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Property tax refund applications out soon |
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Wednesday, 15 August 2007 |
By Buck Traxler, I-O Editor
In the last legislative special session, a bill (HB-9) was passed and signed into law by Gov. Brian Schweitzer allocated a $400 property tax refund.
Time is drawing close and applications will be available in late August for the refund.
Pondera County Treasurer Jeanne Moon told the I-O on Friday that a lot of people have asked about the refund.
Moon also noted that she would participate in a teleconference call on Aug. 16 with the Department of Revenue for updated information and the process of implementing the refunds.
The $400 per-household property tax refund applies to real estate property taxes paid on a homeowner’s primary residence in 2006.
If less than $400 was paid in 2006, you can use your real estate property taxes paid on a primary residence owned and occupied for at least seven months in 2005 and 2004 to reach the $400 level.
Applications should be ready later this month. They will be mailed to homeowners and in addition they can be found online at www.mt.gov and may also be picked up at the courthouse.
The Department of Revenue says the processing of applications will begin on Sept. 1 and homeowners have until Dec. 31 to apply for a refund. If you wait until the last minute and miss the deadline, there is no grace period; you just lost $400.
The refund applies to real estate property taxes paid on a person’s home, which includes multi-unit dwellings, manufactured homes, mobile homes and trailers.
As with any government program, there are always some losers and in this case, the refund does not apply to renters.
Even though you may qualify for the $400 property tax refund, you may also a loser, depending on who you listen to.
The refund is considered to be taxable income, if you reported your personal property taxes as “itemized deductions” for the 2006 tax year. People who itemize get a beak on their income taxes based on paying the property tax.
In that case, your refund should be reported as income for the year in which you receive the refund check (either 2007-08).
However, the refund is not considered to be taxable income if you used the “standard deduction” for the 2006 tax year.
For more information and details you can visit mt.gov.revenue where you will find a list of FAQs (frequently asked questions). Or you may contact Moon in the Treasurer’s Office after her conference call on Aug. 16.
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