Natural Disaster Property Tax Reduction

If you are a Montana property owner and you've experienced a loss of your home, other buildings, or forestland due to a natural disaster, you might be eligible for property tax relief.

Eligibility

Property and buildings damaged by natural disasters may be eligible for a reduced taxable value.

This includes completely or partially destroyed:

• Real property dwellings

• Real property improvements, such as garages, sheds, barns and grain bins

• Manufactured housing and mobile homes

• Business equipment

The relief is prorated based on the number of days in the current tax year that the property was unsuitable for its previous use.

Qualifying

An eligible building or property may qualify if partially or totally destroyed by a natural disaster.

Partial Destruction

Partial Destruction means part of the property:

• Has been made uninhabitable or unsuitable for its previous use; and

• Cannot be immediately repaired or replaced.

This does not include short-term or inconvenient replacement or cleanup.

Natural Disaster Property Tax Reduction

Total Destruction

Total Destruction means the entire property has been made uninhabitable or unsuitable for its previous use, including a state beyond use or repair.

Uninhabitable

Uninhabitable means the property cannot be lived-in due to long-term destruction.Usually, a health department official, fire inspector, or building inspector will declare a property uninhabitable. An uninhabitable property may end up being condemned.

Unsuitable for Previous Use

Unsuitable for previous use means the property can no longer be used or is now inappropriate or unsuitable for its previous use. This does not mean it is inconvenient or undesirable to use the property.

Benefit

Qualified property is eligible for a reduced taxable value which may result in reduced property taxes. The property tax reduction is prorated for the year. If a property is destroyed after the owner pays property taxes, the owner may be eligible for a refund.

Applying

Apply by completing a Natural Disaster Application (Form AB-25). You must apply for this credit during the same tax year as the natural disaster.

Questions

• For questions, please contact your local Field Office. You can find your local Field Office here: https://mtrevenue.gov/contact/field-office-locations/

• To find out information about your property when completing your Natural Disaster Application (Form AB-25) enter your property address here: https://svc.mt.gov/dor/property