State Summary

Tax Collection Method: Liens
Primary Bidding Type: Random or Rotational bidding
Redemption Period: 3 years for land with improvements; 2 years for vacant land
Redemption Interest Rate/Flat Penalty: 10% simple interest per annum

The following information summarizes the life cycle, requirements, and administering of tax liens in the state of Montana. Please read this information carefully. There are tax collection laws that pertain to all counties in Montana, but be aware that there are subtle differences between the counties as well. When the word "typical" is used in the FAQs below, it indicates that most counties use this procedure/follow this convention, but not all counties.

Is Montana a tax lien or a tax deed state?
Montana is a tax lien state.

What is the name of the county official whom typically collects property taxes in Montana?
County Treasurer.

When are property taxes due in the state of Montana?
One-half of the tax bill is due on November 30, and the other half of the tax bill is due on May 31 of the following year.

When do property taxes become delinquent in the state of Montana?
Tax bills become delinquent one day after the due dates. Interest on delinquent tax bills accrues at 0.83% per month or fraction of a month (10% per annum). A 2% flat penalty is also immediately assessed upon delinquent tax bills.

What is the name of the county official whom typically conducts tax lien sales in Montana?
County Treasurer.

When does the typical Montana county hold their annual tax lien sale?
Montana counties hold their tax lien sales in late June or July. Some counties also hold subsequent sales if unpurchased tax lien certificates remain in the county's inventory.

What are the registration requirements for the typical Montana tax lien sale?
Registration requirements vary by county.

What is the bidding type used at a typical Montana tax lien sale?
The bidding type varies by county. Many counties use either a random or rotational type of bidding where bidders at the sale are selected at random and allowed to purchase a tax lien certificate for the amount of taxes and fees owed. Some counties may use the premium bidding method.

What forms of payment are generally accepted at a typical Montana tax lien sale?
A typical Montana county requires certified funds.

What are the general terms of payment for the typical tax lien certificate purchased at a Montana tax lien sale?
Most Montana counties require full payment the day of the sale.

What is the redemption period for tax lien certificates in Montana?
The redemption period is three years for parcels with habitable improvements, and two years for vacant land. The redemption period starts on the day that the certificate is purchased by the investor.

What is the maximum return (interest rate and/or flat penalty rate) investors earn while they hold the tax lien certificate?
The state-mandated interest rate is 10% per annum, or 0.83% accrual per month (or fraction of a month). So, if a tax lien certificate is redeemed just prior to the end of the three-year redemption period, the investor's return would be 30%.

Are tax liens certificates offered "over-the-counter" in Montana?
Yes, most counties have "over-the-counter" opportunities for interested investors.

What is the name of the office that determines the values of properties on a annual basis?
Montana's Department of Revenue is responsible for valuating properties throughout the state. They work with county officials, generally assessors or appraisers, to accomplish this task.

For more information on the life cycle, requirements, and administering of tax liens in the state of Montana, refer to the following Title 15. Taxation chapters in the Montana Code Annotated 2009:

Chapter 16: Collection of Property Taxes
Chapter 17: Tax Lien Sales
Chapter 18: Ownership Interests in Land Sold for Taxes

Montana County Reference