Montana Code 15-7-403. Rollback tax — computation
15-7-403. Rollback tax — computation. (1) (a) Subject to 15-10-420, if land and improvements appraised as residential as a result of an application filed under 15-7-402 are changed to industrial or commercial use, the property is subject to a rollback tax in addition to the property tax levied on the property. The rollback tax is a lien on the property and is due and payable by the owner of the property at the time of the change in use.
Terms Used In Montana Code 15-7-403
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Lien: A claim against real or personal property in satisfaction of a debt.
- Property: means real and personal property. See Montana Code 1-1-205
(b)As used in this section, “rollback” means the period preceding the change in use, not to exceed 5 years, during which the property was appraised as residential.
(2)The department shall determine the amount of rollback tax due on the property by:
(a)determining the taxable value of the property as industrial or commercial property;
(b)multiplying this value by the sum of the annual mill levies applied in the taxing jurisdiction in which the land is located during the rollback period; and
(c)subtracting from this figure the actual property tax paid on the property during this period.