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Homeowner rebate papers in the mail

Associated Press

HELENA - The governor's office says applications for the $400 property tax rebate will be mailed Friday, and checks will be issued as early as next week.

The Legislature approved the property tax rebate earlier this year, allocating $100 million for Montana residents who own homes. The rebate exempts corporations and nonresidents who own homes in the state.

Gov. Brian Schweitzer's office estimated that 254,000 homeowners are eligible for the rebate.

Homeowners can also file their rebate application electronically on the Department of Revenue's Web site.

Critics of the rebate say the application process will cause fewer people to get the rebate since not everyone will know how to get the check. They also point out that many people will be surprised to learn they may have to pay income taxes on the rebate.

Republicans battled Schweitzer throughout the legislative session because they preferred a reduction in tax rates rather than a rebate.

Democrats, however, argued that a cut in property tax rates would have favored the wealthy and large corporations, while only Montana homeowners will get the property tax rebate.

To be eligible for the refund, a taxpayer must be have lived in Montana for at least seven months in 2006 and paid at least $400 in property taxes on that residence during the last three years.

The deadline to apply is Dec. 31.

Schweitzer also recently announced that triggers established by the Legislature have been met for an extra tax credit of $140 on property taxes paid in 2007. Taxpayers will be able to apply for that rebate next year.

The Revenue Department's Web site is www.mt.gov/revenue.


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