Property tax foreclosure in Montana

The property tax process in Montana, step by step

1. Taxes become delinquent

   November 30 and May 31

   Half of your property tax is due by 5 p.m. on November 30 and the other half by 5 p.m. on May 31, unless your notice was mailed late. Unpaid amounts are delinquent, and the county adds a 2 percent penalty plus interest of 5/6 of 1 percent a month until you pay.

   Mont. Code Ann. § 15-16-102

2. Notice and the tax lien

   Notice by the last Monday in June; lien attaches by the first working day in August

   The county treasurer publishes or posts a notice listing delinquent properties and must mail you a notice at least 2 weeks before the lien attaches. Once the lien attaches, the county holds it unless it is assigned to a third party who pays the delinquent taxes. You get a copy of the tax lien certificate, which states when the county or the buyer can get a tax deed.

   Mont. Code Ann. §§ 15-17-122, 15-17-125

3. Redeem your property

   By the first working day in August, 3 years after the lien attached

   You, a lienholder or anyone with an interest can redeem by paying the lien amount with penalty, interest and costs, plus any later taxes, with the same penalty and interest. The deadline is 2 years instead of 3 for certain vacant subdivided lots with unpaid special improvement district assessments. If the county still holds the lien, you may be able to pay off one tax year at a time.

   Mont. Code Ann. §§ 15-18-111, 15-18-112

4. Notice that you may lose the property

   May 1 to May 30 of the year the redemption period ends

   The county, or the buyer who holds the assigned lien, must send notice by certified mail, return receipt requested, to the occupant and to the owner and lienholders found in a title report, and must also publish it. If the buyer does not file proof of this notice, the treasurer must cancel the tax lien and the assignment. If you get this letter, it is the last warning before a deed or auction.

   Mont. Code Ann. §§ 15-18-212, 15-18-219

5. A home you live in is sold at auction

   Auction within 60 days after the buyer applies

   If you live in the home as the owner of record, the lien buyer cannot simply take a tax deed. The buyer must apply, and the treasurer must hold a public auction where the opening bid includes the amount owed plus half of the assessed value of the land and home. Within 30 days after the winning bidder pays, the treasurer must pay the surplus to the legal owner of record, even if you have moved out of state.

   Mont. Code Ann. §§ 15-18-219, 15-18-220, 15-18-221

6. Other property passes by tax deed

   After the redemption period ends

   For property that is not occupied by its owner, the treasurer grants a tax deed to the lien buyer, or to the county if the county commissioners direct it. If the county takes the deed, you may buy the property back up to 24 hours before the county first offers it for sale by paying the taxes, interest and costs. Montana's law on county sales of tax deed land sends any extra money to the county, not to the former owner.

   Mont. Code Ann. §§ 15-18-211, 7-8-2303, 7-8-2306

7. Relief that can help

   Apply each year

   The Elderly Homeowner/Renter Credit is a refundable income tax credit of up to $1,150 for Montanans 62 and older with household income under $45,000, and you can claim it even if you do not otherwise file a return. The Department of Revenue also runs a Land Value Property Tax Assistance Program for long held family homes whose land value is far higher than the home's.

Common questions in Montana