Senate Bill No. 300

Introduced By thomas, simpkins, devlin, beck, lynch, bartlett, quilici, burnett, mood, harper, harrington, jenkins, rose

A Bill for an Act entitled: "An Act increasing the market value REVISING THE TAXATION of class six personal property intended for rental or lease that is not subject to property taxation; BASING THE VALUE OF RENTAL OR LEASE PROPERTY ON ACQUIRED COST; INCREASING THE VALUE OF RENTAL OR LEASE PROPERTY ELIGIBLE FOR TAXATION AS CLASS SIX PROPERTY from $5,000 to $20,000 $12,000; and amending section 15-6-136, MCA."

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

Section 1.  Section 15-6-136, MCA, is amended to read:

"15-6-136.   Class six property -- description -- taxable percentage. (1) Class six property includes:

(a)  livestock and other species of domestic animals and wildlife raised in domestication or a captive environment, except for cats, dogs, and other household pets not raised for profit;

(b)  items of personal property intended for rent or lease in the ordinary course of business, provided if each item of personal property satisfies all of the following:

(i)  the full and true value ACQUIRED COST of the personal property is less than $5,000 $20,000 $12,000;

(ii) the personal property is owned by a business whose primary business income is from rental or lease of personal property to individuals wherein no one customer of the business accounts for more than 10% of the total rentals or leases during a calendar year; and

(iii) the lease of the personal property is generally on an hourly, daily, or weekly basis; and

(c)  machinery and equipment used in canola seed oil processing facilities if:

(i)  the operators of such those facilities employ a minimum of 15 full-time employees; and

(ii) a canola seed oil processing facility locates in the state of Montana after July 25, 1989.

(2)  "Canola seed oil processing facility" means a facility that:

(a)  extracts oil from canola seeds, refines the crude oil to produce edible oil, formulates and packages the edible oil into food products, or engages in any one or more of those processes; and

(b)  employs at least 15 employees in a full-time capacity.

(3)  Class six property is taxed at 4% of its market value."