Montana Department of Revenue Corrects Property Tax System Errors

The Montana Department of Revenue admitted that errors in the state's new property tax system have led to some homeowners being overcharged. The system implements a homestead exemption passed by the Montana Legislature in 2025, which provides lower tax rates for primary residences occupied for at least seven months a year.

While many taxpayer inquiries result from ineligible properties or missed deadlines, some homeowners who received official confirmation of their exemption saw their property taxes double. Deputy Director Scott Mendenhall reported that the agency is receiving hundreds of calls daily from concerned property owners.

Department officials are currently reviewing records to correct these transition errors. Homeowners who qualify for the exemption but missed the initial application deadline may still apply and could be eligible for tax refunds in 2027.