85-2-276. (Temporary) Water adjudication fees -- exceptions. (1) (a) Except as provided in subsection (1)(c), a water adjudication fee is authorized and directed to be imposed by the department of revenue on all water rights.
     (b) Except as provided in 85-2-271, 85-2-280, and subsections (1)(c) and (10) of this section, an owner shall pay a biennial fee for the purpose of funding Montana's water adjudication based on the fees established in subsections (4) through (7) of this section.
     (c) The water adjudication fee may not be imposed on federal water rights and tribal reserved and aboriginal claims to water.
     (2) The water adjudication fee is due on January 31 of even-numbered years. The penalty and interest provisions contained in 15-1-216 apply to late payments of the fee.
     (3) (a) Subject to subsection (3)(b), the department of revenue may withhold revenue equal to the actual cost of collecting the water adjudication fee.
     (b) The department of revenue may not withhold more than 5% of the revenue generated.
     (4) (a) An owner for the purposes described in subsections (4)(b) through (4)(f) shall pay according to a graduated scale. The number of water rights for which a fee must be paid on a per-purpose basis is capped at 20 water rights a person for each graduated level.
     (b) For a commercial water right with a claimed or calculated volume that is:
     (i) 0 acre-feet to 100 acre-feet, the fee is $20;
     (ii) greater than 100 acre-feet and less than or equal to 5,000 acre-feet, the fee is $1,000; and
     (iii) greater than 5,000 acre-feet, the fee is $2,000.
     (c) For an industrial water right with a claimed or calculated volume that is:
     (i) 0 acre-feet to 1,000 acre-feet, the fee is $20;
     (ii) greater than 1,000 acre-feet and less than or equal to 4,000 acre-feet, the fee is $1,000; and
     (iii) greater than 4,000 acre-feet, the fee is $2,000.
     (d) For a mining water right with a claimed or calculated volume that is:
     (i) 0 acre-feet to 1,000 acre-feet, the fee is $20;
     (ii) greater than 1,000 acre-feet and less than or equal to 4,000 acre-feet, the fee is $1,000; and
     (iii) greater than 4,000 acre-feet, the fee is $2,000.
     (e) For a municipal water right with a claimed or calculated volume that is:
     (i) 0 acre-feet to 1,000 acre-feet, the fee is $20;
     (ii) greater than 1,000 acre-feet and less than or equal to 4,000 acre-feet, the fee is $1,000; and
     (iii) greater than 4,000 acre-feet, the fee is $2,000.
     (f) For a power generation water right, both consumptive and nonconsumptive, with a claimed or calculated volume that is:
     (i) 0 acre-feet to 100,000 acre-feet, the fee is $20;
     (ii) greater than 100,000 acre-feet and less than or equal to 1 million acre-feet, the fee is $1,000; and
     (iii) greater than 1 million acre-feet, the fee is $2,000.
     (5) Except for instream flow water rights used for irrigation purposes or for the purposes identified in subsection (4), an instream flow water right or an instream flow water reservation, with a claimed or calculated volume that is:
     (a) 0 acre-feet to 50,000 acre-feet, the fee is $20;
     (b) greater than 50,000 acre-feet and less than or equal to 1 million acre-feet, the fee is $1,000; and
     (c) greater than 1 million acre-feet, the fee is $2,000.
     (6) The fee for an irrigation water right or irrigation claim that is part of an irrigation district, ditch company, canal company, irrigation project, water user's association, or other organized group with the purpose of allocating irrigation water is $20 a user, with the fee capped at 40 users. The fee must be paid by the user. If an irrigation district, ditch company, or water user's association has more than 40 users, the fee may not exceed $800 and must be split equally among the users.
     (7) The fee for all water rights that are not subject to subsections (4) through (6) is $20. The fee is capped at 20 water rights a person for purposes that are not addressed in subsections (4) through (6).
     (8) The fees established in subsections (4) through (7) apply to all water rights on record with the department that are not withdrawn or terminated.
     (9) A person may file an administrative appeal with the department to contest the total amount of the fee assessed against the person or a fee imposed based on incorrect ownership records.
     (10) Fees authorized in this section may not be assessed after June 30, 2014. (Terminates June 30, 2020--sec. 18, Ch. 288, L. 2005.)

     History: En. Sec. 5, Ch. 288, L. 2005.