The proposed bill establishes a property tax rebate program for Montana taxpayers occupying a principal residence, allowing for a rebate of up to $400 for property taxes paid in the tax year 2024. It defines "Montana property taxes" and sets eligibility criteria, including ownership and occupancy requirements. Claims for the rebate must be submitted electronically or by mail, with deadlines and penalties for false claims. The rebate is exempt from Montana individual income tax, and the bill includes provisions for statutory appropriations to fund the program.

Additionally, the bill amends existing legal language regarding the treatment of the property tax rebate in federal taxable income calculations. It removes the previous exemption provision and replaces it with a requirement that the rebate amount will be subtracted from federal taxable income. This change is intended to prevent the rebate from adversely affecting taxpayers' overall tax liabilities. The bill also outlines penalties for fraudulent claims, establishes an appeals process for denied claims, and clarifies the definition and requisites for statutory appropriations, ensuring accountability and transparency in the rebate program's administration. The act is set to take effect upon passage and approval, with a termination date of June 30, 2026.

Statutes affected:
LC Text: 15-30-2120, 17-7-502