (5) Periods of short-term vacancy not exceeding 5 months in a 12-month period do not disqualify a long-term rental from receiving the rental property reduced tax rate. (6) The department shall notify the owner if the rental property reduced tax rate is applied to the property or if the application was denied.