A generous sum of $899 million has been allocated for these rebates.
Montana taxpayers can anticipate a significant increase in their bank accounts as the state legislature has approved tax rebates, which were recently signed into law by Governor Greg Gianforte
The rebates will be distributed in two categories, one for income taxes and the other for property taxes. This surplus of funds has made the tax rebates possible. Residents of Montana who were full-year taxpayers and met the deadline for filing their state taxes for the years 2020 and 2021 will be eligible for rebates of up to $1,250 each for their 2021 taxes. If individuals satisfy the requirements but paid less than $1,250 in taxes for 2021, they will receive a full refund.
The $1,250 limit applies to single taxpayers, heads of household, and married taxpayers who filed their taxes separately. However, married couples who filed jointly can receive rebates of up to $2,500.
To simplify the process, the Montana Department of Revenue will automatically send rebates to qualifying taxpayers, eliminating the need for individuals to apply. The rebates will be issued either through electronic deposits into bank accounts or via mail. The initial batch of income tax rebates is scheduled to be distributed starting in July 2023, with all payments expected to be sent by December 31.
Taxpayers who were not full or part-year residents in Montana in 2020 or those who paid their 2020 or 2021 taxes late will not be eligible for the rebates
Homeowners in Montana can also benefit from a property tax rebate of up to $675 for their primary residences’ 2022 and 2023 property taxes. A “principal residence” is defined as a home where individuals have resided for at least seven months of the year. Those who paid less than $675 in property taxes during either year are eligible for a complete refund of the payment.
The 2022 property tax rebate, covers payments made between November 2022 and May 2023, while the 2023 rebate applies to payments made between November 2023 and May 2024.