Montana’s state revenue department is closing the window for landlords to submit applications to avoid the second-home tax by midnight on Friday. This tax exemption can save landlords considerable expenses, yet many remain unaware of the deadline. As of Thursday, over 33,900 exemption applications for long-term rental properties have been submitted, an increase from the over 19,100 applications received by late February.
These applications cover more than 65,800 living units, but that’s only about 45% of Montana’s total rental stock, as per U.S. Census Bureau estimates. A spokesperson from the Department of Revenue noted that not all rental units in census data are eligible for the long-term rental exemption, as eligibility is determined by legislative definitions. The increase in covered units since the initial deadline is seen as a positive trend by the department.
In February, Governor Greg Gianforte’s administration extended the original March 1 deadline to March 20 due to “high volume” issues on the application portal. Before the extension, reports indicated around 75% of landlords hadn’t applied for the second-home property tax exemption. This tax, introduced by legislation passed in 2025, targets properties not considered primary residences or long-term rentals.
The legislation, backed by a bipartisan coalition, increases property tax rates on residential units while reducing them for owner-occupied or long-term rentals. Landlords who fail to apply for exemptions could see their properties taxed at higher rates, potentially raising rents. A spokesperson for the revenue department said efforts have been made to inform property owners about applying for lower tax rates.
Rep. Jonathan Karlen, D-Missoula, noted the extension helped many landlords meet the new deadline. Without exemptions, landlords might increase rents to offset the higher tax, affecting tenants. The revenue department emphasized the importance of awareness and has communicated through various channels to ensure landlords know the benefits of filing for exemptions. Landlords are encouraged to visit the state’s website for more information.
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