Natural Disaster Property Tax Reduction

We express sincere sympathy to everyone whose homes, lands, and other property have been damaged or destroyed by a natural disaster. Please, let us help.

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.

We can also provide you with the necessary information and replacement copies of your property records.

Eligibility

Property and buildings damaged by natural disaster 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 natural disaster.

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.

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

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 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. (15-16-611, MCA)

How to Apply

Apply by completing a Natural Disaster Application (Form AB-25). You must apply for this credit within 2 years of the date of the destruction of the property by the natural disaster.

You can contact us to request a copy of the form. We can also provide you the property information you need to complete the form.

Need Help?

For questions, please contact your local field office servicing the county where your property is located. 

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