For Montana property tax purposes, an intangible land value assistance program has been created for certain residential property when land value is disproportionately higher than the value of associated improvements. Specifically, the exemption can be applied if, among other criteria, the total appraised value of the land is greater than 150% of the appraised value of the primary residence and improvements situated on the land. The exemption does not apply to the primary residence and improvements on the land.
Qualifying land will be valued at 150% of the appraised value of the primary residence and improvement subject to a minimum equalization of value requirement. Under that requirement, the value of the land may not be reduced in an amount that is less than the statewide average value of land multiplied by the acreage of land for the subject property. “Statewide average value of land” is equal to the statewide average market value of one acre of class four real property.
A claim for assistance must be filed by March 1 of the tax year for which the assistance is sought. Both the Department of Revenue (DOR) and the county treasurers are required to give notice to each taxpayer of the availability of the program. Ch. 441 (S.B. 94), Laws 2017, effective October 1, 2017, applicable to tax years beginning after December 31, 2017