HOUSE BILL NO. 646

INTRODUCED BY D. HAINES

A BILL FOR AN ACT ENTITLED: "AN ACT PROVIDING A DISCOUNT, UNDER CERTAIN CONDITIONS, FOR THE PAYMENT IN FULL OF CURRENT PROPERTY TAXES AT THE TIME THAT THE FIRST INSTALLMENT IS DUE; AMENDING SECTIONS 15-16-102 AND 15-24-202, MCA; AND PROVIDING AN EFFECTIVE DATE AND AN APPLICABILITY DATE."

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

NEW SECTION. Section 1. Discount for property taxes paid in advance. (1) Except as provided in subsection (3), a discount is allowed for the full payment of property taxes due under 15-16-102 and property taxes due on mobile homes, manufactured homes, or housetrailers under 15-24-202 as provided in this section.

(2) (a) If property taxes shown as due on the taxpayer's property tax notice, as provided for in 15-16-101, are paid in full for the November 30 installment and the May 31 installment on or before November 30 or within 30 days after the tax notice is postmarked, whichever date is later, the amount of the discount is equal to 3% of the total amount due.

(b) If property taxes shown as due on the taxpayer's property tax statement for a mobile home, manufactured home, or housetrailer, as provided for in 15-24-202, are paid in full for the May 31 installment and the November 30 installment on or before May 31 or within 30 days after the tax notice is postmarked, whichever date is later, the amount of the discount is equal to 3% of the total amount due.

(3) A taxpayer is not entitled to a discount under this section for:

(a) the payment of special assessments provided for in 7-12-4188 and 15-16-103;

(b) the payment of bonded indebtedness;

(c) the payment of delinquent taxes;

(d) the payment of taxes paid under protest;

(e) the payment of delinquent property taxes, including penalties, interest, and costs to redeem a property tax lien; or

(f) the payment by check of property taxes, for which the taxpayer received a discount under this section, that is returned to the county treasurer because of insufficient funds. In that case, the taxpayer shall pay the taxes due in full.

(4) After the distribution of taxes for bonded indebtedness, if any, the discounts allowed under this section must be prorated to the accounts being paid.

Section 2. Section 15-16-102, MCA, is amended to read:

"15-16-102. Time for payment -- penalty for delinquency. Unless suspended or canceled under the provisions of Title 15, chapter 24, part 17, all taxes levied and assessed in the state of Montana, except assessments made for special improvements in cities and towns payable under 15-16-103, are payable, except as provided in [section 1], as follows:

(1) One-half of the taxes are payable on or before 5 p.m. on November 30 of each year or within 30 days after the tax notice is postmarked, whichever is later, and one-half are payable on or before 5 p.m. on May 31 of each year.

(2) Unless one-half of the taxes are paid on or before 5 p.m. on November 30 of each year or within 30 days after the tax notice is postmarked, whichever is later, the amount payable is delinquent and draws interest at the rate of 5/6 of 1% a month from and after the delinquency until paid and 2% must be added to the delinquent taxes as a penalty.

(3) All taxes due and not paid on or before 5 p.m. on May 31 of each year are delinquent and draw interest at the rate of 5/6 of 1% a month from and after the delinquency until paid, and 2% must be added to the delinquent taxes as a penalty.

(4) If the date on which taxes are due falls on a holiday or Saturday, taxes may be paid without penalty or interest on or before 5 p.m. of the next business day in accordance with 1-1-307.

(5) A taxpayer may pay current year taxes without paying delinquent taxes. The county treasurer shall accept a partial payment equal to the delinquent taxes, including penalty and interest, for one or more full tax years, provided that taxes for both halves of the current tax year have been paid. Payment of taxes for delinquent taxes must be applied to the taxes that have been delinquent the longest. The payment of taxes for the current tax year is not a redemption of the property tax lien for any delinquent tax year.

(6) The penalty and interest on delinquent assessment payments for specific parcels of land may be waived by resolution of the city council. A copy of the resolution must be certified to the county treasurer."

Section 3. Section 15-24-202, MCA, is amended to read:

"15-24-202. Payment of tax -- interest and penalty -- display of tax-paid sticker. (1) (a) The owner of a mobile home, manufactured home, or housetrailer that is not taxed as an improvement, as improvements are defined in 15-1-101, shall pay the personal property tax in two payments, except as provided in [section 1] and 15-24-206.

(b) The first payment is due on or before May 31 or within 30 days from the date of the notice of taxes due, whichever is later.

(c) The second payment is due no later than November 30 of the year in which the property is assessed.

(d) If not paid on or before the date due, the tax is considered delinquent and subject to the penalty and interest provisions in 15-16-102 applicable to other delinquent property taxes. The penalty must be assessed and interest begins to accrue on the first day of delinquency.

(2) Upon request, the treasurer shall notify a lienholder if taxes on a mobile home, manufactured home, or housetrailer have not been paid.

(3) Taxes assessed against a mobile home or manufactured home after the second payment date must be prorated to reflect the remaining portion of the tax year. The prorated taxes must be added to the following year's tax roll and, except as provided in 15-24-206, are due with and must be collected with the first payment due in that year.

(4) The department shall issue tax-paid stickers to the county treasurers. Except as provided in 15-24-206 and 15-24-209, if a mobile home, manufactured home, or housetrailer is to be moved and all taxes, interest, and penalties on the mobile home or housetrailer are paid in full, the treasurer shall issue a tax-paid sticker to the owner of the mobile home, manufactured home, or housetrailer. Prior to and while in the process of moving the mobile home, manufactured home, or housetrailer, the owner shall display the tax-paid sticker, which must be visible from the exterior of the mobile home, manufactured home, or housetrailer. A mobile home or manufactured home movement declaration of destination provided for in 15-24-206 may not be issued unless:

(a) the taxes have been paid in full to the county treasurer; or

(b) the exceptions in 15-24-206(3) or 15-24-209 apply.

(5) On the movement of a mobile home, manufactured home, or housetrailer in violation of this part, the county treasurer for the county where the mobile home, manufactured home, or housetrailer first comes to rest shall issue a written notice to the owner, showing the amount of delinquent taxes, special assessments, penalties, and interest due. In addition to the penalties provided in 15-16-102, 20% or $50, whichever is greater, must be added to the delinquent taxes as penalty for violation of this part. On receipt of the delinquent taxes, special assessments, penalties, and interest, the county treasurer shall forward all delinquent taxes, special assessments, penalties, and interest collected under 15-16-102 to the county treasurer for the county of origin. The county of destination shall retain the penalty."

NEW SECTION. Section 4. Codification instruction. [Section 1] is intended to be codified as an integral part of Title 15, chapter 16, part 1, and the provisions of Title 15, chapter 16, part 1, apply to [section 1].

NEW SECTION. Section 5. Effective date. [This act] is effective July 1, 1999.

NEW SECTION. Section 6. Applicability. [This act] applies to property taxes shown as due on property tax notices mailed after June 30, 1999.

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