HOUSE BILL NO. 542

INTRODUCED BY L. GRINDE

A BILL FOR AN ACT ENTITLED: "AN ACT REPLACING THE CURRENT SYSTEM OF TAXATION OF AUTOMOBILES, VANS, SPORT UTILITY VEHICLES, AND LIGHT TRUCKS WITH A FEE IN LIEU OF TAX ON LIGHT VEHICLES; SUBMITTING THE FEE IN LIEU OF TAX TO THE ELECTORATE; PROVIDING A CONTINGENT VOIDNESS PROVISION; AND PROVIDING A DELAYED EFFECTIVE DATE AND AN APPLICABILITY DATE."

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

NEW SECTION. Section 1. Schedule of fees for light vehicles -- limitation on fee -- payment of fee required for operation. (1) [There is a fee in lieu of tax imposed on light vehicles.] Except as provided in subsection (3), the following schedule, based on vehicle age, is used to determine the annual fee [in lieu of tax]:

Vehicle Age (in years)	Annual Fee

1-4	$295

5-10	120

11 or more	10

(2) A light vehicle subject to the fee imposed by [this section] may not be operated unless the fee has been paid and the vehicle is licensed. A lien for fees due on the vehicle occurs on the anniversary date of the registration and continues until the fees have been paid.

(3) (a) Except as provided in subsection (3)(b), the fee imposed by this section on any vehicle may not be more than the motor vehicle tax computed under 61-3-504, as that section read on December 31, 1999, during calendar year 1999.

(b) This subsection (3) applies only to the owner of the vehicle to whom the tax was assessed in calendar year 1999. If the vehicle is transferred to a new owner, the fees imposed by this section apply.

(4) For the purposes of this section, "vehicle age" means the age of the vehicle determined by subtracting the manufacturer's model year of the vehicle from the calendar year for which the tax is due.

NEW SECTION. Section 2. Submission to electorate. This act shall be submitted to the qualified electors of Montana at the tax election to be held in 1999 by printing on the ballot the full title of this act and the following:

SHALL A NEW FEE IN LIEU OF TAX FOR MOTOR VEHICLES, DESCRIBED AS FOLLOWS, BE IMPOSED?

[]	FOR imposing a revenue-neutral fee in lieu of tax on light vehicles to replace the existing taxation of motor vehicles.

[]	AGAINST imposing a revenue-neutral fee in lieu of tax on light vehicles to replace the existing taxation of motor vehicles.

NEW SECTION. Section 3. Contingent voidness. If Constitutional Initiative No. 75, enacting Article VIII, section 17, of the Montana constitution, is declared invalid, then this act is void.

NEW SECTION. Section 4. Coordination instruction. If LC 564 is not passed and approved, then this act is void.

NEW SECTION. Section 5. Effective date. If approved by the electorate, this act is effective January 1, 2000.

NEW SECTION. Section 6. Applicability. This act applies to motor vehicle registration periods beginning after December 31, 1999.

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