Changes coming to Montgomery property tax rebate program

Village of Montgomery property owners will be able to apply online this fall to receive their annual $45 property tax rebate from the village.

In addition, the village will give residents the option of receiving either a paper check from the village or have the rebate applied as a credit to their water bills.

The program changes are part of an effort by village staff to provide “a better resident experience and a higher level of customer service,” Justin VanVooren, the village’s finance director, and Kristina Nemetz, the village’s communication manager, wrote in an Aug. 20 memo to the village board.

According to the memo, the village will announce registration for the rebates in the water bills it will send to its customers within the village in October. Applications will be accepted online, with hard copies available at Village Hall at 200 North River Street. Deadline to apply for the rebates will be Dec. 31.

Village Administrator Jeff Zoephel reported some village residents took the rebate in the form of a credit on their water bills this year.

Referring to the next round of rebates, Zoephel said this will be the first time the village will advertise taking the rebate as a water bill credit as an option to residents.

Previously, the village had posted printable applications for the rebates online and had application forms available at Village Hall.

The village board established the rebate program in 2014 after village voters approved a non-home rule sales tax referendum to finance the village’s annual street maintenance program.

In seeking passage of the referendum, the board agreed to the property tax rebates to help village residents offset the cost of the non-home rule sales tax. The non-home rule sales tax, meanwhile, is paid by both village residents and non-residents who patronize village retail stores and restaurants.

Initially, the board voted to offer the rebates for a five-year period. They subsequently voted in October 2020 to approve an ordinance extending the program for another five-year period.

The ordinance also included language indicating the board’s intent that the rebates continue far into the future and “to strongly convey to all future boards to honor the original intent of this action in enacting the non home rule sales tax.”

According to VanVooren’s and Nemetz’ memo, the village issued a total of 2,582 rebates this past year. At $45, the program cost the village $116,190.