New State Law Makes Property Tax Payments Less Daunting

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Montana Enacts AARP-Backed Bill Allowing Property Tax Installment Plans

Starting in November 2024, Montanans will be able to pay their property taxes in seven monthly installments instead of in a lump sum, thanks to an AARP-backed bill that passed last session.

AARP championed the measure because older adults are less likely than other homeowners to pay property taxes through monthly escrow payments with their mortgage.

Currently, property taxes in Montana are due twice a year, in May and November. If homeowners haven’t saved in advance, they may find it difficult to afford a large lump-sum payment, leading them to take on expensive credit card debt or fall behind on their tax bills and accrue costly penalties and late fees. Or worse, homeowners may become vulnerable to a future foreclosure.

“The new, optional payment plan will make it easier for anyone on a fixed income – including older Montanans — to better meet their property tax obligations, while managing their household budget at the same time,” said AARP Montana State Director Tim Summers. 

AARP Montana volunteers testified and sent emails in favor of the bill during the 2023 legislative session, and state office staff worked to gain the support of the Montana League of Cities and Towns, which was critical to the bill’s passage. 

The new law will work like this: for a taxpayer enrolled in the alternative payment schedule for primary residences, one-seventh of the taxes must be paid on or before 5 p.m. on the last day of each month beginning on November 30 and ending on May 31 provided that the full amount of the taxes payable is made by 5 p.m. on May 31 of each year. The seven monthly payments must be as nearly equal as possible and are due on November 30, December 31, January 31, February 28, March 31, April 30, and May 31. 

Montanans can apply to participate in the alternative payment schedule beginning with taxes due on Nov. 30, 2024.

AARP is championing similar changes in states around the country.

The legislation was one of several tax relief wins for AARP Montana in 2023, including new income tax and property tax rebates.

Learn more about recent tax changes, and keep up with AARP Montana state advocacy work. 

To find out more, contact the Montana Department of Revenue at (406) 444-6900.