House Bill No. 167

Introduced By mcculloch

By Request of the Juvenile Justice and Mental Health Study Commission

A Bill for an Act entitled: "An Act imposing a 0.1 percent local vehicle tax for the funding of Youth Court expenses; reducing the local option vehicle tax to 0.4 percent; and amending sections 61-3-509, 61-3-537, and 61-3-701, MCA; and providing an effective date."

Be it enacted by the Legislature of the State of Montana:

Section 1.  Section 61-3-537, MCA, is amended to read:

"61-3-537.   (Temporary) Local option vehicle tax. (1) A county may impose a local vehicle tax on vehicles subject to a property tax under 61-3-504(2) at a rate of up to 0.5% 0.4% of the value determined under 61-3-503, in addition to the tax imposed under 61-3-504(2).

(2)  A local vehicle tax is payable at the same time and in the same manner as the tax imposed under 61-3-504(2). The first priority of the local vehicle tax is for district court funding, and the tax is distributed as follows:

(a)  50% to the county; and

(b)  the remaining 50% to the county and the incorporated cities and towns within the county, apportioned on the basis of population. The distribution to a city or town is determined by multiplying the amount of money available by the ratio of the population of the city or town to the total county population. The distribution to the county is determined by multiplying the amount of money available by the ratio of the population of unincorporated areas within the county to the total county population.

(3) (a) The Subject to subsection (3)(b), the governing body of a county may impose, revise, or revoke a local vehicle tax by adopting a resolution before July 1, after conducting a public hearing on the proposed resolution. The resolution may provide for the distribution of the local vehicle tax.

(b) A public hearing is not required for a resolution to reduce a local vehicle tax. (Terminates June 30, 2005--sec. 2, 3, Ch. 217, L. 1995.)

61-3-537.   (Effective July 1, 2005) Local option vehicle tax. (1) A county may impose a local vehicle tax on vehicles subject to a property tax under 61-3-504(2) at a rate of up to 0.5% 0.4% of the value determined under 61-3-503, in addition to the tax imposed under 61-3-504(2).

(2)  A local vehicle tax is payable at the same time and in the same manner as the tax imposed under 61-3-504(2) and is distributed in the same manner, based on the registration address of the owner of the motor vehicle.

(3) (a) The Subject to subsection (3)(b), the governing body of a county may impose, revise, or revoke a local vehicle tax by adopting a resolution before July 1, after conducting a public hearing on the proposed resolution.

(b) A public hearing is not required for a resolution to reduce a local vehicle tax."

NEW SECTION. Section 2.  Youth court vehicle tax. (1) A county shall impose a youth court vehicle tax on vehicles subject to a property tax under 61-3-504(2) at a rate of 0.1% of the value determined under 61-3-503, in addition to the taxes imposed under 61-3-504(2) and 61-3-537.

(2)  A youth court vehicle tax is payable at the same time and in the same manner as the tax imposed under 61-3-504(2) and is for county funding of youth court expenses.

Section 3.  Section 61-3-509, MCA, is amended to read:

"61-3-509.   Disposition of taxes. (1) Except as provided in subsection subsections (2) and (3), the county treasurer shall, after deducting the district court fee, credit all taxes on motor vehicles and fees in lieu of tax on motorcycles, motor homes, travel trailers, and campers collected under 61-3-504, 61-3-521, 61-3-527, and 61-3-537 to a motor vehicle suspense fund, and at some time between March 1 and March 10 of each year and every 60 days after that date, the county treasurer shall distribute the money in the motor vehicle suspense fund in the relative proportions required by the levies for state, county, school district, and municipal purposes in the same manner as personal property taxes are distributed.

(2) The county treasurer shall credit the taxes collected under [section 2] to the county general fund to be used for county funding of youth court expenses as provided in 41-5-104.

(2)(3)  The county treasurer shall deduct as a district court fee 7% of the amount of the 2% tax collected on an automobile or truck having a rated capacity of 1 ton or less. The county treasurer shall credit the fee for district courts to a separate suspense account and shall forward the amount in the account to the state treasurer at the time that the county treasurer distributes the motor vehicle suspense fund. The state treasurer shall credit amounts received under this subsection to the general fund to be used for purposes of state funding of the district court expenses as provided in 3-5-901."

Section 4.  Section 61-3-701, MCA, is amended to read:

"61-3-701.   Foreign vehicles used in gainful occupation to be registered -- reciprocity. (1) Before any foreign licensed motor vehicle may be operated on the highways of this state for hire, compensation, or profit or before the owner and/or or user thereof of a foreign licensed motor vehicle uses the vehicle if such owner and/or user is engaged in gainful occupation or business enterprise in the state, including highway work, the owner of the vehicle shall make application apply to a county treasurer for registration upon an application form furnished by the department. Upon satisfactory evidence of ownership submitted to the county treasurer and the payment of property taxes, if appropriate, as required by 15-8-201, 15-8-202, 15-24-301, 61-3-504, or 61-3-537, or [section 2], the treasurer shall accept the application for registration and shall collect the regular license fee required for the vehicle.

(2)  The Upon acceptance of the application for registration and collection of the license fee, the treasurer shall thereupon issue to the applicant a copy of the certificate entitled "Owner's Certificate of Registration and Payment Receipt" and forward a duplicate copy of the certificate to the department. The treasurer shall at the same time issue to the applicant the proper license plates or other identification markers, which shall at all times must be displayed upon the vehicle when operated or driven upon roads and highways of this state during the effective period of the life of the license.

(3)  The registration receipt shall does not constitute evidence of ownership but shall and may be used only for registration purposes. No A Montana certificate of ownership shall may not be issued for this type of registration.

(4)  This section is not applicable to any vehicle covered by a valid and existing reciprocal agreement or declaration entered into under the provisions of the laws of Montana."

NEW SECTION. Section 5.  Codification instruction. [Section 2] is intended to be codified as an integral part of Title 61, chapter 3, part 5, and the provisions of Title 61, chapter 3, part 5, apply to [section 2].

NEW SECTION. Section 6.  Effective date. [This act] is effective July 1, 1997.

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