HOUSE BILL NO. 674
INTRODUCED BY C. HIBBARD, K. GILLAN, T. SCHMIDT, B. STORY
BY REQUEST OF THE HOUSE TAXATION STANDING COMMITTEE
AN ACT REVISING THE DISTRIBUTION OF LODGING FACILITY USE TAX REVENUE PAID BY STATE AGENCIES FOR IN-STATE LODGING; PROVIDING THAT THE LODGING FACILITY USE TAX ATTRIBUTABLE TO STATE AGENCIES BE RETURNED TO THE STATE AGENCY FUND FROM WHICH THE TAX WAS PAID; AMENDING SECTIONS 15-65-121 AND 15-65-131, MCA; AND PROVIDING AN EFFECTIVE DATE AND AN APPLICABILITY DATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 15-65-121, MCA, is amended to read:
"15-65-121. (Temporary) Distribution of tax proceeds -- general fund loan authority. (1) The proceeds of the tax
imposed by 15-65-111 must, in accordance with the provisions of 15-1-501, be deposited in an account in the state special
revenue fund to the credit of the department of revenue. The department may spend from that account in accordance with
an expenditure appropriation by the legislature based on an estimate of the costs of collecting and disbursing the proceeds
of the tax. Before allocating the balance of the tax proceeds in accordance with the provisions of 15-1-501 and as provided
in subsections (1)(a) through (1)(e) of this section, the department shall determine the expenditures by state agencies for
in-state lodging for each reporting period and deduct 4% of that amount from the tax proceeds received each reporting
period. The amount deducted must be deposited in the general fund fund or funds from which in-state lodging expenditures
were paid by state agencies. The amount of $400,000 each year must be deposited in the Montana heritage preservation and
development account provided for in 22-3-1004. On July 1, 1997, the amount of $45,000 is transferred to the department of
commerce for purposes of a grant to the Fort Peck interpretive center. The balance of the tax proceeds received each
reporting period and not deducted pursuant to the expenditure appropriation or deposited in the fund or funds from which
in-state lodging expenditures were paid by state agencies or in the Montana heritage preservation and development account
or the general fund is statutorily appropriated, as provided in 17-7-502, and must be transferred to an account in the state
special revenue fund to the credit of the department of commerce for tourism promotion and promotion of the state as a
location for the production of motion pictures and television commercials, to the Montana historical society, to the
university system, and to the department of fish, wildlife, and parks, as follows:
(a) 1% to the Montana historical society to be used for the installation or maintenance of roadside historical signs and historic sites;
(b) 2.5% to the university system for the establishment and maintenance of a Montana travel research program;
(c) 6.5% to the department of fish, wildlife, and parks for the maintenance of facilities in state parks that have both resident and nonresident use;
(d) 67.5% to be used directly by the department of commerce; and
(e) (i) except as provided in subsection (1)(e)(ii), 22.5% to be distributed by the department to regional nonprofit tourism corporations in the ratio of the proceeds collected in each tourism region to the total proceeds collected statewide; and
(ii) if 22.5% of the proceeds collected annually within the limits of a city or consolidated city-county exceeds $35,000, 50% of the amount available for distribution to the regional nonprofit tourism corporation in the region where the city or consolidated city-county is located, to be distributed to the nonprofit convention and visitors bureau in that city or consolidated city-county.
(2) If a city or consolidated city-county qualifies under this section for funds but fails to either recognize a nonprofit convention and visitors bureau or submit and gain approval for an annual marketing plan as required in 15-65-122, then those funds must be allocated to the regional nonprofit tourism corporation in the region in which the city or consolidated city-county is located.
(3) If a regional nonprofit tourism corporation fails to submit and gain approval for an annual marketing plan as required in 15-65-122, then those funds otherwise allocated to the regional nonprofit tourism corporation may be used by the department of commerce for tourism promotion and promotion of the state as a location for the production of motion pictures and television commercials. (Terminates July 1, 2001--sec. 23(3), Ch. 469, L. 1997.)
15-65-121. (Effective July 1, 2001) Distribution of tax proceeds -- general fund loan authority. (1) The proceeds of
the tax imposed by 15-65-111 must, in accordance with the provisions of 15-1-501, be deposited in an account in the state
special revenue fund to the credit of the department of revenue. The department may spend from that account in accordance
with an expenditure appropriation by the legislature based on an estimate of the costs of collecting and disbursing the
proceeds of the tax. Before allocating the balance of the tax proceeds in accordance with the provisions of 15-1-501 and as
provided in subsections (1)(a) through (1)(e) of this section, the department shall determine the expenditures by state
agencies for in-state lodging for each reporting period and deduct 4% of that amount from the tax proceeds received each
reporting period. The amount deducted must be deposited in the general fund fund or funds from which in-state lodging
expenditures were paid by state agencies. The balance of the tax proceeds received each reporting period and not deducted
pursuant to the expenditure appropriation or deposited in the general fund or funds from which in-state lodging
expenditures were paid by state agencies is statutorily appropriated, as provided in 17-7-502, and must be transferred to an
account in the state special revenue fund to the credit of the department of commerce for tourism promotion and promotion
of the state as a location for the production of motion pictures and television commercials, to the Montana historical
society, to the university system, and to the department of fish, wildlife, and parks, as follows:
(a) 1% to the Montana historical society to be used for the installation or maintenance of roadside historical signs and historic sites;
(b) 2.5% to the university system for the establishment and maintenance of a Montana travel research program;
(c) 6.5% to the department of fish, wildlife, and parks for the maintenance of facilities in state parks that have both resident and nonresident use;
(d) 67.5% to be used directly by the department of commerce; and
(e) (i) except as provided in subsection (1)(e)(ii), 22.5% to be distributed by the department to regional nonprofit tourism corporations in the ratio of the proceeds collected in each tourism region to the total proceeds collected statewide; and
(ii) if 22.5% of the proceeds collected annually within the limits of a city or consolidated city-county exceeds $35,000, 50% of the amount available for distribution to the regional nonprofit tourism corporation in the region where the city or consolidated city-county is located, to be distributed to the nonprofit convention and visitors bureau in that city or consolidated city-county.
(2) If a city or consolidated city-county qualifies under this section for funds but fails to either recognize a nonprofit convention and visitors bureau or submit and gain approval for an annual marketing plan as required in 15-65-122, then those funds must be allocated to the regional nonprofit tourism corporation in the region in which the city or consolidated city-county is located.
(3) If a regional nonprofit tourism corporation fails to submit and gain approval for an annual marketing plan as required in 15-65-122, then those funds otherwise allocated to the regional nonprofit tourism corporation may be used by the department of commerce for tourism promotion and promotion of the state as a location for the production of motion pictures and television commercials."
Section 2. Section 15-65-131, MCA, is amended to read:
"15-65-131. State agencies to account for in-state lodging expenditures. Each state agency shall account for in-state
lodging expenditures in a manner that will enable the department of revenue to determine total expenditures for in-state
lodging by state agencies in order to make an allocation of a portion of the tax proceeds imposed by 15-65-111 to the
general appropriate fund or funds as provided in 15-65-121. Unless prohibited under terms of original receipt of the funds
used to pay the lodging facility use tax, each fund shall reimburse the state general fund for the deposit made pursuant to
15-65-121."
Section 3. Effective date -- applicability. [This act] is effective July 1, 1999, and applies to in-state lodging expenditures incurred by state agencies after June 30, 1999.
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