Department of Revenue reports progress on reappraisal appeals and SB 542/HB 231 homestead enrollment
February 23, 2026 | 2026 Legislature MT, Montana
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Bryce Kotz, compliance executive with the Property Assessment Division, reported to the Interim Committee on Revenue that the department has processed a large share of reappraisal appeals and is preparing for the next reappraisal valuation date of Jan. 1, 2026.
"As a statewide total, we're at about 80%" completion of AB 26 informal appeals, Kotz said, noting most remaining appeals are concentrated in a few high‑volume counties and that roughly 96–97% of appeals are resolved at the informal review stage. He said about 3–4% proceed to county tax appeal boards and fewer than 1% advance to the Montana Tax Appeal Board.
On implementation of the 2025 property‑tax legislation (SB 542 and HB 231), Kotz told the committee the online SmartFile portal deadline fell on Sunday and was extended to Monday, March 2; as of his morning check the department had received "just under 19,000 applications for the homestead for a principal residence" and "just over 21,000 applications for a long term rental property," with roughly 7,000 homestead and 9,200 long‑term rental determinations already processed. He said paper filings remain and staff are prioritizing telephone support for applicants.
Jake Ford, bureau chief for withholding and individual income tax processing, said the department has accepted about 130,000 individual returns this filing season, roughly 15,000 more than at the same point last year, and that refunds are returning to historical patterns: "We're seeing about 40% of returns that have a refund with an average refund of $550." He noted average time to issue refunds is currently just under seven days.
Tony Zammit (deputy chief legal counsel) and other DOR staff briefed the committee on major legal cases and administrative responses, including a Boardwalk Properties opening brief filed with the Montana Supreme Court and various district‑court matters involving valuation and appeals; Kotz and other DOR staff said they have been doing public outreach, mailed approximately 109,000 postcards to owners who had not yet applied for reduced rates, and are testing system changes to apply reduced tax rates to enrolled parcels.
Committee members asked for follow‑up details and data: Representative Bridal asked for the department's original estimates and whether application counts matched fiscal projections; Kotz said homestead applications were near initial fiscal‑note estimates while long‑term rentals trailed projections but could pick up as the deadline approaches. Senator Beard asked about auto‑enrollment; Kotz said about 224,000 properties were auto‑enrolled based on prior rebate claims and taxpayers can verify enrollment at homestead.mt.gov.
The department said it will continue processing and will return with more complete datasets at a future meeting.
"As a statewide total, we're at about 80%" completion of AB 26 informal appeals, Kotz said, noting most remaining appeals are concentrated in a few high‑volume counties and that roughly 96–97% of appeals are resolved at the informal review stage. He said about 3–4% proceed to county tax appeal boards and fewer than 1% advance to the Montana Tax Appeal Board.
On implementation of the 2025 property‑tax legislation (SB 542 and HB 231), Kotz told the committee the online SmartFile portal deadline fell on Sunday and was extended to Monday, March 2; as of his morning check the department had received "just under 19,000 applications for the homestead for a principal residence" and "just over 21,000 applications for a long term rental property," with roughly 7,000 homestead and 9,200 long‑term rental determinations already processed. He said paper filings remain and staff are prioritizing telephone support for applicants.
Jake Ford, bureau chief for withholding and individual income tax processing, said the department has accepted about 130,000 individual returns this filing season, roughly 15,000 more than at the same point last year, and that refunds are returning to historical patterns: "We're seeing about 40% of returns that have a refund with an average refund of $550." He noted average time to issue refunds is currently just under seven days.
Tony Zammit (deputy chief legal counsel) and other DOR staff briefed the committee on major legal cases and administrative responses, including a Boardwalk Properties opening brief filed with the Montana Supreme Court and various district‑court matters involving valuation and appeals; Kotz and other DOR staff said they have been doing public outreach, mailed approximately 109,000 postcards to owners who had not yet applied for reduced rates, and are testing system changes to apply reduced tax rates to enrolled parcels.
Committee members asked for follow‑up details and data: Representative Bridal asked for the department's original estimates and whether application counts matched fiscal projections; Kotz said homestead applications were near initial fiscal‑note estimates while long‑term rentals trailed projections but could pick up as the deadline approaches. Senator Beard asked about auto‑enrollment; Kotz said about 224,000 properties were auto‑enrolled based on prior rebate claims and taxpayers can verify enrollment at homestead.mt.gov.
The department said it will continue processing and will return with more complete datasets at a future meeting.
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