Delinquent Taxes, Tax Liens and Assignments
DELINQUENT TAXES, TAX LIENS AND ASSIGNMENT INFORMATION
IMPORTANT INFORMATION: The following is a brief outline and timeline for Delinquent Taxes, Tax Liens, and the Assignment process for real property. Gallatin County does not offer legal help to taxpayers or advice to the purchasers of tax liens.
Before investing in tax liens, please hire an attorney. The information below should not be presumed as evidence, in whole or in part, of legal advice by the County Treasurer.
Please reference Montana Code Annotated for all laws associated with tax liens certificates, assignments, redemptions and tax deeds. Do NOT contact our office for interpretation of those laws.
The Montana Code Annotated is published and distributed by the Montana Legislative Services Division, Capitol Bldg. Rm. 110, 1301 E 6th Avenue, P.O Box 201706, Helena, MT, 59620-1706, phone 406-444-3064; and located online at https://leg.mt.gov/bills/mca/index.html. During the past few legislative sessions, the assignment process was changed and differs from previous laws on tax assignments taken after May 7, 2019.
Gallatin County has the authority to collect delinquent taxes in several ways, including through Writ of Execution, certain types of liens, and a public auction for personal property, including mobile homes, furniture, fixtures, equipment, and livestock. Delinquent real property taxes act as a lien held by the County on the real estate.
Please note: The City of Bozeman forwards their delinquent special assessments to us for collection, and they become part of our tax records and are collectible using this same process. While you may have paid your County property taxes, you may have delinquent City of Bozeman special assessments for which a lien can be placed.
DELINQUENT TAXES: Taxes become delinquent on the day after the listed due date on your tax bill. All payments not received by the due date(s) listed on the on the front of the tax bill are considered delinquent, and a 2% penalty is charged immediately. Per Montana Code Annotated (MCA) Section 15-16-102, interest is charged at the rate of 5/6 of 1% per month until paid (interest is calculated daily). We strongly encourage taxpayers to make every effort to pay their taxes to avoid paying penalties and interest or the potential loss of their property.
To help property owners avoid delinquent taxes on real property and mobile homes, Gallatin County may send a courtesy notice after the 1st half of property taxes become delinquent. After the second half of property taxes become delinquent, Gallatin County places an ad in the Bozeman Daily Chronicle advising delinquent taxpayers about the possibility that a lien could be placed against their property, per MCA 15-17-123. Additionally, two weeks before the first working day in August, Gallatin County sends pending tax lien notices to the last known address of the property owner.
PLEASE MAKE SURE THE MONTANA DEPARTMENT OF REVENUE HAS THE CORRECT MAILING ADDRESS FOR YOU. It is the property owner's responsibility to update their address with the Department of Revenue (DOR). You can update your address by emailing: dorgallatinoffice@mt.gov or by calling 406-582-3400.
TAX LIENS: If real property becomes delinquent and remains so on the day before the first working day in August (August 1, 2022 for 2021 taxes), the County Treasurer must attach a tax lien on the property per MCA 15-17-125, and file the lien with the Gallatin County Clerk and Recorder. A copy of the tax lien certificate is also sent to the recorded address for the property owner. A list of all parcels with liens is made available to the public and interested parties. Property owners can still make payment on their delinquent taxes using itax@gallatin.mt.gov, which will release the lien, up until an assignment has been taken. Once an assignment has been taken, the property owner will need to contact the Treasurer's Office for payment information and can do so by calling 406-582-3033.
ASSIGNMENTS: If the taxes on the property have not been received by August , another person (assignee), after following the steps outlined in Montana Code Annotated 15-17-323, can take an "assignment" on the property by paying all taxes, penalty, interest, and costs, which transfers the lien from the County to the assignee.
GALLATIN COUNTY ASSIGNMENT PRIORITY POLICY
TIMELINE FOR TAX YEAR TAX YEAR 2021 ASSIGNMENTS:
JUNE 1 - July 31: If an assignment has been taken for any previous year's taxes, an assignee can pay the subsequent delinquent taxes on existing tax liens/assignments before a new tax lien is attached. If the property is under the Property Tax Assistance Program, payment of subsequent taxes will have to wait until June 21.
AUGUST 1: All real properties with taxes that remain delinquent as of the first working day in August (August 1, 2022 for the 2021 tax year) will have a tax lien attached by the County. Those liens are then open to anyone to purchase as a separate assignment, following the steps outlined below a lien list of delinquent parcels is made available for potential assignees. If the taxpayer pays the delinquent taxes, a redemption certificate will be filed with the Clerk and Recorder, releasing the lien.
AUGUST 15: Before making a payment, a prospective assignee must send a Notice of Pending Assignment as required by MCA 15-17-125 and 15-17-323, by certified mail, to the person to whom the property was assessed. The notice must have been mailed at least two weeks before the payment date but not earlier than August 15 and not more than 60 days before purchasing the assignment. The person making the payment shall provide proof of the mailing to the County Treasurer. A certified mailing receipt lacking either an address or a postmark is insufficient proof.
AUGUST 30: To be considered, prospective assignees must submit to the Gallatin County Treasurer, a list of all tax codes (parcel numbers), in the order of preference, for which the assignee wishes to purchase an assignment on, by noon on August 30, 2022. Lists can be mailed (must be received in our office by noon on August 30, 2022 so plan accordingly), emailed to treasurer@gallatin.mt.gov or dropped off at the County Treasurer's Office, located at 311 West Main, Room 103, Bozeman, MT 59715. Timing of the receipt of documents does not affect the order in which the lottery will be conducted.
Appropriate proof or mail notices for each such parcel, as well as sufficient funds to purchase all assignments sought must accompany the list, and on the date and time listed in the paragraph above. Payment includes all delinquent taxes, penalties, interest and a $60 fee per parcel. Funds must be in verifiable form (i.e. a cashier’s check, a money order, or a personal check with a letter from the banking institution verifying that sufficient funds are in the account to cover the amount listed on the check).
AUGUST 31: The first day that 2021 tax year tax liens can be purchased is August 31, 2022. If a third party purchases an assignment of a tax lien by paying all delinquent taxes, penalties and interest and a $60 fee.
September 1: This is the date that the lottery will be held and the majority of assignments will be issued. In most cases, receipts for the assignments are available within 5 days; however, certificates will be sent certified mail at a later date. If more than one person or entity is interested in the same parcel, the Gallatin County Treasurer will use a lottery system to award the assignments. Please see the adopted priority policy link located on the upper left-hand corner of the main page.