Tax Year: Montana tax year runs January – December of the current year. Taxes are generally paid semiannually. Taxes are calculated using the assessed value of the property. Certain areas have a city tax along with the county tax.
Montana Tax Collectors by County:
Click here for our comprehensive list of Montana Tax Collectors, by county, with contact information for each.
County Online Property Tax Information:
Most Montana counties provide helpful websites that allow home owners to view their current tax information, bill and payments online. GO to www.google.com and type “Property taxes for Missoula County,” or the county you are inquiring about. Click here to access list of Montana online property tax websites
Payment of Property Taxes at Closing:
In refinances, most lenders require that taxes are current and up to date and all taxes due within 30-90 days of closing are collected and paid at closing.
The same is true for sales. Additionally, taxes for sales are prorated in such a manner that the seller will pay taxes through settlement, or credit the buyer with the same. From the date of settlement forward, the buyer shall pay taxes.
Be aware, that it can take up to two years for the new owners name to appear on tax bills. However, the purchaser is responsible for all taxes, and other county and state fees, such as water or sewer, from the date of closing. Likewise, all bills prior to closing remain the sellers responsibility.
All closings involving properties with public bills being assessed to it, will be required to pay all such bills current through closing, by the seller, after which said bills will be the responsibility of the buyer. Were possible, these items are prorated on the HUD; in some situations, the seller must contact the county to advice of the pending transaction, and arrange for the change over and payment of final bills.
Failure to pay the above mentioned items in a timely manner can affect the final recording of the deed on the property.
Determining Property Ownership:
Most counties have a real property search database to determine ownership. Click here to access list of Montana counties with property search databases.
1099 Reporting to the IRS:
At closing, the seller will review a Certification of No Information Reporting if the sale of their property results in proceeds of less than $250,000 as an individual or $500,000 if a married couple.
If the proceeds are higher than this, the seller may chose to have the title company report the 1099 filing to the IRS, or may elect, in writing, to have the tax accountant or attorney do their 1099 filing.
Investment Properties and Commercial Transactions:
If you are buying an investment or commercial property, please notify the title company prior to closing so we can help you meet all counties requirements regarding the same.
If your property is going to be a part of a 1031 exchange, you must also notify the title company prior to closing. Failure to do so could result in transaction not going through an intermediary. Even the failure to correctly follow any of the required steps under the Federal Tax Law regarding 1031 Exchanges, will negate the transaction, and the tax benefits will no longer be available.
Further, a Qualified Intermediary will be provided. At The South Mountain Group, Inc. our intermediary’s are all Certified Public Accountants, and will guide you step by step through the process.
Click here for more information about 1031 Exchanges.