Missoula, Mont. – The Montana Department of Revenue has acknowledged that a small number of homeowners were mistakenly billed at the higher property‑tax rate despite qualifying for the 2025 homestead exemption. The agency says it is reviewing records, correcting errors and offering refunds where appropriate.
What the homestead exemption promises
Passed by the Montana Legislature in 2025, the homestead exemption was designed to lower property taxes for residents who make their primary residence their home for at least seven months of the year. Eligible owners can apply through the Department of Revenue and, if approved, receive a reduced tax rate on that property.
Errors discovered during the transition
According to Scott Mendenhall, deputy director of the Department of Revenue, officials are fielding “hundreds of calls every day” from property owners trying to understand their new tax bills. While many callers simply missed the application deadline or own properties that do not qualify, some homeowners reported receiving confirmation of their exemption in 2025 only to see their tax bill double when it arrived.
“We recognize that mistakes have been made during the transition to the new system,” Mendenhall told the Missoulian. “Our staff is working diligently to identify affected accounts, correct the rates and issue refunds where the overcharge is confirmed.”
How to get relief
Homeowners who believe they were incorrectly charged can contact the Department of Revenue to verify their exemption status. The agency is also allowing those who missed the original application deadline to submit a retroactive request. If the retroactive request is approved, the homeowner may be eligible for a property‑tax refund in 2027.
To apply, owners should gather proof of primary residence—such as utility bills, driver’s license address or voter registration—showing they lived in the home for at least seven months of the tax year. Applications can be submitted online or by mail, and the department has pledged to process them as quickly as possible.
Local impact and next steps
Montana’s property‑tax system is a critical piece of the state’s fiscal framework, funding schools, roads and public safety. The homestead exemption was intended to ease the burden on families while preserving revenue for essential services. By correcting these early errors, the Department of Revenue aims to maintain that balance.
County assessors are also being briefed on the issue so they can assist residents with accurate assessments. Community leaders have urged patience as the department works through the backlog, emphasizing that the corrective process is a sign of responsive government.
What homeowners should watch for
Residents should monitor their next property‑tax statement for the corrected rate. If a refund is due, the Department of Revenue will issue a check or direct deposit in the 2027 tax cycle. Homeowners with questions can call the department’s dedicated hotline or visit the official website for detailed guidance.
While the initial confusion has been frustrating for some, the swift acknowledgment and corrective action demonstrate the state’s commitment to fair taxation and to supporting families across Montana.
Original reporting: NewsTalk KGVO 1290 (Townsquare) — read the source article.
