Tax Appeal Process

The 1999 Montana Legislature passed House Bill 137 creating the Department of Revenue's Office of Dispute Resolution (ODR).

Establishing the ODR was affected along with other agency reorganization efforts occurring at the time. The act, amending prior language of § 15-1-211, MCA, established a new Office of Dispute Resolution and required the agency to adopt a uniform dispute review procedure to be implemented through new administrative rules. The procedure itself was described to apply to disputes arising before the department with the exception only of statutorily exempted issues including inheritance taxes, estate taxes, property taxes and matters involving employment relationships (for example, whether a worker is an employee or an independent contractor).

Among other considerations, the new law encourages the use of alternative dispute resolution procedures, such as mediation. It also provides for a time period for resolving disputes of 180 days after a referral is made to the ODR. If a decision or resolution has not been attained by that deadline, the matter is automatically referred to the next level of appeal (usually the State Tax Appeal Board).

The new administrative rules implementing the uniform dispute review procedure were adopted and became effective in December 1999. (See ARM 42.2.613 through 42.2.621). The rules address such topics as referral requirements, mediation, settlements, initial conferences, discretion as to formality of proceedings, notice, evidence and appeals of agency decisions.

The ODR also deals extensively with liquor license adjudication. Those cases are primarily governed by the Montana Administrative Procedure Act (Title 2, Chapter 4, Part 6, MCA).

The Office of Dispute Resolution is headed by Howard R. Heffelfinger.

1. To access and complete the Request for Informal Review
2. Once the form is complete, attach it and e-mail it to: soaobjections@mt.gov or
3. You can mail the completed form to:

      Department of Revenue
      Attn: SOA Objections
      PO Box 7701
      Helena MT 59604-7701