SENATE BILL NO. 159

INTRODUCED BY G. DEVLIN, S. STANG, T. BECK, J. BOHLINGER, B. DEPRATU, M. HANSON, J. HARP, R. HOLDEN, K. MESAROS, L. NELSON, B. RANEY, B. TASH, L. TAYLOR

A BILL FOR AN ACT ENTITLED: "AN ACT PROVIDING A DISCOUNT, UNDER CERTAIN CONDITIONS, FOR THE PAYMENT WITH CASH OR BY CHECK OF STATE TAXES AND FEES, PROPERTY TAXES, FEES IN LIEU OF TAXES ON BOATS, SNOWMOBILES, AND OFF-HIGHWAY VEHICLES, AND MOTOR VEHICLE TAXES AND VEHICLE FEES; BASING THE AMOUNT OF THE DISCOUNT ON THE AVERAGE ANNUAL FEE, AS A FRACTION OF SALES, PAID BY A GOVERNMENTAL ENTITY TO A BANK THAT CHARGES FOR THE CREDIT CARD SERVICE; PROVIDING EXCEPTIONS FROM THE DISCOUNT; PROVIDING THAT THE DISCOUNT IS NOT APPLICABLE TO A GOVERNMENTAL ENTITY THAT DOES NOT ACCEPT CREDIT CARDS FOR THE PAYMENT OF TAXES OR FEES; 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 tax or fee payments under certain conditions -- exceptions. (1) If a state agency allows a person to pay a tax or fee with a credit card, it shall allow a discount from the amount of tax or fee owed for payment by the person with cash or by check, as provided in this section.

(2) The amount of the discount from taxes or fees paid by the person with cash or by check is equal to the average annual fee, as a fraction of sales, paid by the state agency to the bank charging for the credit card service to allow payment of taxes or fees by credit card and that fraction multiplied by the amount of taxes or fees shown as due on the statement or return. The state agency may pay the discounts from the account of the office administering credit card payments, or it may provide that the discounts be absorbed by the accounts being paid by the cash or check payment.

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

(a) the payment of delinquent taxes or the late payment of fees;

(b) the payment of taxes or fees under protest;

(c) the payment of taxes or fees, for which the person received a discount under this section, that is returned to the state agency because of insufficient funds. In that case, the person shall pay the taxes, fees, or both, in full.

(4) This section does not apply to a state agency that does not accept the use of credit cards for the payment of taxes or fees.

NEW SECTION. Section 2. Discount for tax payments under certain conditions -- exceptions -- nonapplicability. (1) If the governing body of a county allows a taxpayer to pay property taxes collected under Title 15, chapter 16, part 1, or property taxes due on mobile homes, manufactured homes, or housetrailers under 15-24-202 with a credit card, it shall allow a discount from property taxes paid by the taxpayer with cash or by check, as provided in this section.

(2) The amount of the discount from property taxes paid by the taxpayer with cash or by check is equal to the average annual fee, as a fraction of sales, paid by the county to the bank charging for the credit card service to allow payment of taxes or fees by credit card and that fraction multiplied by the amount of property taxes and fees shown as due on the taxpayer's property tax statement for taxes due under Title 15, chapter 16, part 1, or on the property tax statement for taxes due on mobile homes under 15-24-202. The county governing body may provide that the discounts be paid from the county general fund, or it may provide that the discounts be prorated to the accounts being paid by the cash or check payment.

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

(a) the payment of delinquent taxes;

(b) the payment of taxes paid under protest;

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

(d) the payment by check of taxes or fees, 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) This section does not apply in a county in which the governing body does not accept the use of credit cards for the payment of taxes or fees.

NEW SECTION. Section 3. Discount for payment of fee in lieu of tax under certain conditions -- exceptions -- nonapplicability. (1) If the governing body of a county allows a taxpayer to pay the fee in lieu of personal property tax on watercraft imposed by 23-2-516 and 23-2-517 with a credit card, it shall allow a discount from the fee in lieu of tax on watercraft paid by the taxpayer with cash or by check, as provided in this section.

(2) The amount of the discount from the fee in lieu of tax paid by the taxpayer with cash or by check is equal to the average annual fee, as a fraction of sales, paid by the county to the bank charging for the credit card service to allow payment of taxes or fees by credit card and that fraction multiplied by the amount of the fee in lieu of tax for registration or reregistration of the watercraft. The county governing body may provide that the discounts be paid from the county general fund, or it may provide that the discounts be prorated to the accounts being paid by the cash or check payment.

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

(a) the late payment of the fee in lieu of tax; or

(b) the payment by check of the fee in lieu of tax, 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 fee in lieu of tax due in full.

(4) This section does not apply in a county in which the governing body does not accept the use of credit cards for the payment of taxes or fees.

NEW SECTION. Section 4. Discount for payment of fee in lieu of tax under certain conditions -- exceptions -- nonapplicability. (1) If the governing body of a county allows a taxpayer to pay the fee in lieu of personal property tax on snowmobiles imposed by 23-2-615.1 with a credit card, it shall allow a discount from the fee in lieu of tax on snowmobiles paid by the taxpayer with cash or by check, as provided in this section.

(2) The amount of the discount from the fee in lieu of tax paid by the taxpayer with cash or by check is equal to the average annual fee, as a fraction of sales, paid by the county to the bank charging for the credit card service to allow payment of taxes or fees by credit card and that fraction multiplied by the amount of the fee in lieu of tax for registration or reregistration of the snowmobile. The county governing body may provide that the discounts be paid from the county general fund, or it may provide that the discounts be prorated to the accounts being paid by the cash or check payment.

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

(a) the late payment of the fee in lieu of tax; or

(b) the payment by check of the fee in lieu of tax, 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 fee in lieu of tax due in full.

(4) This section does not apply in a county in which the governing body does not accept the use of credit cards for the payment of taxes or fees.

NEW SECTION. Section 5. Discount for payment of fee in lieu of tax under certain conditions -- exceptions -- nonapplicability. (1) If the governing body of a county allows a taxpayer to pay the fee in lieu of personal property tax on off-highway vehicles imposed by 23-2-803 with a credit card, it shall allow a discount from the fee in lieu of tax on off-highway vehicles paid by the taxpayer with cash or by check, as provided in this section.

(2) The amount of the discount from the fee in lieu of tax paid by the taxpayer with cash or by check is equal to the average annual fee, as a fraction of sales, paid by the county to the bank charging for the credit card service to allow payment of taxes or fees by credit card and that fraction multiplied by the amount of the fee in lieu of tax for registration or reregistration of the off-highway vehicle. The county governing body may provide that the discounts be paid from the county general fund, or it may provide that the discounts be prorated to the accounts being paid by the cash or check payment.

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

(a) the late payment of the fee in lieu of tax; or

(b) the payment by check of the fee in lieu of tax, 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 fee in lieu of tax due in full.

(4) This section does not apply in a county in which the governing body does not accept the use of credit cards for the payment of taxes or fees.

NEW SECTION. Section 6. Discount under certain conditions for motor vehicle taxes and fees paid with cash or by check -- exceptions -- nonapplicability. (1) If the governing body of a county allows a taxpayer to pay the new car sales tax collected under 61-3-502 or motor vehicle taxes and vehicle fees collected under 61-3-504, 61-3-521, 61-3-527, 61-3-529, and 61-3-537 with a credit card, it shall allow a discount from the new car sales tax or motor vehicle taxes and vehicle fees paid by the taxpayer with cash or by check, as provided in this section.

(2) The amount of the discount from the new car sales tax or motor vehicle taxes and vehicle fees paid by the taxpayer with cash or by check is equal to the average annual fee, as a fraction of sales, paid by the county to the bank charging for the credit card service to allow payment of taxes or fees by credit card and that fraction multiplied by the amount of the new car sales tax or motor vehicle taxes and vehicle fees for registration or reregistration of the vehicle. The county governing body may provide that the discounts be paid from the county general fund, or it may provide that the discounts be prorated to the accounts being paid by the cash or check payment.

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

(a) the payment of delinquent taxes or fees;

(b) the payment of taxes or fees paid under protest; or

(c) the payment by check of taxes or fees, 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 or fees due in full.

(4) This section does not apply in a county in which the governing body does not allow the use of credit cards for the payment of taxes or fees.

NEW SECTION. Section 7. Codification instruction. (1) [Section 1] is intended to be codified as an integral part of Title 15, chapter 1, and the provisions of Title 15, chapter 1, apply to [section 1].

(2) [Section 2] 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 2].

(3) [Section 3] is intended to be codified as an integral part of Title 23, chapter 2, part 5, and the provisions of Title 23, chapter 2, part 5, apply to [section 3].

(4) [Section 4] is intended to be codified as an integral part of Title 23, chapter 2, part 6, and the provisions of Title 23, chapter 2, part 6, apply to [section 4].

(5) [Section 5] is intended to be codified as an integral part of Title 23, chapter 2, part 8, and the provisions of Title 23, chapter 2, part 8, apply to [section 5].

(6) [Section 6] is intended to be codified as an integral part of Title 61, chapter 3, part 5, and the provisions of Title 61, chapter 3, part 5, apply to [section 6].

NEW SECTION. Section 8. Effective date. [This act] is effective July 1, 1999.

NEW SECTION. Section 9. Applicability. [This act] applies to property tax payments and fee payments due after June 30, 1999.

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