SENATE BILL NO. 206

INTRODUCED BY MCNUTT, PAVLOVICH, ROSE, GALLUS, MAHLUM, MOOD, GALVIN-HALCRO, HERTEL, CRIPPEN, GRIMES, MATTHEWS, MERCER, GLASER, OHS, MCCARTHY, ELLIS, KITZENBERG, BARTLETT, REHBEIN, HANSON, SQUIRES, HIBBARD, RYAN, MESAROS, HARPER, MCCULLOCH, G. BECK, HARRINGTON, TROPILA, QUILICI, MENAHAN,

GRINDE, LYNCH, SHEA, GROSFIELD, M. TAYLOR, MASOLO, SWANSON, DEPRATU,

T. BECK, R. HOLDEN, NELSON, SMITH

A BILL FOR AN ACT ENTITLED: "AN ACT INCREASING THE AVIATION GASOLINE LICENSE TAX BY 1 CENT A GALLON; SUBMITTING THE TAX INCREASE TO THE ELECTORATE; AMENDING SECTION 15-70-204, MCA; PROVIDING A CONTINGENT VOIDNESS PROVISION; AND PROVIDING AN EFFECTIVE 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, 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) 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) 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) 2 cents for each gallon of aviation fuel, 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) 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) 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)."

NEW SECTION. Section 2. Submission to electorate. This amendment 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 THE AVIATION GASOLINE LICENSE TAX BE INCREASED ANNUALLY BY 1 CENT A GALLON IN THE FOLLOWING MANNER?

[]	FOR increasing the aviation gasoline license tax 1 cent a gallon to fund aeronautical functions and airport pavement preservation projects.

[]	AGAINST increasing the aviation gasoline license tax 1 cent a gallon to fund aeronautical functions and airport pavement preservation projects.

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. Effective date. If approved by the electorate at the tax election in 1999, this act is effective July 1, 1999.

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