SENATE BILL NO. 367
INTRODUCED BY B. DEPRATU, MOHL, DOHERTY, GILLAN, HALLIGAN, KITZENBERG, LEWIS, MOOD, SLITER, SPRAGUE, WANZENRIED
A BILL FOR AN ACT ENTITLED: "AN ACT PROVIDING THAT FINANCIAL INSTITUTIONS
OR COMPANIES ISSUING CREDIT CARDS MAY NOT CHARGE OR ASSESS A FEE TO WHEN
A CONSUMER USES A CREDIT CARD TO PURCHASE FUEL, A FEE MAY NOT BE CHARGED
TO OR ASSESSED ON RETAILERS FOR THAT PORTION OF A CREDIT TRANSACTION THAT
IS ATTRIBUTABLE TO THE STATE TAX ON GASOLINE OR SPECIAL FUEL OR THE
PETROLEUM STORAGE TANK CLEANUP FEE; AMENDING SECTIONS 15-70-204, 15-70-321,
15-70-343, AND 75-11-314, MCA; AND PROVIDING AN IMMEDIATE A DELAYED EFFECTIVE
DATE AND AN APPLICABILITY DATE."
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 15-70-204, MCA, is amended to read:
"15-70-204. (Temporary) Gasoline license tax -- rate. (1) Every distributor shall pay to the department a license tax for the privilege of engaging in and carrying on business in this state in an amount equal to:
(a) 4 cents for each gallon of aviation fuel, other than fuel sold to the federal defense fuel supply center, which is allocated to the department as provided by 67-1-301; and
(b) 27 cents, beginning July 1, 1994, for each gallon of all other gasoline distributed by the
distributor within the state and upon which the gasoline license tax has not been paid by any other
distributor.
(2) When a consumer uses a credit card to purchase gasoline subject to the provisions of subsection
(1)(b), the financial institution or company issuing the credit card may not charge or assess a fee to
MAY NOT BE CHARGED TO OR ASSESSED ON retailers on that portion of the transaction
attributable to the license tax provided for in subsection (1)(b).
(2)(3) Gasoline exported may not be included in the measure of the distributor's license tax unless
the distributor is not licensed and is not paying the tax to the state the fuel is destined for.
(3)(4) Alcohol that is blended or is to be blended with gasoline to be sold as gasohol is subject to a
tax per gallon equal to the license tax imposed on nonaviation gasoline distributors under subsection
(1). (Terminates on occurrence of contingency--sec. 17, Ch. 642, L. 1993.)
15-70-204. (Effective on occurrence of contingency) Gasoline license tax -- rate. (1) Every distributor shall pay to the department a license tax for the privilege of engaging in and carrying on business in this state in an amount equal to:
(a) 3 cents for each gallon of aviation fuel, other than fuel sold to the federal defense fuel supply center, which is allocated to the department as provided by 67-1-301; and
(b) 27 cents for each gallon of all other gasoline distributed by the distributor within the state and upon which the gasoline license tax has not been paid by any other distributor.
(2) When a consumer uses a credit card to purchase gasoline subject to the provisions of subsection
(1)(b), the financial institution or company issuing the credit card may not charge or assess a fee to
MAY NOT BE CHARGED TO OR ASSESSED ON retailers on that portion of the transaction
attributable to the license tax provided for in subsection (1)(b).
(2)(3) Gasoline exported may not be included in the measure of the distributor's license tax unless
the distributor is not licensed and is not paying the tax to the state the fuel is destined for.
(3)(4) Alcohol that is blended or is to be blended with gasoline to be sold as gasohol is subject to a
tax per gallon equal to the license tax imposed on nonaviation gasoline distributors under subsection
(1)."
Section 2. Section 15-70-321, MCA, is amended to read:
"15-70-321. Tax on special fuel and volatile liquids. (1) The department shall, under the provisions of rules issued by it, collect or cause to be collected from the owners or operators of motor vehicles a tax, as provided in subsection (2):
(a) for each gallon of undyed special fuel or other volatile liquid, except liquid petroleum gas, of less than 46 degrees A.P.I. (American petroleum institute) gravity test when actually sold or used to produce motor power to operate motor vehicles upon the public roads and highways of this state;
(b) for each gallon of special fuel or other volatile liquid, except liquid petroleum gas, of less than 46 degrees A.P.I. (American petroleum institute) gravity test when actually sold or used in motor vehicles, motorized equipment, and the internal combustion of any engines, including stationary engines, used in connection with any work performed under any contracts pertaining to the construction, reconstruction, or improvement of any highway or street and their appurtenances awarded by any public agencies, including federal, state, county, municipal, or other political subdivisions; and
(c) for each gallon of dyed special fuel delivered into the fuel supply tank of a diesel-powered highway vehicle, regardless of weight, operating upon the public roads and highways of this state.
(2) The tax imposed in subsection (1) is 27 3/4 cents per gallon.
(3) When a consumer uses a credit card to purchase special fuel subject to the provisions of this
section, the financial institution or company issuing the credit card may not charge or assess a fee to
MAY NOT BE CHARGED TO OR ASSESSED ON retailers on that portion of the transaction
attributable to the tax provided for in this section."
Section 3. Section 15-70-343, MCA, is amended to read:
"15-70-343. Special fuel license tax -- rate. (1) (a) Each distributor shall pay to the department of transportation a license tax for the privilege of engaging in and carrying on business in this state. The license tax is in the amount imposed under 15-70-321 for each gallon of special fuel that is distributed by the distributor within the state and upon which the special fuel license tax has not been paid by any other distributor.
(b) When a consumer uses a credit card to purchase special fuel subject to the provisions of this
subsection (1), the financial institution or company issuing the credit card may not charge or assess a fee
to MAY NOT BE CHARGED TO OR ASSESSED ON retailers on that portion of the transaction
attributable to the tax provided for in this subsection (1).
(2) Special fuel may not be included in the measure of the distributor's license tax if it is:
(a) dyed by injector at a refinery or terminal for off-highway use; or
(b) sold for export, unless the distributor is not licensed and is not paying the tax to the state where the fuel is destined."
Section 4. Section 75-11-314, MCA, is amended to read:
"75-11-314. Petroleum storage tank cleanup fee -- collection -- penalties -- warrant for distraint -- statute of limitations. (1) Except as provided in subsection (4), each distributor shall pay to the department of transportation a petroleum storage tank cleanup fee for each gallon of gasoline, aviation gasoline, special fuel, or heating oil distributed by the distributor within the state and upon which the fee has not been paid by any other distributor. The fee must equal:
(a) 1 cent for each gallon of gasoline distributed from July 1, 1989, through June 30, 1991;
(b)(a) 0.75 cent for each gallon of gasoline distributed after July 1, 1991;
(c)(b) 0.75 cent for each gallon of aviation gasoline distributed after July 1, 1993;
(d)(c) 0.75 cent for each gallon of special fuel distributed after July 1, 1993; and
(e)(d) 0.75 cent for each gallon of heating oil distributed after July 1, 1993.
(2) Gasoline, aviation gasoline, special fuel, and heating oil exported or sold for export out of the state must be included in the measure of a distributor's fee.
(3) Alcohol that is blended with gasoline to be sold as gasohol is subject to the fee provided in subsection (1).
(4) A fee may not be imposed or collected beginning on the first day of the first month in the first calendar quarter after the unobligated balance in the fund equals or exceeds $8 million. Whenever the unobligated fund balance, less claims anticipated for board approval within the next 90 days, is less than $4 million, the department of transportation shall, within 30 days, notify distributors by mail that the fee is reinstated beginning on the first day of the first month that begins no less than 30 days after the date of the notice. Once reinstated, the fee must be imposed and collected until the unobligated fund balance again equals or exceeds $8 million.
(5) The department of transportation shall collect the fee in the same manner as the basic gasoline license tax under Title 15, chapter 70, part 2. The provisions of 15-70-103, 15-70-111, 15-70-202, 15-70-205, 15-70-206, 15-70-208 through 15-70-212, 15-70-221(2), and 15-70-232 apply to the fee. The provisions of 15-70-204, 15-70-207, 15-70-221(1), and 15-70-222 through 15-70-224 do not apply to the fee.
(6) When a consumer uses a credit card to purchase gasoline or special fuel subject to the provisions
of this section, the financial institution or company issuing the credit card may not charge or assess a fee
to MAY NOT BE CHARGED TO OR ASSESSED ON retailers on that portion of the transaction
attributable to the fee provided for in this section."
NEW SECTION. Section 5. Saving clause. [This act] does not affect rights and duties that matured, penalties that were incurred, or proceedings that were begun before [the effective date of this act].
NEW SECTION. Section 6. Effective date. [This act] is effective on passage and approval
JANUARY 1, 2002.
NEW SECTION. Section 7. Applicability. [This act] applies to financial institutions or companies issuing cards that enter into or renew agreements with retailers after [the effective date of this act].
- END -
Latest Version of SB 367 (SB0367.02)
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