Don't Mess With Taxes

Montana homeowners can now get back $400 of the property taxes they paid last year.

The refund was approved during a special legislative session earlier this year. And today, Montana's Department of Revenue will mail around 270,000 application forms to residential property owners.

If you don't get a form, don't panic. You still might be eligible and will be able to download an application starting Monday, Aug. 27. That is also the day revenue officials will begin processing the refund requests.

And although the initial notice is going out by snail mail, the state is encouraging Montanans to electronically ask for their refunds. The e-file option also will be available beginning Monday at the state's revenue office Web page.

"If you file your refund claim electronically, we will be able to process it in a matter of days," said revenue director Dan Bucks.  "Due to high volumes, applications filed on paper forms will take longer."

If all eligible taxpayers get their applications in -- and the forms must be submitted by Dec. 31 -- the state expects to pay out nearly $100 million in property tax refunds.

Claim details: To qualify for the refund, a Montana property owner must meet certain requirements, detailed on this special state Web page.

The main eligibility issues are that you owned the residential property in 2006, actually lived in the home as your principal residence for at least seven months that year and, of course, paid property taxes on it in 2006.

Members of family farm and ranch corporations who own at least 20 percent of the corporation also qualify if they meet the residency requirement.

And if your 2006 property tax payments were less than $400, you might be able to get the maximum refund by adding your eligible 2004 and 2005 real estate tax payments to your 2006 amount.