42.4.301 DEFINITIONS
++
The following definitions apply to this sub-chapter:
+(1) "Amenities" are items that enhance the pleasantness or desirability of rental or retirement homes, or contribute to the pleasure and enjoyment of the occupant(s) , rather than to their indispensable needs.
+(2) "Gross household income" as defined under 15-30-171 , MCA, is further defined as:
+(a) all capital gains income transactions less return of capital;
+(b) federal refunds received during the tax year to the extent that the amount recovered reduced the claimant's Montana income tax in a prior year; and
+(c) Montana state income tax and elderly homeowner/renter credit refunds received.
+(3) "Land surrounding the eligible residence for the elderly homeowner/renter credit" is the one-acre farmstead or primary acre associated with the primary residence.
+(a) If the one-acre farmstead or primary acre is not separately identified on the tax bill or assessment notice from the other acreage and the ownership is less than 20 acres, the allowable credit shall be calculated as follows: total amount of property tax billed on the land, divided by the total acreage, to equal the allowable amount of property tax used in the credit calculation.
+(b) Land ownership of 20 acres or more that does not have the one-acre farmstead or primary acre separately identified on the tax bill or assessment notice must be submitted to the department's local office for computation of the allowable amount of property tax used in the credit calculation.
+(4) "Rent" is the amount of money charged to a tenant to occupy a dwelling. "Rent" does not include amenities such as meals, housekeeping, nursing care, etc.
++
Authorizing statute(s): Sec. 15-30-305, MCA
+Implementing statute(s): Sec. 15-30-171, 15-30-172, 15-30-173, 15-30-176, 15-30-177, and 15-30-178, MCA
+History: NEW, 2004 MAR p. 1965, Eff. 8/20/04.
+42.4.301 DEFINITIONS
++
The following definitions apply to this subchapter:
+(1) "Amenities" are items that enhance the pleasantness or desirability of rental or retirement homes, or contribute to the pleasure and enjoyment of the occupant(s), rather than to their indispensable needs.
+(2) "Gross household income" as defined under 15-30-2337, MCA, is further defined as:
+(a) all capital gains income transactions less return of capital;
+(b) federal refunds received during the tax year to the extent that the amount recovered reduced the claimant's Montana income tax in a prior year; and
+(c) Montana state income tax and elderly homeowner/renter credit refunds received.
+(3) "Land surrounding the eligible residence for the elderly homeowner/renter credit" is the one-acre farmstead or primary acre associated with the primary residence.
+(a) If the one-acre farmstead or primary acre is not separately identified on the tax bill or assessment notice from the other acreage and the ownership is less than 20 acres, the allowable credit shall be calculated as follows: total amount of property tax billed on the land, divided by the total acreage, to equal the allowable amount of property tax used in the credit calculation.
+(b) Land ownership of 20 acres or more that does not have the one-acre farmstead or primary acre separately identified on the tax bill or assessment notice must be submitted to the department's local office for computation of the allowable amount of property tax used in the credit calculation.
+(4) "Rent" is the amount of money charged to a tenant to occupy a dwelling. "Rent" does not include amenities such as meals, housekeeping, nursing care, etc.
++
Authorizing statute(s): 15-30-2620, MCA
+Implementing statute(s): 15-30-2337, 15-30-2338, 15-30-2340, MCA
+History: NEW, 2004 MAR p. 1965, Eff. 8/20/04; AMD, 2010 MAR p. 1211, Eff. 5/14/10.
+42.4.301 DEFINITIONS
++
The following definitions apply to this subchapter:
+(1) "Amenities" are items that enhance the pleasantness or desirability of rental or retirement homes, or contribute to the pleasure and enjoyment of the occupant(s), rather than to their indispensable needs.
+(2) "Gross household income" as defined under 15-30-2337, MCA, is further defined as:
+(a) all capital gains income transactions less return of capital;
+(b) federal refunds received during the tax year to the extent that the amount recovered reduced the claimant's Montana income tax in a prior year; and
+(c) Montana state income tax and elderly homeowner/renter credit refunds received.
+(3) "Land surrounding the eligible residence for the elderly homeowner/renter credit" is the one-acre farmstead or primary acre associated with the primary residence.
+(a) If the one-acre farmstead or primary acre is not separately identified on the tax bill or assessment notice from the other acreage and the ownership is less than 20 acres, the allowable credit shall be calculated as follows: total amount of property tax billed, multiplied by 80 percent or divided by the total acreage, whichever is higher, to equal the allowable amount of property tax used in the credit calculation.
+(b) Land ownership of 20 acres or more that does not have the one-acre farmstead or primary acre separately identified on the tax bill or assessment notice must be submitted to the department's local office for computation of the allowable amount of property tax used in the credit calculation.
+(4) "Rent" is the amount of money charged to a tenant to occupy a dwelling. "Rent" does not include amenities such as meals, housekeeping, nursing care, etc.
++
Authorizing statute(s): 15-30-2620, MCA
+Implementing statute(s): 15-30-2337, 15-30-2338, 15-30-2340, MCA
+History: NEW, 2004 MAR p. 1965, Eff. 8/20/04; AMD, 2010 MAR p. 1211, Eff. 5/14/10; AMD, 2013 MAR p. 1450, Eff. 8/9/13.
+42.4.302 COMPUTATION OF ELDERLY HOMEOWNER/RENTER TAX CREDIT
++
(1) When a claimant owns the dwelling but rents the land or owns the land and rents the dwelling, the claimant shall include on the claim form the rent-equivalent tax paid on the rented property to the property tax billed on the owned property. The total shall then be reduced as provided by 15-30-2340, MCA. The credit will be the reduced amount or $1,150, whichever is less.
+(2) To calculate the credit, an eligible claimant may use property taxes billed:
+(a) on property held in a revocable trust if the grantor(s) of the property or their spouse is the claimant and either or both are trustees of the revocable trust; or
+(b) as rent if the property occupied by the claimant is in a name other than the claimant.
+(3) When a claimant lives in a health, long-term, or residential care facility (facility), as defined in 50-5-101, MCA, the rent allowed in calculation of the credit is the actual out-of-pocket amount paid for rent.
+(a) If one spouse lives in a facility and the other lives at a different address, they may report either the rent paid for the facility or the rent/property taxes billed for the other address, but not both. Married couples who are living apart are entitled to file and receive only one credit per year.
+(b) If a claimant lives in a facility, the out-of-pocket rent being claimed must exclude payments for amenities. To satisfy this obligation, the claimant must either:
+(i) utilize a detailed statement provided by the facility itemizing the amount paid for rent and for amenities; or
+(ii) determine the amount of allowable rent by deducting amenities from the total amount paid as follows:
+(A) 20 percent for services related to boarding such as meals, housekeeping, laundry, and transportation;
+(B) 30 percent for services related to continuous care such as assisted living, medical care, paramedical care, memory care, medical supplies, and pharmacy; or
+(C) 50 percent if the services in both (A) and (B) are provided.
+(c) Examples of calculating the allowable rent in (b) are as follows:
+(i) Val rents a room in an independent living facility. Her $1,000 monthly payment includes utilities and parking, but no services delivered by personnel. No further calculation is needed. Val is allowed to report the full $1,000 per month as rent.
+(ii) Paul rents a room in an independent living facility. In addition to utilities and cable, his $2,500 monthly payment includes boarding such as housekeeping, meals, and transportation provided by staff and contractors. The facility's year-end statement does not itemize his total amount paid. Paul deducts 20 percent ($2,500 - 20%) for the boarding services and may report $2,000 per month as rent.
+(iii) Ron lives in a long-term care facility and receives boarding services, assistance with daily living activities, and special memory care. The facility's year-end statement partially itemizes Ron's $40,000 total payment, showing the amount charged by the contractor for his memory care. The statement does not list the amounts charged for boarding and care provided by staff. Ron deducts 50 percent ($40,000 - 50%) for boarding (20%) and care (30%) and may report $20,000 as annual rent.
+(iv) George rents an apartment in an assisted living facility. The facility's year-end statement itemizes his $30,000 total payment as $14,400 for rent, $5,000 for boarding, and $10,600 for care. George may report the $14,400 rent or, alternately, choose to deduct 50 percent from the total ($30,000 - 50%) for boarding (20%) and care (30%) and may report $15,000 as annual rent.
+(v) Mary rents a room in an assisted living facility for six months while recovering from a medical procedure. Her $2,000 total monthly payment includes assistance with daily living activities provided by staff, but she chose not to receive any additional services such as boarding. The facility does not itemize her payment. Mary deducts 30 percent from the monthly payment ($2,000 - 30%) for the care and may report $1,400 per month as rent. Further, Mary may report either the allowable rent paid to the facility, or the monthly rent she paid for her primary residence during the same six-month period, but not both.
++
Authorizing statute(s): 15-30-2620, MCA
+Implementing statute(s): 15-30-2340, 15-30-2341, 50-5-101, MCA
+History: NEW, 1982 MAR p. 608, Eff. 3/26/82; AMD, 1983 MAR p. 1265, Eff. 9/16/83; AMD, 1993 MAR p. 571, Eff. 4/16/93; AMD, 1995 MAR p. 2851, Eff. 12/22/95; AMD, 1996 MAR p. 3148, Eff. 12/6/96; AMD, 1998 MAR p. 183, Eff. 1/16/98; AMD and TRANS, from ARM 42.15.506, 2004 MAR p. 1965, Eff. 8/20/04; AMD, 2010 MAR p. 1211, Eff. 5/14/10; AMD, 2014 MAR p. 2475, Eff. 10/10/14; AMD, 2017 MAR p. 2092, Eff. 11/10/17; AMD, 2024 MAR p. 2162, Eff. 9/7/24.
+