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HOUSE BILL NO. 365
INTRODUCED BY J. COBB
A BILL FOR AN ACT ENTITLED: "AN ACT AUTHORIZING A COUNTY TO ENACT A LOCAL OPTION CIGARETTE EXCISE TAX TO FUND HEALTH CARE PROGRAMS; REQUIRING THAT THE TAX BE ENACTED BY A VOTE OF THE ELECTORATE; PROVIDING THAT THE LOCAL OPTION CIGARETTE EXCISE TAX BE COLLECTED AND ADMINISTERED BY THE DEPARTMENT OF REVENUE; AND PROVIDING FOR THE ALLOCATION OF REVENUE TO THE COUNTY AND MUNICIPALITIES WITHIN THE COUNTY."
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
NEW SECTION. Section 1. Local option cigarette excise tax authorized. (1) A local option cigarette excise tax may be imposed within a county:
(a) by the people of the county by initiative; or
(b) by the board of county commissioners by adoption of a resolution and referral to the electorate.
(2) The tax must be imposed upon the sale of cigarettes that are not subject to the quota that are sold to the ultimate consumer within the county.
(3) The department shall collect and administer the local option cigarette excise tax. The initiative or referendum enacting the tax must specify that the tax is to be collected by the department of revenue. The department is authorized a fee of 5% of collections for collecting and administering the tax.
(4) The cigarette excise tax may not be in effect sooner than 90 days from the date of passage of the initiative or referendum enacting the tax.
(5) Each wholesaler shall render a monthly statement to the department of all cigarettes distributed during the preceding calendar month in the county in which the cigarettes are sold to the ultimate consumer and shall provide other information that the department requires in order to administer the local option cigarette excise tax.
(6) The provisions of Title 16, chapter 11, part 1, relating to information, recordkeeping, and examination of records apply to [sections 1 through 3].
(7) In [sections 1 through 3], the terms "cigarettes", "sale", and "wholesaler" have the same meanings provided in 16-11-102, and the term "quote" has the same meaning provided in 16-11-155.
NEW SECTION. Section 2. Use and allocation cigarette and disposition of funds from county-imposed cigarette excise tax.(1) A county or municipality receiving revenue from the local option cigarette excise tax under [section 1] shall use that revenue only for health care programs.
(2) Revenue derived from a local option cigarette excise tax imposed by a county under [section 1] must be apportioned among the county and municipalities in the county:
(a) in the proportion of the population in the county outside of the municipalities to the population within the municipalities during the preceding year; or
(b) as determined by an interlocal agreement.
(3) All taxes, interest, and penalties collected by the department under [sections 1 through 3] must be promptly transmitted to the state treasurer who shall deposit the funds in the state special revenue fund to the credit of the department cigarette account. The funds must be paid quarterly by the state treasurer directly to the county in which the tax was imposed.
NEW SECTION. Section 3. Administration of delinquent tax -- penalties, fines, violations same as state cigarette tax collection laws. The fines, penalties, seizure, and criminal provisions and the powers granted to the department for the collection of state cigarette taxes apply to the collection of local option cigarette excise taxes.
NEW SECTION. Section 4. Codification instruction. [Sections 1 through 3] are intended to be codified as an integral part of Title 16, chapter 11, and the provisions of Title 16, chapter 11, apply to [sections 1 through 3].
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Latest Version of HB 365 (HB0365.01)
Processed for the Web on January 23, 1999 (4:05PM)
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