SENATE BILL NO. 157
INTRODUCED BY M. SPRAGUE
A BILL FOR AN ACT ENTITLED: "AN ACT PROVIDING SIGNIFICANT PROPERTY TAX RELIEF TO HOMEOWNERS, RENTERS, COMMERCIAL PROPERTY OWNERS, AND OTHER PROPERTY TAXPAYERS; REVISING BONDING, DEBT, AND LEVY LIMITS FOR LOCAL GOVERNMENTS AND SCHOOLS AS A RESULT OF COMPREHENSIVE TAX REFORM UNDER [LC 220 AND LC 1227]; REVISING CERTAIN PROVISIONS OF LOCAL GOVERNMENT FINANCE AND SCHOOL FINANCE AS A RESULT OF COMPREHENSIVE TAX REFORM UNDER [LC 220 AND LC 1227]; RESTRICTING CHANGES TO CERTAIN PROPERTY TAX AND INCOME TAX PROVISIONS BY REQUIRING A VOTE OF THE PUBLIC; AMENDING SECTIONS 7-1-2111, 7-3-1321, 7-6-2211, 7-6-2512, 7-6-2514, 7-6-2522, 7-6-4121, 7-6-4452, 7-7-107, 7-7-108, 7-7-2101, 7-7-2203, 7-7-4201, 7-7-4202, 7-13-2527, 7-13-4103, 7-14-236, 7-14-2524, 7-14-2525, 7-14-4402, 7-15-4286, 7-16-2327, 7-16-4104, 7-31-106, 7-31-107, 7-34-2131, 7-34-2133, 7-34-2134, 7-34-2417, 15-1-101, 15-1-201, 15-2-302, 15-6-101, 15-6-201, 15-6-207, 15-7-102, 15-7-103, 15-7-122, 15-7-202, 15-7-206, 15-8-104, 15-8-112, 15-8-201, 15-8-202, 15-8-205, 15-8-301, 15-8-405, 15-8-406, 15-8-407, 15-8-701, 15-16-117, 15-16-118, 15-16-202, 15-16-603, 15-16-611, 15-17-121, 15-23-101, 15-23-103, 15-23-104, 15-23-105, 15-23-201, 15-23-202, 15-23-301, 15-23-501, 15-23-505, 15-23-703, 15-23-706, 15-23-707, 15-24-205, 15-24-301, 15-24-304, 15-24-902, 15-24-903, 15-24-904, 15-24-922, 15-24-1101, 15-24-1102, 15-24-1103, 15-24-1203, 15-24-1703, 15-24-1802, 15-24-1902, 15-24-2002, 15-36-323, 15-36-324, 15-36-325, 16-1-306, 16-1-411, 16-2-301, 17-3-213, 17-3-222, 17-7-301, 17-7-502, 19-18-503, 19-18-504, 20-3-106, 20-3-205, 20-3-324, 20-5-320, 20-5-324, 20-6-702, 20-7-714, 20-9-104, 20-9-141, 20-9-142, 20-9-212, 20-9-303, 20-9-306, 20-9-307, 20-9-308, 20-9-332, 20-9-343, 20-9-344, 20-9-346, 20-9-347, 20-9-348, 20-9-351, 20-9-353, 20-9-369, 20-9-370, 20-9-371, 20-9-406, 20-9-407, 20-9-422, 20-9-439, 20-9-501, 20-9-515, 20-10-104, 20-10-141, 20-10-142, 20-10-143, 20-10-144, 20-10-145, 20-15-305, 20-15-311, 20-15-312, 20-15-313, 20-15-314, 53-2-322, 53-2-801, 53-2-813, 61-3-301, 61-3-303, 61-3-317, 61-3-501, 61-3-504, 61-3-506, 61-3-507, 61-3-509, 61-3-520, 61-3-605, 61-3-701, 61-3-707, 61-4-112, 61-10-214, 67-3-204, 67-10-402, 76-1-405, 77-1-507, 81-7-303, 81-7-603, 85-9-103, 90-5-112, 90-6-304, 90-6-305, 90-6-309, 90-6-402, AND 90-6-403, MCA; REPEALING SECTIONS 15-1-111, 15-1-112, 15-6-122, 15-6-131, 15-6-132, 15-6-133, 15-6-134, 15-6-135, 15-6-136, 15-6-137, 15-6-138, 15-6-141, 15-6-143, 15-6-145, 15-6-151, 15-6-152, 15-6-215, 15-7-134, 15-8-204, 15-8-404, 15-10-401, 15-10-402, 15-10-406, 15-10-412, 15-16-613, 15-23-211, 15-23-212, 15-23-213, 15-23-214, 15-23-215, 15-23-216, 15-24-302, 15-24-303, 15-24-305, 15-24-601, 15-24-602, 15-24-701, 15-24-801, 15-24-901, 15-24-920, 15-24-926, 15-24-927, 15-24-931, 15-24-1401, 15-24-1402, 15-24-1501, 15-24-2401, 15-24-2402, 15-24-2403, 15-24-2404, 15-24-2405, 20-9-305, 20-9-331, 20-9-333, 20-9-334, 20-9-335, 20-9-360, 20-9-361, 20-9-366, 20-9-367, 20-9-368, 20-10-146, 20-25-423, AND 35-18-503, MCA; AND PROVIDING AN EFFECTIVE DATE AND APPLICABILITY DATES."
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 7-1-2111, MCA, is amended to read:
"7-1-2111. Classification of counties. (1) For the purpose of regulating the compensation and salaries of all county
officers, not otherwise provided for, and for fixing the penalties of officers' bonds, the counties of this state must be
classified according to the taxable valuation of the property in the counties upon which the tax levy is made, except for
vehicles subject to taxation under 61-3-504, as follows:
(a) first class--all counties having a taxable valuation of $50 $800 million or more;
(b) second class--all counties having a taxable valuation of $30 $300 million or more and less than $50 $800 million;
(c) third class--all counties having a taxable valuation of $20 $200 million or more and less than $30 $300 million;
(d) fourth class--all counties having a taxable valuation of $15 $125 million or more and less than $20 $200 million;
(e) fifth class--all counties having a taxable valuation of $10 $100 million or more and less than $15 $125 million;
(f) sixth class--all counties having a taxable valuation of $5 $50 million or more and less than $10 $100 million;
(g) seventh class--all counties having a taxable valuation of less than $5 $50 million.
(2) As used in this section, "taxable valuation" means the taxable value of taxable property in the county as of the time
of determination plus:
(a) that portion of the taxable value of the county on December 31, 1981, attributable to automobiles and trucks having
a rated capacity of three-quarters of a ton or less;
(b) that portion of the taxable value of the county on December 31, 1989, attributable to automobiles and trucks having
a manufacturer's rated capacity of more than three-quarters of a ton but less than or equal to 1 ton;
(c) that portion of the taxable value of the county on December 31, 1997, attributable to buses, trucks having a
manufacturer's rated capacity of more than 1 ton, and truck tractors;
(d) that portion of the taxable value of the county on December 31, 1997, attributable to trailers, pole trailers, and
semitrailers with a declared weight of less than 26,000 pounds;
(e) the value provided by the department of revenue under 15-36-324(13); and
(f) 6% of the taxable value of the county on January 1 of each tax year."
Section 2. Section 7-3-1321, MCA, is amended to read:
"7-3-1321. Authorization to incur indebtedness -- limitation. (1) The consolidated municipality may borrow money or issue bonds for any municipal purpose to the extent and in the manner provided by the constitution and laws of Montana for the borrowing of money or issuing of bonds by counties and cities and towns.
(2) The municipality may not become indebted in any manner or for any purpose to an amount, including existing
indebtedness, in the aggregate exceeding 28% 1.6% of the taxable value of the taxable property therein in the municipality,
as ascertained by the last assessment for state and county taxes prior to incurring such the indebtedness. All warrants,
bonds, or obligations in excess of such the amount given by or on behalf of the municipality shall be are void."
Section 3. Section 7-6-2211, MCA, is amended to read:
"7-6-2211. Authorization to conduct county business on a cash basis. (1) If the total indebtedness of a county,
lawful when incurred, exceeds the debt limit of 23% established in 7-7-2101 by reason of great diminution of taxable value,
the county may conduct its business affairs on a cash basis and pay the reasonable and necessary current expenses of the
county out of the cash in the county treasury derived from its current revenue and under the restrictions and regulations that
may be imposed by the board of county commissioners of the county by a resolution duly adopted and included in the
minutes of the board.
(2) This section does not restrict the right of the board to make the necessary tax levies for interest and sinking fund purposes, and this section does not affect the right of any creditor of the county to pursue any remedy now given by law to obtain payment of a claim.
(3) Subsection (1) does not apply to a county that has adopted the alternative accounting method provided for in Title 7, chapter 6, part 6."
Section 4. Section 7-6-2512, MCA, is amended to read:
"7-6-2512. County tax levy for health care facilities. (1) The board of county commissioners may, annually at the
time of levying county taxes, fix and levy a tax, not to exceed 10 mills 0.59 mill on each dollar of taxable valuation of
property, upon all property within the county to erect, furnish, equip, expand, improve, maintain, and operate county-owned
or county-operated health care facilities created under 7-8-2102, 7-34-2201, and 7-34-2502. "Health care facilities", as used
in this section, has the meaning as defined in 7-34-2201. The combined total number of mills levied under this section and
for the county poor fund under 53-2-322 may not exceed 18 mills 1.1 mills. A higher levy may be made upon compliance
with 7-6-2531 through 7-6-2537 or 53-2-322. If a hospital district is created under Title 7, chapter 34, part 21, the mill levy
authorized by this section may not be imposed on property within that hospital district.
(2) If a county issues bonds under 7-34-2411 to finance or refinance the costs of a health care facility, the board of county commissioners may covenant to levy the tax authorized by this section during the term of the bonds, to the extent necessary, and to apply the collections of the tax to the costs of erecting, furnishing, equipping, expanding, improving, maintaining, and operating the health care facility or facilities of the county or the payment of principal of or interest on the bonds. The pledge of the taxes to the payment of the bonds may not cause the bonds to be considered indebtedness of the county for the purpose of any statutory limitation or restriction. The pledge may be made by the board only upon authorization of a majority of the electors of the county voting on the pledge at a general or special election as provided in 7-34-2414."
Section 5. Section 7-6-2514, MCA, is amended to read:
"7-6-2514. Tax limitation applicable. The property tax limitation contained in Title 15, chapter 10, part 4, applies to
the county public safety levy authorized in 7-6-2513. The limitation for the levy authorized in 7-6-2513 is determined by
the total tax levied for the county general fund. The first year that a county public safety tax is levied, the public safety levy
and the general fund levy may not exceed the prior year's county general fund levy. In subsequent years, any increases in the
public safety levy and the general fund levy are limited under Title 15, chapter 10, part 4 15-7-122."
Section 6. Section 7-6-2522, MCA, is amended to read:
"7-6-2522. All-purpose levy -- maximum. (1) The all-purpose levy is an annual levy upon the taxable value of all property in the county subject to taxation for county purposes in lieu of the levies specified in 7-6-2523. The all-purpose levy may not exceed the lesser of:
(a) 55 3.263 mills on the dollar; or
(b) the total number of mills levied in the prior year pursuant to the levies set forth in 7-6-2523 as certified by the department of revenue under 15-10-202.
(2) If the county governing body determines that the interests of the county would be served by an all-purpose levy, it shall specify its intent to impose the all-purpose levy in the resolution approving and adopting the annual budget."
Section 7. Section 7-6-4121, MCA, is amended to read:
"7-6-4121. Authorization to conduct municipal business on a cash basis. (1) If the total indebtedness of a city or
town has reached 17% 1% of the total taxable value of the property of the city or town subject to taxation, as ascertained by
the last assessment for state and county taxes, the city or town may conduct its affairs and business on a cash basis as
provided by subsection (2).
(2) (a) Whenever a city or town is conducting its business affairs on a cash basis, the reasonable and necessary current expenses of the city or town may be paid out of the cash in the city or town treasury and derived from its current revenue, under any restrictions and regulations as the city or town governing body may by ordinance prescribe.
(b) In the event that payment is made in advance, the city or town may require a cash deposit as collateral security and indemnity, equal in amount to the payment, and may hold the deposit as a special deposit with the city treasurer or town clerk, in package form, as a pledge for the fulfillment and performance of the contract or obligation for which the advance is made.
(c) Before the payment of the current expenses described in subsection (2)(a), the city or town council shall first set apart sufficient money to pay the interest upon its legal, valid, and outstanding bonded indebtedness and any sinking funds provided for and is authorized to pay all valid claims against funds raised by tax especially authorized by law for the purpose of paying the claims.
(3) This section does not apply to a city or town that has adopted the alternative accounting method provided for in Title 7, chapter 6, part 6."
Section 8. Section 7-6-4452, MCA, is amended to read:
"7-6-4452. Maximum all-purpose mill levy. Except as provided elsewhere, the cities and towns of the state of
Montana may make an all-purpose annual levy upon the taxable value of all the property in the cities and towns subject to
taxation for municipal purposes in lieu of the multiple levies now authorized by statute. The total of the all-purpose levy
may not exceed 65 3.86 mills on the dollar."
Section 9. Section 7-7-107, MCA, is amended to read:
"7-7-107. Limitation on amount of bonds for city-county consolidated units. (1) Except as provided in 7-7-108, no
a city-county consolidated local government may not issue bonds for any purpose which in an amount that, with all
outstanding indebtedness, may exceed 39% exceeds 2.2% of the taxable value of the property therein in the city-county
consolidated government that is subject to taxation, as ascertained by the last assessment for state and county taxes.
(2) The issuing issuance of bonds for the purpose of funding or refunding outstanding warrants or bonds is does not the
incurring of constitute a new or additional indebtedness but is merely the changing of changes the evidence of outstanding
indebtedness."
Section 10. Section 7-7-108, MCA, is amended to read:
"7-7-108. Authorization for additional indebtedness for water or sewer systems. (1) For the purpose of
constructing a sewer system or procuring a water supply or constructing or acquiring a water system for a city-county
consolidated government which shall own that owns and control such controls the water supply and water system and
devote devotes the revenues therefrom revenue from the system to the payment of the debt, a city-county consolidated
government may incur an additional indebtedness by borrowing money or issuing bonds.
(2) The additional indebtedness which that may be incurred by borrowing money or issuing bonds for the construction
of a sewer system or for the procurement of a water supply or for both such purposes may not in the aggregate exceed 10%
over and above the 39% bond limits referred to in 7-7-107 of the taxable value of the property therein in the city-county
consolidated government subject to taxation, as ascertained by the last assessment for state and county taxes."
Section 11. Section 7-7-2101, MCA, is amended to read:
"7-7-2101. Limitation on amount of county indebtedness. (1) A county may not become indebted in any manner or
for any purpose in an amount, including existing indebtedness, in the aggregate exceeding 23% 1.3% of the total of the
taxable value of the property in the county subject to taxation, plus the value provided by the department of revenue in
15-36-324(13), as ascertained by the last assessment for state and county taxes previous to the incurring of the
indebtedness, plus, for indebtedness to be incurred during fiscal year 1997, an additional 11% of the taxable value of class
eight property within the county for tax year 1995, for indebtedness to be incurred during fiscal year 1998, an additional
22% of the taxable value of class eight property within the county for tax year 1995, and for indebtedness to be incurred
during fiscal years 1999 through 2008, an additional 33% of the taxable value of class eight property within the county for
tax year 1995, in each case of class eight property, multiplied by 23%.
(2) A county may not incur indebtedness or liability for any single purpose to an amount exceeding $500,000 without the approval of a majority of the electors of the county voting at an election to be provided by law, except as provided in 7-7-2402, 7-21-3413, and 7-21-3414.
(3) This section does not apply to the acquisition of conservation easements as set forth in Title 76, chapter 6."
Section 12. Section 7-7-2203, MCA, is amended to read:
"7-7-2203. Limitation on amount of bonded indebtedness. (1) Except as provided in subsections (2) through (4), a
county may not issue general obligation bonds for any purpose that, with all outstanding bonds and warrants except
emergency bonds, will exceed 11.25% 0.64% of the total of the taxable value of the property in the county, plus the value
provided by the department of revenue under 15-36-324(13), to be subject to taxation, as ascertained by the last assessment
for state and county taxes prior to the proposed issuance of bonds, plus, for general obligation bonds to be issued during
fiscal year 1997, an additional 11% of the taxable value of class eight property within the county for tax year 1995, for
general obligation bonds to be issued during fiscal year 1998, an additional 22% of the taxable value of class eight property
within the county for tax year 1995, and for general obligation bonds to be issued during fiscal years 1999 through 2008, an
additional 33% of the taxable value of class eight property within the county for tax year 1995, in each case of class eight
property, multiplied by 11.25%.
(2) In addition to the bonds allowed by subsection (1), a county may issue bonds that, with all outstanding bonds and
warrants, will not exceed 27.75% 1.6% of the total of the taxable value of the property in the county subject to taxation,
plus the value provided by the department of revenue under 15-36-324(13), when necessary to do so, to be ascertained by
the last assessment for state and county taxes, plus, for bonds to be issued during fiscal year 1997, an additional 11% of the
taxable value of class eight property within the county for tax year 1995, and for bonds to be issued during fiscal year 1998,
an additional 22% of the taxable value of class eight property within the county for tax year 1995.
(3) In addition to the bonds allowed by subsections (1) and (2), a county may issue bonds for the construction or
improvement of a jail that will not exceed 12.5% 0.71% of the taxable value of the property in the county subject to
taxation, plus the adjustments permitted by 7-7-2101.
(4) The limitation in subsection (1) does not apply to refunding bonds issued for the purpose of paying or retiring
county bonds lawfully issued prior to January 1, 1932, or to bonds issued for the repayment of tax protests lost by the
county."
Section 13. Section 7-7-4201, MCA, is amended to read:
"7-7-4201. Limitation on amount of bonded indebtedness. (1) Except as otherwise provided, a city or town may not
issue bonds or incur other indebtedness for any purpose in an amount that with all outstanding and unpaid indebtedness will
exceed 28% 1.6% of the taxable value of the property in the city or town subject to taxation, to be as ascertained by the last
assessment for state and county taxes, plus, for bonds to be issued or other indebtedness to be incurred during fiscal year
1997, an additional 11% of the taxable value of class eight property within the city or town for tax year 1995, for bonds to
be issued or other indebtedness to be incurred during fiscal year 1998, an additional 22% of the taxable value of class eight
property within the city or town for tax year 1995, and for bonds to be issued or other indebtedness to be incurred during
fiscal years 1999 through 2008, an additional 33% of the taxable value of class eight property within the city or town for
tax year 1995, in each case of class eight property, multiplied by 28%.
(2) The issuing issuance of bonds for the purpose of funding or refunding outstanding warrants or bonds is does not the
incurring of a constitute new or additional indebtedness but is merely the changing of changes the evidence of outstanding
indebtedness.
(3) The limitation in subsection (1) does not apply to bonds issued for the repayment of tax protests lost by the city or town."
Section 14. Section 7-7-4202, MCA, is amended to read:
"7-7-4202. Special provisions relating to water and sewer systems. (1) Notwithstanding the provisions of 7-7-4201, for the purpose of constructing a sewer system, procuring a water supply, or constructing or acquiring a water system for a city or town that owns and controls the water supply and water system and devotes the revenue from the water supply and water system to the payment of the debt, a city or town may incur an additional indebtedness by borrowing money or issuing bonds.
(2) The additional total indebtedness that may be incurred by borrowing money or issuing bonds for the construction of
a sewer system, for the procurement of a water supply, or for both of the purposes, including all indebtedness that is
contracted and that is unpaid or outstanding, may not in the aggregate exceed 55% over and above the 28%, debt limitation
referred to in 7-7-4201, of the taxable value of the property in the city or town subject to taxation to be ascertained by the
last assessment for state and county taxes, plus, for indebtedness to be incurred during fiscal year 1997, an additional 11%
of the taxable value of class eight property within the city or town for tax year 1995, for indebtedness to be incurred during
fiscal year 1998, an additional 22% of the taxable value of class eight property within the city or town for tax year 1995,
and for indebtedness to be incurred during fiscal years 1999 through 2008, an additional 33% of the taxable value of class
eight property within the city or town for tax year 1995, in each case of class eight property, multiplied by 55%."
Section 15. Section 7-13-2527, MCA, is amended to read:
"7-13-2527. List of property owners. (1) A copy of the order creating the district must be delivered to the department of revenue.
(2) The department shall, on or before August 1 of each year, prepare and certify a list of all persons owning class four
residential or commercial property within the district and deliver a copy of the list to the board of trustees of the district."
Section 16. Section 7-13-4103, MCA, is amended to read:
"7-13-4103. Limitation on indebtedness for acquisition of natural gas system. The total amount of indebtedness
authorized to be contracted in any form, including the then-existing indebtedness, must may not at any time exceed 17%
0.97% of the total taxable value of the property of the city or town subject to taxation, as ascertained by the last assessment
for state and county taxes."
Section 17. Section 7-14-236, MCA, is amended to read:
"7-14-236. Limitation on bonded indebtedness. The amount of bonds issued to provide funds for the district and
outstanding at any time shall may not exceed 28% 1.6% of the taxable value of taxable property therein in the district
subject to taxation, as ascertained by the last assessment for state and county taxes previous to the issuance of such the
bonds."
Section 18. Section 7-14-2524, MCA, is amended to read:
"7-14-2524. Limitation on amount of bonds issued -- excess void. (1) Except as otherwise provided in 7-7-2203,
7-7-2204, and this section, a county may not issue bonds that, with all outstanding bonds and warrants except emergency
bonds, will exceed 11.25% 0.64% of the total of the taxable value of the property in the county, plus the value provided by
the department of revenue under 15-36-324(13). The taxable property and the amount of taxes levied on new production,
production from horizontally completed wells, and incremental production must be, as ascertained by the last assessment
for state and county taxes prior to the issuance of the bonds.
(2) A county may issue bonds that, with all outstanding bonds and warrants, will exceed 11.25% 0.64% but will not
exceed 22.5% 1.28% of the total of the taxable value of the property, plus the value provided by the department of revenue
under 15-36-324(13) in the county subject to taxation when necessary for the purpose of replacing, rebuilding, or repairing
county buildings, bridges, or highways that have been destroyed or damaged by an act of God or by a disaster, catastrophe,
or accident.
(3) The value of the bonds issued and all other outstanding indebtedness of the county may not exceed 22.5% 1.28% of
the total of the taxable value of the property within the county, plus the value provided by the department of revenue under
15-36-324(13), subject to taxation, as ascertained by the last preceding general assessment."
Section 19. Section 7-14-2525, MCA, is amended to read:
"7-14-2525. Refunding agreements and refunding bonds authorized. (1) Whenever the total indebtedness of a
county exceeds 22.5% 1.28% of the total of the taxable value of the property in within the county, plus the value provided
by the department of revenue under 15-36-324(13), subject to taxation and the board determines that the county is unable to
pay the indebtedness in full, the board may:
(a) negotiate with the bondholders for an agreement under which the bondholders agree to accept less than the full amount of the bonds and the accrued unpaid interest in satisfaction of the bonds;
(b) enter into the agreement;
(c) issue refunding bonds for the amount agreed upon.
(2) These bonds may be issued in more than one series, and each series may be either amortization or serial bonds.
(3) The plan agreed upon between the board and the bondholders must be embodied in full in the resolution providing for the issuance of the bonds."
Section 20. Section 7-14-4402, MCA, is amended to read:
"7-14-4402. Limit on indebtedness to provide bus service. The total amount of indebtedness authorized under
7-14-4401(1) to be contracted in any form, including the then-existing indebtedness, may not at any time exceed 28% 1.6%
of the total taxable value of the property of the city or town subject to taxation, as ascertained by the last assessment for
state and county taxes. No money Money may not be borrowed or bonds issued for the purposes specified in 7-14-4401(1)
until the proposition has been submitted to the vote of the taxpayers of the city or town and the a majority vote is cast in its
favor."
Section 21. Section 7-15-4286, MCA, is amended to read:
"7-15-4286. Procedure to determine and disburse tax increment. (1) Mill rates of taxing bodies for taxes levied after the effective date of the tax increment provision must be calculated on the basis of the sum of the taxable value, as shown by the last equalized assessment roll, of all taxable property located outside the urban renewal area or industrial district and the base taxable value of all taxable property located within the urban renewal area or industrial district. The mill rate determined must be levied against the sum of the actual taxable value of all taxable property located within as well as outside the urban renewal area or industrial district.
(2) (a) The tax increment, if any, received in each year from the levy of the combined mill rates of all the affected
taxing bodies against the incremental taxable value within the urban renewal area or industrial district, except for the
university system mills levied and assessed against property, must be paid into a special fund held by the treasurer of the
municipality and used as provided in 7-15-4282 through 7-15-4292.
(b) The balance of the taxes collected in each year must be paid to each of the taxing bodies as otherwise provided by law."
Section 22. Section 7-16-2327, MCA, is amended to read:
"7-16-2327. Indebtedness for park purposes. (1) Subject to the provisions of subsection (2), a county park board, in addition to powers and duties now given under law, may contract an indebtedness in behalf of a county, upon the credit of the county, in order to carry out its powers and duties.
(2) (a) The total amount of indebtedness authorized to be contracted in any form, including the then-existing
indebtedness, may not at any time exceed 13% 0.74% of the total of the taxable value of the taxable property in the county,
plus the value provided by the department of revenue under 15-36-324(13), subject to taxation, as ascertained by the last
assessment for state and county taxes previous to the incurring of the indebtedness.
(b) Money may not be borrowed on bonds issued for the purchase of lands and land or improving the land for any
purpose until the proposition has been submitted to the vote of those electors qualified under the provisions of the state
constitution to vote at the election in the affected county and a majority vote is cast in favor of the bonds."
Section 23. Section 7-16-4104, MCA, is amended to read:
"7-16-4104. Authorization for municipal indebtedness for various cultural, social, and recreational purposes. (1)
A city or town council or commission may contract an indebtedness on behalf of the city or town, upon the credit of the city
or town, by borrowing money or issuing bonds:
(a) for the purpose of purchasing and improving lands for public parks and grounds;
(b) for procuring by purchase, construction, or otherwise swimming pool facilities, athletic fields, skating rinks, playgrounds, museums, a golf course, a site and building for a civic center, a youth center, or a combination of these facilities; and
(c) for furnishing, equipping, repairing, or rehabilitating a swimming pool facility, athletic field, skating rink, playground, museum, golf course, civic center, or youth center.
(2) The total amount of indebtedness authorized to be contracted in any form, including the then-existing indebtedness,
may not at any time exceed 16.5% 0.94% of the taxable value of the taxable property of the city or town subject to taxation,
as ascertained by the last assessment for state and county taxes previous to the incurring of the indebtedness. Money may
not be borrowed for any purpose on bonds issued for the purchase of lands and land or improving the land until the
proposition has been submitted to the vote of the qualified electors of the city or town and a majority vote is cast in favor of
the proposition."
Section 24. Section 7-31-106, MCA, is amended to read:
"7-31-106. Authorization for county to issue bonds -- election required. (1) If the petition is presented to the board of county commissioners, the board shall, for the purpose of raising money to meet the payments under the terms and conditions of the contract and other necessary and proper expenses for the contract and for the approval or disapproval of the petition:
(a) ascertain, within 30 days after submission of the petition, the existing indebtedness of the county in the aggregate; and
(b) submit, after ascertaining the aggregate indebtedness, to the electors of the county the proposition to approve or disapprove the contract and the issuance of bonds necessary to carry out the contract. The election must be held in conjunction with a regular or primary election.
(2) The amount of the bonds authorized by this section may not exceed 22.5% 1.28% of the taxable value of the taxable
property in the county, inclusive of the existing indebtedness of the county, to be subject to taxation, as ascertained by the
last assessment for state and county taxes previous to the issuance of the bonds and incurring of the indebtedness."
Section 25. Section 7-31-107, MCA, is amended to read:
"7-31-107. Authorization for municipality to issue bonds -- election required. (1) If the petition is presented to the council of any incorporated city or town, the council, for the purpose of raising money to meet the payments under the terms and conditions of the contract and other necessary and proper expenses for the contract and for the approval or disapproval of the petition, shall:
(a) ascertain, within 30 days after submission of the petition, the aggregate indebtedness of the city or town; and
(b) submit, after ascertaining the aggregate indebtedness, to the electors of the city or town the proposition to approve or disapprove the contract and the issuance of bonds necessary to carry out the contract. The election must be held in conjunction with a regular or primary election.
(2) The amount of the bonds authorized by this section may not exceed 16.5% 0.94% of the taxable value of the taxable
property in the city or town, inclusive of the existing indebtedness of the city or town, to be subject to taxation, as
ascertained in the manner provided in this part."
Section 26. Section 7-34-2131, MCA, is amended to read:
"7-34-2131. Hospital district bonds and notes authorized. (1) (a) A hospital district may borrow money by the issuance of its bonds to provide funds for payment of part or all of the cost of acquisition, furnishing, equipment, improvement, extension, and betterment of hospital facilities and to provide an adequate working capital for a new hospital.
(b) The amount of bonds issued for such purpose under subsection (1) and outstanding at any time may not exceed
22.5% 1.28% of the taxable value of the property therein in the district subject to taxation, as ascertained by the last
assessment for state and county taxes previous to the issuance of such the bonds.
(c) Such The bonds shall must be authorized, sold, and issued and provisions made for their payment in the manner and
subject to the conditions and limitations prescribed for bonds of school districts by Title 20, chapter 9, part 4.
(2) (a) A hospital district may borrow money by the issuance of notes to provide funds to finance the costs described in subsection (1) and to finance the working capital requirements of the district. The notes must be authorized and in a form and terms prescribed by a resolution adopted by the board of trustees. The notes must mature over a term not to exceed 15 years.
(b) The principal and interest on the notes must be paid from the taxes levied pursuant to 7-34-2133 and 7-34-2134, exclusive of the taxes levied to pay bonds issued in accordance with subsection (1), and all other revenue of the district. The annual amount of principal and interest payable on notes in any fiscal year must be included in the district's budget for that year.
(c) The notes may be secured by a mortgage of or a security interest in all or part of the district's assets and by a pledge of the taxes and revenue of the district, or either of them.
(d) Notes may not be issued unless the projected annual revenue of the district, including the taxes levied pursuant to 7-34-2133 and 7-34-2134 but exclusive of the taxes levied to pay bonds, is at least equal to the sum of the cost of operating and maintaining the hospital district plus the maximum amount of principal and interest due in any future fiscal year on the notes proposed to be issued and all notes outstanding upon the issuance of the proposed notes.
(3) Nothing herein shall The provisions of this part may not be construed to preclude the provisions of Title 50, chapter
6, part 1, allowing the state to apply for and accept federal funds."
Section 27. Section 7-34-2133, MCA, is amended to read:
"7-34-2133. Levy of district taxes -- limit on mill levy. (1) The board of county commissioners must shall, annually at
the time of levying county taxes, fix and levy a tax (in mills) upon all property within said the hospital district clearly
sufficient to raise the amount certified by the board of hospital trustees under 7-34-2132.
(2) The tax so levied Except as provided in 7-34-2134, the levy for all hospital district purposes other than payment of
bonded indebtedness shall may not in any year exceed 3 mills 0.178 mill on each dollar of taxable valuation of property
within said the district subject to taxation."
Section 28. Section 7-34-2134, MCA, is amended to read:
"7-34-2134. Special additional mill levy authorized. If the maximum levy of 3 mills on each dollar of taxable
valuation of property within the hospital district authorized in 7-34-2133 is levied but is inadequate to raise the amount of
money certified as necessary and proper by the board of hospital trustees as provided in 7-34-2132, the board of county
commissioners may make an additional levy for 2 years upon the taxable property within said the hospital district sufficient
to raise the amount certified by the board of hospital trustees."
Section 29. Section 7-34-2417, MCA, is amended to read:
"7-34-2417. Special tax levy authorized. In the event that the bonds are not paid or are not expected to be paid from
ordinary revenue of the facility, a county that has issued bonds under 7-34-2411 for a health care facility may levy taxes on
all taxable property within the county in the manner provided for public hospital districts under 7-34-2133, 7-34-2134,
7-34-2135(1), and 7-34-2136, up to a maximum of 3 mills 0.178 mill not submitted to a vote of the people and 3 an
additional mills 0.178 mill approved by a vote of the people."
Section 30. Section 15-1-101, MCA, is amended to read:
"15-1-101. Definitions. (1) Except as otherwise specifically provided, when terms mentioned in this section are used in connection with taxation, they are defined in the following manner:
(a) The term "agricultural" refers to:
(i) the production of food, feed, and fiber commodities, livestock and poultry, bees, fruits and vegetables, and sod, ornamental, nursery, and horticultural crops that are raised, grown, or produced for commercial purposes; and
(ii) the raising of domestic animals and wildlife in domestication or a captive environment.
(b) The term "assessed value" means the value of property as defined in 15-8-111.
(c) The term "average wholesale value" means the value to a dealer prior to reconditioning and the profit margin shown in national appraisal guides and manuals or the valuation schedules of the department.
(d) (i) The term "commercial", when used to describe property, means property used or owned by a business, a trade, or a corporation, as defined in 35-2-114, or used for the production of income, except property described in subsection (1)(d)(ii).
(ii) The following types of property are not commercial:
(A) agricultural lands;
(B) timberlands and forest lands;
(C) single-family residences and ancillary improvements and improvements necessary to the function of a bona fide farm, ranch, or stock operation; and
(D) mobile homes and manufactured homes used exclusively as a residence except when held by a distributor or dealer
as stock in trade;
(E) all property described in 15-6-135; and
(F) all property described in 15-6-136.
(e) (i) The term "comparable property" means property that:
(i)(A) has similar use, function, and utility;
(ii)(B) is influenced by the same set of economic trends and physical, governmental, and social factors; and
(iii)(C) has the potential of a similar highest and best use.
(ii) Property assessed as commercial property is comparable only to other property assessed as commercial property, and property assessed as other than commercial property is comparable only to other property assessed as other than commercial property.
(f) The term "credit" means solvent debts, secured or unsecured, owing to a person.
(g) (i) "Department", except as provided in subsection (1)(g)(ii), means the department of revenue provided for in 2-15-1301.
(ii) In chapters 70 and 71, department means the department of transportation provided for in 2-15-2501.
(h) The terms "gas" and "natural gas" are synonymous and mean gas as defined in 82-1-111(2). The terms include all natural gases and all other fluid hydrocarbons, including methane gas or any other natural gas found in any coal formation.
(i) (i) The term "improvements" includes all buildings, structures, fences, and improvements situated upon, erected upon, or affixed to land. The term also includes personal property that is permanently situated upon, erected upon, or affixed to land or to improvements. Personal property includes but is not limited to gas and water mains and pipes; pipelines; railroad tracks; telephone, transmission, and electronic lines of all types; and other personal property. Personal property described in this subsection (1)(i)(i) is considered an improvement regardless of whether the property is permanently affixed to the land or beneath the surface of the land or affixed to improvements.
(ii) When the department determines that the permanency of location of a mobile home, manufactured home, or housetrailer has been established, the mobile home, manufactured home, or housetrailer is presumed to be an improvement to real property. A mobile home, manufactured home, or housetrailer may be determined to be permanently located only when it is attached to a foundation that cannot feasibly be relocated and only when the wheels are removed.
(j) The term "leasehold improvements" means improvements to mobile homes and mobile homes located on land
owned by another person. This property is assessed under the appropriate classification, and the taxes are due and payable
in two payments as provided in 15-24-202. Delinquent taxes on leasehold improvements are a lien only on the leasehold
improvements.
(k) The term "livestock" means cattle, sheep, swine, goats, horses, mules, asses, llamas, alpacas, bison, ostriches, rheas, emus, and domestic ungulates.
(l) The term "manufactured home" means a residential dwelling built in a factory in accordance with the United States department of housing and urban development code and the federal Manufactured Home Construction and Safety Standards. A manufactured home does not include a mobile home, as defined in 61-1-501 and in subsection (1)(m) of this section, a housetrailer, as defined in 61-1-501, or a mobile home or housetrailer constructed before the federal Manufactured Home Construction and Safety Standards went into effect on June 15, 1976.
(m) The term "mobile home" means forms of housing known as "trailers", "housetrailers", or "trailer coaches" exceeding 8 feet in width or 45 feet in length, designed to be moved from one place to another by an independent power connected to them, or any trailer, housetrailer, or trailer coach up to 8 feet in width or 45 feet in length used as a principal residence.
(n) The term "personal property" includes everything that is the subject of ownership but that is not included within the meaning of the terms "real estate" and "improvements".
(o) The term "poultry" includes all chickens, turkeys, geese, ducks, and other birds raised in domestication to produce food or feathers.
(p) The term "property" includes money, credits, bonds, stocks, franchises, and all other matters and things, real, personal, and mixed, capable of private ownership. This definition may not be construed to authorize the taxation of the stocks of a company or corporation when the property of the company or corporation represented by the stocks is within the state and has been taxed.
(q) The term "real estate" includes:
(i) the possession of, claim to, ownership of, or right to the possession of land;
(ii) all mines, minerals, and quarries in and under the land subject to the provisions of 15-23-501 and Title 15, chapter 23, part 8;
(iii) all timber belonging to individuals or corporations growing or being on the lands of the United States; and
(iv) all rights and privileges appertaining to mines, minerals, quarries, and timber.
(r) "Recreational" means hunting, fishing, swimming, boating, waterskiing, camping, biking, hiking, and winter sports, including but not limited to skiing, skating, and snowmobiling.
(s) "Research and development firm" means an entity incorporated under the laws of this state or a foreign corporation authorized to do business in this state whose principal purpose is to engage in theoretical analysis, exploration, and experimentation and the extension of investigative findings and theories of a scientific and technical nature into practical application for experimental and demonstration purposes, including the experimental production and testing of models, devices, equipment, materials, and processes.
(t) The term "stock in trade" means any mobile home, manufactured home, or housetrailer that is listed by the dealer as inventory and that is offered for sale, is unoccupied, and is not located on a permanent foundation. Inventory does not have to be located at the business location of a dealer or a distributor.
(u) The term "taxable value" means the percentage of market or assessed value as provided for in Title 15, chapter 6,
part 1 15-8-111.
(2) The phrase "municipal corporation" or "municipality" or "taxing unit" includes a county, city, incorporated town, township, school district, irrigation district, or drainage district or a person, persons, or organized body authorized by law to establish tax levies for the purpose of raising public revenue.
(3) The term "state board" or "board" when used without other qualification means the state tax appeal board."
Section 31. Section 15-1-201, MCA, is amended to read:
"15-1-201. Administration of revenue laws. (1) (a) The department has general supervision over the administration of the assessment and tax laws of the state, except Title 15, chapters 70 and 71, and over any officers of municipal corporations having any duties to perform under the laws of this state relating to taxation to the end that all assessments of property are made relatively just and equal, at true value, and in substantial compliance with law. The department may make rules to supervise the administration of all revenue laws of the state and assist in their enforcement.
(b) The department shall adopt rules specifying which types of property within the several classes are considered
comparable property as defined in 15-1-101.
(c) The department shall also adopt rules for determining the value-weighted mean sales assessment ratio for all commercial and industrial real property and improvements.
(2) The department shall confer with, advise, and direct officers of municipal corporations concerning their duties, with respect to taxation, under the laws of the state.
(3) The department shall collect annually from the proper officers of the municipal corporations information, in a form prescribed by the department, about the assessment of property, collection of taxes, receipts from licenses and other sources, expenditure of public funds for all purposes, and other information as may be necessary and helpful in the work of the department. It is the duty of all public officers to fill out properly and return promptly to the department all forms and to aid the department in its work. The department shall examine the records of all municipal corporations for purposes considered necessary or helpful."
Section 32. Section 15-2-302, MCA, is amended to read:
"15-2-302. Direct appeal from department decision to state tax appeal board -- hearing. (1) A person may appeal
to the state tax appeal board a final decision of the department of revenue involving:
(a) property centrally assessed under chapter 23;
(b) classification of property as new industrial property;
(c)(b) any other tax, other than the property tax, imposed under this title; or
(d)(c) any other matter in which the appeal is provided by law.
(2) (a) Except as provided in subsection (2)(b), the appeal is made by filing a complaint with the board within 30 days following receipt of notice of the department's final decision. The complaint must set forth the grounds for relief and the nature of relief demanded. The board shall immediately transmit a copy of the complaint to the department.
(b) An appeal from the department's determination of whether wages earned by an unemployment insurance benefit claimant were properly reported to the department is initiated by filing a complaint with the board within 10 days following receipt of notice of the department's final determination. The board shall promptly mail a copy of the complaint to each interested party at the last-known address of each party.
(3) The department shall file with the board an answer within 30 days following filing of a complaint, or in cases involving a determination of whether wages earned by an unemployment insurance benefit claimant were properly reported to the department, any interested party, as defined in 15-30-257(1)(e), and the department may file an answer with the board within 10 days after receipt of a copy of the complaint filed with the board, and at that time mail a copy to the complainant. The answer must set forth the department's response to each ground for and type of relief demanded in the complaint.
(4) (a) Except as provided in subsection (4)(b), the board shall conduct the appeal in accordance with the contested case provisions of the Montana Administrative Procedure Act.
(b) (i) In an appeal regarding the determination of whether wages earned by an unemployment insurance claimant were properly reported to the department, the appeal must be conducted informally and may, in the discretion of the board, be conducted by telephone or other electronic means. The appeal is not a contested case under provisions of the Montana Administrative Procedure Act. The board, in conducting the hearing or making its decision, is not bound by the Montana Rules of Evidence.
(ii) The board shall make its final decision within 45 days of the date on which the appeal is received by the board.
(5) The decision of the state tax appeal board is final and binding upon all interested parties unless reversed or modified by judicial review. Proceedings for judicial review of a decision of the state tax appeal board under this section are subject to the provisions of 15-2-303 and the Montana Administrative Procedure Act to the extent that it does not conflict with 15-2-303."
Section 33. Section 15-6-101, MCA, is amended to read:
"15-6-101. Property subject to taxation -- classification. (1) All property in this state is subject to taxation, except as
otherwise provided otherwise.
(2) For the purpose of taxation, the taxable property in the state shall be classified in accordance with this part."
Section 34. Section 15-6-201, MCA, is amended to read:
"15-6-201. Exempt categories. (1) The following categories of property are exempt from taxation:
(a) except as provided in 15-24-1203, the property of:
(i) the United States, except:
(A) if congress passes legislation that allows the state to tax property owned by the federal government or an agency created by congress; or
(B) as provided in 15-24-1103;
(ii) the state, counties, cities, towns, and school districts;
(iii) irrigation districts organized under the laws of Montana and not operating for profit;
(iv) municipal corporations;
(v) public libraries; and
(vi) rural fire districts and other entities providing fire protection under Title 7, chapter 33;
(b) buildings, with land that they occupy and furnishings in the buildings, that are owned by a church and used for actual religious worship or for residences of the clergy, together with adjacent land reasonably necessary for convenient use of the buildings;
(c) property used exclusively for agricultural and horticultural societies, for educational purposes, and for nonprofit health care facilities, as defined in 50-5-101, licensed by the department of public health and human services and organized under Title 35, chapter 2 or 3. A health care facility that is not licensed by the department of public health and human services and organized under Title 35, chapter 2 or 3, is not exempt.
(d) property that is:
(i) owned and held by an association or corporation organized under Title 35, chapter 2, 3, 20, or 21;
(ii) devoted exclusively to use in connection with a cemetery or cemeteries for which a permanent care and improvement fund has been established as provided for in Title 35, chapter 20, part 3; and
(iii) not maintained and operated for private or corporate profit;
(e) property that is owned or property that is leased from a federal, state, or local governmental entity by institutions of purely public charity if the property is directly used for purely public charitable purposes;
(f) evidence of debt secured by mortgages of record upon real or personal property in the state of Montana;
(g) public museums, art galleries, zoos, and observatories that are not used or held for private or corporate profit;
(h) all household goods and furniture, including but not limited to clocks, musical instruments, sewing machines, and
wearing apparel of members of the family, used by the owner for personal and domestic purposes or for furnishing or
equipping the family residence;
(i) truck canopy covers or toppers and campers;
(j) a bicycle, as defined in 61-1-123, used by the owner for personal transportation purposes;
(k) motor homes;
(l) all watercraft;
(m)(h) motor vehicles, land, fixtures, buildings, and improvements owned by a cooperative association or nonprofit
corporation organized to furnish potable water to its members or customers for uses other than the irrigation of agricultural
land;
(n)(i) the right of entry that is a property right reserved in land or received by mesne conveyance (exclusive of leasehold
interests), devise, or succession to enter land with a surface title that is held by another to explore, prospect, or dig for oil,
gas, coal, or minerals;
(o)(j) (i) property that is owned and used by a corporation or association organized and operated exclusively for the care
of persons with developmental disabilities, persons with mental illness, or persons with physical or mental impairments that
constitute or result in substantial impediments to employment and that is not operated for gain or profit; and
(ii) property that is owned and used by an organization owning and operating facilities that are for the care of the retired, aged, or chronically ill and that are not operated for gain or profit;
(p)(k) all farm buildings with a market value of less than $500 and all agricultural implements and machinery with a
market value of less than $100;
(q)(l) property owned by a nonprofit corporation that is organized to provide facilities primarily for training and practice
for or competition in international sports and athletic events and that is not held or used for private or corporate gain or
profit. For purposes of this subsection (1)(q) (1)(l), "nonprofit corporation" means an organization that is exempt from
taxation under section 501(c) of the Internal Revenue Code and incorporated and admitted under the Montana Nonprofit
Corporation Act.
(r) the first $15,000 or less of market value of tools owned by the taxpayer that are customarily hand-held and that are
used to:
(i) construct, repair, and maintain improvements to real property; or
(ii) repair and maintain machinery, equipment, appliances, or other personal property;
(s)(m) harness, saddlery, and other tack equipment; all personal property, except personal property described in
15-1-101(1)(i). The exemption for personal property under this subsection (1)(m) does not apply to housetrailers or mobile
homes taxed under Title 15, chapter 24, part 2, or to motor vehicles taxed under Title 61, chapter 3.
(t)(n) a title plant owned by a title insurer or a title insurance producer, as those terms are defined in 33-25-105;
(u)(o) timber as defined in 15-44-102;
(v)(p) all trailers as defined in 61-1-111, semitrailers as defined in 61-1-112, pole trailers as defined in 61-1-114, and
travel trailers as defined in 61-1-131;
(w)(q) all vehicles registered under 61-3-456;
(x)(r) (i) buses, trucks having a manufacturer's rated capacity of more than 1 ton, and truck tractors, including buses,
trucks, and truck tractors apportioned under Title 61, chapter 3, part 7; and
(ii) personal property that is attached to a bus, truck, or truck tractor that is exempt under subsection (1)(x)(i) (1)(r)(i);
and
(y)(s) motorcycles and quadricycles.
(2) (a) For the purposes of subsection (1)(e), the term "institutions of purely public charity" includes any organization that meets the following requirements:
(i) The organization qualifies as a tax-exempt organization under the provisions of section 501(c)(3), Internal Revenue Code, as amended.
(ii) The organization accomplishes its activities through absolute gratuity or grants. However, the organization may solicit or raise funds by the sale of merchandise, memberships, or tickets to public performances or entertainment or by other similar types of fundraising activities.
(b) For the purposes of subsection (1)(g), the term "public museums, art galleries, zoos, and observatories" means
governmental entities or nonprofit organizations whose principal purpose is to hold property for public display or for use as
a museum, art gallery, zoo, or observatory. The exempt property includes all real and personal property and improvements
reasonably necessary for use in connection with the public display or observatory use. Unless the property is leased for a
profit to a governmental entity or nonprofit organization by an individual or for-profit organization, real and personal
property and improvements owned by other persons is are exempt if it the property is:
(i) actually used by the governmental entity or nonprofit organization as a part of its public display;
(ii) held for future display; or
(iii) used to house or store a public display.
(3) The following portions of the appraised value of a capital investment in a recognized nonfossil form of energy generation or low emission wood or biomass combustion devices, as defined in 15-32-102, are exempt from taxation for a period of 10 years following installation of the property:
(a) $20,000 in the case of a single-family residential dwelling;
(b) $100,000 in the case of a multifamily residential dwelling or a nonresidential structure."
Section 35. Section 15-6-207, MCA, is amended to read:
"15-6-207. Agricultural exemptions. (1) The following agricultural products are exempt from taxation:
(a)(1) all unprocessed agricultural products on the farm or in storage and owned by the producer;
(b)(2) all producer-held grain in storage;
(c)(3) all unprocessed agricultural products, except livestock;
(d)(4) except as provided in subsection (1)(e), livestock that have not attained the age of 24 months as of February 1 or
as of the last day of any month of the prior tax year if assessed on the average inventory basis as provided in 15-24-902(2);
(e)(5) swine that have not attained the age of 6 months as of January 1;
(f)(6) poultry and the unprocessed products of poultry; and
(g)(7) bees and the unprocessed product of bees.
(2) Any beet digger, beet topper, beet defoliator, beet thinner, beet cultivator, beet planter, or beet top saver designed
exclusively to plant, cultivate, and harvest sugar beets is exempt from taxation if the implement has not been used to plant,
cultivate, or harvest sugar beets for the 2 years immediately preceding the current assessment date and there are no
available sugar beet contracts in the sugar beet grower's marketing area."
NEW SECTION. Section 36. Homestead exemption -- definitions. As used in [sections 36 through 38], the following definitions apply:
(1) "Owner-occupied residence" means a single-family residence, including a trailer or mobile home, or a condominium unit that is subject to property taxes and that is owned, or that is under contract for deed, by a person, individually or jointly. The residence includes all improvements used for residential purposes and associated outbuildings and 1 acre of land beneath the improvements. A taxpayer with a life estate is an owner for purposes of [sections 36 through 38].
(2) "Person" means an individual natural person who is eligible for a homestead exemption under [sections 36 through 38].
NEW SECTION. Section 37. Homestead exemption. (1) Sixty-five percent of the first $50,000 or less of market value of any owner-occupied residence is exempt from property taxation. The residence must be actually occupied for at least 7 months a year as a primary residential dwelling by the Montana resident.
(2) A Montana resident may own and occupy more than one owner-occupied residence in this state during the year and still meet the occupancy requirement in subsection (1) if the total occupancy is for 7 months or more.
(3) If the Montana resident meets the requirements of subsection (1) on any one owner-occupied residence, all other owner-occupied residences owned by the Montana resident are eligible for the exemption under [sections 36 through 38], whether or not the owner-occupied residence was occupied by the owner for the required time. However, a Montana resident is entitled to an exemption for only a single owner-occupied residence.
(4) The exemption allowed under [sections 36 through 38] does not apply to a residence that was leased or rented for more than 5 months during the year.
NEW SECTION. Section 38. Homestead exemption -- application for exemption. (1) A person who is eligible for an exemption of property allowed under [sections 36 through 38] shall make an affidavit to the department, on a form provided by the department without cost, stating:
(a) the fact that the person owns and maintains the residence as the person's primary residential dwelling; and
(b) other information that is relevant to the applicant's eligibility.
(2) The application must be made before March 15 of the year for which the applicant seeks the exemption. The application remains in effect in subsequent years unless there is a change in ownership of the property. The taxpayer shall inform the department of any change in eligibility. The department may inquire by mail whether there is any change in ownership. A change in ownership does not affect the exemption if the new owner satisfies the conditions of [sections 36 through 38].
(3) The affidavit is sufficient if the applicant signs a statement affirming the correctness of the information supplied, whether or not the statement is signed before a person authorized to administer oaths, and mails the application and statement to the department. The signed statement must be treated as a statement under oath or equivalent affirmation for the purposes of 45-7-202, relating to the criminal offense of false swearing.
Section 39. Section 15-7-102, MCA, is amended to read:
"15-7-102. Notice of classification and appraisal to owners -- appeals. (1) (a) The department shall mail to each owner or purchaser under contract for deed a notice of the classification of the land owned or being purchased and the appraisal of the improvements on the land only if one or more of the following changes pertaining to the land or improvements have been made since the last notice:
(i) change in ownership;
(ii) change in classification;
(iii) except as provided in subsection (1)(b), change in valuation, including the change in the exemption amount
provided for under [sections 36 through 38]; or
(iv) addition or subtraction of personal property described in 15-1-101(1)(i) affixed to the land or to improvements.
(b) After the first year, the department is not required to mail the The notice provided for in subsection (1)(a)(iii) if the
change in valuation is the result of an incremental change in valuation caused by the phasing in of a reappraisal.
(c) The notice must include the following for the taxpayer's informational purposes:
(i) for owner-occupied residential property, the total market value of the land and improvements, the exemption amount allowed under [sections 36 through 38], and the assessed value of the land and improvements subject to taxation;
(ii) the total amount of mills levied against the property in the prior year;
(iii) the amount of the prior year's taxes resulting from levied mills;
(iv) an estimate of the current year's taxes based on the prior year's mills; and
(ii)(v) a statement that the notice is not a tax bill.
(d)(c) Any misinformation provided in the information required by subsection (1)(c) (1)(b) does not affect the validity
of the notice and may not be used as a basis for a challenge of the legality of the notice.
(2) (a) Except as provided in subsection (2)(c), the department shall assign each assessment to the correct owner or purchaser under contract for deed and mail the notice of classification and appraisal on a standardized form, adopted by the department, containing sufficient information in a comprehensible manner designed to fully inform the taxpayer as to the classification and appraisal of the property and of changes over the prior tax year.
(b) The notice must advise the taxpayer that in order to be eligible for a refund of taxes from an appeal of the classification or appraisal, the taxpayer is required to pay the taxes under protest as provided in 15-1-402.
(c) The department is not required to mail the notice of classification and appraisal to a new owner or purchaser under contract for deed unless the department has received the transfer certificate from the clerk and recorder, as provided in 15-7-304, and has processed the certificate before the notices required by subsection (2)(a) are mailed. The date of mailing is the date reported to the county tax appeal board pursuant to 15-15-101.
(3) If the owner of any land and improvements is dissatisfied with the appraisal as it reflects the market value of the property as determined by the department or with the classification of the land or improvements, the owner may request an assessment review by submitting an objection in writing to the department, on forms provided by the department for that purpose, within 30 days after receiving the notice of classification and appraisal from the department. The review must be conducted informally and is not subject to the contested case procedures of the Montana Administrative Procedure Act. As a part of the review, the department may consider the actual selling price of the property, independent appraisals of the property, and other relevant information presented by the taxpayer in support of the taxpayer's opinion as to the market value of the property. The department shall give reasonable notice to the taxpayer of the time and place of the review. After the review, the department shall determine the correct appraisal and classification of the land or improvements and notify the taxpayer of its determination. In the notification, the department shall state its reasons for revising the classification or appraisal. When the proper appraisal and classification have been determined, the land must be classified and the improvements appraised in the manner ordered by the department.
(4) Whether a review as provided in subsection (3) is held or not, the department may not adjust an appraisal or classification upon the taxpayer's objection unless:
(a) the taxpayer has submitted an objection in writing; and
(b) the department has stated its reason in writing for making the adjustment.
(5) A taxpayer's written objection to a classification or appraisal and the department's notification to the taxpayer of its determination and the reason for that determination are public records. The department shall make the records available for inspection during regular office hours.
(6) If any property owner feels aggrieved by the classification or appraisal made by the department after the review provided for in subsection (3), the property owner has the right to first appeal to the county tax appeal board and then to the state tax appeal board, whose findings are final subject to the right of review in the courts. The appeal to the county tax appeal board must be filed within 30 days after notice of the department's determination is mailed to the taxpayer. A county tax appeal board or the state tax appeal board may consider the actual selling price of the property, independent appraisals of the property, and other relevant information presented by the taxpayer as evidence of the market value of the property. If the county tax appeal board or the state tax appeal board determines that an adjustment should be made, the department shall adjust the base value of the property in accordance with the board's order."
Section 40. Section 15-7-103, MCA, is amended to read:
"15-7-103. Classification and appraisal -- general and uniform methods. (1) It is the duty of the department of
revenue to implement the provisions of 15-7-101 through 15-7-103 by providing:
(a) for a general and uniform method of classifying lands in the state for the purpose of securing an equitable and
uniform basis of assessment of said the lands for taxation purposes;
(b) for a general and uniform method of appraising city and town lots;
(c) for a general and uniform method of appraising rural and urban improvements;
(d) for a general and uniform method of appraising timberlands.
(2) All lands shall must be classified according to their use or uses and graded within each class according to soil and
productive capacity. In such the classification work, use shall be made of soil surveys and maps and all other pertinent
available information must be used.
(3) All lands must be classified by parcels or subdivisions not exceeding 1 section each, by the sections, fractional sections, or lots of all tracts of land that have been sectionized by the United States government, or by metes and bounds, whichever yields a true description of the land.
(4) All agricultural lands must be classified and appraised as agricultural lands without regard to the best and highest value use of adjacent or neighboring lands.
(5) In any periodic revaluation of taxable property completed under the provisions of 15-7-111 after January 1, 1986, all
property classified in 15-6-134 subject to reappraisal must be appraised on its market value in the same year. The
department shall publish a rule specifying the year used in the appraisal.
(6) All sewage Sewage disposal systems and domestic use water supply systems of all dwellings may not be appraised,
assessed, and taxed separately from the land, house, or other improvements in which they are located. In no event may the
The sewage disposal or domestic water supply systems may not be included twice by including them in the valuation and
assessing them separately."
Section 41. Section 15-7-122, MCA, is amended to read:
"15-7-122. Temporary authority to exceed mill levy Budget limitations. Taxing Unless otherwise provided by law,
taxing jurisdictions may not adopt and levy for a budget equal to 105% that exceeds 102% of the preceding year's budget,
statutory mill levy limitations provisions notwithstanding, unless the taxable valuation therein has increased to a level
which would allow statutory mill levies to produce a budget equal to 105% of the preceding year's budget."
Section 42. Section 15-7-202, MCA, is amended to read:
"15-7-202. Eligibility of land for valuation as agricultural. (1) (a) Contiguous parcels of land totaling 160 acres or more under one ownership are eligible for valuation, assessment, and taxation as agricultural land each year that none of the parcels is devoted to a residential, commercial, or industrial use.
(b) (i) Contiguous parcels of land of 20 acres or more but less than 160 acres under one ownership are eligible for valuation, assessment, and taxation as agricultural land if the land is used primarily for raising and marketing, as defined in subsection (1)(c), products that meet the definition of agricultural in 15-1-101. A parcel of land is presumed to be used primarily for raising agricultural products if the owner or the owner's immediate family members, agent, employee, or lessee markets not less than $1,500 in annual gross income from the raising of agricultural products produced by the land. The owner of land that is not presumed to be agricultural land shall verify to the department that the land is used primarily for raising and marketing agricultural products.
(ii) Noncontiguous parcels of land that meet the income requirement of subsection (1)(b)(i) are eligible for valuation, assessment, and taxation as agricultural land under subsection (1)(b)(i) if:
(A) the land is an integral part of a bona fide agricultural operation undertaken by the persons set forth in subsection (1)(b)(i) as defined in this section; and
(B) the land is not devoted to a residential, commercial, or industrial use.
(c) For the purposes of this subsection (1),:
(i) "marketing" means the selling of agricultural products produced by the land and includes but is not limited to:
(A)(i) rental or lease of the land as long as the land is actively used for grazing livestock or for other agricultural
purposes; and
(B)(ii) rental payments made under the federal conservation reserve program or a successor to that program;
(ii) land that is devoted to residential use or that is used for agricultural buildings and is included in or is contiguous to
land under the same ownership that is classified as agricultural land, other than land described in 15-6-133(1)(c), must be
classified as agricultural land, and the land must be valued as provided in 15-7-206.
(2) Contiguous or noncontiguous parcels of land totaling less than 20 acres under one ownership that are actively devoted to agricultural use are eligible for valuation, assessment, and taxation as agricultural each year that the parcels meet any of the following qualifications:
(a) the parcels produce and the owner or the owner's agent, employee, or lessee markets not less than $1,500 in annual gross income from the raising of agricultural products as defined in 15-1-101; or
(b) the parcels would have met the qualification set out in subsection (2)(a) were it not for independent, intervening causes of production failure beyond the control of the producer or marketing delay for economic advantage, in which case proof of qualification in a prior year will suffice.
(3) Parcels that do not meet the qualifications set out in subsections (1) and (2) may not be classified or valued as agricultural if they are part of a platted subdivision that is filed with the county clerk and recorder in compliance with the Montana Subdivision and Platting Act.
(4) Land may not be classified or valued as agricultural if it is subdivided land with stated restrictions effectively prohibiting its use for agricultural purposes. For the purposes of this subsection only, "subdivided land" includes parcels of land larger than 20 acres that have been subdivided for commercial or residential purposes.
(5) The grazing on land by a horse or other animals kept as a hobby and not as a part of a bona fide agricultural enterprise is not considered a bona fide agricultural operation.
(6) The department may not classify land consisting of less than 160 acres as agricultural unless the owner has applied
to have land classified as agricultural land. Land of 20 acres or more but less than 160 acres for which no application for
agricultural classification has been made is taxed as provided in 15-6-133(1)(c) 15-8-111. If land has been valued, assessed,
and taxed as agricultural land in any year, it must continue to be valued, assessed, and taxed as agricultural until the
department reclassifies the property. A reclassification does not mean revaluation pursuant to 15-7-111.
(7) For the purposes of this part, growing timber is not an agricultural use."
Section 43. Section 15-7-206, MCA, is amended to read:
"15-7-206. Improvements on Determination of agricultural land area. (1) In determining the total area of land
actively devoted to agricultural use, there is included the area of all land under barns, sheds, silos, cribs, greenhouses, and
like similar structures, and lakes, dams, ponds, streams, irrigation ditches, and like facilities similar water bodies and
related structures.
(2) One acre of land beneath agricultural improvements on agricultural land, as described in 15-7-202(1)(c)(ii), is
valued at the class with the highest productive value and production capacity of agricultural land."
Section 44. Section 15-8-104, MCA, is amended to read:
"15-8-104. Department audit and review of taxable value -- costs paid by department. (1) When in the judgment
of the director of revenue the department it is necessary, audits may be made for the purpose of determining the taxable
value of net proceeds of mines and all other types of property subject to ad valorem taxation.
(2) The department may conduct reviews of the assessment of all commercial personal property to ensure that the value
of the property in those classes reflects market value. Because the assessed value of commercial personal property is
defined as market value under 15-8-111(2), the review conducted by the department may be directed toward ensuring that
all taxable personal property is reported to the department.
(3)(2) The cost of any audit or review performed under subsection (1) or (2) must be paid by the department."
Section 45. Section 15-8-112, MCA, is amended to read:
"15-8-112. Assessments to be made on classification and appraisal. (1) The assessments of all lands, all city and town lots, and all improvements must be made on the classification and appraisal as made or caused to be made by the department.
(2) The percentage taxable basis of the market value or assessed value, as provided for in chapter 6, part 1 15-8-111, is
determined and assigned by the department when it makes its annual assessment of the property that it is required to assess
centrally. The department shall apportion the assessments to the various counties, and its determination is final except as to
the right of review in the state tax appeal board or the proper court."
Section 46. Section 15-8-201, MCA, is amended to read:
"15-8-201. General assessment day. (1) The department shall, between January 1 and the second Monday of July in each year, ascertain the names of all taxable inhabitants and assess all property subject to taxation in each county.
(2) The department shall assess property to:
(a) the person by whom it was owned or claimed or in whose possession or control it was at midnight of the preceding January 1; or
(b) except in the case of land splits, the new owner if the provisions of 15-7-304 have been met and the transfer certificate has been received and processed prior to determining the taxes that are due as provided in 15-10-305(2).
(3) The department shall also ascertain and assess all mobile homes arriving in the county after midnight of the preceding January 1.
(4) A mistake in the name of the owner or supposed owner of real property does not invalidate the assessment.
(5) The procedure provided by this section does not apply to:
(a) motor vehicles that are taxed under Title 61;
(b) motor homes, travel trailers, and campers;
(c) watercraft;
(d) livestock;
(e) property defined in 61-1-104 as special mobile equipment that is subject to assessment for personal property taxes
on the date that application is made for a special mobile equipment plate;
(f)(e) mobile homes and manufactured homes held by a distributor or dealer as stock in trade; and
(g)(f) property subject to the provisions of 15-16-203.
(6) Credits must be assessed as provided in 15-1-101(1)(f)."
Section 47. Section 15-8-202, MCA, is amended to read:
"15-8-202. Motor vehicle assessment by department of justice. (1) (a) The department of justice shall assess all light vehicles, subject to 61-3-313 through 61-3-316 and 61-3-501, for taxation in accordance with 61-3-503.
(b) The department of justice shall determine the fee in lieu of tax for all buses, trucks having a manufacturer's rated capacity of more than 1 ton, and truck tractors in accordance with 61-3-528 and 61-3-529.
(c) Taxes or fees in lieu of tax on motor vehicles under this subsection (1) must be assessed or imposed in each year on
the persons who owned or claimed the motor vehicles or in whose possession or control the motor vehicle was vehicles
were on the anniversary registration date dates.
(2) A tax or fee in lieu of tax may not be assessed or imposed against motor vehicles subject to taxation or to a fee in lieu of tax that constitute inventory of motor vehicle dealers as of January 1. These vehicles and all other motor vehicles subject to taxation or a fee in lieu of tax that are brought into the state after January 1 as motor vehicle dealers' inventories must be assessed to their respective purchasers as of the dates the vehicles are registered by the purchasers.
(3) "Purchasers" includes dealers who apply for registration or reregistration of motor vehicles, except as otherwise provided by 61-3-502.
(4) Goods, wares, and merchandise of motor vehicle dealers, other than new motor vehicles and new mobile homes,
must be assessed at market value as of January 1."
Section 48. Section 15-8-205, MCA, is amended to read:
"15-8-205. Initial assessment of class four trailer, manufactured home, and mobile home property -- when. The
department shall assess all class four trailer, manufactured home, and mobile home property immediately upon arrival in
the county if the taxes have not been previously paid for that year in another county in Montana."
Section 49. Section 15-8-301, MCA, is amended to read:
"15-8-301. Statement -- what to contain. (1) The department may require from a person a statement under oath setting
forth specifically all the real and personal property and improvements owned by, in possession of, or under the control of
the person at midnight on January 1. The statement must be in writing, showing separately:
(a) all property belonging to, claimed by, or in the possession or under the control or management of the person;
(b) all property belonging to, claimed by, or in the possession or under the control or management of any firm of which the person is a member;
(c) all property belonging to, claimed by, or in the possession or under the control or management of any corporation of which the person is president, secretary, cashier, or managing agent;
(d) the county in which the property is situated or in which the property is liable to taxation and, if liable to taxation in the county in which the statement is made, also the city, town, school district, road district, or other revenue districts in which the property is situated;
(e) an exact description of all lands, land and improvements, and personal property;
(f) all depots, shops, stations, buildings, and other structures erected on the space covered by the right-of-way and all other property owned by any person owning or operating any railroad within the county.
(2) The department shall notify the taxpayer in the statement for reporting personal property owned by a business or
used in a business that the statement is for reporting business equipment and other business personal property described in
Title 15, chapter 6, part 1.
(3)(2) Whenever one member of a firm or one of the proper officers of a corporation has made a statement showing the
property of the firm or corporation, another member of the firm or another officer is not required to include the property in
that person's statement but the statement must show the name of the person or officer who made the statement in which the
property is included.
(4)(3) The fact that a statement is not required or that a person has not made a statement, under oath or otherwise, does
not relieve the person's property from taxation."
Section 50. Section 15-8-405, MCA, is amended to read:
"15-8-405. Street railroads, bridges, and ferries. Street railroads, and bridges, and ferries, and their franchises owned
by persons or corporations must be listed and assessed in the county, town, or district where such the property or any
portion thereof of the property is located, and the track of the railroad and the bridge are personal property."
Section 51. Section 15-8-406, MCA, is amended to read:
"15-8-406. Assessment of public utilities in one county. Railroads operated or situated in one county; telegraph,
telephone, and electric light power lines and similar franchises and properties situated in one county and their franchises;
and canals, ditches, and flumes and their franchises situated in one county and the franchises of the same must be listed and
assessed in the county in which such the property is located,. and the department of revenue must require the The owner of
such the property or his the owner's agent or any officer of a corporation owning the same to make a verified statement
containing a list of property described in this section shall verify to the department the number of miles such of the property
that is operated or situated in the county and the value thereof of the property."
Section 52. Section 15-8-407, MCA, is amended to read:
"15-8-407. Railroads and other franchises. (1) The franchise, roadway, roadbed, rails, rolling stock, and all other
operating property of all railroads a railroad operated in more than one county or in more than one state must be assessed by
the department of revenue as hereinafter provided in Title 15, chapter 23, part 2.
(2) Other franchises, if granted by the authorities of a county or city, A franchise, other than a railroad franchise, must
be assessed in the county or city within which they were the franchise was granted; if. If a franchise was granted by any
other authority, they the franchise must be assessed in the county in which the corporations, firms, or persons corporation,
firm, or person owning or holding them have their the franchise has its principal place of business."
Section 53. Section 15-8-701, MCA, is amended to read:
"15-8-701. Property tax record -- definition -- listing property in. (1) Unless the context clearly indicates otherwise, the term "property tax record" means the record that is kept in each county by the department and that contains the information described in subsection (2). The term includes records referred to as an "assessment book" or "assessment roll" and, in a county in which the property tax record is kept on a computer system, the information on the system analogous to the information described in subsection (2).
(2) The department shall prepare a property tax record with appropriate headings, in which must be listed list all
property within the state and in which must be specified specify, by an appropriate heading:
(a) the name of the person to whom the property is assessed;
(b) land by description sufficient to identify it, the locality, and the improvements on the land;
(c) all taxable personal property, showing the number, kind, amount, and quality; but a failure to enumerate in detail the
personal property does not invalidate the assessment;
(d) the assessed value of real estate;
(e)(d) the assessed value of improvements on land, except that land and improvements must be separately listed when
required under 15-8-111;
(f)(e) the assessed value of improvements on real estate assessed to persons other than the owners of the real estate.
Taxable improvements owned by a person, located upon land exempt from taxation, must, as to the manner of assessment,
be assessed as other real estate. A value may not be assessed against the exempt land, and the land may not be charged with
and is not responsible for the assessment made against any taxable improvements located on the land.
(g) the assessed value of all taxable personal property;
(h)(f) the school, road, and other revenue districts in which each piece of property assessed is situated;
(i)(g) the total assessed value of all property;
(j)(h) the taxable value of all property;
(k)(i) the taxes and fees assessed against the property; and
(l)(j) the total of each type of tax, levy, and fee."
Section 54. Section 15-16-117, MCA, is amended to read:
"15-16-117. Personal property -- treasurer's duty to collect certain taxes. (1) The county treasurer shall demand payment of poor fund taxes, authorized by 53-2-322, and road taxes, authorized by 7-14-2206 or 7-14-2501 through 7-14-2504, of every person liable for the taxes whose name does not appear on the property tax record. On the neglect or refusal of a person to pay the taxes, the treasurer shall collect the taxes by seizure and sale of any property owned by the person.
(2) These taxes must be added in the property tax record to other property taxes of persons paying taxes upon real and
personal property and must be paid to the county treasurer at the time of payment of other property taxes.
(3) The procedure for the sale of property by the county treasurer for the taxes is regulated by 15-16-119 and 15-17-911.
(4) The provisions of this section do not apply to property for which delinquent property taxes have been suspended or canceled under the provisions of Title 15, chapter 24, part 17."
Section 55. Section 15-16-118, MCA, is amended to read:
"15-16-118. Minimum tax payment -- limitation of appeal. (1) If the taxes and special assessments due for the
current year shown in the written notice sent to the taxpayer as required in 15-16-101(2) are less than $5 or if a tax notice of
taxes and special assessments due on personal property is less than $5, the county treasurer shall notify the taxpayer that a
minimum tax of $5 is imposed and due. The $5 tax is imposed for purposes of defraying administrative expenses incurred
in administering the tax. The difference between the taxes and special assessments and the minimum tax of $5 is to be
deposited in the county general fund.
(2) The notification of the $5 minimum tax required by subsection (1) must be made in the notice required in
15-16-101(2) or in the notice of taxes and special assessments due on personal property.
(3) The minimum tax imposed by this section is not affected by the limitation on property taxes contained in Title 15,
chapter 10, part 4.
(4)(3) The minimum assessment imposed by this section does not apply to assessments levied against property owned
by the state or a county, consolidated local government, city, town, school district, or other governmental entity unless the
total assessments levied against all the property owned by the governmental entity are less than $5."
Section 56. Section 15-16-202, MCA, is amended to read:
"15-16-202. Boats, snowmobiles, and motor vehicles -- payment of current and back taxes and fees. (1) The fee in
lieu of personal property taxes assessed against a boat for the year in which application for decals is made and the
immediately previous year must be paid before license decals may be issued pursuant to 23-2-515.
(2) The fee in lieu of tax imposed on a snowmobile for the year in which application for registration is made and the immediately previous year must be paid before a snowmobile may be registered pursuant to 23-2-616.
(3) Except for mobile homes and manufactured homes as defined in 15-1-101, the new motor vehicle sales tax and the motor vehicle tax or fee in lieu of tax imposed or assessed against a motor vehicle for the current year and the immediately previous year must be paid before a motor vehicle may be registered or reregistered pursuant to 61-3-303.
(4) The provisions of subsections (1) through (3) do not require payment of the immediately previous year's taxes or fees if the taxes or fees have already been paid."
Section 57. Section 15-16-603, MCA, is amended to read:
"15-16-603. Refund of taxes -- limitations on refunds. (1) Subject to the provisions in subsections (2) and (3), a board of county commissioners shall order a refund:
(a) on a tax, penalty, interest, or cost paid more than once or erroneously or illegally collected if an appeal pursuant to 15-1-402 was not available;
(b) on a tax paid for which a refund is allowed under 15-16-612 or 15-16-613;
(c) on a tax, penalty, or interest collected as a result of an error in the description or location of real property or
improvements or for duplicate taxes paid as determined by the department of revenue;
(d) on net or gross proceeds tax, centrally assessed property tax, or local government severance tax, penalty, or interest
when the department of revenue notifies the board of county commissioners of an assessment revision completed pursuant
to 15-8-601; or
(e) upon entry of a decision either by the district court or by the state tax appeal board under 15-2-306 that has not been appealed to a higher court.
(2) The taxpayer shall prove that a refund is due under subsection (1)(a) or (1)(b).
(3) (a) A refund may not be granted under subsection (1)(a) or (1)(b) unless the taxpayer or a representative of the taxpayer files a written claim with the board of county commissioners within 10 years after the date when the second half of the taxes would have become delinquent if the taxes had not been paid.
(b) The refund required under subsection (1)(c) must be made for 5 tax years or for the duration of the error, whichever period is shorter.
(c) A refund may not be made under subsection (1)(c) unless the taxpayer allowed the department of revenue access to
the taxpayer's property for the purposes of appraising the property."
Section 58. Section 15-16-611, MCA, is amended to read:
"15-16-611. Reduction of property tax for property destroyed by natural disaster -- proration of taxes on
replaced property. (1) The department shall, upon showing by a taxpayer that some or all of the improvements on the
taxpayer's real property, or that a trailer or mobile home, or that personal property taxed under Title 15, chapter 6, part 1,
has been destroyed to such an extent that the improvements or personal property the trailer or mobile home has been
rendered unsuitable for its previous use by natural disaster, adjust the taxable value on the property, accounting for the
destruction.
(2) The county treasurer shall adjust the tax due and payable for the current year on the property under 15-16-102 or on
personal property under 15-16-119 or 15-24-202 as provided in subsection (3) of this section.
(3) To determine the amount of tax due for destroyed property, the county treasurer shall:
(a) multiply the amount of tax levied and assessed on the original taxable value of the property for the year by the ratio that the number of days in the year that the property existed before destruction bears to 365; and
(b) multiply the amount of tax levied and assessed on the adjusted taxable value of the property for the remainder of the year by the ratio that the number of days remaining in the year after the destruction of the property bears to 365.
(4) This section does not apply to delinquent taxes owed on the destroyed property for a year prior to the year in which the property was destroyed.
(5) A taxpayer receiving a reduction in taxes on personal property under this section shall notify the department if the
taxpayer replaces the destroyed personal property in the same tax year that the personal property was destroyed. The tax on
the personal property replacing the destroyed personal property must be prorated according to the ratio that the number of
days remaining in the year after the property was replaced bears to 365. A taxpayer who fails to notify the department
within 30 days from the date of the replacement of the personal property is subject to the penalty prescribed in 15-1-303.
(6)(5) For the purposes of this section, "natural disaster" includes but is not limited to fire, flood, earthquake, or wind.
A fire is considered a natural disaster regardless of the origin of the fire. However, if the taxpayer is convicted of arson for
burning the property, property taxes may not be adjusted. If the taxes had already been adjusted prior to the conviction, the
original amount must be collected."
Section 59. Section 15-17-121, MCA, is amended to read:
"15-17-121. Definitions. Except as otherwise specifically provided, when terms mentioned in Title 15, chapters 17 and 18, are used in connection with taxation, they are defined in the following manner:
(1) "Certificate" or "tax sale certificate" means the document described in 15-17-212.
(2) (a) "Cost" means the cost incurred by the county as a result of a taxpayer's failure to pay taxes when due. It includes but is not limited to any actual out-of-pocket expenses incurred by the county plus the administrative cost of:
(i) preparing the list of delinquent taxes;
(ii) preparing the notice of pending tax sale;
(iii) conducting the tax sale;
(iv) assigning the county's interest in a tax lien to a third party;
(v) identifying interested persons entitled to notice of the pending issuance of a tax deed;
(vi) notifying interested persons;
(vii) issuing the tax deed; and
(viii) any other administrative task associated with accounting for or collecting delinquent taxes.
(b) Cost does not include the costs incurred by the owner of a property tax lien other than the county.
(3) "County" means any county government and includes those classified as consolidated governments.
(4) "Property tax lien" means a lien acquired by the payment at a tax sale of all outstanding delinquent taxes, including penalties, interest, and costs.
(5) "Purchaser" means any person, other than the person to whom the property is assessed, who pays at the tax sale the delinquent taxes, including penalties, interest, and costs, and receives a certificate representing a lien on the property or who is otherwise listed as the purchaser. An assignee is a purchaser.
(6) "Tax", "taxes", or "property taxes" means all ad valorem property taxes, property assessments, fees related to property, and assessments for special improvement districts and rural special improvement districts.
(7) "Tax sale" means:,
(a) with respect to real property and improvements, the offering for sale by the county treasurer of a property tax lien
representing delinquent taxes, including penalties, interest, and costs; and
(b) with respect to personal property, the offering for sale by the county treasurer of personal property on which the
taxes are delinquent or other personal property on which the delinquent taxes are a lien."
Section 60. Section 15-23-101, MCA, is amended to read:
"15-23-101. Properties centrally assessed. The department of revenue shall centrally assess each year:
(1) the franchise, roadway, roadbeds, rails, rolling stock, and all other operating property, except personal property not
attached or affixed to land or to improvements, of railroads and railroad car companies operating in more than one county
in the state or in more than one state;
(2) property owned by a corporation or other person operating a single and continuous property operated in more than
one county or in more than one state, including telegraph, telephone, microwave, electric power, or transmission lines;
natural gas or oil pipelines; and canals, ditches, flumes, or like similar properties and including, if congress passes
legislation that allows the state to tax property owned by an agency created by congress to transmit or distribute electrical
energy, property constructed, owned, or operated by a public agency created by the congress to transmit or distribute
electric energy produced at privately owned generating facilities (not including rural electric cooperatives);
(3) all real property and improvements of scheduled airlines;
(4) the net proceeds of mines;
(5) the gross proceeds of coal mines; and
(6) property described in subsections (1) and (2) that is subject to the provisions of Title 15, chapter 24, part 12."
Section 61. Section 15-23-103, MCA, is amended to read:
"15-23-103. Due date of reports and returns -- extensions. (1) Except as provided in subsection subsections (2) and
(3), each report or return described in 15-23-301, 15-23-402, 15-23-502, 15-23-517, or 15-23-701, or 15-23-517 must be
delivered to the department on or before March 31 each year.
(2) Each report or return for a natural gas or oil pipeline described in 15-23-301 must be delivered to the department on or before April 15 each year.
(3) Each report described in 15-23-201, 15-23-212, 15-23-515, 15-23-516, or 15-23-518 must be delivered to the
department before April 15 each year.
(4) The department may for good cause extend the time for filing a return or report for not more than 30 days."
Section 62. Section 15-23-104, MCA, is amended to read:
"15-23-104. Failure to file -- estimate by department -- penalty. (1) If any a person fails to file a report or return
within the time established in 15-23-103 or by a later date approved by the department, the department shall estimate the
value of the property that should have been reported on the basis of the best available information. In estimating the value
of the net proceeds of mines, the department shall proceed under 15-23-506, and in estimating the value of the gross
proceeds of coal mines, the department shall proceed under 15-35-107. In estimating the value of all other property subject
to assessment under parts 2 through 4 of this chapter, the department shall proceed under 15-1-303. In estimating value
under this section, the department may subpoena a person or the person's agent as specified in 15-1-302. An assessment
pursuant to parts 5, 7, and 8 of this chapter based on estimated value or imputed value is subject to review under 15-1-211.
For each month or part of a month that a report is delinquent, the department shall impose and collect a $25 penalty, with
the total not to exceed $200, and shall deposit the penalty to the credit of the general fund. The department shall assess a
penalty of 1% of the tax due for each month or part of a month that the report is delinquent. The department shall notify the
county treasurer of each affected county of the amount of the penalty, and the treasurer shall collect the penalty in the same
manner as the taxes to which the penalty applies.
(2) For a delinquency in reporting under 15-23-212, the department shall assess a penalty of 1% of the tax due for each
month or part of a month that the report is delinquent."
Section 63. Section 15-23-105, MCA, is amended to read:
"15-23-105. Apportionment among counties. The department shall apportion the value of property assessed under
15-23-101, 15-23-202, or 15-23-403, other than railroad car company property, among the counties in which such the
property is located. Apportionment shall must be on a mileage basis or on the basis of the original installed cost of the
centrally assessed property located in the respective counties. If the property is of such a character that its value cannot
reasonably be apportioned on the basis of mileage or on the basis of the original installed cost of the centrally assessed
property located in the respective counties, the department may adopt such other another method or basis of apportionment
as that may be just or proper."
Section 64. Section 15-23-201, MCA, is amended to read:
"15-23-201. Assessment of railroads. The president, secretary, or managing agent, or such other officer of a
corporation as that the department of revenue may designate of any corporation and each person or association of persons
owning or operating any railroad in more than one county in this state or in more than one state must shall on or before
April 15 each year furnish the department a statement, signed and sworn to by one of such the officers or by the person or
one of the persons forming such the association, showing in detail for the year ending December 31 immediately preceding:
(1) the whole number of miles of railroad in the state and, where when the line is partly out outside of the state, the
whole number of miles without outside of the state and the whole number of miles within the state, owned or operated by
such the corporation, person, or association;
(2) the value of the roadway, roadbed, and rails of the whole railroad and the value of the same railroad within the state;
(3) the width of the right-of-way;
(4) the number of each kind of all rolling stock used by such corporation, person, or association in operating the entire
railroad, including the part without the state;
(5) the number, kind, and value of rolling stock owned and operated in the state;
(6) the number, kind, and value of rolling stock used in the state but not owned by the party making the returns;
(7) the number, kind, and value of rolling stock owned but used out of the state, either upon divisions of road operated
by the party making the returns or by and upon other railroads;
(8)(4) the whole number of sidetracks in each county, including the number of miles of track in each railroad yard in the
state;
(9) the number of each kind of rolling stock used in operating the entire railroad, including the part without the state,
which must include a detailed statement of the number and value thereof of all engines; passenger, mail, express, baggage,
freight, and other cars; or property owned or leased by such corporation, person, or association;
(10) the number of sleeping and dining cars not owned by such corporation, person, or association but used in operating
the railroads of such corporation, person, or association in the state or on the line of the road without the state during each
month of the year for which the return is made; also the number of miles each month the cars have been run or operated
within and without the state;
(11)(5) a description of the road, giving the points of entrance into and the points of exit from each county, with a
statement of the number of miles in each county. When a description of the road has once been given, no other annual
description thereof is necessary unless the road has been changed. Whenever the road or any portion of the road is
advertised to be sold or is sold for taxes, either state or county, no other description is necessary than that given by, and the
same is conclusive upon, the person, corporation, or association giving the description. No An assessment is not invalid on
account of a misdescription of the railroad or the right-of-way for the same. If such the statement is not furnished as above
provided in this section, the assessment made by the department upon the property of the corporation, person, or
association failing to furnish the statement is conclusive and final.
(12)(6) the gross earnings of the entire road;
(13)(7) the gross earnings of the road within the state and, if the railroad is let to other operators, how much was derived
by the lessor as rental;
(14)(8) the cost of operating the entire road, exclusive of sinking fund, expenses of land department, and money paid to
the United States;
(15)(9) net income for such the year and the amount of dividend declared;
(16)(10) capital stock authorized;
(17)(11) capital stock paid in;
(18)(12) funded debt;
(19)(13) number of shares authorized;
(20)(14) number of shares of stock issued; and
(21) number, kind, and total number of miles traveled within the state by railroad cars owned by railroad car companies;
and
(22)(15) any other facts that the department may require."
Section 65. Section 15-23-202, MCA, is amended to read:
"15-23-202. Assessment -- how made. (1) The department must shall assess the franchise, roadway, roadbed, rails,
rolling stock, and all other operating properties, except personal property not attached or affixed to land or to
improvements, of all railroads operated in more than one county or in more than one state. All rolling stock must be
assessed in the name of the person owning, leasing, or using the same. Assessment must be made to the person owning or
leasing or using the same property and must be made upon the entire railroad within the state. The depots, stations, shops,
and buildings erected upon the space covered by the right-of-way and all other property owned or leased by such the
person, except as above otherwise provided, shall must be assessed by the department.
(2) In determining the taxable value of railroad property, the department shall determine the percentage rate "R"
provided for in 15-6-145 in order to achieve compliance with the requirements of the federal Railroad Revitalization and
Regulatory Reform Act of 1976, as amended."
Section 66. Section 15-23-301, MCA, is amended to read:
"15-23-301. Officers of certain public utility companies to furnish statement to department. The president,
secretary, or managing agent, or such other officer of a corporation as the department of revenue may designate of any
corporation and each person or association of persons owning or operating a telegraph, telephone, microwave, electric
power, or transmission line, natural gas pipeline, oil pipeline, canal, ditch, flume, or other property, other than real estate
not included in right-of-way or personal property not affixed or attached to land or to improvements, and which that
constitute constitutes a single and continuous property throughout more than one county or state, must shall each year
furnish the department a statement, signed and sworn to by one of such the officers or by the person or one of the persons
forming such the association, showing in detail for the year ending on December 31 immediately preceding as follows:
(1) the whole number of miles of said property in the state and, where when the property is partly out outside of the
state, the whole number of miles without outside of the state and the whole number of miles within the state owned or
operated by such the corporation, person, or association;
(2) the total value of the entire property and plant, both within and without outside of the state, and the total value of
that portion of the same property and plant within the state;
(3) a complete description of the property within the state, giving the points of entrance into and the points of exit from the state and the points of entrance into and the points of exit from each county, with a statement of the total number of miles in each county in the state;
(4) such other information regarding such the property as may be required by the department."
Section 67. Section 15-23-501, MCA, is amended to read:
"15-23-501. Taxation of mines. All mines and mining claims, both placer and rock in place, containing or bearing
gold, silver, copper, lead, coal, or other valuable mineral deposits, after purchase thereof from the United States, shall be
are taxed as all other land is taxed. All machinery used in mining and all property and surface improvements upon or
appurtenant to mines and mining claims which that have a value separate and independent of such the mines or mining
claims and the annual net proceeds of all mines and mining claims shall be are taxed as other personal property provided in
15-8-111."
Section 68. Section 15-23-505, MCA, is amended to read:
"15-23-505. Assessment of royalties. Upon receipt of the list or schedule setting forth the names and addresses of any
and all persons owning or claiming royalty and the amount paid or yielded as royalty to the royalty owners or claimants
during the year for which the return is made, the department of revenue shall proceed to assess and tax the royalties on the
same basis as net proceeds of mines are taxed as provided by 15-6-131 15-8-111."
Section 69. Section 15-23-703, MCA, is amended to read:
"15-23-703. Taxation of gross proceeds -- taxable value for bonding and guaranteed tax base aid to schools. (1)
The department shall compute from the reported gross proceeds from coal a tax roll that must be transmitted to the county
treasurer on or before September 15 each year. The department may not levy or assess any mills against the reported gross
proceeds of coal but shall levy a tax of 5% against the value of the reported gross proceeds as provided in 15-23-701(1)(d).
The county treasurer shall proceed to give full notice, as provided in 15-16-101, to each coal producer of the taxes due and
shall collect the taxes.
(2) For bonding, county classification, and all nontax purposes, the taxable value of the gross proceeds of coal is 45%
of the contract sales price as defined in 15-35-102.
(3)(2) Except as provided in subsection (6) (5), the county treasurer shall calculate and distribute to the state, county,
and eligible school districts in the county the amount of the coal gross proceeds tax, determined by multiplying the unit
value calculated in 15-23-705 times the tons of coal extracted, treated, and sold on which the coal gross proceeds tax was
owed during the preceding calendar year.
(4)(3) Except as provided in subsections (5) (4), (6) (5), and (8) (7), the county treasurer shall credit the amount
determined under subsection (3) (2) and the amounts received under 15-23-706:
(a) to the state and to the counties that levied mills in fiscal year 1990 against 1988 production in the relative
proportions required by the levies for state and county purposes in the same manner as property taxes were in the taxing
jurisdiction are distributed in the current fiscal year 1990 in the taxing jurisdiction; and
(b) to school districts in the county that either levied mills in school fiscal year 1990 against 1988 production or used
nontax revenue, such as impact aid money, as provided in 20 U.S.C. 7701, et seq., in lieu of levying mills against
production, in the same manner that property taxes collected or property taxes that would have been collected would have
been in the school districts are distributed in the 1990 current school fiscal year in the school district.
(5)(4) (a) If the total tax liability in a taxing jurisdiction exceeds the amount determined in subsection (3) (2), the
county treasurer shall, immediately following the distribution from taxes paid on May 31 of each year, send the excess
revenue, excluding any protested coal gross proceeds tax revenue, to the department for redistribution as provided in
15-23-706.
(b) If the total tax liability in a taxing jurisdiction is less than the amount determined in subsection (3) (2), the taxing
jurisdiction is entitled to a redistribution as provided by 15-23-706.
(6)(5) The board of county commissioners of a county may direct the county treasurer to reallocate the distribution of
coal gross proceeds taxes that would have gone to a taxing unit, as provided in subsection (4)(a) (3)(a), to another taxing
unit or taxing units, other than an elementary school or high school, within the county under the following conditions:
(a) The county treasurer shall first allocate the coal gross proceeds taxes to the taxing units within the county in the
same proportion that all other property tax proceeds were are distributed in the county in the current fiscal year 1990.
(b) If the allocation in subsection (6)(a) (5)(a) exceeds the total budget for a taxing unit, the commissioners may direct
the county treasurer to allocate the excess to any taxing unit within the county.
(7)(6) The board of trustees of an elementary or high school district may reallocate the coal gross proceeds taxes
distributed to the district by the county treasurer under the following conditions:
(a) The district shall first allocate the coal gross proceeds taxes to the budgeted funds of the district in the same
proportion that all other property tax proceeds were are distributed in the district in the current fiscal year 1990.
(b) If the allocation under subsection (7)(a) (6)(a) exceeds the total budget for a fund, the trustees may allocate the
excess to any budgeted fund of the school district.
(8)(7) The county treasurer shall credit all taxes collected under this part from coal mines that began production after
December 31, 1988, in the relative proportions required by the levies for state, county, and school district purposes in the
same manner as property taxes were are distributed in the previous current fiscal year. (In subsection (2), the deletion of the
reference to subsection (5) of 15-35-102 terminates December 31, 2005--sec. 5, Ch. 318, L. 1995.)"
Section 70. Section 15-23-706, MCA, is amended to read:
"15-23-706. Department to determine redistribution of coal gross proceeds to taxing jurisdictions. (1) The coal gross proceeds redistribution account established in 15-23-707 is statutorily appropriated, as provided in 17-7-502, for allocation to the county for redistribution as provided in subsections (2) and (3).
(2) Each year, the department shall determine the amount of tax collected under this part from within each taxing unit in
the county. If the amount collected by each county is less than the amount determined under 15-23-703(3)(2) for that
county, the department shall, on or before June 30 of each year, send the amount of the difference from the state special
revenue account established in 15-23-707 to the county treasurer for redistribution as provided in 15-23-703(4)(3).
(3) If the amount received by the department for redistribution is less than or more than the redistribution amount determined in subsection (2), the department shall calculate and redistribute the shortage or excess amount in the following manner:
(a) If a county does not receive the entire amount to which it is entitled under subsection (2), the shortage amounts of
each taxing unit must be divided by the total shortage amounts of all taxing units determined under 15-23-703(3)(2) to
obtain a shortage percentage for each taxing unit. The shortage percentage for each taxing unit must be multiplied by the
amount that is available for redistribution to each taxing unit, and this amount must be redistributed to each respective
taxing unit.
(b) If there are excess amounts after the redistribution provided for in subsection (2), the excess amounts must be redistributed to the county of origin in proportion to the amount each taxing unit in the county contributed for redistribution.
(4) The county treasurer shall distribute the money received under subsection (3)(b) of this section as provided in
15-23-703(4)(3)."
Section 71. Section 15-23-707, MCA, is amended to read:
"15-23-707. Coal gross proceeds redistribution account. (1) There is within the state special revenue fund a coal gross proceeds redistribution account.
(2) All money received from county treasurers as provided in 15-23-703(5)(a)(4)(a) must be deposited by the
department into the coal gross proceeds redistribution account for redistribution as provided in 15-23-706."
Section 72. Section 15-24-205, MCA, is amended to read:
"15-24-205. Sections limited to taxable trailers and manufactured homes. The provisions of this part apply only to
those mobile homes, manufactured homes, and housetrailers, as defined in this part, subject to assessment and taxation
under chapter 8, part 2, and 15-24-301."
Section 73. Section 15-24-301, MCA, is amended to read:
"15-24-301. Personal property Motor vehicles brought into the state -- assessment -- exceptions -- custom
combine equipment. (1) Except as provided in subsections (2) through (5) and (3), property in the following cases is
subject to taxation and assessment for all taxes levied that year in the county in which it is located:
(a) any personal property (including livestock) brought, driven, or coming into this state at any time during the year that
is used in the state for hire, compensation, or profit;
(b) property whose owner or user is engaged in gainful occupation or business enterprise in the state; or
(c) property which comes to rest and becomes a part of the general property of the state.
(2) The taxes on this property are levied in the same manner and to the same extent, except as otherwise provided, as
though the property had been in the county on the regular assessment date, provided that the property has not been regularly
assessed for the year in some other county of the state.
(3) Nothing in this section shall be construed to levy a tax against a merchant or dealer within this state on goods,
wares, or merchandise brought into the county to replenish the stock of the merchant or dealer.
(4) Any a motor vehicle not subject to a fee in lieu of tax brought, or driven, or coming into this state by any a
nonresident person temporarily employed in Montana and used exclusively for transportation of such the person is subject
to taxation and assessment for taxes as follows:
(a) The motor vehicle is taxed by the county in which it is located.
(b) One-fourth of the annual tax liability of the motor vehicle must be paid for each quarter or portion of a quarter of the year that the motor vehicle is located in Montana.
(c) The quarterly taxes are due the first day of the quarter.
(2) A vehicle that is used exclusively for filming motion pictures or television commercials and that remains in the state for a period exceeding 180 days in a calendar year is taxed as provided in 61-3-520.
(5)(3) Agricultural harvesting machinery classified under class eight, licensed in other states, another state and operated
on the lands land of persons a person other than the owner of the machinery under contracts a contract for hire shall be is
subject to a fee in lieu of taxation of $35 per machine for the calendar year in which the fee is collected. The machines shall
be subject to taxation under class eight only if they are sold in Montana."
Section 74. Section 15-24-304, MCA, is amended to read:
"15-24-304. Prorated fee in lieu of tax -- aircraft. (1) A person who acquires an aircraft required to be registered
under subsections (2) through (6) of 67-3-201(2) through (6) after March 1 in any year shall register the aircraft within 30
days of acquiring it.
(2) The fee in lieu of tax must be prorated for aircraft registered for a period less than 1 year in the same manner as
personal property taxes are prorated in 15-24-303 must be prorated according to the ratio that the remaining number of
months in the year bears to the total number of months in the year.
(3) A person failing to register an aircraft within 30 days following acquisition of the aircraft or bringing the aircraft into the state for commercial purposes is subject to the penalty provided in 67-3-202.
(4) A person owning a migratory aircraft shall register as prescribed in 67-3-201(5) and pay the fee in lieu of tax."
Section 75. Section 15-24-902, MCA, is amended to read:
"15-24-902. Assessment of livestock -- election for assessment on average inventory basis. (1) Except as provided
in subsection (2), the The department of revenue shall assess all nonexempt livestock for the purposes of the per capita levy
imposed under this part in each county where they are located on February 1 of each year. The livestock must be assessed
to the person by whom they were owned or claimed or in whose possession or control they were at midnight of February 1
in that year.
(2) An owner of livestock may elect to have nonexempt livestock assessed on the average inventory basis as provided in
15-24-927. The owner shall file an election with the department on the statement required under 15-24-903. An owner of
livestock making an election to have nonexempt livestock assessed on the average inventory basis is bound by that election
for 6 years. After 6 years, the election to have nonexempt livestock assessed on the average inventory basis remains in
effect unless the owner otherwise notifies the department before February 1."
Section 76. Section 15-24-903, MCA, is amended to read:
"15-24-903. Duty of owner to assist in assessment. (1) (a) Except as provided in subsection (1)(b), the The owner of
livestock, as defined in 15-24-901 15-24-921, or the owner's agent shall at the time of assessment make and deliver to the
department of revenue for the county or counties where the owner's livestock were located on February 1 a written
statement, under oath, listing the owner's different kinds of livestock within the county or counties, together with a listing
of their marks and brands.
(b) If the owner of livestock is assessed on the average inventory basis, as provided in 15-24-927, the owner or the
owner's agent shall, in the manner and timeframe provided in subsection (1)(a), report to the department the county or
counties where the livestock were located in the prior tax year and show the months during the prior tax year that the
livestock were within the county or counties.
(2) As used in this section, "agent" means any person, persons, company, or corporation, including a feedlot operator or owner of grazing land, who has charge of livestock on the assessment date."
Section 77. Section 15-24-904, MCA, is amended to read:
"15-24-904. Penalty for violation of law. If any person, persons, company, or corporation who is the owner or is in
charge of any livestock within this state fails to make the statement or statements as provided in 15-24-903, the department
may, after 10 days' notice to the person who failed to file the report, increase the assessment per capita levy, as provided in
15-24-921, by 10% as a penalty."
Section 78. Section 15-24-922, MCA, is amended to read:
"15-24-922. Board of livestock to prescribe per capita levy -- refunds -- per capita levy on average inventory. (1)
The board of livestock shall annually prescribe the amount of the per capita levy to be made against livestock of all classes
for the purpose indicated in 15-24-921.
(2) The per capita tax levy must be calculated each year to provide not more than 110% of the average annual revenue that was generated in the 3 previous years. The calculation must apply a reasonable factor for nonpayment and late payment of taxes and for reimbursement to the counties pursuant to 15-24-925 for collection of the levy.
(3) (a) A livestock owner taxed under 15-24-920 who moves livestock between states is entitled to a refund of the per
capita levy collected under 15-24-921 based on the number of months the livestock have taxable situs in the state Montana.
The amount of the refund is equal to the ratio of the number of months that the livestock do not have taxable situs in the
state to the number of months in the tax year, multiplied by the original per capita levy due. A taxpayer shall apply to the
board of livestock on a form prescribed by the board for a refund allowed under this subsection by January 31 following the
taxable year. The application must include a statement showing the date when the livestock were moved out of the state.
(b) Except as provided in subsection (3)(c), for For the purposes of 15-24-921 and this section, the per capita levy may
not be prorated.
(c) A taxpayer whose livestock are taxed on the average inventory basis for property tax purposes must also be taxed on
an average inventory basis for the purposes of 15-24-921 and this section. All other livestock subject to the per capita tax
levy must be reported on February 1 of each year."
Section 79. Section 15-24-1101, MCA, is amended to read:
"15-24-1101. Federal property held under contract by private person subject to taxation. Real and/or personal (1)
Except as provided in subsection (2), real property or improvements of the United States or any department or agency
thereof of the United States held under contract of sale, lease, or other interest or estate therein in the property by any
person for his the exclusive use by the person shall be are subject to assessment for ad valorem property taxation as
provided in this part;. provided that this
(2) This part shall does not apply to real property or improvements held and in immediate use and occupation by this
state or any county, municipal corporation, or political subdivision therein of the state."
Section 80. Section 15-24-1102, MCA, is amended to read:
"15-24-1102. Federal property held under contract of sale. When Whenever the property is held under a contract of
sale or other agreement whereby under which, upon payment, the legal title is or may be acquired by the person, the real
property shall must be assessed and taxed, as defined provided in Title 15, chapter 6, part 1, and 15-8-111, without
deduction on account of the whole or any part of the purchase price or other sum due on the property remaining unpaid.
The lien for the tax may not attach to, impair, or be enforced against any interest of the United States in the real property."
Section 81. Section 15-24-1103, MCA, is amended to read:
"15-24-1103. Federal property held under lease. When Whenever the property is held under lease, other interest, or
estate therein in the property that is less than the fee, except under contract of sale, the property must be assessed and taxed
for the value, as defined provided in Title 15, chapter 6, part 1, and 15-8-111, of the leasehold, interest, or estate in the
property. The lien for the tax must attach to and be enforced against only the leasehold, interest, or estate in the property.
Whenever the interest in the property is acquired through foreclosure, the lessor is liable for property taxes. When the
United States authorizes the taxation of the property for the full assessed value of the fee, the property must be assessed for
full assessed value as defined provided in 15-8-111."
Section 82. Section 15-24-1203, MCA, is amended to read:
"15-24-1203. Privilege tax on industrial, trade, or other business use of tax-exempt property -- exceptions. (1)
There is imposed and must be collected a tax upon the possession or other beneficial use for industrial, trade, or other
business purposes enjoyed by any private individual, association, or corporation of any real property, real or personal, or
improvements that for any reason is are exempt from taxation. The tax is imposed upon the possession or other beneficial
use of improvements, including an electric transmission line and associated facilities, except that lines and facilities of a
design capacity of less than 500 kilovolts are not subject to the tax.
(2) The tax may not be imposed upon:
(a) the possession or other beneficial use of railroad right-of-way or track owned by the United States or acquired by the state pursuant to Title 60, chapter 11, part 1, as long as the state or the United States retains ownership and the right-of-way or track is used exclusively for rail transportation;
(b) the beneficial use by a person of real property or improvements held by a port authority, created under Title 7, chapter 14, part 11, or by a port authority owned by the United States or an agency of the United States unless the port authority provides for the exclusive use of the property by the person;
(c) the possession or other beneficial use of public lands occupied under the terms of recreational, mineral, timber, or grazing leases or permits issued by the United States or the state of Montana or upon any easement unless the lease, permit, or easement entitles the lessee or permittee to exclusive possession of the premises to which the lease, permit, or easement relates; or
(d) the possession or other beneficial use of buildings owned by public entities and located upon public airports.
However, privately owned buildings improvements located on public airport property are subject to taxation."
Section 83. Section 15-24-1703, MCA, is amended to read:
"15-24-1703. Application of suspension or cancellation. The suspension or cancellation of delinquent property taxes pursuant to this part:
(1) applies to all mills levied in the county or otherwise required under state law, including levies or assessments
required under Title 15, chapter 10, 20-9-331, 20-9-333, and 20-25-423;
(2) does not apply to assessments made against property for the payment of bonds issued pursuant to Title 7, chapter 12."
Section 84. Section 15-24-1802, MCA, is amended to read:
"15-24-1802. Business incubator tax exemption -- procedure. (1) A business incubator owned or leased and operated by a local economic development organization is eligible for an exemption from property taxes as provided in this section.
(2) In order to qualify for the tax exemption described in this section, the governing body of the county, consolidated government, incorporated city or town, or school district in which the property is located shall approve the tax exemption by resolution, after due notice, as defined in 76-15-103, and hearing. The governing body may approve or disapprove the tax exemption provided for in subsection (1). If a tax exemption is approved, the governing body shall do so by a separate resolution for each business incubator in its respective jurisdiction. The governing body may not grant approval for the business incubator until all of the applicant's taxes have been paid in full or, if the property is leased to a business incubator, until all of the owner's property taxes on that property have been paid in full. Taxes paid under protest do not preclude approval. Prior to holding the hearing, the governing body shall determine that the local economic development organization:
(a) is a private, nonprofit corporation, as provided in Title 35, chapter 2, and is exempt from taxation under section 501(c)(3) or 501(c)(6) of the Internal Revenue Code;
(b) is engaged in economic development and business assistance work in the area; and
(c) owns or leases and operates or will operate the business incubator.
(3) Upon receipt of approval of the governing body of the affected taxing jurisdiction, the department shall make the assessment change for the tax exemption provided for in this section.
(4) The tax exemption described in subsection (1) applies only to the number of mills levied and assessed by the
governing body approving the exemption over which the governing body has sole discretion. If the governing body of a
county, consolidated government, or incorporated city or town approves the exemption, the exemption applies to levies and
assessments required under Title 15, chapter 10, 20-9-331, or 20-9-333 or otherwise required under state law."
Section 85. Section 15-24-1902, MCA, is amended to read:
"15-24-1902. Industrial park tax exemption -- procedure -- termination. (1) An industrial park owned and operated by a local economic development organization or a port authority is eligible for an exemption from property taxes as provided in this section.
(2) In order to qualify for the tax exemption described in this section, the governing body of the county, consolidated government, incorporated city or town, or school district in which the property is located shall approve the tax exemption by resolution, after due notice, as defined in 76-15-103, and hearing. The governing body may approve or disapprove the tax exemption provided for in subsection (1). If a tax exemption is approved, the governing body shall do so by a separate resolution for each industrial park in its respective jurisdiction. The governing body may not grant approval for the industrial park until all of the applicant's taxes have been paid in full. Taxes paid under protest do not preclude approval. Prior to holding the hearing, the governing body shall determine that:
(a) the local economic development organization:
(i) is a private, nonprofit corporation as provided in Title 35, chapter 2, and is exempt from taxation under section 501(c)(3) or 501(c)(6) of the Internal Revenue Code;
(ii) is engaged in economic development and business assistance work in the area; and
(iii) owns and operates or will own and operate the industrial development park; or
(b) the port authority legally exists under the provisions of 7-14-1101 or 7-14-1102.
(3) Upon receipt of approval of the governing body of the affected taxing jurisdiction, the department shall make the assessment change for the tax exemption provided for in this section.
(4) The tax exemption described in subsection (1) applies only to the number of mills levied and assessed by the
governing body approving the exemption over which the governing body has sole discretion. If the governing body of a
county, consolidated government, or incorporated city or town approves the exemption, the exemption applies to levies or
assessments required under Title 15, chapter 10, 20-9-331, or 20-9-333 or otherwise required under state law.
(5) If a local economic development organization sells, leases, or otherwise disposes of the exempt property to a
purchaser or lessee that is not a local economic development organization or a unit of federal, state, or local government,
the tax exemption provided in this section terminates. The termination of the exemption applies January 1 of the taxable tax
year immediately following the sale, lease, or other disposition of the property. Upon termination of the exemption, the
property must be assessed as provided in 15-16-203."
Section 86. Section 15-24-2002, MCA, is amended to read:
"15-24-2002. Building and land tax exemption -- procedure -- termination. (1) A building and land owned by a local economic development organization that the local economic development organization intends to sell or lease to a profit-oriented, employment-stimulating business are eligible for an exemption from property taxes as provided in this section.
(2) In order to qualify for the tax exemption described in this section, the governing body of the affected county, consolidated government, incorporated city or town, or school district in which the building and land are located shall approve the tax exemption by resolution, after due notice, as defined in 76-15-103, and hearing. The governing body may approve or disapprove the tax exemption provided for in subsection (1). The governing body shall approve a tax exemption by a separate resolution. The governing body may not grant approval for the building and land until all of the applicant's taxes have been paid in full. Taxes paid under protest do not preclude approval. Prior to holding the hearing, the governing body shall determine that the local economic development organization:
(a) is a private, nonprofit corporation, as provided in Title 35, chapter 2, and is exempt from taxation under section 501(c)(3) or 501(c)(6) of the Internal Revenue Code;
(b) is engaged in economic development and business assistance work in the area; and
(c) owns or will own the building and land.
(3) Upon receipt of approval of the governing body of the affected taxing jurisdiction, the department shall make the assessment change for the tax exemption provided for in this section.
(4) The tax exemption described in subsection (1) applies only to the number of mills levied and assessed by the
governing body approving the exemption over which the governing body has sole discretion. If the governing body of a
county, consolidated government, or incorporated city or town approves the exemption, the exemption applies to levies or
assessments required under Title 15, chapter 10, 20-9-331, or 20-9-333 and other levies required under state law.
(5) When a local economic development organization sells, leases, or otherwise disposes of the exempt property to a
purchaser or lessee that is not a local economic development organization or a unit of federal, state, or local government,
the tax exemption provided in this section terminates. The termination of the exemption applies January 1 of the taxable tax
year immediately following the sale, lease, or other disposition of the property. Upon termination of the exemption, the
property must be assessed as provided in 15-16-203."
Section 87. Section 15-36-323, MCA, is amended to read:
"15-36-323. Calculation of unit value. For the purposes of distribution of oil and natural gas production taxes to county and school taxing units for production from pre-1985 wells, the department shall determine the unit value of oil and natural gas for each taxing unit as follows:
(1) Subject to the conditions of subsection (3), the unit value for oil for each taxing unit is the quotient obtained by dividing the net proceeds taxes calculated on oil produced and sold in that taxing unit in calendar year 1988 by the number of barrels of oil produced in that taxing unit during 1988, excluding post-1985 wells.
(2) Subject to the conditions of subsection (3), the unit value for natural gas is the quotient obtained by dividing the net proceeds taxes calculated on natural gas produced and sold in that taxing unit in calendar year 1988 by the number of cubic feet of natural gas produced in that taxing unit during 1988, excluding post-1985 wells.
(3) The amount of net proceeds taxes calculated under subsections (1) and (2) may not include the amount of taxes that are attributable to a voted levy, as described in 15-10-412(7), as that section read on December 31, 1998, for which additional mills were levied in fiscal year 1990."
Section 88. Section 15-36-324, MCA, is amended to read:
"15-36-324. Distribution of taxes -- rules. (1) For each calendar quarter, the department of revenue shall determine
the amount of tax, late payment interest, and penalty collected under this part. For purposes of distribution of the taxes to
county and school taxing units, the department shall determine the amount of oil and natural gas production taxes paid on
production from pre-1985 wells, post-1985 wells, and horizontally completed wells located in the taxing unit.
(2) Except as provided in subsections (3) through (5), oil production taxes must be distributed as follows:
(a) The amount equal to 39.3% of the oil production taxes, including late payment interest and penalty, collected under this part must be distributed as provided in subsection (8).
(b) The remaining 60.7% of the oil production taxes, plus accumulated interest earned on the amount allocated under this subsection (2)(b), must be deposited in the state special revenue fund in the state treasury and transferred to the county and school taxing units for distribution as provided in subsection (11).
(3) (a) The amount equal to 100% of the oil production taxes, including late payment interest and penalty, collected from working interest owners on production from post-1985 wells occurring during the first 12 months of production must be distributed as provided in subsection (9).
(b) (i) The amount equal to 10.25% of the oil production taxes, including late payment interest and penalty, collected from working interest owners on production from post-1985 wells occurring during the next 12 months of production must be distributed as provided in subsection (9).
(ii) The remaining 89.75% of the oil production taxes, plus accumulated interest earned on the amount allocated under this subsection (3)(b), must be deposited in the state special revenue fund in the state treasury and transferred to the county and school taxing units for distribution as provided in subsection (11).
(4) (a) The amount equal to 100% of the oil production taxes, including late payment interest and penalty, collected under this part on production from horizontally completed wells occurring during the first 18 months of production must be distributed as provided in subsection (9).
(b) (i) The amount equal to 10.25% of the oil production taxes, including late payment interest and penalty, collected from working interest owners on production from horizontally completed wells occurring during the next 6 months of production must be distributed as provided in subsection (9).
(ii) The remaining 89.75% of the oil production taxes, plus accumulated interest earned on the amount allocated under this subsection (4)(b), must be deposited in the state special revenue fund in the state treasury and transferred to the county and school taxing units for distribution as provided in subsection (11).
(c) The amount equal to 100% of the oil production taxes, including late payment interest and penalty, collected under this part on the incremental production from horizontally recompleted wells occurring during the first 18 months of production must be distributed as provided in subsection (8).
(5) (a) The amount equal to 13.8% of the oil production taxes, including late payment interest and penalty, collected from working interest owners on stripper exemption production from pre-1985 wells and post-1985 wells must be distributed as provided in subsection (9).
(b) The remaining 86.2% of the oil production taxes, plus accumulated interest earned on the amount allocated under this subsection (5)(b), must be deposited in the state special revenue fund in the state treasury and transferred to the county and school taxing units for distribution as provided in subsection (11).
(6) Except as provided in subsection (7), natural gas production taxes must be allocated as follows:
(a) The amount equal to 14% of the natural gas production taxes, including late payment interest and penalty, collected under this part must be distributed as provided in subsection (10).
(b) The remaining 86% of the natural gas production taxes, plus accumulated interest earned on the amount allocated under this subsection (6)(b), must be deposited in the state special revenue fund in the state treasury and transferred to the county and school taxing units for distribution as provided in subsection (11).
(7) (a) The amount equal to 100% of the natural gas production taxes, including late payment interest and penalty, collected from working interest owners under this part on production from post-1985 wells occurring during the first 12 months of production must be distributed as provided in subsection (9).
(b) (i) The amount equal to 6.25% of the natural gas production taxes, including late payment interest and penalty, collected from working interest owners on production from post-1985 wells occurring during the next 12 months of production must be distributed as provided in subsection (9).
(ii) The remaining 93.75% of the oil production taxes, plus accumulated interest earned on the amount allocated under this subsection (7)(b), must be deposited in the state special revenue fund in the state treasury and transferred to the county and school taxing units for distribution as provided in subsection (11).
(8) The department shall, in accordance with the provisions of 15-1-501, distribute the state portion of oil production taxes specified in subsections (2)(a) and (4)(c), including late payment interest and penalty collected, as follows:
(a) 86.21% to the state general fund;
(b) 5.17% to the state special revenue fund for the purpose of paying expenses of the board as provided in 82-11-135; and
(c) 8.62% to be distributed as provided by 15-38-106(2).
(9) The department shall distribute the state portion of oil and natural gas production taxes specified in subsections (3)(a), (3)(b)(i), (4)(a), (4)(b)(i), (5)(a), (7)(a), and (7)(b)(i), including late payment interest and penalty collected, as follows:
(a) 37.5% to the state special revenue fund for the purpose of paying expenses of the board as provided in 82-11-135; and
(b) 62.5% to be distributed as provided by 15-38-106(2).
(10) The department shall, in accordance with the provisions of 15-1-501, distribute the state portion of natural gas production taxes specified in subsection (6)(a), including late payment interest and penalty collected, as follows:
(a) 76.8% to the state general fund;
(b) 8.7% to the state special revenue fund for the purpose of paying expenses of the board as provided in 82-11-135; and
(c) 14.5% to be distributed as provided by 15-38-106(2).
(11) (a) For the purpose of distribution of the oil and natural gas production taxes from pre-1985 wells, the department shall each calendar quarter adjust the unit value determined under 15-36-323 according to the ratio that the oil and natural gas production taxes from pre-1985 wells collected during the calendar quarter for which the distribution occurs plus penalties and interest on delinquent oil and natural gas production taxes from pre-1985 wells bears to the total liability for the oil and natural gas production taxes from pre-1985 wells for the quarter for which the distribution occurs. The amount of oil and natural gas production taxes distributions must be calculated and distributed as follows:
(i) By the dates referred to in subsection (12), the department shall calculate and distribute to each eligible county the amount of oil and natural gas production taxes from pre-1985 wells for the quarter, determined by multiplying the unit value, as adjusted in this subsection (11)(a), by the units of production on which oil and natural gas production taxes from pre-1985 wells were owed for the calendar quarter for which the distribution occurs.
(ii) Any amount by which the total tax liability exceeds or is less than the total distributions determined in this subsection (11)(a) must be calculated and distributed in the following manner:
(A) The excess amount or shortage must be divided by the total distribution determined for that period to obtain an excess or shortage percentage.
(B) The excess percentage must be multiplied by the distribution to each taxing unit, and this amount must be added to the distribution to each respective taxing unit.
(C) The shortage percentage must be multiplied by the distribution to each taxing unit, and this amount must be subtracted from the distribution to each respective taxing unit.
(b) Except as provided in subsection (11)(c), the county treasurer shall distribute the money received under subsection
(12) from pre-1985 wells to the taxing units that levied mills in fiscal year 1990 against calendar year 1988 production in
the same manner that all other property tax proceeds were in the taxing unit are distributed during in the current fiscal year
1990 in the taxing unit, except that a distribution may not be made to a municipal taxing unit.
(c) The board of county commissioners of a county may direct the county treasurer to reallocate the distribution of oil and natural gas production tax money that would have gone to a taxing unit, as provided in subsection (11)(b), to another taxing unit or taxing units, other than an elementary school or high school, within the county under the following conditions:
(i) The county treasurer shall first allocate the oil and natural gas production taxes to the taxing units within the county
in the same proportion that all other property tax proceeds were are distributed in the county in the current fiscal year 1990.
(ii) If the allocation in subsection (11)(c)(i) exceeds the total budget for a taxing unit, the commissioners may direct the county treasurer to allocate the excess to any taxing unit within the county.
(d) The board of trustees of an elementary or high school district may reallocate the oil and natural gas production taxes distributed to the district by the county treasurer under the following conditions:
(i) The district shall first allocate the oil and natural gas production taxes to the budgeted funds of the district in the
same proportion that all other property tax proceeds were are distributed in the district in the current fiscal year 1990.
(ii) If the allocation under subsection (11)(d)(i) exceeds the total budget for a fund, the trustees may allocate the excess to any budgeted fund of the school district.
(e) For all production from post-1985 wells and horizontally drilled wells completed after December 31, 1993, the
county treasurer shall distribute oil and natural gas production taxes received under subsections (2)(b), (3)(b)(ii), (4)(b)(ii),
(5)(b), (6)(b), and (7)(b)(ii) between county and school taxing units in the relative proportions required by the levies for
state, county, and school district purposes in the same manner as property taxes were are distributed in the preceding
current fiscal year.
(f) The allocation to the county in subsection (11)(e) must be distributed by the county treasurer in the relative
proportions required by the levies for county taxing units and in the same manner as property taxes were are distributed in
the preceding current fiscal year.
(g) The money distributed in subsection (11)(e) that is required for the county mill levies for school district retirement
obligations and transportation schedules must be deposited to the funds established for these purposes.
(h) The oil and natural gas production taxes distributed under subsection (11)(b) that are required for the 6-mill
university levy imposed under 20-25-423 and for the county equalization levies imposed under 20-9-331 and 20-9-333, as
those sections read on July 1, 1989, must be remitted by the county treasurer to the state treasurer.
(i) The oil and natural gas production taxes distributed under subsection (11)(e) that are required for the 6-mill
university levy imposed under 20-25-423, for the county equalization levies imposed under 20-9-331 and 20-9-333, and for
the state equalization aid levy imposed under 20-9-360 must be remitted by the county treasurer to the state treasurer.
(j) The amount of oil and natural gas production taxes remaining after the treasurer has remitted the amounts
determined in subsections (11)(h) and (11)(i) is for the exclusive use and benefit of the county and school taxing units.
(12) The department shall remit the amounts to be distributed in subsection (11) to the county treasurer by the following dates:
(a) On or before August 1 of each year, the department shall remit to the county treasurer oil and natural gas production tax payments received for the calendar quarter ending March 31 of the current year.
(b) On or before November 1 of each year, the department shall remit to the county treasurer oil and natural gas production tax payments received for the calendar quarter ending June 30 of the current year.
(c) On or before February 1 of each year, the department shall remit to the county treasurer oil and natural gas production tax payments received for the calendar quarter ending September 30 of the previous year.
(d) On or before May 1 of each year, the department shall remit to the county treasurer oil and natural gas production tax payments received for the calendar quarter ending December 31 of the previous calendar year.
(13) The department shall provide to each county by May 31 of each year the amount of gross taxable value represented
by all types of production taxed under 15-36-304 for the previous calendar year multiplied by 60%. The resulting value
must be treated as taxable value for county classification purposes and for county bonding purposes.
(14) (a) (13) (a) In the event that the board of oil and gas conservation revises the privilege and license tax pursuant to
82-11-131, the department shall, by rule, change the formula under this section for distribution of taxes collected under
15-36-304. The revised formula must provide for the distribution of taxes in an amount equal to the rate adopted by the
board of oil and gas conservation for the expenses of the board.
(b) Before the department adopts a rule pursuant to subsection (14)(a) (13)(a), it shall present the proposed rule to the
revenue oversight committee.
(15)(14) The distribution to taxing units under this section is statutorily appropriated as provided in 17-7-502."
Section 89. Section 15-36-325, MCA, is amended to read:
"15-36-325. Local government severance tax payments for calendar year 1995 production -- distribution of
payments -- not subject to I-105 limitations. (1) The local government severance tax imposed under 15-36-101, as that
section read before January 1, 1996, for calendar year 1995 production is due as follows:
(a) for oil and natural gas production occurring in the second calendar quarter of 1995, the tax is due May 31, 1997;
(b) for oil and natural gas production occurring in the third calendar quarter of 1995, the tax is due May 31, 1998; and
(c) for oil and natural gas production occurring in the fourth calendar quarter of 1995, the tax is due May 31, 1999.
(2) (a) If the taxpayer pays the entire local government severance tax liability for calendar year 1995 on or before June 30, 1996, the taxpayer must receive a 6% reduction in the total local government severance tax liability.
(b) Any payment of local government severance taxes for calendar year 1995 made on or before June 30, 1997, does not accrue interest. Any payment of local government severance taxes for calendar year 1995 made after June 30, 1997, must accrue interest at the rate of 1% a month or fraction of a month from July 1, 1997, to the date of payment. Any payment for the third quarter of 1995 received after May 31, 1998, and any payment for the fourth quarter of 1995 received after May 31, 1999, is subject to the late payment penalty provisions in 15-36-311.
(c) In the case of the dissolution of the operator or a change in the operator of any lease or unit, any unpaid local government severance tax for calendar year 1995 becomes due on the date of dissolution or on the date of the change in operator. The operator is subject to the provisions of subsection (2)(a) regarding the 6% tax liability reduction or the provisions of subsection (2)(b) regarding interest and penalties.
(3) The department shall determine the amount of tax collected under subsections (1) and (2) from within each taxing unit.
(4) For purposes of the distribution of local government severance taxes collected under this section, the department shall use the unit value of oil and gas for each taxing unit as determined in 15-36-323.
(5) The local government severance tax must be deposited in the state special revenue fund in the state treasury and transferred to the county for distribution as provided in subsection (6).
(6) For the purpose of the distribution of the local government severance tax for calendar year 1995 production, the department shall adjust the unit value determined under this section according to the ratio that the local government severance taxes collected during the quarters for which the distribution occurs plus penalties and interest on delinquent local government severance taxes bears to the total liability for local government severance taxes for the quarters for which the distribution occurs. The taxes must be calculated and distributed as follows:
(a) By July 31 of each of the years 1997, 1998, and 1999, the department shall calculate and distribute to each eligible county the amount of local government severance tax for calendar year 1995 production, determined by multiplying the unit value, as adjusted in this subsection (6), by the units of production on which the local government severance tax was owed during calendar year 1995 production.
(b) Any amount by which the total tax liability exceeds or is less than the total distributions determined in subsection (6)(a) must be calculated and distributed in the following manner:
(i) The excess amount or shortage must be divided by the total distribution determined for that period to obtain an excess or shortage percentage.
(ii) The excess percentage must be multiplied by the distribution to each taxing unit, and this amount must be added to the distribution to each respective taxing unit.
(iii) The shortage percentage must be multiplied by the distribution to each taxing unit, and this amount must be subtracted from the distribution to each respective taxing unit.
(7) (a) The county treasurer shall distribute the money received under subsection (6) between the county and school
district taxing units. The distribution between county and school district taxing units is the ratio of the number of mills
levied for fiscal year 1990 against 1988 production in each taxing unit for the county and schools, including excluding the
county equalization levies that were in effect under 20-9-331 and 20-9-333 as those sections read on July 1, 1989, and the
university 6-mill levy imposed under 20-25-423,. except that a A distribution may not be made to a municipal taxing unit or
to the state equalization aid levy imposed under 20-9-360, as that section read on December 31, 1998. Distribution of
money for the county equalization levies and the university levy must be remitted to the state by the county treasurer. The
amounts distributed under subsections (7)(b) and (7)(c) are for the exclusive use of county and school district taxing units.
(b) The county treasurer shall deposit the money from subsection (7)(a) allocated to county levies to the oil and natural gas accelerated tax fund.
(c) The trustees of a school district may allocate any payment received under subsection (7)(a) to any budget fund of the district or to the miscellaneous programs fund established in 20-9-507. The trustees shall direct the county treasurer to deposit the local government severance tax payments under this section to the funds of the district in accordance with the allocations determined by the trustees.
(8) Local government severance tax payments to a county pursuant to this section are not subject to the limitations of
Title 15, chapter 10, part 4. Payments of local government severance tax pursuant to this section may not be used for county
classification purposes under 7-1-2111 and may not be considered in the determination of bonding limits under 7-7-2101,
7-7-2203, 7-14-2524, and 7-16-2327.
(9)(8) The distribution to taxing units under this section is statutorily appropriated as provided in 17-7-502."
Section 90. Section 16-1-306, MCA, is amended to read:
"16-1-306. Revenue to be paid to state treasurer. Except as provided in 16-1-404, 16-1-405, through 16-1-406, and
16-1-411, and 16-2-301, all fees, charges, taxes, and revenue collected by or under authority of the department must, in
accordance with the provisions of 15-1-501, be deposited to the credit of the state general fund, except for sales tax and use
tax revenue that must be deposited according to [section 62 of LC 220]."
Section 91. Section 16-1-411, MCA, is amended to read:
"16-1-411. Tax on wine and hard cider. (1) (a) A tax of 27 cents per a liter is imposed on table wine, except hard
cider, imported by a table wine distributor or the department.
(b) A tax of 3.7 cents per a liter is imposed on hard cider imported by a table wine distributor or the department.
(2) The tax imposed in subsection (1) must be paid by the table wine distributor by the 15th day of the month following sale of the table wine or hard cider from the table wine distributor's warehouse. Failure to file a tax return or failure to pay the tax required by this section subjects the table wine distributor to the penalties and interest provided for in 16-1-409.
(3) The tax paid by a table wine distributor in accordance with subsection (2) must, in accordance with the provisions of 15-1-501, be distributed as follows:
(a) 59% to the state general fund;
(b) 31% to the state special revenue fund to the credit of the department of public health and human services for the treatment, rehabilitation, and prevention of alcoholism;
(c) 5% is statutorily appropriated, as provided in 17-7-502, to the department for allocation to the counties, based on population, for the purpose established in 16-1-404; and
(d) 5% is statutorily appropriated, as provided in 17-7-502, to the department for allocation to the cities and towns, based on population, for the purpose established in 16-1-405.
(4) The In addition to the sales tax and use tax imposed under [section 2 of LC 220], the tax computed and paid in
accordance with this section is the only tax imposed by the state or any of its subdivisions, including cities and towns.
(5) For purposes of this section, the following definitions apply:
(a) "Based on population" means:
(i) for counties, the direct proportion that the population of each county bears to the total population of all counties as shown in the latest official federal census, as adjusted by the most recent population estimates published by the U.S. bureau of the census as provided in 16-1-406; and
(ii) for cities, the distribution described in 16-1-406; and.
(b) "Table wine" has the meaning assigned in 16-1-106, but does not include hard cider."
Section 92. Section 16-2-301, MCA, is amended to read:
"16-2-301. Retail selling price on table wine -- tax on certain table wine. (1) (a) The retail selling price at which table wine is sold at an agency liquor store is as determined by the agent.
(b) The retail selling price at which table wine is sold pursuant to subsection (1)(a) may not include the sales tax or use tax imposed under [section 2 of LC 220]. The sales tax or use tax must be collected as provided in [sections 1 through 62 of LC 220] and must be deposited as provided in [section 62 of LC 220].
(2) In addition to the tax on wine assessed under 16-1-411, there is a tax of 1 cent a liter on table wine sold by a table wine distributor to an agent as described in subsection (1). This additional tax must be paid to the department by the distributor in the same manner as the tax under 16-1-411 is paid. The department shall deposit the tax paid under this section in the general fund.
(3) The sales tax and use tax collected under [sections 1 through 62 of LC 220] are not considered to be collected under this section.
(4) For the purposes of this section, "table wine" does not include hard cider."
Section 93. Section 17-3-213, MCA, is amended to read:
"17-3-213. Allocation to general road fund and countywide school levies districts. (1) The All forest reserve funds
so apportioned to each county must be apportioned by the county treasurer in each county as follows:
(a) to the general road fund, 66 2/3% of the total amount received;
(b) to the following countywide school levies school districts in the county, 33 1/3% of the total sum received:,
(i) county equalization for elementary schools provided for in 20-9-331; and
(ii) county equalization for high schools provided for in 20-9-333;
(iii) the county transportation fund provided for in 20-10-146; and
(iv) the elementary and high school district retirement fund obligations provided for in 20-9-501 to be distributed as
provided in subsection (2).
(2) (a) The apportionment of money to the funds provided for under subsection (1)(b) must be made by the county
superintendent based on the proportion that the mill levy of each fund BASE budget of each school district bears to the
total number of mills BASE budget for all the funds school districts in the county. The amount apportioned to each school
district must be used:
(i) for the over-BASE budget, if any, as provided in 20-9-141; and
(ii) for a general fund budget amount in excess of the maximum general fund budget, if any and if an amount remains after the apportionment under subsection (2)(a)(i), as provided in 20-9-353.
(b) Whenever the total amount of money available for apportionment to a school district under this section is greater
than the total requirements of a levy, the excess money and any interest income must be retained in a separate reserve fund,
to be reapportioned in the ensuing school fiscal year to the levies designated in subsection (1)(b) as provided in subsection
(2)(a).
(3) In counties in which special road districts have been created according to law, the board of county commissioners shall distribute a proportionate share of the 66 2/3% of the total amount received for the general road fund to the special road districts within the county based upon the percentage that the total area of the road district bears to the total area of the entire county."
Section 94. Section 17-3-222, MCA, is amended to read:
"17-3-222. Apportionment of money to counties. (1) It is the duty of the The state treasurer to properly shall
apportion and allocate the money received under 17-3-221 to the county treasurers,. who The county treasurer of each
county shall allocate the money as follows:
(a) 50% to the county general fund; and
(b) 50% to the elementary county equalization fund school districts of the county. The allocation to each school district
must be made in the same manner as provided in 17-3-213(2).
(2) The payments from the state to the county treasurers provided for in subsection (1) are statutorily appropriated as provided in 17-7-502."
Section 95. Section 17-7-301, MCA, is amended to read:
"17-7-301. Authorization to expend during first year of biennium from appropriation for second year --
proposed supplemental appropriation defined -- limit on second-year expenditures. (1) An agency may make
expenditures during the first fiscal year of the biennium from appropriations for the second fiscal year of the biennium if
authorized by the general appropriations act. An agency that is not authorized in the general appropriations act to make
first-year expenditures may be granted spending authorization by the approving authority upon submission and approval of
a proposed supplemental appropriation to the approving authority. The proposal submitted to the approving authority must
include a plan for reducing expenditures in the second year of the biennium that allows the agency to contain expenditures
within appropriations. If the approving authority finds that, due to because of an unforeseen and unanticipated emergency,
the amount actually appropriated for the first fiscal year of the biennium with all other income will be insufficient for the
operation and maintenance of the agency during the year for which the appropriation was made, the approving authority
shall, after careful study and examination of the request and upon review of the recommendation for executive branch
proposals by the budget director, submit the proposed supplemental appropriation to the legislative fiscal analyst.
(2) The plan for reducing expenditures required by subsection (1) is not required if the proposed supplemental appropriation is:
(a) due to an unforeseen and unanticipated emergency for fire suppression;
(b) requested by the superintendent of public instruction, in accordance with the provisions of 20-9-351, and is to
complete the state's funding of guaranteed tax base aid, transportation aid, retirement aid, or equalization aid to elementary
and secondary schools for the current biennium; or
(c) requested by the attorney general and:
(i) is to pay the costs associated with litigation in which the department of justice is required to provide representation to the state of Montana; or
(ii) in accordance with the provisions of 7-32-2242, is to pay costs for which the department of justice is responsible for confinement of an arrested person in a detention center.
(3) Upon receipt of the recommendation of the legislative finance committee pursuant to 17-7-311, the approving authority may authorize an expenditure during the first fiscal year of the biennium to be made from the appropriation for the second fiscal year of the biennium. Except as provided in subsection (2), the approving authority shall require the agency to implement the plan for reducing expenditures in the second year of the biennium that contains agency expenditures within appropriations.
(4) The agency may expend the amount authorized by the approving authority only for the purposes specified in the authorization.
(5) The approving authority shall report to the next legislature in a special section of the budget the amounts expended as a result of all authorizations granted by the approving authority and shall request that any necessary supplemental appropriation bills be passed.
(6) As used in this part, "proposed supplemental appropriation" means an application for authorization to make expenditures during the first fiscal year of the biennium from appropriations for the second fiscal year of the biennium.
(7) (a) Except as provided in subsections (2) and (7)(b), an agency may not make expenditures in the second year of the biennium that, if carried on for the full year, will require a deficiency appropriation, commonly referred to as a "supplemental appropriation".
(b) An agency shall prepare and, to the extent feasible, implement a plan for reducing expenditures in the second year of the biennium that contains agency expenditures within appropriations. The approving authority is responsible for ensuring the implementation of the plan. If, in the second year of a biennium, mandated expenditures that are required by state or federal law will cause an agency to exceed appropriations or available funds, the agency shall reduce all nonmandated expenditures pursuant to the plan in order to reduce to the greatest extent possible the expenditures in excess of appropriations or funding. An agency may not transfer funds between fund types in order to implement a plan."
Section 96. Section 17-7-502, MCA, is amended to read:
"17-7-502. (Temporary) Statutory appropriations -- definition -- requisites for validity. (1) A statutory appropriation is an appropriation made by permanent law that authorizes spending by a state agency without the need for a biennial legislative appropriation or budget amendment.
(2) Except as provided in subsection (4), to be effective, a statutory appropriation must comply with both of the following provisions:
(a) The law containing the statutory authority must be listed in subsection (3).
(b) The law or portion of the law making a statutory appropriation must specifically state that a statutory appropriation is made as provided in this section.
(3) The following laws are the only laws containing statutory appropriations: 2-17-105; 3-5-901; 5-13-403; 10-3-203;
10-3-310; 10-3-312; 10-3-314; 10-4-301; 15-1-111; 15-23-706; 15-30-195; 15-31-702; 15-36-324; 15-36-325; 15-37-117;
15-38-202; 15-65-121; 15-70-101; 16-1-404; 16-1-406; 16-1-411; 16-11-308; 17-3-106; 17-3-212; 17-3-222; 17-6-101;
17-7-304; 18-11-112; 19-3-319; 19-6-709; 19-9-702; 19-13-604; 19-17-301; 19-18-512; 19-19-305; 19-19-506; 20-8-107;
20-8-111; 20-26-1503; 22-3-1004; 23-5-136; 23-5-306; 23-5-409; 23-5-610; 23-5-612; 23-5-631; 23-7-301; 23-7-402;
37-43-204; 37-51-501; 39-71-503; 39-71-907; 39-71-2321; 42-2-105; 44-12-206; 44-13-102; 50-4-623; 53-6-703;
53-24-206; 67-3-205; 75-1-1101; 75-5-1108; 75-6-214; 75-11-313; 77-1-131; 80-2-103; 80-2-222; 80-4-416; 81-5-111;
82-11-161; 85-20-402; 87-1-513; 90-3-301; 90-4-215; 90-6-331; and 90-9-306.
(4) There is a statutory appropriation to pay the principal, interest, premiums, and costs of issuing, paying, and securing all bonds, notes, or other obligations, as due, that have been authorized and issued pursuant to the laws of Montana. Agencies that have entered into agreements authorized by the laws of Montana to pay the state treasurer, for deposit in accordance with 17-2-101 through 17-2-107, as determined by the state treasurer, an amount sufficient to pay the principal and interest as due on the bonds or notes have statutory appropriation authority for the payments. (In subsection (3): pursuant to sec. 7, Ch. 567, L. 1991, the inclusion of 19-6-709 terminates upon death of last recipient eligible for supplemental benefit; pursuant to sec. 7(2), Ch. 29, L. 1995, the inclusion of 15-30-195 terminates July 1, 2001; pursuant to sec. 5, Ch. 461, L. 1997, the inclusion of 77-1-131 terminates October 1, 2003; and pursuant to secs. 13, 16(1), Ch. 549, L. 1997, the inclusion of 90-3-301 terminates July 1, 1999.)
17-7-502. (Effective July 1, 2008) Statutory appropriations -- definition -- requisites for validity. (1) A statutory appropriation is an appropriation made by permanent law that authorizes spending by a state agency without the need for a biennial legislative appropriation or budget amendment.
(2) Except as provided in subsection (4), to be effective, a statutory appropriation must comply with both of the following provisions:
(a) The law containing the statutory authority must be listed in subsection (3).
(b) The law or portion of the law making a statutory appropriation must specifically state that a statutory appropriation is made as provided in this section.
(3) The following laws are the only laws containing statutory appropriations: 2-17-105; 3-5-901; 5-13-403; 10-3-203;
10-3-310; 10-3-312; 10-3-314; 10-4-301; 15-23-706; 15-30-195; 15-31-702; 15-36-324; 15-36-325; 15-37-117; 15-38-202;
15-65-121; 15-70-101; 16-1-404; [16-1-406;] 16-1-411; 16-11-308; 17-3-106; 17-3-212; 17-3-222; 17-5-404; 17-5-804;
17-6-101; 17-7-304; 18-11-112; 19-3-319; 19-6-709; 19-9-702; 19-13-604; 19-17-301; 19-18-512; 19-19-205; 19-19-305;
19-19-506; 20-8-107; 20-9-361; 20-26-1503; 22-3-1004; 23-5-136; 23-5-306; 23-5-409; 23-5-610; 23-5-612; 23-5-631;
23-7-301; 23-7-402; 32-1-537; 37-43-204; 37-51-501; 39-71-503; 39-71-907; 39-71-2321; 42-2-105; 44-12-206;
44-13-102; 50-4-623; 50-5-232; 50-40-206; 53-6-150; 53-6-703; 53-24-206; 60-2-220; 67-3-205; 75-1-1101; 75-5-1108;
75-6-214; 75-5-1108; 75-6-214; 75-11-313; 77-1-505; 80-2-103; 80-2-222; 80-4-416; 81-5-111; 82-11-136; 82-11-161;
85-1-220; 85-20-402; 87-1-513; 90-4-215; 90-6-331; 90-7-220; 90-7-221; and 90-9-306.
(4) There is a statutory appropriation to pay the principal, interest, premiums, and costs of issuing, paying, and securing all bonds, notes, or other obligations, as due, that have been authorized and issued pursuant to the laws of Montana. Agencies that have entered into agreements authorized by the laws of Montana to pay the state treasurer, for deposit in accordance with 17-2-101 through 17-2-107, as determined by the state treasurer, an amount sufficient to pay the principal and interest as due on the bonds or notes have statutory appropriation authority for the payments. (In subsection (3): pursuant to sec. 7, Ch. 567, L. 1991, the inclusion of 19-6-709 terminates upon death of last recipient eligible for supplemental benefit; and pursuant to sec. 68(2), Ch. 422, L. 1997, this version becomes effective July 1, 2008.)"
Section 97. Section 19-18-503, MCA, is amended to read:
"19-18-503. Special tax levy for fund required. (1) The purpose of this section is to provide a means by which each
disability and pension fund may be maintained at a level equal to 4% 0.23% of the taxable valuation of all taxable property
within the limits of the city or town.
(2) Whenever the fund contains less than 4% 0.23% of the taxable valuation of all taxable property within the limits of
the city or town, the governing body of the city or town shall, at the time of the levy of the annual tax, levy a special tax as
provided in 19-18-504. The special tax must be collected as other taxes are collected and, when so collected, must be paid
into the disability and pension fund.
(3) If a special tax for the disability and pension fund is levied by a third-class city or town using the all-purpose mill levy, the special tax levy must be made in addition to the all-purpose levy."
Section 98. Section 19-18-504, MCA, is amended to read:
"19-18-504. Amount of special tax levy. Whenever the fund contains an amount which that is less than 4% 0.23% of
the taxable valuation of all taxable property in the city or town, the city council shall levy an annual special tax of not less
than 1 0.06 mill and not more than 4 mills 0.24 mill on each dollar of taxable valuation of all taxable property within the
city or town."
Section 99. Section 20-3-106, MCA, is amended to read:
"20-3-106. Supervision of schools -- powers and duties. The superintendent of public instruction has the general supervision of the public schools and districts of the state and shall perform the following duties or acts in implementing and enforcing the provisions of this title:
(1) resolve any controversy resulting from the proration of costs by a joint board of trustees under the provisions of 20-3-362;
(2) issue, renew, or deny teacher certification and emergency authorizations of employment;
(3) negotiate reciprocal tuition agreements with other states in accordance with the provisions of 20-5-314;
(4) approve or disapprove the opening or reopening of a school in accordance with the provisions of 20-6-502, 20-6-503, 20-6-504, or 20-6-505;
(5) approve or disapprove school isolation within the limitations prescribed by 20-9-302;
(6) generally supervise the school budgeting procedures prescribed by law in accordance with the provisions of 20-9-102 and prescribe the school budget format in accordance with the provisions of 20-9-103 and 20-9-506;
(7) establish a system of communication for calculating joint district revenue in accordance with the provisions of 20-9-151;
(8) approve or disapprove the adoption of a district's budget amendment resolution under the conditions prescribed in 20-9-163 and adopt rules for an application for additional direct state aid for a budget amendment in accordance with the approval and disbursement provisions of 20-9-166;
(9) generally supervise the school financial administration provisions as prescribed by 20-9-201(2);
(10) prescribe and furnish the annual report forms to enable the districts to report to the county superintendent in accordance with the provisions of 20-9-213(5) and the annual report forms to enable the county superintendents to report to the superintendent of public instruction in accordance with the provisions of 20-3-209;
(11) approve, disapprove, or adjust an increase of the average number belonging (ANB) in accordance with the provisions of 20-9-313 and 20-9-314;
(12) distribute BASE aid and special education allowable cost payments in support of the BASE funding program in
accordance with the provisions of 20-9-331, 20-9-333, 20-9-342, 20-9-346, and 20-9-347, and 20-9-366 through 20-9-369;
(13) provide for the uniform and equal provision of transportation by performing the duties prescribed by the provisions of 20-10-112;
(14) request, accept, deposit, and expend federal money in accordance with the provisions of 20-9-603;
(15) authorize the use of federal money for the support of an interlocal cooperative agreement in accordance with the provisions of 20-9-703 and 20-9-704;
(16) prescribe the form and contents of and approve or disapprove interstate contracts in accordance with the provisions of 20-9-705;
(17) approve or disapprove the conduct of school on a Saturday in accordance with the provisions of 20-1-303;
(18) recommend standards of accreditation for all schools to the board of public education and evaluate compliance with the standards and recommend accreditation status of every school to the board of public education in accordance with the provisions of 20-7-101 and 20-7-102;
(19) collect and maintain a file of curriculum guides and assist schools with instructional programs in accordance with the provisions of 20-7-113 and 20-7-114;
(20) establish and maintain a library of visual, aural, and other educational media in accordance with the provisions of 20-7-201;
(21) license textbook dealers and initiate prosecution of textbook dealers violating the law in accordance with the provisions of the textbooks part of this title;
(22) as the governing agent and executive officer of the state of Montana for K-12 vocational education, adopt the policies prescribed by and in accordance with the provisions of 20-7-301;
(23) supervise and coordinate the conduct of special education in the state in accordance with the provisions of 20-7-403;
(24) administer the traffic education program in accordance with the provisions of 20-7-502;
(25) administer the school food services program in accordance with the provisions of 20-10-201 through 20-10-203;
(26) review school building plans and specifications in accordance with the provisions of 20-6-622;
(27) prescribe the method of identification and signals to be used by school safety patrols in accordance with the provisions of 20-1-408;
(28) provide schools with information and technical assistance for compliance with the student assessment rules, provided for in 20-2-121, and collect and summarize the results of the student assessment for the board of public education and the legislature;
(29) upon request and in compliance with confidentiality requirements of state and federal law, disclose to interested parties all school district student assessment data for any test required by the board of public education;
(30) administer the distribution of guaranteed tax base aid in accordance with 20-9-366 through 20-9-369; and
(31)(30) perform any other duty prescribed from time to time by this title, any other act of the legislature, or the policies
of the board of public education."
Section 100. Section 20-3-205, MCA, is amended to read:
"20-3-205. Powers and duties. The county superintendent has general supervision of the schools of the county within the limitations prescribed by this title and shall perform the following duties or acts:
(1) determine, establish, and reestablish trustee nominating districts in accordance with the provisions of 20-3-352,
20-3-353, and through 20-3-354;
(2) administer and file the oaths of members of the boards of trustees of the districts in the county in accordance with the provisions of 20-3-307;
(3) register the teacher or specialist certificates or emergency authorization of employment of any person employed in the county as a teacher, specialist, principal, or district superintendent in accordance with the provisions of 20-4-202;
(4) act on each tuition and transportation obligation submitted in accordance with the provisions of 20-5-323 and 20-5-324;
(5) file a copy of the audit report for a district in accordance with the provisions of 20-9-203;
(6) classify districts in accordance with the provisions of 20-6-201 and 20-6-301;
(7) keep a transcript and reconcile the district boundaries of the county in accordance with the provisions of 20-6-103;
(8) fulfill all responsibilities assigned under the provisions of this title regulating the organization, alteration, or abandonment of districts;
(9) act on any unification proposition and, if approved, establish additional trustee nominating districts in accordance with 20-6-312 and 20-6-313;
(10) estimate the average number belonging (ANB) of an opening school in accordance with the provisions of 20-6-502, 20-6-503, 20-6-504, or 20-6-506;
(11) process and, when required, act on school isolation applications in accordance with the provisions of 20-9-302;
(12) complete the budgets, compute the budgeted revenues revenue and tax levies, file final budgets and budget
amendments, and fulfill other responsibilities assigned under the provisions of this title regulating school budgeting
systems;
(13) submit an annual financial report to the superintendent of public instruction in accordance with the provisions of 20-9-211;
(14) monthly, unless otherwise provided by law, order the county treasurer to apportion state money, county school
money, and any other school money subject to apportionment in accordance with the provisions of 20-9-212, 20-9-335,
20-9-347, or 20-10-145, or 20-10-146;
(15) act on any request to transfer average number belonging (ANB) in accordance with the provisions of 20-9-313(3);
(16) calculate the estimated budgeted general fund sources of revenue in accordance with the general fund revenue provisions of the general fund part of this title;
(17) compute the revenues revenue and the district and county levy requirements for each fund included in each district's
final budget and report the computations to the board of county commissioners in accordance with the provisions of the
general fund, transportation, bonds, and other school funds parts of this title;
(18) file and forward bus driver certifications, transportation contracts, and state transportation reimbursement claims in accordance with the provisions of 20-10-103, 20-10-143, or 20-10-145;
(19) for districts that do not employ a district superintendent or principal, recommend library book and textbook selections in accordance with the provisions of 20-7-204 or 20-7-602;
(20) notify the superintendent of public instruction of a textbook dealer's activities when required under the provisions of 20-7-605 and otherwise comply with the textbook dealer provisions of this title;
(21) act on district requests to allocate federal money for indigent children for school food services in accordance with the provisions of 20-10-205;
(22) perform any other duty prescribed from time to time by this title, any other act of the legislature, the policies of the board of public education, the policies of the board of regents relating to community college districts, or the rules of the superintendent of public instruction;
(23) administer the oath of office to trustees without the receipt of pay for administering the oath;
(24) keep a record of official acts, preserve all reports submitted to the superintendent under the provisions of this title, preserve all books and instructional equipment or supplies, keep all documents applicable to the administration of the office, and surrender all records, books, supplies, and equipment to the next superintendent;
(25) within 90 days after the close of the school fiscal year, publish an annual report in the county newspaper stating the following financial information for the school fiscal year just ended for each district of the county:
(a) the total of the cash balances of all funds maintained by the district at the beginning of the year;
(b) the total receipts that were realized in each fund maintained by the district;
(c) the total expenditures that were made from each fund maintained by the district; and
(d) the total of the cash balances of all funds maintained by the district at the end of the school fiscal year; and
(26) hold meetings for the members of the trustees from time to time at which matters for the good of the districts must be discussed."
Section 101. Section 20-3-324, MCA, is amended to read:
"20-3-324. Powers and duties. As prescribed elsewhere in this title, the trustees of each district shall:
(1) employ or dismiss a teacher, principal, or other assistant upon the recommendation of the district superintendent, the county high school principal, or other principal as the board considers necessary, accepting or rejecting any recommendation as the trustees in their sole discretion determine, in accordance with the provisions of Title 20, chapter 4;
(2) employ and dismiss administrative personnel, clerks, secretaries, teacher aides, custodians, maintenance personnel, school bus drivers, food service personnel, nurses, and any other personnel considered necessary to carry out the various services of the district;
(3) administer the attendance and tuition provisions and govern the pupils of the district in accordance with the provisions of the pupils chapter of this title;
(4) call, conduct, and certify the elections of the district in accordance with the provisions of the school elections chapter of this title;
(5) participate in the teachers' retirement system of the state of Montana in accordance with the provisions of the teachers' retirement system chapter of Title 19;
(6) participate in district boundary change actions in accordance with the provisions of the districts chapter of this title;
(7) organize, open, close, or acquire isolation status for the schools of the district in accordance with the provisions of the school organization part of this title;
(8) adopt and administer the annual budget or a budget amendment of the district in accordance with the provisions of the school budget system part of this title;
(9) conduct the fiscal business of the district in accordance with the provisions of the school financial administration part of this title;
(10) establish the ANB, BASE budget levy, calculate the over-BASE budget levy, and the additional levy amount, and
establish the operating reserve, and state impact aid amounts for the general fund of the district in accordance with the
provisions of the general fund part of this title;
(11) establish, maintain, budget, and finance the transportation program of the district in accordance with the provisions of the transportation parts of this title;
(12) issue, refund, sell, budget, and redeem the bonds of the district in accordance with the provisions of the bonds parts of this title;
(13) when applicable, establish, financially administer, and budget for the tuition fund, retirement fund, building reserve fund, adult education fund, nonoperating fund, school food services fund, miscellaneous programs fund, building fund, lease or rental agreement fund, traffic education fund, impact aid fund, interlocal cooperative agreement fund, and other funds as authorized by the state superintendent of public instruction in accordance with the provisions of the other school funds parts of this title;
(14) when applicable, administer any interlocal cooperative agreement, gifts, legacies, or devises in accordance with the provisions of the miscellaneous financial parts of this title;
(15) hold in trust, acquire, and dispose of the real and personal property of the district in accordance with the provisions of the school sites and facilities part of this title;
(16) operate the schools of the district in accordance with the provisions of the school calendar part of this title;
(17) establish and maintain the instructional services of the schools of the district in accordance with the provisions of the instructional services, textbooks, vocational education, and special education parts of this title;
(18) establish and maintain the school food services of the district in accordance with the provisions of the school food services parts of this title;
(19) make reports from time to time as the county superintendent, superintendent of public instruction, and board of public education may require;
(20) retain, when considered advisable, a physician or registered nurse to inspect the sanitary conditions of the school or the general health conditions of each pupil and, upon request, make available to any parent or guardian any medical reports or health records maintained by the district pertaining to the child;
(21) for each member of the trustees, visit each school of the district not less than once each school fiscal year to examine its management, conditions, and needs, except trustees from a first-class school district may share the responsibility for visiting each school in the district;
(22) procure and display outside daily in suitable weather on school days at each school of the district an American flag that measures not less than 4 feet by 6 feet;
(23) provide that an American flag that measures approximately 12 inches by 18 inches be prominently displayed in each classroom in each school of the district, except in a classroom in which the flag may get soiled. This requirement is waived if the flags are not provided by a local civic group.
(24) adopt and administer a district policy on assessment for placement of any child who enrolls in a school of the district from a nonpublic school that is not accredited, as required in 20-5-110;
(25) upon request and in compliance with confidentiality requirements of state and federal law, disclose to interested parties school district student assessment data for any test required by the board of public education; and
(26) perform any other duty and enforce any other requirements for the government of the schools prescribed by this title, the policies of the board of public education, or the rules of the superintendent of public instruction."
Section 102. Section 20-5-320, MCA, is amended to read:
"20-5-320. Attendance with discretionary approval. (1) A child may be enrolled in and attend a school in a Montana school district that is outside of the child's district of residence or a public school in a district of another state or province that is adjacent to the county of the child's residence, subject to discretionary approval by the trustees of the resident district and the district of choice. If the trustees grant discretionary approval of the child's attendance in a school of the district, the parent or guardian may be charged tuition and may be charged for transportation.
(2) (a) Whenever a parent or guardian of a child wishes to have the child attend a school under the provisions of this section, the parent or guardian shall apply to the trustees of the district where the child wishes to attend. The application must be made on an out-of-district attendance agreement form supplied by the district and developed by the superintendent of public instruction.
(b) The attendance agreement must set forth the financial obligations, if any, for tuition and for costs incurred for transporting the child under Title 20, chapter 10.
(c) The trustees of the district of choice may waive any or all of the tuition rate, but any waiver must be applied equally to all students.
(3) An out-of-district attendance agreement approved under this section requires that the parent or guardian initiate the request for an out-of-district attendance agreement and that the trustees of both the district of residence and the district of choice approve the agreement.
(4) If the trustees of the district of choice waive tuition, approval of the resident district trustees is not required.
(5) The trustees of a school district may approve or disapprove the out-of-district attendance agreement consistent with this part and the policy adopted by the local board of trustees for out-of-district attendance agreements.
(6) The approval of an out-of-district attendance agreement by the applicable approval agents or as the result of an appeal must authorize the child named in the agreement to enroll in and attend the school named in the agreement for the designated school year.
(7) The trustees of the district where the child wishes to attend have the discretion to approve any attendance agreement.
(8) This section does not preclude the trustees of a district from approving an attendance agreement for educational program offerings not provided by the resident district, such as the kindergarten or grades 7 and 8 programs, if the trustees of both districts agree to the terms and conditions for attendance and any tuition and transportation requirement. For purposes of this subsection, the trustees of the resident district shall initiate the out-of-district agreement.
(9) (a) A provision of this title may not be construed to deny a parent the right to send a child, at personal expense, to
any school of a district other than the resident district when the trustees of the district of choice have approved an
out-of-district attendance agreement and the parent has agreed to pay the tuition as prescribed by 20-5-323. However, under
this subsection (9), the tuition rate must be reduced by the amount the parent or guardian of the child paid in district and
county property taxes during the immediately preceding school fiscal year for the benefit and support of the district in
which the child will attend school.
(b) For the purposes of this section, "parent or guardian" includes an individual shareholder of a domestic corporation, as defined in 35-1-113, whose shares are 95% held by related family members to the sixth degree of consanguinity or by marriage to the sixth degree of affinity.
(c) The tax amount to be credited to reduce any tuition charge to a parent or guardian under subsection (9)(a) is determined in the following manner:
(i) determine the percentage of the total shares of the corporation held by the shareholder parent or parents or guardian;
(ii) determine the portion of property taxes paid in the preceding school fiscal year by the corporation, parent, or guardian for the benefit and support of the district in which the child will attend school.
(d) The percentage of total shares, as determined in subsection (9)(c)(i), is the percentage of taxes paid, as determined in subsection (9)(c)(ii), that is to be credited to reduce the tuition charge.
(10) As used in 20-5-320 through 20-5-324, the term "guardian" means the guardian of a minor as provided in Title 72, chapter 5, part 2."
Section 103. Section 20-5-324, MCA, is amended to read:
"20-5-324. Tuition report and payment provisions -- exemption. (1) At the close of the school term of each school fiscal year and before July 15, the trustees of a district shall report to the county superintendent:
(a) the name and district of residence of each child who is attending a school of the district under an approved mandatory out-of-district attendance agreement;
(b) the number of days of enrollment for each child reported under the provisions of subsection (1)(a);
(c) the annual tuition rate for each child's tuition payment, as determined under the provisions of 20-5-323, and the tuition cost for each reported child; and
(d) the names, districts of attendance, and amount of tuition to be paid by the district for resident students attending public schools out of state.
(2) The county superintendent shall send, as soon as practicable, the reported information to the county superintendent of the county in which a reported child resides.
(3) Before July 30, the county superintendent shall report the information in subsection (1)(d) to the superintendent of public instruction, who shall determine the total per-ANB entitlement for which the district would be eligible if the student were enrolled in the resident district. The reimbursement amount is the difference between the actual amount paid and the amount calculated in this subsection.
(4) Notwithstanding the requirements of subsection (5), tuition payment provisions for out-of-district placement of students with disabilities must be determined pursuant to Title 20, chapter 7, part 4.
(5) Except as provided in subsection (6), when a child has approval to attend a school outside the child's district of residence under the provisions of 20-5-320 or 20-5-321, the district of residence shall finance the tuition amount from the district tuition fund and any transportation amount from the transportation fund.
(6) When a child has mandatory approval under the provisions of 20-5-321, the tuition and transportation obligation for
an elementary school or high school child attending a school outside of the child's county of residence must be financed by
the basic county tax for elementary equalization, as provided in 20-9-331, for the child's county of residence or for a high
school child attending a school outside the county of residence by the basic county tax for high school equalization, as
provided in 20-9-333, for the child's county of residence school equalization aid from the child's district of residence.
(7) By December 31 of the school fiscal year, the county superintendent or the trustees shall pay at least one-half of any
tuition and transportation obligation established under this section out of the money realized to date from the appropriate
elementary or high school county equalization fund provided for in 20-9-335 from school equalization aid or from the
district tuition or transportation fund. The remaining tuition and transportation obligation must be paid by June 15 of the
school fiscal year. The payments must be made to the county treasurer in each county with a school district that is entitled
to tuition and transportation. Except as provided in subsection (9), the county treasurer shall credit tuition receipts to the
general fund of a school district entitled to a tuition payment. The tuition receipts must be used in accordance with the
provisions of 20-9-141. The county treasurer shall credit transportation receipts to the transportation fund of a school
district entitled to a transportation payment.
(8) The superintendent of public instruction shall reimburse the district of residence for the per-ANB entitlement determined in subsection (3).
(9) (a) Any tuition receipts received under the provisions of 20-5-323(3) for the current school fiscal year that exceed the tuition receipts of the prior year may be deposited in the district miscellaneous programs fund and must be used for that year in the manner provided for in 20-9-507 to support the costs of the program for which the tuition was received.
(b) Any tuition receipts received for the current school fiscal year for a pupil who is a child with disabilities that exceed the tuition amount received for a pupil without disabilities may be deposited in the district miscellaneous programs fund and must be used for that year in the manner provided for in 20-9-507 to support the costs of the program for which the tuition was received.
(c) Any other tuition receipts received for the current school fiscal year that exceed the tuition receipts of the prior year may be deposited in the district miscellaneous programs fund and may be used for that year in the manner provided for in that fund. For the ensuing school fiscal year, the receipts must be credited to the district general fund budget.
(10) The provisions of this section do not apply to out-of-state placements made by a state agency pursuant to 20-7-422."
Section 104. Section 20-6-702, MCA, is amended to read:
"20-6-702. Funding for K-12 school districts. (1) Notwithstanding the provisions of subsections (2) through (6), a K-12 school district formed under the provisions of 20-6-701 is subject to the provisions of law for high school districts.
(2) The number of elected trustees of the K-12 school district must be based on the classification of the attached elementary district under the provisions of 20-3-341 and 20-3-351.
(3) Calculations for the following of ANB for purposes of determining the total per-ANB entitlements must be in
accordance with the provisions of 20-9-311 and must be made separately for the elementary school program and the high
school program of a K-12 school district:
(a) the calculation of ANB for purposes of determining the total per-ANB entitlements must be in accordance with the
provisions of 20-9-311;
(b) the basic county tax for elementary equalization and revenue for the elementary BASE funding program for the
district must be determined in accordance with the provisions of 20-9-331, and the basic county tax for high school
equalization and revenue for the high school BASE funding program for the district must be determined in accordance with
20-9-333; and
(c) the guaranteed tax base aid for BASE funding program purposes for a K-12 school district must be calculated
separately, using each district's guaranteed tax base ratio, as defined in 20-9-366. The BASE budget levy to be levied for
the K-12 school district must be prorated based on the ratio of the BASE funding program amounts for elementary school
programs to the BASE funding program amounts for high school programs.
(4) The retirement obligation and eligibility for retirement guaranteed tax base aid for a K-12 school district must be
calculated and funded as a high school district retirement obligation under the provisions of 20-9-501.
(5) For the purposes of budgeting for a K-12 school district, the trustees shall adopt a single fund for any of the budgeted or nonbudgeted funds described in 20-9-201 for the costs of operating all grades and programs of the district.
(6) Tuition for attendance in the K-12 school district must be determined separately for high school pupils and for elementary pupils under the provisions of 20-5-320 through 20-5-324, except that the actual expenditures used for calculations in 20-5-323 must be based on an amount prorated between the elementary and high school programs in the appropriate funds of each district in the year prior to the attachment of the districts."
Section 105. Section 20-7-714, MCA, is amended to read:
"20-7-714. County adult literacy programs -- authorization to levy tax and establish fund. (1) (a) The governing
body of a county may, in its discretion, establish a fund and levy up to 1 0.059 mill on each dollar of taxable property in the
county for the support of county literacy programs that give first priority to providing direct instruction to adults. The tax
levy is in addition to all other tax levies and is subject to limitations on property taxes set forth in 15-10-402.
(b) The fund may be used only for the support of adult literacy programs within the county.
(2) (a) If a county levies a property tax for adult literacy programs, the county governing body shall appoint a county adult literacy board to administer the expenditure of funds from the county adult literacy fund established in subsection (1).
(b) The county adult literacy board shall coordinate all adult literacy programs receiving county adult literacy funds. The board may adopt policies concerning program standards and financial accountability for organizations receiving adult literacy funds. The board may require that adult literacy programs match adult literacy funds with federal, state, or private money. The board may, with the concurrence of the appropriate county officials, arrange for county in-kind services to support adult literacy programs.
(c) County adult literacy funding may be expended only on literacy programs for persons who are 16 years of age or older and who are not regularly enrolled, full-time pupils for the purposes of ANB computation."
Section 106. Section 20-9-104, MCA, is amended to read:
"20-9-104. General fund operating reserve. (1) At the end of each school fiscal year, the trustees of each district shall designate the portion of the general fund end-of-the-year fund balance that is to be earmarked as operating reserve for the purpose of paying general fund warrants issued by the district from July 1 to November 30 of the ensuing school fiscal year. Except as provided in subsections (5) and (6), the amount of the general fund balance that is earmarked as operating reserve may not exceed 10% of the final general fund budget for the ensuing school fiscal year.
(2) The amount held as operating reserve may not be used for property tax reduction in the manner permitted by 20-9-141(1)(b) for other receipts.
(3) Excess reserves, as provided in subsection (5), may be appropriated to reduce the BASE budget levy, the
over-BASE budget levy, or the additional levy provided by 20-9-353.
(4) Any portion of the general fund end-of-the-year fund balance that is not reserved under subsection (2) or reappropriated under subsection (3) is fund balance reappropriated and must be used for property tax reduction as provided in 20-9-141(1)(b).
(5) The limitation of subsection (1) does not apply when the amount in excess of the limitation is equal to or less than the unused balance of any amount:
(a) (i) received in settlement of tax payments protested in a prior school fiscal year;
(ii) received in taxes from a prior school fiscal year as a result of a tax audit by the department of revenue or its agents;
(iii) received in delinquent taxes from a prior school fiscal year; and
(iv) received as a local government severance tax payment for calendar year 1995 production as provided in 15-36-325; or
(b) that a district was entitled to as a general bonus payment prior to July 1, 1994.
(6) The limitation of subsection (1) does not apply when the amount earmarked as operating reserve is $10,000 or less."
Section 107. Section 20-9-141, MCA, is amended to read:
"20-9-141. Computation of general fund net over-BASE levy requirement by county superintendent. (1) The
county superintendent shall compute the levy requirement for each district's general fund on the basis of the following
procedure:
(a) Determine determine the funding required for the district's final general fund budget less the sum of direct state aid
and the special education allowable cost payment for the district by totaling:
(i) the district's nonisolated school BASE budget requirement to be met by a district levy as provided in 20-9-303; and
(ii) any general fund budget amount adopted by the trustees of the district under the provisions of 20-9-308 and
20-9-353, including any additional funding for a general fund budget that exceeds the maximum general fund budget.;
(b) Determine determine the money available for the reduction of the property tax on the district for the general fund by
totaling:
(i) the general fund balance reappropriated, as established under the provisions of 20-9-104;
(ii) amounts received in the last fiscal year for which revenue reporting was required for each of the following:
(A) tuition payments for out-of-district pupils under the provisions of 20-5-321 through 20-5-323, except the amount of tuition received for a pupil who is a child with disabilities in excess of the amount received for a pupil without disabilities, as calculated under 20-5-323(2);
(B) revenue from taxes and fees imposed under 23-2-517, 23-2-803, 61-3-504, 61-3-521, 61-3-527, 61-3-529, 61-3-537, [section 73 of LC 220], and 67-3-204;
(C) oil and natural gas production taxes;
(D) interest earned by the investment of general fund cash in accordance with the provisions of 20-9-213(4);
(E) revenue from corporation license taxes collected from financial institutions under the provisions of 15-31-702; and
(F) forest reserve receipts apportioned under the provisions of 17-3-213;
(G) grazing receipts apportioned under the provisions of 17-3-222; and
(H) any other revenue received during the school fiscal year that may be used to finance the general fund, excluding any
guaranteed tax base aid; and
(iii) pursuant to subsection (4), anticipated revenue from coal gross proceeds under 15-23-703.;
(c) Notwithstanding the provisions of subsection (2), subtract the money available to reduce the property tax required to
finance the general fund that has been determined in subsection (1)(b) from any general fund budget amount adopted by the
trustees of the district, up to the BASE budget amount, to determine the general fund BASE over-BASE budget levy
requirement.
(d) Subtract any amount remaining after the determination in subsection (1)(c) from any additional funding requirement
to be met by an over-BASE budget amount, a district levy as provided in 20-9-303, and any additional financing as
provided in 20-9-353 to determine any additional general fund levy requirements.
(2) The county superintendent shall calculate the number of mills to be levied on the taxable property in the district to
finance the general fund levy requirement for any amount that does not exceed exceeds the BASE budget amount for the
district by dividing the amount determined in subsection (1)(c) by the sum of:
(a) the amount of guaranteed tax base aid that the district will receive for each mill levied, as certified by the
superintendent of public instruction; and
(b) the taxable valuation of the district divided by 1,000.
(3) The net over-BASE general fund levy requirement determined in subsections subsection (1)(c) and (1)(d) must be
reported to the county commissioners on the fourth Monday of August by the county superintendent as the over-BASE
general fund net levy requirement for the district, and a levy must be set by the county commissioners in accordance with
20-9-142.
(4) For each school district, the department of revenue shall calculate and report to the county superintendent the amount of revenue anticipated for the ensuing fiscal year from revenue from coal gross proceeds under 15-23-703."
Section 108. Section 20-9-142, MCA, is amended to read:
"20-9-142. Fixing and levying taxes by board of county commissioners. On the fourth Monday in August, the
county superintendent shall place before the board of county commissioners the final adopted budget of the district. It is the
duty of the board of county commissioners to fix and levy on all the taxable value of all the real and personal property and
improvements within the district all district and county taxation required to finance, within the limitations provided by law,
the final budget."
Section 109. Section 20-9-212, MCA, is amended to read:
"20-9-212. Duties of county treasurer. The county treasurer of each county shall:
(1) receive and hold all school money subject to apportionment and keep a separate accounting of its apportionment to
the several districts that are entitled to a portion of the money according to the apportionments ordered by the county
superintendent or by the superintendent of public instruction. A separate accounting must be maintained for each county
fund a community college supported by a countywide levy for a specific, authorized purpose, including:
(a) the basic county tax for elementary equalization;
(b) the basic county tax for high school equalization;
(c) the county tax in support of the transportation schedules;
(d) the county tax in support of the elementary and high school district retirement obligations; and
(e) any other county tax for schools, including the community colleges, that may be authorized by law and levied by the
county commissioners.
(2) whenever requested, notify the county superintendent and the superintendent of public instruction of the amount of
county school money on deposit in each of the funds enumerated in subsection (1) for a community college and the amount
of any other school money subject to apportionment and apportion the county and other school money to the districts in
accordance with the apportionment ordered by the county superintendent or the superintendent of public instruction;
(3) keep a separate accounting of the receipts, expenditures, and cash balances for each fund;
(4) except as otherwise limited by law, pay all warrants properly drawn on the county or district school money;
(5) receive all revenue collected by and for each district and deposit these receipts in the fund designated by law or by the district if a fund is not designated by law. Interest and penalties on delinquent school taxes must be credited to the same fund and district for which the original taxes were levied.
(6) send all revenue received for a joint district, part of which is situated in the county, to the county treasurer designated as the custodian of the revenue, no later than December 15 of each year and every 3 months after that date until the end of the school fiscal year;
(7) at the direction of the trustees of a district, assist the district in the issuance and sale of tax and revenue anticipation notes as provided in Title 7, chapter 6, part 11;
(8) register district warrants drawn on a budgeted fund in accordance with 7-6-2604 when there is insufficient money available in all funds of the district to make payment of the warrant. Redemption of registered warrants must be made in accordance with 7-6-2116, 7-6-2605, and 7-6-2606.
(9) invest the money of any district as directed by the trustees of the district within 3 working days of the direction;
(10) each month give to the trustees of each district an itemized report for each fund maintained by the district, showing the paid warrants, registered warrants, interest distribution, amounts and types of revenue received, and the cash balance;
(11) remit promptly to the state treasurer receipts for the county tax for a vocational-technical program within a unit of
the university system when levied by the board of county commissioners under the provisions of 20-25-439;
(12) invest the money received from the basic county taxes for elementary and high school equalization, the county levy
in support of the elementary and high school district retirement obligations, and the county levy in support of the
transportation schedules within 3 working days of receipt. The money must be invested until the working day before it is
required to be distributed to school districts within the county or remitted to the state. Permissible investments are specified
in 20-9-213(4). All investment income must be deposited, and credited proportionately, in the funds established to account
for the taxes received for the purposes specified in subsections (1)(a) through (1)(d).
(13) remit on a monthly basis to the state treasurer, in accordance with the provisions of 15-1-504, all county
equalization revenue received under the provisions of 20-9-331 and 20-9-333, including all interest earned and excluding
any amount required for high school out-of-county tuition under the provisions of 20-9-334, in repayment of the state
advance for county equalization prescribed in 20-9-347. Any funds in excess of a state advance must be used as required in
20-9-331(1)(b) and 20-9-333(1)(b)."
Section 110. Section 20-9-303, MCA, is amended to read:
"20-9-303. Nonisolated school BASE budget funding -- special education funds. (1) An elementary school that has
an ANB of nine or fewer pupils for 2 consecutive years and that is not approved as an isolated school under the provisions
of 20-9-302 may budget and spend the BASE budget amount, but the county and state shall provide one-half of the direct
state aid, and the district shall finance the remaining one-half of the direct state aid by a tax levied on the property of the
district. When Whenever a school of nine or fewer pupils is approved as isolated under the provisions of 20-9-302, the
county and state shall participate in the financing of provide the total amount of the direct state aid.
(2) Funds provided to support the special education program may be expended only for special education purposes as approved by the superintendent of public instruction in accordance with the special education budgeting provisions of this title. Expenditures for special education must be accounted for separately from and in addition to the balance of the school district general fund budgeting requirements provided in 20-9-307 and 20-9-308. The amount of the special education allowable cost payments that is not matched with district funds, as required in 20-9-321, will reduce by a like amount the district's ensuing year's allowable cost payment for special education."
Section 111. Section 20-9-306, MCA, is amended to read:
"20-9-306. Definitions. As used in this title, unless the context clearly indicates otherwise, the following definitions apply:
(1) "BASE" means base amount for school equity.
(2) "BASE aid" means:
(a) direct state aid for 40% 80% of the basic entitlement and 40% 80% of the total per-ANB entitlement for the general
fund budget of a district; and
(b) guaranteed tax base aid for an eligible district for any amount up to 40% of the basic entitlement, up to 40% of the
total per-ANB entitlement budgeted in the general fund budget of a district, and up to 40% of the special education
allowable cost payment.
(3) "BASE budget" means the minimum general fund budget of a district, which includes 80% of the basic entitlement, 80% of the total per-ANB entitlement, and up to 140% of the special education allowable cost payment.
(4) "BASE budget levy" means the district levy in support of the BASE budget of a district, which may be
supplemented by guaranteed tax base aid if the district is eligible under the provisions of 20-9-366 through 20-9-369.
(5)(4) "BASE funding program" means the state program for the equitable distribution of the state's share of the cost of
Montana's basic system of public elementary schools and high schools, through county equalization aid as provided in
20-9-331 and 20-9-333 and state equalization aid as provided in 20-9-343, in support of the BASE budgets of districts and
special education allowable cost payments as provided in 20-9-321.
(6)(5) "Basic entitlement" means:
(a) $200,000 for each high school district;
(b) $18,000 for each elementary school district or K-12 district elementary program without an approved and accredited junior high school or middle school; and
(c) the prorated entitlement for each elementary school district or K-12 district elementary program with an approved and accredited junior high school or middle school, calculated as follows:
(i) $18,000 times the ratio of the ANB for kindergarten through grade 6 to the total ANB of kindergarten through grade 8; plus
(ii) $200,000 times the ratio of the ANB for grades 7 and 8 to the total ANB of kindergarten through grade 8.
(7)(6) "Direct state aid" means 40% 80% of the basic entitlement and 40% 80% of the total per-ANB entitlement for the
general fund budget of a district and funded with state and county equalization aid.
(8)(7) "Maximum general fund budget" means a district's general fund budget amount calculated from the basic
entitlement for the district, the total per-ANB entitlement for the district, and up to 153% of special education allowable
cost payments.
(9)(8) "Over-BASE budget levy" means the district levy in support of any general fund amount budgeted that is above
the BASE budget and below the maximum general fund budget for a district.
(10)(9) "Total per-ANB entitlement" means the district entitlement resulting from the following calculations:
(a) for a high school district or a K-12 district high school program, a maximum rate of $4,773 for the first ANB is decreased at the rate of 50 cents per ANB for each additional ANB of the district up through 800 ANB, with each ANB in excess of 800 receiving the same amount of entitlement as the 800th ANB;
(b) for an elementary school district or a K-12 district elementary program without an approved and accredited junior high school or middle school, a maximum rate of $3,410 for the first ANB is decreased at the rate of 20 cents per ANB for each additional ANB of the district up through 1,000 ANB, with each ANB in excess of 1,000 receiving the same amount of entitlement as the 1,000th ANB; and
(c) for an elementary school district or a K-12 district elementary program with an approved and accredited junior high school or middle school, the sum of:
(i) a maximum rate of $3,410 for the first ANB for kindergarten through grade 6 is decreased at the rate of 20 cents per ANB for each additional ANB up through 1,000 ANB, with each ANB in excess of 1,000 receiving the same amount of entitlement as the 1,000th ANB; and
(ii) a maximum rate of $4,773 for the first ANB for grades 7 and 8 is decreased at the rate of 50 cents per ANB for each additional ANB for grades 7 and 8 up through 800 ANB, with each ANB in excess of 800 receiving the same amount of entitlement as the 800th ANB."
Section 112. Section 20-9-307, MCA, is amended to read:
"20-9-307. BASE funding program -- district general fund budget -- funding sources. (1) A basic system of free quality public elementary schools and high schools must be established and maintained throughout the state of Montana to provide equality of educational opportunity to all school-age children.
(2) The state shall in an equitable manner fund and distribute to the school districts the state's share of the cost of the basic school system through BASE aid to support the BASE funding program in the manner established in this title.
(3) The budgetary vehicle general fund budget of the school district must be used for achieving the financing system
established in subsection (2) is the general fund budget of the school district. The purpose of the district general fund
budget is to finance those instructional, administrative, facility maintenance, and other operational costs of a district not
financed by other funds established for special purposes in this title.
(4) The BASE funding program for the districts in the state is financed by a combination of the following sources:
(a) county equalization money, as provided in 20-9-331 and 20-9-333;
(b)(a) state equalization aid, as provided in 20-9-343, including guaranteed tax base aid for eligible districts as provided
in 20-9-366 through 20-9-369;
(c)(b) appropriations for special education;
(d)(c) a district levy, as provided in 20-9-302 20-9-303, for support of a school not approved as an isolated school under
the provisions of that section 20-9-302; and
(e)(d) district levies or other revenue, as provided by 20-9-308 and 20-9-353."
Section 113. Section 20-9-308, MCA, is amended to read:
"20-9-308. BASE budgets and maximum general fund budgets. (1) The trustees of a district shall adopt a general fund budget that:
(a) except as provided in subsection (2), is at least equal to the BASE budget established for the district; or
(b) except as provided in section 3, Chapter 38, Special Laws of November 1993, and subsection (4) (3) of this section,
does not exceed the maximum general fund budget established for the district.
(2) (a) If the BASE budget for a district for the school fiscal year is greater than the general fund budget of the district
for the prior school fiscal year, the trustees of the district:
(i) shall increase the general fund budget by at least:
(A) 25% of the range between the district general fund budget for the school fiscal year ending June 30, 1994, and the
BASE budget for the district for the school fiscal year beginning July 1, 1994;
(B) 33.3% of the range between the district general fund budget for the school fiscal year ending June 30, 1995, and the
BASE budget for the district for the school fiscal year beginning July 1, 1995;
(C) 50% of the range between the district general fund budget for the school fiscal year ending June 30, 1996, and the
BASE budget for the district for the school fiscal year beginning July 1, 1996; or
(D) the remainder of the range between the district general fund budget for the school fiscal year ending June 30, 1997,
and the BASE budget for the district for the school fiscal year beginning July 1, 1997;
(ii) may increase the general fund budget beyond the amount in subsection (2)(a)(i) but not by more than 4% of the
previous year's general fund budget or by more than 4% of the previous year's general fund per-ANB multiplied by the
current year's ANB for budgeting purposes pursuant to subsection (2)(b).
(b) The trustees shall submit a proposition on any amount exceeding the limitations in subsection (2)(a)(i) to the
electors of the district, as provided in 20-9-353.
(3) (2) (a) Whenever the trustees of a district adopt a general fund budget that exceeds the BASE budget for the district
but does not exceed the maximum general fund budget for the district, the trustees shall submit a proposition to the electors
of the district, as provided in 20-9-353, for any budget amount that exceeds the previous year's general fund budget amount
or the previous year's general fund budget per-ANB multiplied by the current year's ANB for budgeting purposes.
(b) A general fund budget adopted under this subsection (3) (2) may not exceed the greater of:
(i) 104% of the previous year's general fund budget as adjusted by the provisions of section 3, Chapter 38, Special Laws
of November 1993; or
(ii) 104% of the previous year's general fund budget per-ANB multiplied by the current year's ANB for budgeting
purposes as adjusted by the provisions of section 3, Chapter 38, Special Laws of November 1993.
(4)(3) (a) If the maximum general fund budget for a district for an ensuing school fiscal year is less than the general
fund budget for the district for the current school fiscal year, as adjusted by the provisions of section 3, Chapter 38, Special
Laws of November 1993, the trustees of the district may not adopt a general fund budget for the ensuing school fiscal year
that is greater than the district's general fund budget for the current school fiscal year.
(b) Except for the school fiscal year beginning July 1, 1994, the The trustees of the district shall submit a proposition to
raise any general fund budget amount that is in excess of the maximum general fund budget for the district to the electors
who are qualified under 20-20-301 to vote on the proposition, as provided in 20-9-353.
(5)(4) Whenever the trustees of a district adopt a general fund budget that does not exceed the BASE budget for the
district, the trustees shall finance this amount with the following sources of revenue:
(a) state equalization aid as provided in 20-9-343, including any guaranteed tax base aid for which the district may be
eligible, as provided in 20-9-366 through 20-9-369;
(b) county equalization aid, as provided in 20-9-331 and 20-9-333;
(c)(b) a district levy for support of a school not approved as an isolated school under the provisions of 20-9-302; and
(d)(c) payments in support of special education programs under the provisions of 20-9-321;
(e) nonlevy revenue as provided in 20-9-141; and
(f) a BASE budget levy on the taxable value of all property within the district.
(6)(5) The over-BASE budget amount of a district must be financed by a levy on the taxable value of all property within
the district or other revenue available to the district as provided in 20-9-141."
Section 114. Section 20-9-332, MCA, is amended to read:
"20-9-332. Fines and penalties proceeds for elementary county school equalization. All fines and penalties
collected under the provisions of this title, except those collected by a justice's court, must be paid into the elementary
county equalization fund as provided by 20-9-331(2)(c) state general fund for state equalization aid. In order to implement
this section and any other provision of law requiring the deposit of fines in the elementary county equalization state general
fund, a the clerk of each district court shall report must be made to the county superintendent of the county public
instruction, at the close of each term, by the clerk of each district court, reporting all fines imposed and collected during the
term and indicating indicate the type of violation and the date of collection."
Section 115. Section 20-9-343, MCA, is amended to read:
"20-9-343. Definition of and revenue for state equalization aid. (1) As used in this title, the term "state equalization aid" means revenue as required in this section for:
(a) distribution to the public schools for the purposes of payment of systems development and other related costs
resulting from the enactment of legislation that requires changes to the automated system used to administer the BASE
funding program, guaranteed tax base aid, BASE aid, state reimbursement for school facilities, matching funds for the
systemic initiative for Montana mathematics and science grant, and grants for school technology purchases;
(b) negotiated payments authorized under 20-7-420(3) up to $500,000 per biennium; and
(c) the Montana educational telecommunications network as provided in 20-32-101.
(2) The superintendent of public instruction may spend throughout the biennium funds appropriated for the purposes of
systems development and other related costs resulting from the enactment of legislation that requires changes to the
automated system used to administer the BASE funding program, guaranteed tax base aid, BASE aid for the BASE funding
program, state reimbursement for school facilities, negotiated payments authorized under 20-7-420(3), the Montana
educational telecommunications network, and school technology purchases.
(3) The following must be paid into the state general fund for the public schools of the state:
(a) (i) subject to subsection (3)(a)(ii), interest and income money described in 20-9-341 and 20-9-342; and
(ii) an amount of money equal to the income money attributable to the difference between the average sale value of 18 million board feet and the total income produced from the annual timber harvest on common school trust lands during the fiscal year to be appropriated for purposes of 20-9-533;
(b) investment income earned by investing interest and income money described in 20-9-341 and 20-9-342; and
(c) fines and penalties described in 20-9-332."
Section 116. Section 20-9-344, MCA, is amended to read:
"20-9-344. Duties of board of public education for distribution of BASE aid. (1) The board of public education
shall administer and distribute the BASE aid and state advances for county equalization in the manner and with the powers
and duties provided by law. To this end, the board of public education shall:
(a) shall adopt policies for regulating the distribution of BASE aid and state advances for county equalization in
accordance with the provisions of law;
(b) must have the power to require reports from the county superintendents, budget boards, county treasurers, and trustees as it considers necessary; and
(c) shall order the superintendent of public instruction to distribute the BASE aid on the basis of each district's annual entitlement to the aid as established by the superintendent of public instruction. In ordering the distribution of BASE aid, the board of public education may not increase or decrease the BASE aid distribution to any district on account of any difference that may occur during the school fiscal year between budgeted and actual receipts from any other source of school revenue.
(2) The board of public education may order the superintendent of public instruction to withhold distribution of BASE aid from a district when the district fails to:
(a) submit reports or budgets as required by law or rules adopted by the board of public education; or
(b) maintain accredited status.
(3) Prior to any proposed order by the board of public education to withhold distribution of BASE aid or county
equalization money, the district is entitled to a contested case hearing before the board of public education, as provided
under the Montana Administrative Procedure Act.
(4) If a district or county receives more BASE aid than it is entitled to, the county treasurer shall return the overpayment to the state upon the request of the superintendent of public instruction in the manner prescribed by the superintendent of public instruction.
(5) Except as provided in 20-9-347(3), the BASE aid payment must be distributed according to the following schedule:
(a) from August to October April of the school fiscal year, 10% of the direct state aid to each district;
(b) from December to April of the school fiscal year, 10% of the direct state aid to each district;
(c)(b) in November of the school fiscal year, one-half of the guaranteed tax base aid state retirement obligation payment
to each district or county that has submitted a final budget to the superintendent of public instruction in accordance with the
provisions of 20-9-134;
(d)(c) in May of the school fiscal year, the remainder of the guaranteed tax base aid one-half of the state retirement
obligation payment to each district or county; and
(e)(d) in June of the school fiscal year, one-half of the remaining payment to each district of direct state aid and on the
following July 15, the remaining payment to each district of direct state aid for the school fiscal year ending on the
preceding June 30.
(6) The distribution provided for in subsection (5) must occur by the last working day of each month."
Section 117. Section 20-9-346, MCA, is amended to read:
"20-9-346. Duties of superintendent of public instruction for state and county equalization aid distribution. The
superintendent of public instruction shall administer the distribution of the state and county equalization aid by:
(1) establishing the annual entitlement of each district and county to state and county equalization aid, based on the data
reported in the retirement, general fund, and debt service fund budgets for each district that have been adopted for the
current school fiscal year and verified by the superintendent of public instruction;
(2) for the purposes of state advances and reimbursements for school facilities, limiting the distribution to no more than
the amount appropriated for the school fiscal year to the districts that are eligible under the provisions of 20-9-366
20-9-369 through 20-9-371 by:
(a) determining the debt service payment obligation in each district for debt service on bonds that were sold as provided
in 20-9-370(3)(4) that qualify for a state advance or reimbursement for school facilities under the provisions of 20-9-366
through 20-9-369 and 20-9-370 through 20-9-371;
(b) based on the limitation of state equalization aid appropriated for debt service purposes, determining the state advance for school facilities and the proportionate share of state reimbursement for school facilities that each eligible district must receive for the school fiscal year; and
(c) distributing that amount by May 31 of each school fiscal year to each eligible district for reducing the property tax
for the debt service fund for the ensuing school fiscal year.;
(3) distributing by electronic transfer the BASE aid and state advances for county equalization, for each district or
county entitled to the aid, to the county treasurer of the respective county for county equalization or to the county treasurer
of the county where the district is located for BASE aid, in accordance with the distribution ordered by the board of public
education;
(4) keeping a record of the full and complete data concerning money available for state equalization aid, including state
advances for county retirement equalization aid, and the entitlements for BASE aid of the districts of the state;
(5) reporting to the board of public education the estimated amount that will be available for state equalization aid; and
(6) reporting to the office of budget and program planning as provided in 17-7-111:
(a) the figures and data available concerning distributions of state and county equalization aid during the preceding 2
school fiscal years;
(b) the amount of state equalization aid then available;
(c) the apportionment made of the available money but not yet distributed; and
(d) the latest estimate of accruals of money available for state equalization aid; and
(e) the amount of state advances and repayment for county equalization."
Section 118. Section 20-9-347, MCA, is amended to read:
"20-9-347. Distribution of BASE aid and special education allowable cost payments in support of BASE funding
program and state equalization for retirement -- exceptions. (1) The superintendent of public instruction shall:
(a) supply the county treasurer and the county superintendent with a monthly report of the payment of BASE aid in
support of the BASE funding program of each district of the county;
(b) in the manner described in 20-9-344, provide for a state advance to each county in an amount that is no less than the
amount anticipated to be raised for the elementary and high school county equalization funds as provided in 20-9-331 and
20-9-333; and
(c) adopt rules to implement the provisions of subsection (1)(b).
(2) (a) The superintendent of public instruction is authorized to adjust the schedule prescribed in 20-9-344 for distribution of the BASE aid payments if the distribution will cause a district to register warrants under the provisions of 20-9-212(8).
(b) To qualify for an adjustment in the payment schedule, a district shall demonstrate to the superintendent of public instruction, in the manner required by the office, that the payment schedule prescribed in 20-9-344 will result in insufficient money available in all funds of the district to make payment of the district's warrants. The county treasurer shall confirm the anticipated deficit. This section may not be construed to authorize the superintendent of public instruction to exceed a district's annual payment for BASE aid.
(3) The superintendent of public instruction shall:
(a) distribute special education allowable cost payments to districts; and
(b) supply the county treasurer and the county superintendent of schools with a report of payments for special education allowable costs to districts of the county.
(4) Except as provided in 20-9-501(3), the superintendent of public instruction shall also apportion state equalization aid to each district in support of the district's retirement fund expenditures. The superintendent of public instruction shall adopt rules to ensure that each district receives retirement equalization aid equal to the full amount required by the elementary districts and high school districts in the county."
Section 119. Section 20-9-348, MCA, is amended to read:
"20-9-348. Estimation of state equalization aid for budget purposes. The apportionment of state equalization aid
shall be is the second primary source of revenue in calculating the financing of the elementary district BASE funding
program and the high school district BASE funding program. In order to allow for the estimation of the amount of money
to be realized from this source of revenue when When the county superintendent is estimating the general fund budget
revenues revenue, the county superintendent shall consider that the state BASE funding program revenues and county
equalization moneys, together, revenue will be capable of financing 100% of the BASE funding program."
Section 120. Section 20-9-351, MCA, is amended to read:
"20-9-351. Funding of deficiency in BASE aid. If the money available for BASE aid is not the result of a reduction in
spending under 17-7-140 and is not sufficient to provide the guaranteed tax base aid required under 20-9-366 through
20-9-369 and BASE aid support determined under 20-9-347, the superintendent of public instruction shall request the
budget director to submit a request for a supplemental appropriation in the second year of the biennium that is sufficient to
complete the funding of BASE aid for the elementary and high school districts for the current biennium."
Section 121. Section 20-9-353, MCA, is amended to read:
"20-9-353. Additional financing for general fund -- election for authorization to impose. (1) The trustees of a district may propose to adopt:
(a) a budget amount up to the BASE budget amount for the district general fund that is within the limitations and
required budget increases provided in 20-9-308(2);
(b) an over-BASE budget amount for the district general fund that does not exceed the maximum general fund budget
for the district or other limitations, as provided in 20-9-308(3)(2); or
(c) a general fund budget amount in excess of the maximum general fund budget amount for the district, as provided in
20-9-308(4)(3).
(2) When Whenever the trustees of a district determine that a voted amount of financing is required for the general fund
budget, the trustees shall submit the proposition to finance the additional amount of general fund financing to the electors
who are qualified under 20-20-301 to vote upon the proposition. The special election must be called and conducted in the
manner prescribed by this title for school elections. The ballot for the election must state the amount of money to be
financed, the approximate number of mills required to raise all or a portion of the money, and the purpose for which the
money will be expended. The ballot must be in the following format:
PROPOSITION
Shall the district be authorized to expend the sum of (state the additional amount to be expended), and being approximately (give number) mills, for the purpose of (insert the purpose for which the additional financing is made)?
[] FOR budget authority and any levy.
[] AGAINST budget authority and any levy.
(3) If the election on any additional financing for the general fund is approved by a majority vote of the electors voting at the election, the proposition carries and the trustees may use any portion or all of the authorized amount in adopting the final general fund budget. The trustees shall certify any additional levy amount authorized by the special election on the budget form that is submitted to the county superintendent, and the county commissioners shall levy the authorized number of mills on the taxable value of all taxable property within the district, as prescribed in 20-9-141, to raise the amount of the additional levy.
(4) Authorization to levy an additional tax to support a budget amount adopted as allowed by 20-9-308(4)(3) is
effective for only 1 school fiscal year.
(5) All levies adopted under this section must be authorized by a special election conducted before August 1 of the school fiscal year for which it is effective.
(6) If the trustees of a district are required to submit a proposition to finance an increased amount up to the BASE
budget amount, as provided in 20-9-308(2)(b), an increased over-BASE budget amount, as provided in
20-9-308(3)(a)(2)(a), or an amount in excess of the maximum general fund budget amount for the district, as allowed by
20-9-308(4)(3), to the electors of the district, the trustees shall comply with the provisions of subsections (2) through (4) of
this section."
Section 122. Section 20-9-369, MCA, is amended to read:
"20-9-369. Duties of superintendent of public instruction and department of revenue. (1) The superintendent of
public instruction shall administer the distribution of guaranteed tax base aid the state advance and reimbursement for
school facilities by:
(a) providing each school district and county superintendent, by March 1 of each year, with the preliminary statewide
and district guaranteed tax base ratios and, by May 1 of each year, with the final statewide and district guaranteed tax base
ratios, for use in calculating the guaranteed tax base aid available for the ensuing school fiscal year;
(b) providing each school district and county superintendent, by March 1 of each year, with the preliminary statewide,
county, and district mill values per ANB and, by May 1 of each year, with the final statewide, county, and district mill
values per ANB, for use in calculating the guaranteed tax base aid and state advance and reimbursement for school
facilities available to counties and districts for the ensuing school fiscal year;
(c)(b) requiring each county and district that qualifies and applies for guaranteed tax base aid the state advance and
reimbursement for school facilities to report to the county superintendent all budget and accounting information required to
administer the guaranteed tax base aid state advance and reimbursement program;
(d)(c) keeping a record of the complete data concerning appropriations available for guaranteed tax base aid the state
advance and reimbursement for school facilities and the entitlements for the aid of the counties and districts that qualify;
(e)(d) distributing the guaranteed tax base aid entitlement state advance and reimbursement for school facilities to each
qualified county or district from the appropriations for that purpose.
(2) The superintendent shall adopt rules necessary to implement 20-9-366 through 20-9-369 20-9-370, 20-9-371, and
this section.
(3) The department of revenue shall provide the superintendent of public instruction by December 1 of each year a final
determination of the taxable value of property within each school district and county of the state reported to the department
of revenue based on information delivered to the county clerk and recorder as required in 15-10-305.
(4) The superintendent of public instruction shall calculate the district and statewide guaranteed tax base ratios by
applying the prior year's direct state aid payment."
Section 123. Section 20-9-370, MCA, is amended to read:
"20-9-370. Definitions. As used in this title, unless the context clearly indicates otherwise, the following definitions apply:
(1) "District mill value per elementary ANB" or "district mill value per high school ANB", for school facility entitlement purposes, means the taxable valuation in the previous year of all property in the district divided by 1,000, with the quotient divided by the ANB count of the district used to calculate the district's current year total per-ANB entitlement amount.
(2) "School facility entitlement" means:
(a) $220 per ANB for an elementary school district;
(b) $330 per ANB for a high school district; or
(c) $270 per ANB for an approved and accredited junior high school or middle school.
(2)(3) "State advance for school facilities" is the amount of state equalization aid distributed to an eligible district to pay
the debt service obligation for a bond in the first school fiscal year in which a debt service payment is due for the bond.
(3)(4) "State reimbursement for school facilities" means the amount of state equalization aid distributed to a district
that:
(a) has a district mill value per elementary ANB that is less than the corresponding statewide mill value per elementary ANB or a district mill value per high school ANB that is less than the corresponding statewide mill value per high school ANB; and
(b) has a debt service obligation in the ensuing school year on bonds for which the original issue was sold after July 1, 1991.
(5) "Statewide mill value per elementary ANB" or "statewide mill value per high school ANB" means the sum of the taxable valuation in the previous year of all property in the state, multiplied by 121% and divided by 1,000, with the quotient divided by the total state elementary ANB count or the total state high school ANB count used to calculate the elementary school districts' and high school districts' current year total per-ANB entitlement amounts.
(4)(6) "Total school facility entitlement" means the school facility entitlement times the total ANB for the district."
Section 124. Section 20-9-371, MCA, is amended to read:
"20-9-371. Calculation and uses of school facility entitlement amount. (1) If the district mill value per elementary ANB or the district mill value per high school ANB is less than the corresponding statewide mill value per elementary ANB or statewide mill value per high school ANB, the district may receive a state advance or reimbursement for school facilities in support of the debt service fund.
(2) The state reimbursement for school facilities for a district is the percentage determined in 20-9-346(2)(b) times
(1-(district mill value per ANB/statewide mill value per ANB)) times the lesser of the total school facility entitlement
calculated under the provisions of 20-9-370 or the district's current year debt service obligations on bonds that qualify
under the provisions of 20-9-370(3)(4).
(2)(3) The state advance for school facilities for a district is determined as follows:
(a) Calculate calculate the percentage of the district's debt service payment that will be advanced by the state using the
district ANB, the district mill value and the statewide mill value for the current year, and the percentage used to determine
the proportionate share of state reimbursement for school facilities in the prior year.; and
(b) Multiply multiply the percentage determined in subsection (2)(a) (3)(a) by the lesser of the total school facility
entitlement calculated under the provisions of 20-9-370 or the district's current year debt service obligation for bonds to
which the state advance applies.
(3)(4) Within the available appropriation, the superintendent of public instruction shall first distribute to eligible
districts the state advance for school facilities. From the remaining appropriation, the superintendent shall distribute to
eligible districts the state reimbursement for school facilities.
(4)(5) The trustees of a district may apply the state reimbursement for school facilities to reduce the levy requirement in
the ensuing school fiscal year for all outstanding bonded indebtedness on bonds sold in the debt service fund of the district
after July 1, 1991. The trustees may apply the state advance for school facilities to reduce the levy requirement in the
current school fiscal year for debt service payments on bonds to which the state advance for school facilities applies."
Section 125. Section 20-9-406, MCA, is amended to read:
"20-9-406. Limitations on amount of bond issue. (1) (a) Except as provided in subsection (1)(c), the maximum
amount for which an elementary district or a high school district may become indebted by the issuance of bonds, including
all indebtedness represented by outstanding bonds of previous issues and registered warrants, is 45% 2.57% of the taxable
value of the property subject to taxation, to be ascertained by the last-completed assessment for state, county, and school
taxes previous to the incurring of the indebtedness, plus, for bonds to be issued during fiscal year 1997, an additional 11%
of the taxable value of class eight property within the district for tax year 1995, for bonds to be issued during fiscal year
1998, an additional 22% of the taxable value of class eight property within the district for tax year 1995, and for bonds to
be issued during fiscal years 1999 through 2008, an additional 33% of the taxable value of class eight property within the
district for tax year 1995, in each case of class eight property, multiplied by 45%.
(b) Except as provided in subsection (1)(c), the maximum amount for which a K-12 school district, as formed pursuant
to 20-6-701, may become indebted by the issuance of bonds, including all indebtedness represented by outstanding bonds
of previous issues and registered warrants, is up to 90% 5.14% of the taxable value of the property subject to taxation, to be
ascertained by the last-completed assessment for state, county, and school taxes previous to the incurring of the
indebtedness, plus, for bonds to be issued during fiscal year 1997, an additional 11% of the taxable value of class eight
property within the district for tax year 1995, for bonds to be issued during fiscal year 1998, an additional 22% of the
taxable value of class eight property within the district for tax year 1995, and for bonds to be issued during fiscal years
1999 through 2008, an additional 33% of the taxable value of class eight property within the district for tax year 1995, in
each case of class eight property, multiplied by 90%. The total indebtedness of the high school district with an attached
elementary district must be limited to the sum of 45% 2.57% of the taxable value of the property for elementary school
program purposes and 45% 2.57% of the taxable value of the property for high school program purposes, adjusted as
provided in this section.
(c) (i) The maximum amount for which an elementary district or a high school district with a district mill value per
elementary ANB or per high school ANB that is less than the corresponding statewide mill value per elementary ANB or
per high school ANB may become indebted by the issuance of bonds, including all indebtedness represented by outstanding
bonds of previous issues and registered warrants, is 45% 2.57% of the corresponding statewide mill value per ANB times
1,000 times the ANB of the district. For a K-12 district, the maximum amount for which the district may become indebted
is 45% 2.57% of the sum of the statewide mill value per elementary ANB times 1,000 times the elementary ANB of the
district and the statewide mill value per high school ANB times 1,000 times the high school ANB of the district.
(ii) If mutually agreed upon by the affected districts, for the purpose of calculating its maximum bonded indebtedness
under this subsection (1)(c), a district may include the ANB of the district plus the number of students residing within the
district for which the district or county pays tuition for attendance at a school in an adjacent district. The receiving district
may not use out-of-district ANB for the purpose of calculating its maximum indebtedness if the out-of-district ANB has
been included in the ANB of the sending district pursuant to the mutual agreement.
(2) The maximum amounts determined in subsection (1), however, may not pertain to indebtedness imposed by special improvement district obligations or assessments against the school district or to bonds issued for the repayment of tax protests lost by the district. All bonds issued in excess of the amount are void, except as provided in this section.
(3) When the total indebtedness of a school district has reached the limitations prescribed in this section, the school district may pay all reasonable and necessary expenses of the school district on a cash basis in accordance with the financial administration provisions of this chapter.
(4) Whenever bonds are issued for the purpose of refunding bonds, any money to the credit of the debt service fund for the payment of the bonds to be refunded is applied toward the payment of the bonds and the refunding bond issue is decreased accordingly."
Section 126. Section 20-9-407, MCA, is amended to read:
"20-9-407. Industrial facility agreement for bond issue in excess of maximum. (1) In a school district within which
a new major industrial facility which seeks to qualify for taxation as class five property under 15-6-135, as provided in
subsection (3), is being constructed or is about to be constructed, the school district may require, as a precondition of the
new major industrial facility qualifying as class five property, that the owners of the proposed industrial facility enter into
an agreement with the school district concerning the issuing of bonds in excess of the 45% bond debt limitation prescribed
in 20-9-406. Under such an agreement, the school district may, with the approval of the voters, issue bonds which that
exceed the limitation prescribed in this section by a maximum of 45% 2.57% of the estimated taxable value of the property
of the new major industrial facility subject to taxation when completed. The estimated taxable value of the property of the
new major industrial facility subject to taxation shall must be computed by the department of revenue when requested to do
so by a resolution of the board of trustees of the school district. A copy of the department's statement of estimated taxable
value shall must be printed on each ballot used to vote on a bond issue proposed under this section.
(2) Pursuant to the agreement between the new major industrial facility and the school district and as a precondition to
qualifying as class five property, the new major industrial facility and its owners shall pay, in addition to the taxes imposed
by the school district on property owners generally, so much of the principal and interest on the bonds provided for under
this section as represents payment on an indebtedness in excess of the bond debt limitation prescribed in 20-9-406. After
the completion of the new major industrial facility and when the indebtedness of the school district no longer exceeds the
limitation prescribed in this section, the new major industrial facility shall be is entitled, after all the current indebtedness of
the school district has been paid, to a tax credit over a period of no more than 20 years. The total amount of the credit shall
as a total amount be is equal to the amount which that the facility paid the principal and interest of the school district's
bonds in excess of its general liability as a taxpayer within the district.
(3) A major industrial facility is a facility subject to the taxing power of the school district, whose construction or operation will increase the population of the district, imposing a significant burden upon the resources of the district and requiring construction of new school facilities. A significant burden is an increase in ANB of at least 20% in a single year."
Section 127. Section 20-9-422, MCA, is amended to read:
"20-9-422. Additional requirements for trustees' resolution calling bond election. (1) In addition to the requirements for calling an election that are prescribed in 20-20-201 and 20-20-203, the trustees' resolution calling a school district bond election must:
(a) fix the exact amount of the bonds proposed to be issued, which may be more or less than the amounts estimated in a petition;
(b) fix the maximum number of years in which the proposed bonds would be paid;
(c) in the case of initiation by a petition, state the essential facts about the petition and its presentation; and
(d) state the amount of the state advance for school facilities estimated, pursuant to subsection (2), to be received by the district in the first school fiscal year in which a debt service payment would be due on the proposed bonds.
(2) Prior to the adoption of the resolution calling for a school bond election, the trustees of a district may request from
the superintendent of public instruction a statement of the estimated amount of state advance for school facilities that the
district will receive for debt service payments on the proposed bonds in the first school fiscal year in which a debt service
payment is due. The district shall provide the superintendent with an estimate of the debt service payment due in the first
school fiscal year. The superintendent shall estimate the state advance for the bond issue pursuant to 20-9-371(2)(3)."
Section 128. Section 20-9-439, MCA, is amended to read:
"20-9-439. Computation of net levy requirement -- procedure when levy inadequate. (1) The county superintendent shall compute the levy requirement for each school district's debt service fund on the basis of the following procedure:
(a) Determine determine the total money available in the debt service fund for the reduction of the property tax on the
district by totaling:
(i) the end-of-the-year fund balance in the debt service fund, less any limited operating reserve as provided in 20-9-438;
(ii) anticipated interest to be earned by the investment of debt service cash in accordance with the provisions of 20-9-213(4) or by the investment of bond proceeds under the provisions of 20-9-435;
(iii) any state advance for school facilities distributed to a qualified district under the provisions of 20-9-346, 20-9-370, and 20-9-371; and
(iv) any other money, including money from federal sources, anticipated by the trustees to be available in the debt
service fund during the ensuing school fiscal year from sources such as legally authorized money transfers into the debt
service fund or from rental income, excluding any guaranteed tax base aid.;and
(b) Subtract subtract the total amount available to reduce the property tax, determined in subsection (1)(a), from the
final budget for the debt service fund as established in 20-9-438.
(2) The net debt service fund levy requirement determined in subsection (1)(b) must be reported to the county commissioners on the fourth Monday of August by the county superintendent as the net debt service fund levy requirement for the district, and a levy must be made by the county commissioners in accordance with 20-9-142.
(3) If the board of county commissioners fails in any school fiscal year to make a levy for any issue or series of bonds of a school district sufficient to raise the money necessary for payment of interest and principal becoming due during the next ensuing school fiscal year, in any amounts established under the provisions of this section, the holder of any bond of the issue or series or any taxpayer of the district may apply to the district court of the county in which the school district is located for a writ of mandate to compel the board of county commissioners of the county to make a sufficient levy for payment purposes. If, upon the hearing of the application, it appears to the satisfaction of the court that the board of county commissioners of the county has failed to make a levy or has made a levy that is insufficient to raise the amount required to be raised as established in the manner provided in this section, the court shall determine the amount of the deficiency and shall issue a writ of mandate directed to and requiring the board of county commissioners, at the next meeting for the purpose of fixing tax levies for county purposes, to fix and make a levy against all taxable property in the school district that is sufficient to raise the amount of the deficiency. The levy is in addition to any levy required to be made at that time for the ensuing school fiscal year. Any costs that may be allowed or awarded the petitioner in the proceeding must be paid by the members of the board of county commissioners and may not be a charge against the school district or the county."
Section 129. Section 20-9-501, MCA, is amended to read:
"20-9-501. Retirement fund -- state aid. (1) The trustees of a district employing personnel who are members of the teachers' retirement system or the public employees' retirement system or who are covered by unemployment insurance or who are covered by any federal social security system requiring employer contributions shall establish a retirement fund for the purposes of budgeting and paying the employer's contributions to the systems. The district's contribution for each employee who is a member of the teachers' retirement system must be calculated in accordance with Title 19, chapter 20, part 6. The district's contribution for each employee who is a member of the public employees' retirement system must be calculated in accordance with 19-3-316. The district's contributions for each employee covered by any federal social security system must be paid in accordance with federal law and regulation. The district's contribution for each employee who is covered by unemployment insurance must be paid in accordance with Title 39, chapter 51, part 11.
(2) The trustees of a district required to make a contribution to a system referred to in subsection (1) shall include in the retirement fund of the final budget the estimated amount of the employer's contribution. After the final retirement fund budget has been adopted, the trustees shall pay the employer contributions to the systems in accordance with the financial administration provisions of this title.
(3) When the final retirement fund budget has been adopted, the county superintendent shall establish the levy
requirement amount of state obligation by:
(a) determining the sum of the money available to reduce the retirement fund levy requirement amount of the state
obligation by adding:
(i) any anticipated money that may be realized in the retirement fund during the ensuing school fiscal year, including
anticipated revenue from property taxes and fees imposed under 23-2-517, 23-2-803, 61-3-504, 61-3-521, 61-3-527,
61-3-529, 61-3-537, and 67-3-204;
(ii) oil and natural gas production taxes;
(iii) anticipated local government severance tax payments for calendar year 1995 production as provided in 15-36-325;
(iv) coal gross proceeds taxes under 15-23-703;
(v)(i) any fund balance available for reappropriation to reduce the state financial obligation in subsection (4). as The
fund balance available for reappropriation is determined by subtracting the amount of the end-of-the-year fund balance
earmarked as the retirement fund operating reserve for the ensuing school fiscal year by the trustees from the
end-of-the-year fund balance in the retirement fund. The retirement fund operating reserve may not be more than 35% of
the final retirement fund budget for the ensuing school fiscal year and must be used for the purpose of paying retirement
fund warrants issued by the district under the final retirement fund budget.
(vi)(ii) any other revenue anticipated that may be realized in the retirement fund during the ensuing school fiscal year,
excluding any guaranteed tax base aid.;
(b) notwithstanding the provisions of subsection (8), subtracting the money available for reduction of the levy
requirement state obligation, as determined in subsection (3)(a), from the budgeted amount for expenditures in the final
retirement fund budget.
(4) The county superintendent shall:
(a) total the net retirement fund levy requirements requirement for state aid separately for all elementary school
districts, including any joint district located in the county, for all high school districts, and for all community college
districts of the county, including any prorated joint district or special education cooperative agreement levy requirements;
and
(b) report each levy requirement the amount of the state obligation to the county commissioners superintendent of
public instruction in the same manner as provided in 20-9-134 on the fourth Monday of August as the respective county
levy requirements for elementary district, and high school district, retirement funds and report to the board of regents in the
same manner as provided in 20-9-134 the amount of the state obligation for community college district retirement funds.
(5) The superintendent of public instruction shall distribute the state retirement equalization aid to each school district in accordance with the distribution schedule contained in 20-9-344(5).
(5) The county commissioners shall fix and set the county levy in accordance with 20-9-142.
(6) The net retirement fund levy requirement for a joint elementary district or a joint high school district must be
prorated to each county in which a part of the district is located in the same proportion as the district ANB of the joint
district is distributed by pupil residence in each county. The county superintendents of the counties affected shall jointly
determine the net retirement fund levy requirement for each county as provided in 20-9-151.
(7) The net retirement fund levy requirement for districts that are members of special education cooperative agreements
must be prorated to each county in which the district is located in the same proportion as the special education cooperative
budget is prorated to the member school districts. The county superintendents of the counties affected shall jointly
determine the net retirement fund levy requirement for each county in the same manner as provided in 20-9-151, and the
county commissioners shall fix and levy the net retirement fund levy for each county in the same manner as provided in
20-9-152.
(8) The county superintendent shall calculate the number of mills to be levied on the taxable property in the county to
finance the retirement fund net levy requirement by dividing the amount determined in subsection (4)(a) by the sum of:
(a) the amount of guaranteed tax base aid that the county will receive for each mill levied, as certified by the
superintendent of public instruction; and
(b) the taxable valuation of the district divided by 1,000."
Section 130. Section 20-9-515, MCA, is amended to read:
"20-9-515. Litigation reserve fund. (1) The trustees of a school district may establish a litigation reserve fund only when litigation that is pending against the district could result in an award against the district.
(2) At the end of each school fiscal year, the trustees of a district may transfer money from the general fund, within the adopted budget, to establish the fund.
(3) Upon conclusion of litigation, the balance of the money in the fund reverts to the general fund and must be used to
reduce the district's general fund BASE over-BASE budget levy requirement computed pursuant to 20-9-141."
Section 131. Section 20-10-104, MCA, is amended to read:
"20-10-104. Penalty for violating law or rules. (1) Every Each district, and its trustees and employees, and every each
person under a transportation contract with a district is are subject to the policies prescribed by the board of public
education and the rules prescribed by the superintendent of public instruction. When Whenever a district knowingly
violates a transportation law or board of public education transportation policy, the district shall forfeit any reimbursement
otherwise payable under 20-10-145 and 20-10-146 for any bus miles actually traveled during that fiscal year in violation of
the law or policies.
(2) A district knowingly violates a transportation law or board of public education policy when it operates a bus route in a manner that does not comply with state law or board policy related to student safety. As provided in 20-10-141(1), a district that operates a bus route not approved by its county transportation committee may not receive transportation reimbursement on that route, but if the route is operated in compliance with transportation law, the operation of the routes is not a violation that will result in the forfeiture of all transportation aid to the district.
(3) The county superintendent shall suspend all reimbursements payable to the district under 20-10-145 and 20-10-146
for all miles being traveled, including both miles being traveled in compliance with the transportation laws or policies and
miles being traveled in violation of the transportation laws or policies, until the district corrects the violation. When the
district corrects the violation, the county superintendent shall pay all reimbursements otherwise payable under 20-10-145
and 20-10-146, including amounts suspended during the violation, but the amount forfeited under subsection (1) may not
be paid to the district.
(4) When a person operating an operator of a bus under contract with a district knowingly fails to comply with the
transportation law or the board of public education transportation policies, the district may not pay the person operator for
any bus miles traveled during the contract year in violation of law or policies. Upon discovering a violation, the trustees of
the district shall give written notice to the person operator that unless the violation is corrected within 10 days of the giving
of notice, the contract will be canceled. The trustees of a district shall order the operation of a bus operated under contract
suspended when the bus is being operated in violation of transportation law or policies and the trustees find that the
violation jeopardizes the safety of pupils."
Section 132. Section 20-10-141, MCA, is amended to read:
"20-10-141. Schedule of maximum reimbursement by mileage rates. (1) The following mileage rates for school
transportation constitute the maximum reimbursement to districts for school transportation from state and county sources of
transportation revenue under the provisions of 20-10-145 and 20-10-146. These Except as provided in 20-10-143, these
rates may not limit the amount that a district may budget in its transportation fund budget in order to provide for the
estimated and necessary cost of school transportation during the ensuing school fiscal year. All bus miles traveled on bus
routes approved by the county transportation committee are reimbursable. Nonbus mileage is reimbursable for a vehicle
driven by a bus driver to and from an overnight location of a school bus when the location is more than 10 miles from the
school. A district may approve additional bus or nonbus miles within its own district or approved service area but may not
claim reimbursement for the mileage. Any vehicle, the operation of which is reimbursed for bus mileage under the rate
provisions of this schedule, must be a school bus, as defined by this title, driven by a qualified driver on a bus route
approved by the county transportation committee and the superintendent of public instruction.
(2) The rate per bus mile traveled must be determined in accordance with the following schedule when the weighted ridership assigned to a bus route is not less than one-half of the rated capacity of the school bus:
(a) 85 cents per bus mile for a school bus with a rated capacity of not more than 45 passenger seating positions; and
(b) when the rated capacity is more than 45 passenger seating positions, an additional 2.13 cents per bus mile for each additional passenger seating position in the rated capacity in excess of 45 must be added to a base rate of 85 cents per bus mile.
(3) Reimbursement for nonbus mileage provided for in subsection (1) may not exceed 50% of the maximum reimbursement rate determined under subsection (2).
(4) When the weighted ridership assigned to a bus route is less than one-half of the rated capacity of the school bus, the rate per bus mile traveled must be computed as follows:
(a) determine the weighted ridership assigned to the bus route;
(b) multiply the number determined in subsection (4)(a) by two; and
(c) use the adjusted rated capacity determined in subsection (4)(b) as the rated capacity of the bus to determine the rate per bus mile traveled from the rate schedule in subsection (2).
(5) The rated capacity is the number of passenger seating positions of a school bus as determined under the policy adopted by the board of public education. If modification of a school bus to accommodate pupils with disabilities reduces the rated capacity of the bus, the reimbursement to a district for pupil transportation is based on the rated capacity of the bus prior to modification.
(6) The number of pupils riding the school bus may not exceed the passenger seating positions of the bus."
Section 133. Section 20-10-142, MCA, is amended to read:
"20-10-142. Schedule of maximum reimbursement for individual transportation. The following rates for
individual transportation constitute the maximum reimbursement to districts for individual transportation from state and
county sources of transportation revenue under the provisions of 20-10-145 and 20-10-146. These rates constitute the
limitation of the budgeted amounts for individual transportation for the ensuing school fiscal year. The schedules provided
in this section may not be altered by any authority other than the legislature. When the trustees contract with the parent or
guardian of any eligible transportee to provide individual transportation for each day of school attendance, they shall
reimburse the parent or guardian for actual miles transported on the basis of the following schedule:
(1) When a parent or guardian transports an eligible transportee or transportees from the residence of the parent or
guardian to a school or to schools located within 3 miles of one another, the total reimbursement per day of attendance is
determined by multiplying the distance in miles between the residence and the school, or the most distant school if more
than one, by 2, subtracting 6 miles from the product, and multiplying the difference by 21.25 cents, provided that.
However:
(a) if two or more eligible transportees are transported by a parent or guardian to two or more schools located within 3 miles of one another and if the schools are operated by different school districts, the total amount of the reimbursement must be divided equally between the districts;
(b) if two or more eligible transportees are transported by a parent or guardian to two or more schools located more than 3 miles from one another, the parent or guardian must be separately reimbursed for transporting the eligible transportee or transportees to each school;
(c) if a parent transports two or more eligible transportees to a school and a bus stop that are located within 3 miles of one another, the total reimbursement must be determined under the provisions of this subsection and must be divided equally between the district operating the school and the district operating the bus;
(d) if a parent transporting two or more eligible transportees to a school or bus stop must, because of varying arrival and departure times, make more than one round-trip journey to the bus stop or school, the total reimbursement allowed by this section is limited to one round trip per day for each scheduled arrival or departure time;
(e) notwithstanding subsection (1)(a), (1)(b), (1)(c), or (1)(d), a reimbursement may not be less than 25 cents a day.
(2) When the parent or guardian transports an eligible transportee or transportees from the residence to a bus stop of a
bus route approved by the trustees for the transportation of the transportee or transportees, the total reimbursement per day
of attendance is determined by multiplying the distance in miles between the residence and the bus stop by 2, subtracting 6
miles from the product, and multiplying the difference by 21.25 cents, provided that. However:
(a) if the eligible transportees attend schools in different districts but ride on one bus, the districts shall divide the total reimbursement equally; and
(b) if the parent or guardian is required to transport the eligible transportees to more than one bus, the parent or guardian must be separately reimbursed for transportation to each bus.
(3) When, because of excessive distances, impassable roads, or other special circumstances of isolation, the rates prescribed in subsection (1) or (2) would be an inadequate reimbursement for the transportation costs or would result in a physical hardship for the eligible transportee, a parent or guardian may request an increase in the reimbursement rate. A request for increased rates because of isolation must be made by the parent or guardian on the contract for individual transportation for the ensuing school fiscal year by indicating the special facts and circumstances that exist to justify the increase. Before an increased rate because of isolation may be paid to the requesting parent or guardian, the rate must be approved by the county transportation committee and the superintendent of public instruction after the trustees have indicated their approval or disapproval. Regardless of the action of the trustees and when approval is given by the committee and the superintendent of public instruction, the trustees shall pay the increased rate because of isolation. The increased rate is 1 1/2 times the rate prescribed in subsection (1).
(4) The state and county transportation reimbursement for an individual transportation contract may not exceed $8 per
day of attendance for the first eligible transportee and $5 per day of attendance for each additional eligible transportee.
(5) When the isolated conditions of the household where an eligible transportee resides require an eligible transportee to live away from the household in order to attend school, the eligible transportee is eligible for the room and board reimbursement. Approval to receive the room and board reimbursement must be obtained in the same manner prescribed in subsection (3). The per diem rate for room and board is $8 for one eligible transportee and $5 for each additional eligible transportee of the same household.
(6) When the individual transportation provision is to be satisfied by supervised home study or supervised correspondence study, the reimbursement rate is the cost of the study, provided that the course of instruction is approved by the trustees and supervised by the district."
Section 134. Section 20-10-143, MCA, is amended to read:
"20-10-143. Budgeting for transportation and transmittal of transportation contracts -- transportation fund
limitations. (1) The Except as provided in subsection (2), the trustees of a district furnishing transportation to pupils who
are residents of the district shall provide a transportation fund budget that is adequate to finance the district's transportation
contractual obligations and any other transportation expenditures necessary for the conduct of its transportation program.
The transportation fund budget must include:
(a) an adequate amount to finance the maintenance and operation of school buses owned and operated by the district;
(b) the annual contracted amount for the maintenance and operation of school buses by a private party;
(c) the annual contracted amount for individual transportation, including any increased amount because of isolation, which may not exceed the schedule amounts prescribed in 20-10-142;
(d) any amount necessary for the purchase, rental, or insurance of school buses; and
(e) any other amount necessary to finance the administration, operation, or maintenance of the transportation program of the district, as determined by the trustees.
(2) The overschedule amount in the transportation fund budget of a district may not exceed the overschedule amount of expenditures from the transportation fund for school fiscal year 1999, except that the superintendent of public instruction may approve a request to exceed the budget limitation if an emergency or unusual circumstance occurs, as prescribed in rules adopted by the superintendent of public instruction.
(3) The trustees may include a contingency amount in the transportation fund budget for the purpose of enabling the district to fulfill an obligation to provide transportation in accordance with this title for:
(a) pupils not residing in the district at the time of the adoption of the final budget and who subsequently became residents of the district during the school fiscal year; or
(b) pupils who have become eligible transportees since the adoption of the final budget because their legal residence has been changed. The budgeted contingency amount may not exceed 10% of the transportation schedule amount as calculated under the provisions of 20-10-141 and 20-10-142 for all transportation services authorized by the schedules and provided by the district unless 10% of the transportation schedule amount is less than $100, in which case $100 is the maximum limitation for the budgeted contingency amount.
(3)(4) A budget amendment to the transportation fund budget may be adopted subject to the provisions of 20-9-161
through 20-9-166.
(4)(5) The transportation fund budgeted expenditures appropriated by the trustees must be reported on the regular
budget form prescribed by the superintendent of public instruction in accordance with 20-9-103, and the adoption of the
transportation fund budget must be completed in accordance with the school budgeting laws. When the adopted final
budget is sent to the county superintendent, the trustees shall also send copies of all completed transportation contracts for
school bus transportation and individual transportation to the county superintendent. The contracts must substantiate all
contracted transportation services incorporated in the final budget, and after the county superintendent has utilized used the
contracts for that purpose but before the second Monday of August, the county superintendent shall send all transportation
contracts received to the superintendent of public instruction."
Section 135. Section 20-10-144, MCA, is amended to read:
"20-10-144. Computation of revenue and net tax levy requirements for district transportation fund budget. Before the second Monday of August, the county superintendent shall compute the revenue available to finance the transportation fund budget of each district. The county superintendent shall compute the revenue for each district on the following basis:
(1) The "schedule amount" of the budget expenditures that is derived from the rate schedules in 20-10-141 and 20-10-142 must be determined by adding the following amounts:
(a) the sum of the maximum reimbursable expenditures for all approved school bus routes maintained by the district (to determine the maximum reimbursable expenditure, multiply the applicable rate per bus mile by the total number of miles to be traveled during the ensuing school fiscal year on each bus route approved by the county transportation committee and maintained by the district); plus
(b) the total of all individual transportation per diem reimbursement rates for the district as determined from the contracts submitted by the district multiplied by the number of pupil-instruction days scheduled for the ensuing school attendance year; plus
(c) any estimated costs for supervised home study or supervised correspondence study for the ensuing school fiscal year; plus
(d) the amount budgeted in the budget for the contingency amount permitted in 20-10-143, except if the amount
exceeds 10% of the total of subsections (1)(a), (1)(b), and (1)(c), the transportation fund budget limitation provided for in
20-10-143, or $100, whichever is larger largest, the contingency amount on the budget must be reduced to the limitation
amount and used in this determination of the schedule amount; plus
(e) any estimated costs for transporting a child out of district when the child has mandatory approval to attend school in a district outside the district of residence.
(2) (a) The schedule amount determined in subsection (1) or the total transportation fund budget, whichever is smaller,
is divided by 2 and is used to determine the available state and county revenue to be budgeted on the following basis:
(i) one-half is the budgeted state transportation reimbursement, except that the state transportation reimbursement for
the transportation of special education pupils under the provisions of 20-7-442 must be 50% of the schedule amount
attributed to the transportation of special education pupils; and
(ii) one-half is the budgeted county transportation fund reimbursement and must be financed in the manner provided in
20-10-146.
(b)(3) When the district has a sufficient amount of fund balance for reappropriation and other sources of district
revenue, as determined in subsection (3) (4), to reduce the total district obligation for financing to zero, any remaining
amount of district revenue and fund balance reappropriated must be used to reduce the county financing obligation in
subsection (2)(a)(ii) and, if the county financing obligations are reduced to zero, to reduce the state financial obligation in
subsection (2)(a)(i).
(c) The county revenue requirement for a joint district, after the application of any district money under subsection
(2)(b), must be prorated to each county incorporated by the joint district in the same proportion as the ANB of the joint
district is distributed by pupil residence in each county the state financial obligation under 20-10-145.
(3)(4) The total of the money available for the reduction of property tax on the district for the transportation fund must
be determined by totaling:
(a) anticipated federal money received under the provisions of 20 U.S.C. 7701, et seq., or other anticipated federal money received in lieu of that federal act;
(b) anticipated payments from other districts for providing school bus transportation services for the district;
(c) anticipated payments from a parent or guardian for providing school bus transportation services for a child;
(d) anticipated or reappropriated interest to be earned by the investment of transportation fund cash in accordance with the provisions of 20-9-213(4);
(e) anticipated or reappropriated revenue from property taxes and fees imposed under 23-2-517, 23-2-803, 61-3-504,
61-3-521, 61-3-527, 61-3-529, 61-3-537, and 67-3-204;
(f) anticipated revenue from coal gross proceeds under 15-23-703;
(g) anticipated oil and natural gas production taxes;
(h) anticipated local government severance tax payments for calendar year 1995 production;
(i) anticipated transportation payments for out-of-district pupils under the provisions of 20-5-320 through 20-5-324;
(j) any other revenue anticipated by the trustees to be earned during the ensuing school fiscal year that may be used to
finance the transportation fund; and
(k) anticipated sales tax and use tax revenue distributed under [section 73 of LC 220]; and
(l) any fund balance available for reappropriation as determined by subtracting the amount of the end-of-the-year fund balance earmarked as the transportation fund operating reserve for the ensuing school fiscal year by the trustees from the end-of-the-year fund balance in the transportation fund. The operating reserve may not be more than 20% of the final transportation fund budget for the ensuing school fiscal year and is for the purpose of paying transportation fund warrants issued by the district under the final transportation fund budget.
(4)(5) The district levy requirement for each district's transportation fund must be computed by:
(a) subtracting the schedule amount calculated in subsection (1) from the total preliminary transportation budget amount; and
(b) subtracting the amount of money available to reduce the property tax on the district, as determined in subsection (3)
(4), from the amount determined in subsection (4)(a) (5)(a).
(5)(6) The transportation fund levy requirements determined in subsection (4) (5) for each district must be reported to
the county commissioners on the fourth Monday of August by the county superintendent as the transportation fund levy
requirements for the district, and the levy must be made by the county commissioners in accordance with 20-9-142."
Section 136. Section 20-10-145, MCA, is amended to read:
"20-10-145. State transportation reimbursement. (1) A district providing school bus transportation or individual
transportation in accordance with this title, board of public education transportation policy, and superintendent of public
instruction transportation rules must receive a state reimbursement of its transportation expenditures under the
transportation reimbursement rate provisions of 20-10-141 and 20-10-142. The state transportation reimbursement is
one-half 100% of the reimbursement amounts established in 20-10-141 and 20-10-142 or one-half 100% of the district's
transportation fund budget, whichever is smaller, and must be computed on the basis of the number of days the
transportation services were actually rendered, not to exceed 180 pupil-instruction days. In determining the amount of the
state transportation reimbursement, an amount claimed by a district may not be considered for reimbursement unless the
amount has been paid in the regular manner provided for the payment of other financial obligations of the district.
(2) Requests for the state transportation reimbursement must be made by each district semiannually during the school
fiscal year on the claim forms and through the procedure promulgated by the superintendent of public instruction. The
claims for state transportation reimbursements must be routed by the district to the county superintendent, who after
reviewing the claims shall send them to the superintendent of public instruction. The superintendent of public instruction
shall establish the validity and accuracy of the claims for the state transportation reimbursements by determining
compliance with this title, board of public education transportation policy, and the transportation rules of the superintendent
of public instruction. After making any necessary adjustments to the claims, the superintendent of public instruction shall
order a disbursement from the state money appropriated by the legislature of the state of Montana for the state
transportation reimbursement. The payment of all the district's claims within one county must be made to the county
treasurer of the county, and the county superintendent shall apportion the payment in accordance with the apportionment
order supplied by the superintendent of public instruction."
Section 137. Section 20-15-305, MCA, is amended to read:
"20-15-305. Adult education tax levy. A community college shall be is considered a district for the purposes of adult
education and under the provisions for adult education may levy a 1-mill tax 0.06 mill for the support of its adult education
program when the superintendent of public instruction approves such the program."
Section 138. Section 20-15-311, MCA, is amended to read:
"20-15-311. Funding sources. The annual operating budget of a community college district shall must be financed
from the following sources:
(1) the estimated revenues revenue to be realized from student tuition and fees, except those related to community
service courses as defined by the board of regents;
(2) a mandatory mill levy on the community college district;
(3)(2) the 1-mill adult education levy authorized under provisions of 20-15-305;
(4)(3) the state general fund appropriation;
(5)(4) an optional voted levy on the community college district that shall must be submitted to the electorate in
accordance with general school election laws;
(6)(5) all other income, revenue, balances, or reserves not restricted by a source outside the community college district
to a specific purpose;
(7)(6) income, revenue, balances, or reserves restricted by a source outside the community college district to a specific
purpose. Student fees paid for community service courses, as defined by the board of regents, shall must be considered
restricted to a specific purpose;
(8)(7) income from a political subdivision that is designated a community college service region under 20-15-241; and
(8) sales tax and use tax revenue distributed under [section 73 of LC 220]."
Section 139. Section 20-15-312, MCA, is amended to read:
"20-15-312. Calculation and approval of operating budget. (1) Annually by September 1, the board of trustees of a
community college shall submit an operating budget to the board of regents for their its review. The operating budget of the
community college must be financed in the following manner:
(a) The general fund appropriation must represent a specific percentage of the budget amount per full-time equivalent student, as determined by the legislature. This percentage must be specified in the appropriations act appropriating funds to the community colleges for each biennium. This percentage does not apply to any portion of the unrestricted budget in excess of the budget amount per full-time equivalent student, as determined by the legislature.
(b) The mandatory levy amount must represent a specific percentage of the budget amount per full-time equivalent
student, as determined by the legislature. This percentage must be specified for each community college by the board of
trustees of the district and approved by the board of regents.
(c)(b) The funding obtained in subsections subsection (1)(a) and (1)(b) plus the revenue derived from tuition and fee
schedules approved by the board of regents and unrestricted income from any other source is are the amount of the
unrestricted budget. A detailed expenditure schedule for the unrestricted budget must be submitted to the board of regents
for their its review and approval.
(d)(c) The amount estimated to be raised by the voted levy must be detailed separately in an expenditure schedule.
(e)(d) The spending of each restricted funding source must be detailed separately in an expenditure schedule.
(f)(e) The expenditure schedules provided in subsections (1)(c) (1)(b) through (1)(e) (1)(d) represent the total operating
budget of the community college.
(2) The board of regents shall review the proposed total operating budget and all its components and make any changes it determines necessary. The board of trustees of a community college district shall operate within the limits of the operating budget approved by the board of regents."
Section 140. Section 20-15-313, MCA, is amended to read:
"20-15-313. Tax levy. On the second Monday in August, the board of county commissioners of any county where a
community college district is located shall fix and levy a tax on all the real and personal property within the community
college district at the rate required to finance the mandatory mill levy prescribed by subsection (1)(b) of 20-15-312 and the
voted levy prescribed by subsection (5) of 20-15-311(4) if one has been approved by the voters. When a community college
district has territory in more than one county, the board of county commissioners in each county shall fix and levy the
community college district tax on all the real and personal property of the community college district situated in its county."
Section 141. Section 20-15-314, MCA, is amended to read:
"20-15-314. Tax levy for community college service region. A governing body designating a community college
service region, as provided in 20-15-241, may levy a tax on all real and personal property within the region at a rate
required to finance the services offered by a community college district for the region. The levy is in addition to any other
levies allowed by law and is not subject to any statutory or charter limitations on levies. The levy must be made at the same
time and in the same manner as the general levy of the political subdivision designating the region is made, and the
revenues revenue generated thereby from the levy must be collected at the same time and in the same manner. Within 30
days of collection, the appropriate revenues revenue must be transmitted to the participating community college district."
Section 142. Section 53-2-322, MCA, is amended to read:
"53-2-322. County to levy taxes, budget, and make expenditures for public assistance activities. (1) The board of
county commissioners in each county shall levy 13.5 mills 0.8 mill for the county poor fund as provided by law or so much
of that amount as may be necessary. The board may levy up to an additional 12 mills 0.71 mill if approved by the voters in
the county. A county shall levy a sufficient mills amount to reimburse the state for any administrative or operational costs
in excess of the administrative and operational costs for the previous fiscal year. The department of public health and
human services shall notify the counties of the number of mills required to be levied. Once an additional levy has been
approved, the amount of the approved levy may continue to be levied without voter approval.
(2) The board shall budget and expend so much of the funds in the county poor fund for:
(a) public assistance as necessary to reimburse the department for the county's proportionate share of the administrative costs and of all public assistance costs;
(b) salaries, travel expenses, and indirect costs, as provided in 52-1-110, of protective services employees of the department; and
(c) the county's proportionate share of any other public assistance activity that may be carried on jointly by the state and the county.
(3) The amounts set up in the budget for the reimbursements to the department must be sufficient to make all of these reimbursements in full. The budget must make separate provision for each public assistance activity and for salaries, travel expenses, and indirect costs for protective services activities of the department. Proper accounts must be established for the funds for all the activities.
(4) The department shall submit to the counties, no later than May 10, the most current county participation percentages that are necessary to establish preliminary county budgets. As soon as the county proposed budget provided for in 7-6-2315 has been agreed upon, a copy must be mailed to the department, and at any time before the final adoption of the budget, the department shall make recommendations with regard to changes in any part of the budget relating to the county poor fund as considered necessary in order to enable the county to discharge its obligations under the public assistance laws.
(5) The department shall promptly examine the county proposed budget in order to ascertain if the amounts provided for reimbursements to the department are likely to be sufficient and shall notify the county clerk of its findings. The board shall make changes in the amounts provided for reimbursements, if any are required, in order that the county will be able to make the reimbursements in full.
(6) The board of county commissioners may not make any transfer from the amounts budgeted for reimbursing the department without having first obtained a statement in writing from the department to the effect that the amount to be transferred will not be required during the fiscal year for the purposes for which the amounts were provided in the budget.
(7) The county poor fund, irrespective of the source of any part of the fund, may not be used directly or indirectly for the erection or improvement of any county building so long as the fund is needed for paying the county's proportionate share of public assistance and protective services, as described in 52-1-110, or its proportionate share of any other public assistance activity that may be carried on jointly by the state and the county. Expenditures for improvement of any county buildings used directly for care of the poor, except a county hospital or county nursing home, may be made out of money in the county poor fund, whether the money was produced by the mill levy provided for in subsection (1) or from any additional levy authorized by law. The expenditure may be authorized only when any county building used for the care of the poor must be improved in order to meet legal standards required for the building by the department and when the expenditure has been approved by the department.
(8) Money in the county poor fund may be used as matching funds for the receipt of federal money."
Section 143. Section 53-2-801, MCA, is amended to read:
"53-2-801. Purpose. The purpose of this part is to provide for the department of public health and human services to
assume all responsibilities for public assistance programs and for protective services for children and adults that, as of July
1, 1983, are provided by the counties pursuant to Titles 41 and 53. The assumption may become effective only at the option
and with the express consent of each individual county requesting state assumption. State assumption allows counties to
pay the state the proceeds from the 9-mill 0.53-mill levy provided for in 53-2-813 rather than an amount based on the actual
cost of providing public assistance and protective services in the county. Counties that opt for state assumption may
provide other optional services for indigents with money available from funds derived from the difference between the
9-mill 0.53-mill levy and the maximum amount of 13.5 mills 0.8 mill permitted by 53-2-322."
Section 144. Section 53-2-813, MCA, is amended to read:
"53-2-813. Mill levy for counties transferring public assistance and protective services. (1) For the purpose of this
part, 9 mills 0.53 mill must be levied annually in those counties opting for state assumption.
(2) For a county electing state assumption, the proceeds of the mill levy established in subsection (1) must be deposited in the state special revenue fund in the state treasury to the credit of the department of public health and human services."
Section 145. Section 61-3-301, MCA, is amended to read:
"61-3-301. Registration -- license plate required -- display. (1) Except as otherwise provided in this chapter, no a
person may not operate a motor vehicle upon the public highways of Montana unless the vehicle is properly registered and
has the proper number plates conspicuously displayed, one on the front and one on the rear of the vehicle, each securely
fastened to prevent it from swinging and unobstructed from plain view, except that trailers, semitrailers, quadricycles,
motorcycles, and vehicles authorized in 61-4-102(6) to display demonstrator plates may have but only one number plate
conspicuously displayed on the rear. No A person may not display on a vehicle at the same time a number assigned to it
under any motor vehicle law except as provided in this chapter. A junk vehicle, as defined in Title 75, chapter 10, part 5,
being driven or towed to an auto wrecking graveyard for disposal is exempt from the provisions of this section.
(2) No A person may not purchase or display on a vehicle a license plate bearing the number assigned to any county, as
provided in 61-3-332, other than the county of his the person's permanent residence at the time of application for
registration. However, the owner of any a motor vehicle requiring a license plate on any a motor vehicle used in the public
transportation of persons or property may make application for the license in any county through which the motor vehicle
passes in its regularly scheduled route, and the license plate issued bearing the number assigned to that county may be
displayed on the motor vehicle in any other county of the state.
(3) It is unlawful to use license plates issued to one vehicle on any other vehicle, trailer, or semitrailer unless legally
transferred as provided by statute, or to repaint old license plates to resemble current license plates.
(4) This section does not apply to a vehicle exempt from taxation under 15-6-215 or that is subject to taxation under the
provisions of 61-3-520.
(5) Any A person violating these provisions is guilty of a misdemeanor and subject to the penalty prescribed in
61-3-601."
Section 146. Section 61-3-303, MCA, is amended to read:
"61-3-303. Application for registration. (1) Each owner of a motor vehicle operated or driven upon the public highways of this state shall for each motor vehicle owned, except as otherwise provided in this section, file or cause to be filed in the office of the county treasurer in the county where the owner permanently resides at the time of making the application or, if the vehicle is owned by a corporation or used primarily for commercial purposes, in the taxing jurisdiction of the county where the vehicle is permanently assigned an application for registration or reregistration on a form prescribed by the department. The application must contain:
(a) the name and address of the owner, giving the county, school district, and town or city within whose corporate limits the motor vehicle is taxable, if taxable, or within whose corporate limits the owner's residence is located if the motor vehicle is not taxable;
(b) the name and address of the holder of any security interest in the motor vehicle;
(c) a description of the motor vehicle, including make, year model, engine or serial number, manufacturer's model or letter, gross weight, declared weight on all trucks for which the manufacturer's rated capacity is 1 ton or less, and type of body and, if a truck, the manufacturer's rated capacity;
(d) the declared weight on all trailers operating intrastate, except travel trailers or trailers and semitrailers registered as provided in 61-3-711 through 61-3-733; and
(e) other information that the department may require.
(2) A person who files an application for registration or reregistration of a motor vehicle, except of a mobile home or a manufactured home as those terms are defined in 15-1-101(1), shall upon the filing of the application pay to the county treasurer:
(a) the registration fee, as provided in 61-3-311 and 61-3-321 or 61-3-456; and
(b) except as provided in 61-3-456, or unless it has been previously paid whichever of the following taxes is applicable:
(i) the motor vehicle taxes or fees in lieu of tax assessed or imposed against the vehicle for the current year of
registration and the immediately previous year if the taxes or fees for the previous year were not paid; or
(ii) the sales tax on new motor vehicle sales tax against the vehicle vehicles imposed by 61-3-502 for the current year of
registration;
(iii) the sales tax or use tax imposed by [section 73 of LC 220].
(3) The application may not be accepted by the county treasurer unless the payments required by subsection (2) accompany the application. The department may not assess or impose and the county treasurer may not collect taxes or fees for a period other than:
(a) the current year; and
(b) the immediately previous year if the vehicle was not registered or operated on the highways of the state, regardless of the period of time since the vehicle was previously registered or operated.
(4) The department may make full and complete investigation of the tax status of the vehicle. An applicant for registration or reregistration shall submit proof from the tax or other appropriate records of the proper county at the request of the department."
Section 147. Section 61-3-317, MCA, is amended to read:
"61-3-317. New registration required for transferred vehicle -- sales tax and use tax -- grace period -- penalty --
display of proof of purchase. Except as otherwise provided herein in this section, the new owner of a transferred motor
vehicle shall have has a grace period of 20 calendar days from the date of purchase to make application and pay the taxes or
fees, or both, sales tax or use tax provided by part 5 of this chapter, unless the in addition to any motor vehicle tax or fee in
lieu of tax that has been paid for the year, as if the vehicle were being registered for the first time in that registration year. If
the motor vehicle was not purchased from a duly licensed motor vehicle dealer as provided in this chapter, it is not a
violation of this chapter or any other law for the purchaser to operate the vehicle upon the streets and highways of this state
without a certificate of registration during the 20-day period, provided that at all times during that period, a vehicle
purchase sticker in a form prescribed and furnished by the department, obtained from the county treasurer or a law
enforcement officer as authorized by the department, reciting the date of purchase is clearly displayed in the rear window of
the motor vehicle. Registration and license fees collected under 61-3-321 are not required to be paid when a license plate is
transferred under this section and 61-3-335 and this section. However, the transfer may be subject to the sales tax or use
tax provided by part 5 of this chapter. Failure to make application within the time provided herein in this section subjects
the purchaser to a penalty of $10. The penalty shall must be collected by the county treasurer at the time of registration and
shall be is in addition to the fees otherwise provided by law."
Section 148. Section 61-3-501, MCA, is amended to read:
"61-3-501. When vehicle taxes and fees are due. (1) Motor vehicle taxes, fees in lieu of tax, new car taxes, sales taxes or use taxes, and fees must be paid on the date of registration or reregistration of the vehicle.
(2) If the anniversary date for reregistration of a vehicle passes while the vehicle is owned and held for sale by a licensed new or used car dealer, motor vehicle taxes or fees in lieu of tax abate on the vehicle properly reported with the county treasurer until the vehicle is sold. After the sale, the purchaser shall pay the pro rata balance of the taxes or fees in lieu of tax due and owing on the vehicle.
(3) In the event that a vehicle's registration period is changed under 61-3-315, all taxes or fees in lieu of tax and other
fees due must be prorated and paid from the last day of the old period until the first day of the new period in which the
vehicle is registered. The taxes or fees in lieu of tax and other fees must be paid from the first day of the new period for a
minimum period of 1 year. When Whenever the change is to a later registration period, taxes and fees must be prorated and
paid based on the same tax year as the original registration period. Thereafter After the change, during the appropriate
anniversary registration period, each vehicle must again be registered or reregistered and all taxes and fees must be paid for
a 12-month period."
Section 149. Section 61-3-504, MCA, is amended to read:
"61-3-504. Computation of tax. (1) The amount of taxes on a light vehicle, except for vehicles registered under
61-3-456 or owned by disabled veterans qualifying for special license plates under 61-3-332(10)(c) or 61-3-426(2), is 2%
1.5% of the value determined under 61-3-503.
(2) The amount of tax on fleet vehicles subject to the provisions of 61-3-318 is 1% of the value determined under 61-3-503."
Section 150. Section 61-3-504, MCA, is amended to read:
"61-3-504. Computation of tax. (1) The amount of taxes on a light vehicle, except for vehicles registered under
61-3-456 or owned by disabled veterans qualifying for special license plates under 61-3-332(10)(c) or 61-3-426(2), and on
a quadricycle is 2% 1.5% of the value determined under 61-3-503.
(2) The amount of tax on fleet vehicles subject to the provisions of 61-3-318 is 1% of the value determined under 61-3-503."
Section 151. Section 61-3-506, MCA, is amended to read:
"61-3-506. Rules. (1) The department of revenue shall adopt rules for the payment of sales taxes under the provisions of 61-3-502 and sales taxes and use taxes under the provisions of [sections 1 through 62 of LC 220 and section 73 of LC 220]. The department shall specifically provide that new car sales taxes and use taxes be for a 12-month period.
(2) The department of transportation shall adopt rules for the payment of new car taxes under the provisions of 61-3-313 through 61-3-316, 61-3-501, and 61-3-520.
(2)(3) The department of justice may adopt rules:
(a) for the assessment and collection of taxes and fees on light vehicles, including the proration of taxes under 61-3-520;
(b) for the imposition and collection of fees in lieu of tax, including the proration of fees in lieu of tax under 61-3-520, on buses, trucks having a manufacturer's rated capacity of more than 1 ton, and truck tractors, including criteria for determining the vehicle's age and manufacturer's rated capacity; and
(c) The department of justice may adopt rules for the administration of fees for trailers, pole trailers, and semitrailers,
including criteria for determining a trailer's age and weight."
Section 152. Section 61-3-507, MCA, is amended to read:
"61-3-507. Exemption. A vehicle that is exempt from taxation under 15-6-215 or subject to the provisions of
61-3-520 is exempt from all other taxes and fees generally imposed on a vehicle by this part."
Section 153. Section 61-3-509, MCA, is amended to read:
"61-3-509. Disposition of taxes. (1) Except as provided in [section 73 of LC 220] and subsection (2) of this section,
the county treasurer shall, after deducting the district court fee, credit all taxes on motor vehicles and fees in lieu of tax on
motorcycles, quadricycles, motor homes, travel trailers, campers, trailers, pole trailers, semitrailers, buses, trucks having a
manufacturer's rated capacity of more than 1 ton, and truck tractors collected under 61-3-504, 61-3-521, 61-3-527,
61-3-529, and 61-3-537, to a motor vehicle suspense fund. At some time between March 1 and March 10 of each year and
every 60 days after that date, the county treasurer shall distribute the money in the motor vehicle suspense fund as follows:
(a) 20% to the state treasurer for deposit in the state general fund; and
(b) 80% to be distributed in the relative proportions required by the levies for state assumption of public assistance, and
county, school district, and municipal purposes in the same manner as personal property taxes are distributed.
(2) The county treasurer shall deduct as a district court fee 7% of the amount of the 2% tax collected on light vehicles
collected under 61-3-504(1). The county treasurer shall credit the fee for district courts to a separate suspense account and
shall forward the amount in the account to the state treasurer at the time that the county treasurer distributes money from
the motor vehicle suspense fund. The state treasurer shall credit amounts received under this subsection to the state special
revenue fund to be used for purposes of state funding of district court expenses as provided in 3-5-901."
Section 154. Section 61-3-520, MCA, is amended to read:
"61-3-520. Taxes and fees on vehicles used exclusively in filming motion pictures or television commercials --
exemption. (1) A Except as provided in subsection (4), a vehicle used exclusively in the filming of motion pictures or
television commercials that has been in the state for a period exceeding 180 consecutive days in a calendar year is subject
to assessment or a fee in lieu of tax as if the vehicle were not used exclusively for filming motion pictures or television
commercials, but the assessment or fee in lieu of tax must be prorated as provided in subsection (2).
(2) The taxes assessed or the fees in lieu of tax imposed under subsection (1) must be prorated by dividing the number of days in excess of 180 consecutive days in the calendar year by 365.
(3) (a) Taxes on a vehicle imposed pursuant to this section must be collected as provided in Title 15, chapter 16, part 1,
this chapter for the collection of personal property motor vehicle taxes generally.
(b) Fees on a vehicle imposed pursuant to this section must be collected as provided in this chapter.
(4) A motor vehicle brought into the state or otherwise used for the exclusive purpose of filming motion pictures or television commercials is exempt from motor vehicle taxation if the motor vehicle does not remain in the state for a period in excess of 180 consecutive days in a calendar year."
Section 155. Section 61-3-605, MCA, is amended to read:
"61-3-605. Penalty for nonpayment of sales tax. Any An owner or operator of a motor vehicle who violates any
provision of 61-3-502 or [section 73 of LC 220] is guilty of a misdemeanor and shall be punished by a fine of not more
than $300, or by a sentence of not more than 60 days in the county jail, or both."
Section 156. Section 61-3-701, MCA, is amended to read:
"61-3-701. Foreign vehicles used in gainful occupation to be registered -- reciprocity. (1) Before a foreign licensed
motor vehicle may be operated on the highways of this state for hire, compensation, or profit or before the owner or user of
the vehicle uses the vehicle if the owner or user is engaged in gainful occupation or business enterprise in the state,
including highway work, the owner of the vehicle shall apply to a county treasurer for registration upon an application form
furnished by the department. Upon satisfactory evidence of ownership submitted to the county treasurer and the payment of
motor vehicle taxes or fees in lieu of taxes and the taxes, if appropriate, as required by 15-8-201, 15-8-202, 15-24-301,
61-3-504, 61-3-529, or 61-3-537, or [section 73 of LC 220], the treasurer shall accept the application for registration and
shall collect the regular license fee required for the vehicle.
(2) Upon payment of the fees or taxes, the treasurer shall issue to the applicant a copy of the certificate entitled "Owner's Certificate of Registration and Payment Receipt" and forward a duplicate copy of the certificate to the department. The treasurer shall at the same time issue to the applicant the proper license plates or other identification markers, which must at all times be displayed upon the vehicle when operated or driven upon roads and highways of this state during the effective period of the license.
(3) The registration receipt does not constitute evidence of ownership but must may be used only for registration
purposes. A Montana certificate of ownership may not be issued for this type of registration.
(4) This section is not applicable to a vehicle covered by a valid and existing reciprocal agreement or declaration entered into under the provisions of the laws of Montana."
Section 157. Section 61-3-707, MCA, is amended to read:
"61-3-707. Foreign vehicles used for transportation in connection with employment. (1) Before a motor vehicle
taxed pursuant to 15-24-301(4)(1) may be operated in Montana for a calendar quarter, the person responsible for payment
of taxes must shall apply for and obtain a window decal.
(2) Decals must be color-coded to distinguish the four quarterly registration periods of the year.
(3) An applicant may purchase a decal for more than one registration quarter at a time by paying the appropriate amount.
(4) There is a $2 fee for each decal, and money collected from this fee shall must be deposited to the county general
fund. The $2 fee is in addition to the tax.
(5) A current window decal must be displayed on the lower right-hand corner of the windshield."
Section 158. Section 61-4-112, MCA, is amended to read:
"61-4-112. New motor vehicles -- transfers by dealers. (1) When a motor vehicle dealer transfers a new motor vehicle to a purchaser or other recipient, the dealer shall:
(a) issue and affix a permit as prescribed in 61-4-111(2)(a) for transfers of used motor vehicles and retain a copy of the permit;
(b) within 4 working days following the date of delivery of the new motor vehicle, forward to the county treasurer of the county where the purchaser or recipient resides:
(i) one copy of the permit issued under subsection (1)(a);
(ii) an application for certificate of title with a notice of security interest, if any, executed by the purchaser or recipient; and
(iii) a statement of origin as prescribed in 61-3-502(8)(5).
(2) Upon receipt from the county treasurer of the documents required under subsection (1), the department shall issue a certificate of ownership and certificate of registration, together with a statement of lien as provided in 61-3-202."
Section 159. Section 61-10-214, MCA, is amended to read:
"61-10-214. Exemptions. (1) Motor vehicles operating exclusively for transportation of persons for hire within the limits of incorporated cities or towns and within 15 miles from the limits are exempt from this part.
(2) Motor vehicles brought or driven into Montana by a nonresident, migratory, bona fide agricultural worker temporarily employed in agricultural work in this state when those motor vehicles are used exclusively for transportation of agricultural workers are exempt from this part.
(3) Vehicles lawfully displaying a licensed dealer's or wholesaler's plate, as provided in 61-4-103, are exempt from this part for a period not to exceed 7 days when moving to or from a dealer's or wholesaler's place of business, when unloaded or loaded with a dealer's or wholesaler's property only, or while being demonstrated in the course of the dealer's or wholesaler's business. Vehicles being demonstrated may not be leased, rented, or operated for compensation by the licensed dealer or wholesaler.
(4) Vehicles exempt from property tax under 15-6-201(1)(a), (1)(c) through (1)(e), (1)(g), (1)(o) (1)(j), (1)(q) (1)(l), and
(1)(v) (1)(p) are exempt from this part. The department of transportation may require documentation of tax-exempt status
from the department of revenue before granting this exemption."
Section 160. Section 67-3-204, MCA, is amended to read:
"67-3-204. Fee in lieu of tax on registered aircraft -- decal. (1) Except as provided in subsection (3), aircraft required
to be registered in Montana are subject to a fee. The registration fee is in lieu of property tax.
(2) The department shall issue a decal to the owner of the aircraft required to be registered at the time of payment of the
registration fee in lieu of tax, as provided in 67-3-201. No An aircraft subject to a fee in lieu of tax may not be operated in
this state unless there is displayed on the aircraft a decal as visual proof that the fee in lieu of tax has been paid for the
aircraft and that the aircraft is registered for the current year.
(3) Aircraft that meet the description of property described in 15-6-145 the Tax Equity and Fiscal Responsibility Act of
1982, as it read on January 1, 1986, are exempt from the fee imposed by subsection (1). Aircraft subject to the fee in lieu of
tax are exempt from all other taxation."
Section 161. Section 67-10-402, MCA, is amended to read:
"67-10-402. Tax levy. (1) For the purpose of establishing, constructing, equipping, maintaining, and operating airports,
landing fields, and ports under the provisions of this chapter and as provided in Title 7, chapter 14, part 11, the county
commissioners or the city or town council may each year assess and levy, in addition to the annual levy for general
administrative purposes or the all-purpose levy authorized by 7-6-4451 and 7-6-4452, a tax on the dollar of taxable value of
the property of said the county, city, or town:
(a) not to exceed 2 mills 0.119 mill for airports and landing fields; and
(b) not to exceed 2 mills 0.119 mill for ports.
(2) In the event of a jointly established airport, landing field, or port, the county commissioners and the council or
councils involved shall determine in advance the levy necessary for such the purposes specified and the proportion that
each political subdivision joining in the venture must shall pay.
(3) No property Property within any political subdivision may not be subject to a tax pursuant to this section at an
annual rate in excess of 2 mills 0.119 mill for airports, landing fields, or ports unless it is found that the levy is insufficient
for the purposes enumerated. In such a case If insufficiency is determined to exist, the commissioners and councils acting
are authorized and empowered to contract an indebtedness on behalf of such the county, city, or town, as the case may be,
upon the credit thereof of the county, city, or town by borrowing money or issuing bonds for such the purposes specified,
provided that no bonds may not be issued for such the purpose purposes specified until the proposition has been submitted
to the qualified electors and a majority vote cast therefor for the proposition, except as provided in subsection (4).
(4) For the purpose of establishing a reserve fund to resurface, overlay, or improve existing runways, taxiways, and ramps, the governing bodies may set up annual reserve funds in their annual budget if:
(a) the reserve is approved by the governing bodies during the normal budgeting procedure;
(b) the necessity to resurface or improve said runways by overlays or similar methods every so many years is based
upon competent engineering estimates; and
(c) the funds are expended at least within each 10-year period.
(5) The reserve fund may not exceed at any time a competent engineering estimate of the cost of resurfacing or
overlaying the existing runways, taxiways, and ramps of any one airport for each fund. The governing body of the airport or
port, if in its judgment it considers it advantageous, may invest the fund in any interest-bearing deposits in a state or
national bank insured by the FDIC or obligations of the United States of America, either short-term or long-term. Interest
earned from such the investments must be credited to the operations and maintenance budget of the airport or port
governing body. The above provisions, notwithstanding other budget control measures and due to because of the
uniqueness of the subject matter, are declared necessary in the interests of the public health and safety."
Section 162. Section 76-1-405, MCA, is amended to read:
"76-1-405. Maximum county mill levy -- authorization for levy. The tax levy for planning board purposes shall be is
limited as follows:
(1) A county of the first class, as defined in 7-1-2111, may levy a tax not to exceed 2 mills 0.118 mill.
(2) A county of the second class may levy a tax not to exceed 3 mills 0.178 mill.
(3) A county of the third class may levy a tax not to exceed 4 mills 0.237 mill.
(4) A county of the fourth class may levy a tax not to exceed 5 mills 0.296 mill.
(5) Counties of the fifth, sixth, and seventh classes may levy a tax not to exceed 6 mills 0.355 mill."
Section 163. Section 77-1-507, MCA, is amended to read:
"77-1-507. School district use of proceeds. The money received by any a school district under this part shall must be
designated as district money for the general maintenance and operation of the elementary schools of the district. Such The
money may be used by the district as all other cash balances are used in accordance with the provisions of 20-9-335 the
district."
Section 164. Section 81-7-303, MCA, is amended to read:
"81-7-303. County commissioners permitted to require per capita license fee on sheep. (1) To defray the expense
of protection, the board of county commissioners of any county may require all owners or persons in possession of any
sheep 1 year old or older in the county on the regular assessment date of each year to pay a per capita license fee in an
amount to be determined by the board levy as provided in 15-24-922. All owners or persons in possession of any sheep 1
year old or older coming into the county after the regular assessment date and subject to taxation the per capita levy under
the provisions of 15-24-301 Title 15, chapter 24, part 9, are subject to payment of the license fee.
(2) Upon the order of the board of county commissioners, the license fees fee may be imposed by entering the name of
the licensee upon the property tax assessment record of the county by the department of revenue. The license fees are fee is
payable to and must be collected by the county treasurer. When levied, the fees are fee is a lien upon the property, both real
and personal, of the licensee. If the person against whom the license fee is levied does not own real estate against which the
license fee is or may become a lien, then the license fee is payable immediately upon its levy and the treasurer shall collect
the fee in the manner provided by law for the collection of personal property taxes that are not a lien upon real estate
15-16-119.
(3) When collected, the fees must be placed in the predatory animal control fund, and the fund may be expended on order of the board of county commissioners of the county for predatory animal control only."
Section 165. Section 81-7-603, MCA, is amended to read:
"81-7-603. County commissioners permitted to levy per capita license fee on cattle. (1) To defray the expense of
protection, the board of county commissioners may require all owners or persons in possession of any cattle 9 months old
or older in the county on the regular assessment date of each year to pay a per capita license fee in an amount to be
determined by the board levy as provided in 15-24-922. All owners or persons in possession of cattle 9 months old or older
coming into the county after the regular assessment date and subject to taxation the per capita levy under the provisions of
15-24-301 Title 15, chapter 24, part 9, are subject to payment of the license fee.
(2) Upon the order of the board of county commissioners, the license fee may be imposed by entering the name of the
licensee upon the property tax assessment record of the county by the department of revenue. The license fee is payable to
the county treasurer. When levied, the fee is a lien upon the property, both real and personal, of the licensee. If the person
against whom the license fee is levied does not own real estate against which the license fee is or may become a lien, then
the license fee is payable immediately upon its levy and the treasurer shall collect the fee in the manner provided by law for
the collection of personal property taxes that are not a lien upon real estate 15-16-119.
(3) The fees must be placed in a predatory animal control fund separate from the fund provided for in 81-7-303. The money in the predatory animal control fund may be expended by the board of county commissioners only for the predatory animal control program."
Section 166. Section 85-9-103, MCA, is amended to read:
"85-9-103. Definitions. As used in this chapter, unless the context clearly indicates otherwise, the following definitions apply:
(1) "Applicant" means any a person residing within the boundaries of the proposed district making a request for a study
of the feasibility of forming a conservancy district.
(2) "Board of supervisors" means the board of supervisors of the soil and water conservation district in which the largest portion of the taxable valuation of real property of the proposed district is located.
(3) "Cost of works" means the cost of construction, acquisition, improvement, extension, and development of works, including financing charges, interest, and professional services.
(4) "Court" means the district court of the judicial district in which the largest portion of the taxable valuation of real property of the proposed district is located and within the county in which the largest portion of the taxable valuation of real property of the proposed district is located within the judicial district.
(5) "Department" means the department of natural resources and conservation provided for in Title 2, chapter 15, part 33.
(6) "Directors" means the board of directors of a conservancy district.
(7) "District" means a conservancy district.
(8) "Elector" means a person qualified to vote under 85-9-421.
(9) "Notice" means publication at least once each week for 3 consecutive weeks in a newspaper published in each
county or, if no newspaper is published in a county, a newspaper of general circulation in the county or counties in which a
district is or will be located. The last published notice shall must appear not less than 5 days prior to any hearing or election
held under this chapter.
(10) "Owners" are the person or persons who appear as owners of record of the legal title to real property according to
the county records whether such the title is held beneficially or in a fiduciary capacity, except that a person holding a title
for purposes of security is not an owner, nor may he the security holder affect the previous title for purposes of this chapter.
(11) "Person" means a natural person, firm, partnership, cooperative, association, public or private corporation, including the state of Montana or the United States, foundation, state agency or institution, county, municipality, district or other political subdivision of the state, federal agency or bureau, or any other legal entity.
(12) "Taxable valuation" is the value as defined in 15-8-111 and does not mean assessed valuation.
(13) "Works" means all property, rights, easements, franchises, and other facilities, including but not limited to land, reservoirs, dams, canals, dikes, ditches, pumping units, mains, pipelines, waterworks systems, recreational facilities, facilities for fish and wildlife, and facilities to control and correct pollution."
Section 167. Section 90-5-112, MCA, is amended to read:
"90-5-112. Economic development levy. (1) The governing body of a city, county, or town is authorized to levy up to
1 0.59 mill upon the taxable value of all the property in the city, county, or town subject to taxation for the purpose of
economic development. The governing body may:
(a) submit the question of the mill levy to the qualified voters voting in a city, county, or town election; or
(b) approve the mill levy by a vote of the governing body.
(2) Funds Proceeds derived from this levy may be used for purchasing land for industrial parks, constructing buildings
to house manufacturing and processing operations, conducting preliminary feasibility studies, promoting economic
development opportunities in a particular area, and other activities generally associated with economic development. These
funds The proceeds may not be used to directly assist an industry's operations by loan or grant or to pay the salary or salary
supplements of government employees.
(3) The governing body of the county, city, or town may use the funds proceeds derived from this levy to contract with
local development companies and other associations or organizations capable of implementing the economic development
function.
(4) A tax authorized by a vote of the electorate, as provided in subsection (1)(a), may be levied for a period not to
exceed 6 years and is not subject to the provisions of Title 15, chapter 10, part 4."
Section 168. Section 90-6-304, MCA, is amended to read:
"90-6-304. Accounts established. (1) There is within the state agency fund type a hard-rock mining impact account. Money is payable into this account from payments made by a mining developer in compliance with the written guarantee from the developer to meet the increased costs of public services and facilities as specified in the impact plan provided for in 90-6-307. The state treasurer shall draw warrants from this account upon order of the board.
(2) There is within the state special revenue fund a hard-rock mining impact trust account. Within this trust account, there is established a reserve account not to exceed $100,000.
(a) Money within the hard-rock mining impact trust account may be used:
(i) for the administrative and operating expenses of the board, as provided by 90-6-303(4);
(ii) to establish and maintain the reserve account; and
(iii) for distribution to the counties of origin, as provided by 90-6-331(1) and this section.
(b) Money within the hard-rock mining impact trust reserve account may be used for the administrative and operating expenses of the board if:
(i) the revenue provided under 15-37-117(1)(b) is less than the amount appropriated for the administrative and operating expenses of the board; or
(ii) the use of the reserve account revenue is necessary to allow the board to meet its quasi-judicial responsibilities under
90-6-307, 90-6-311, or 90-6-403(3)(2).
(3) Money is payable into the hard-rock mining impact trust account under the provisions of 15-37-117. After first deducting the administrative and operating expenses of the board, as provided in 90-6-303, and then establishing and maintaining the reserve account in the amount of $100,000, as provided in subsection (2) of this section, the remaining money must be segregated within the account by county of origin. The state treasurer shall draw warrants from this account upon order of the board."
Section 169. Section 90-6-305, MCA, is amended to read:
"90-6-305. Hard-rock mining impact board -- general powers. (1) The board may:
(a) retain professional staff, including its administrative staff, and retain consultants and advisors notwithstanding the provisions of 2-15-121;
(b) adopt rules governing its proceedings, determinations, and administration of this part;
(c) award grants to local government units subject to 90-6-306;
(d) make payments to local government units from money paid to the hard-rock mining impact account as provided in 90-6-307;
(e) make determinations as provided in 90-6-307, 90-6-311, and 90-6-403(3)(2); and
(f) accept grants and other funds to be used in carrying out this part.
(2) The provisions of the Montana Administrative Procedure Act apply to the proceedings and determinations of the board."
Section 170. Section 90-6-309, MCA, is amended to read:
"90-6-309. Tax prepayment -- large-scale mineral development. (1) After permission to commence operation is
granted by the appropriate governmental agency, and upon request of the governing body of a county in which a facility is
to be located, a person intending to construct or locate a large-scale mineral development in this state shall prepay property
taxes as specified in the impact plan. This prepayment shall exclude the 6-mill university levy established under 20-25-423
and may exclude the mandatory county levies for the school BASE funding program established in 20-9-331 and 20-9-333.
(2) The person who is to prepay under this section is not obligated to prepay the entire amount established in subsection (1) at one time. Upon request of the governing body of an affected local government unit, the person shall prepay the amount shown to be needed from time to time as determined by the board.
(3) The person who is to prepay shall guarantee to the hard-rock mining impact board, through an appropriate financial institution, as may be required by the board, that property tax prepayments will be paid as needed for expenditures created by the impacts of the large-scale mineral development.
(4) When the mineral development facilities are completed and assessed by the department of revenue, they are subject during the first 3 years and thereafter to taxation as all other property similarly situated, except that in each year after the start of production, the local government unit that received a property tax prepayment shall provide for repayment of prepaid property taxes in accordance with subsection (5).
(5) A local government unit that received all or a portion of the property tax prepayment under this section shall provide for tax crediting as specified in the impact plan. The tax credit allowed in any year may not, however, exceed the tax obligation of the developer for that year, and the time period for tax crediting is limited to the productive life of the mining operation."
Section 171. Section 90-6-402, MCA, is amended to read:
"90-6-402. Definitions. As used in this part, the following definitions apply:
(1) "Affected local government unit" means a local government unit that will experience a need to increase services or facilities as a result of the commencement of large-scale mineral development or within which a large-scale mineral development is located in accordance with an impact plan adopted pursuant to 90-6-307.
(2) "Board" means the hard-rock mining impact board established in 2-15-1822.
(3) "Jurisdictional revenue disparity" means property tax revenues revenue resulting from a large-scale hard-rock
mineral development that are is inequitably distributed among affected local government units as finally determined by the
board in an approved impact plan.
(4) "Large-scale mineral development", for the purposes of this part, is defined in 90-6-302.
(5) "Local government unit", for the purposes of this part, means a county, municipality, or school district.
(6) "Mineral development employee" means a person who resides within the jurisdiction of an affected local government unit as a result of employment with a large-scale mineral development or its contractors or subcontractors.
(7) "Mineral development student" means a student whose parent or guardian resides within the jurisdiction of an affected local government unit as a result of employment with a large-scale mineral development or its contractors or subcontractors.
(8) "Taxable valuation" of a mineral development means the total taxable value of the gross proceeds taxable
percentage specified in 15-6-132(2) when added to the taxable percentages determined under 15-8-111, plus the taxable
value of real property, improvements, machinery, equipment, and other taxable property classified under Title 15, chapter
6, part 1 of the mineral development determined under 15-8-111."
Section 172. Section 90-6-403, MCA, is amended to read:
"90-6-403. Jurisdictional revenue disparity -- conditioned exemption and reallocation of certain taxable
valuation. (1) When an impact plan for a large-scale mineral development approved pursuant to 90-6-307 identifies a
jurisdictional revenue disparity, the board shall promptly notify the developer, all affected local government units, and the
department of revenue of the disparity. Except as provided in this section and 90-6-404 and this section, the increase in
taxable valuation of the mineral development that occurs after the issuance and validation of a permit under 82-4-335 is not
subject to the usual application of county and school district property tax mill levies. This increase in taxable valuation
must be allocated to local government units as provided in 90-6-404. The increase in taxable valuation allocated as
provided in 90-6-404 is subject to the application of property tax mill levies in the local government unit to which it is
allocated.
(2) The total taxable valuation of a large-scale mineral development remains subject to the statewide mill levies and
basic county levies for elementary and high school BASE funding programs as provided in 20-9-331 and 20-9-333.
(3)(2) The provisions of subsection (1) remain in effect until the large-scale mineral development ceases operations or
until the existence of the jurisdictional revenue disparity ceases, as determined by the board."
NEW SECTION. Section 173. Income tax credits -- restriction. The income tax credit for the sales tax and use tax paid, as provided in [section 65 of LC 220], may be decreased only if the decrease is approved by the electorate.
NEW SECTION. Section 174. Property taxes -- restrictions. After [the effective date of this act]:
(1) an ad valorem property tax on personal property may be imposed only if the imposition of the tax is approved by the electorate; and
(2) a statewide mill levy on property may be imposed only if the imposition of the levy is approved by the electorate.
NEW SECTION. Section 175. Repealer. Sections 15-1-111, 15-1-112, 15-6-122, 15-6-131, 15-6-132, 15-6-133, 15-6-134, 15-6-135, 15-6-136, 15-6-137, 15-6-138, 15-6-141, 15-6-143, 15-6-145, 15-6-151, 15-6-152, 15-6-215, 15-7-134, 15-8-204, 15-8-404, 15-10-401, 15-10-402, 15-10-406, 15-10-412, 15-16-613, 15-23-211, 15-23-212, 15-23-213, 15-23-214, 15-23-215, 15-23-216, 15-24-302, 15-24-303, 15-24-305, 15-24-601, 15-24-602, 15-24-701, 15-24-801, 15-24-901, 15-24-920, 15-24-926, 15-24-927, 15-24-931, 15-24-1401, 15-24-1402, 15-24-1501, 15-24-2401, 15-24-2402, 15-24-2403, 15-24-2404, 15-24-2405, 20-9-305, 20-9-331, 20-9-333, 20-9-334, 20-9-335, 20-9-360, 20-9-361, 20-9-366, 20-9-367, 20-9-368, 20-10-146, 20-25-423, and 35-18-503, MCA, are repealed.
NEW SECTION. Section 176. Codification instruction. (1) [Sections 173 and 174] are intended to be codified as an integral part of Title 15, and the provisions of Title 15 apply to [sections 173 and 174].
(2) [Sections 36 through 38] are intended to be codified as an integral part of Title 15, chapter 6, part 2, and the provisions of Title 15, chapter 6, part 2, apply to [sections 36 through 38].
NEW SECTION. Section 177. Saving clause. [This act] does not affect rights and duties that matured, penalties that were incurred, or proceedings that were begun before [the effective date of this act].
NEW SECTION. Section 178. Severability. If a part of [this act] is invalid, all valid parts that are severable from the invalid part remain in effect. If a part of [this act] is invalid in one or more of its applications, the part remains in effect in all valid applications that are severable from the invalid applications.
NEW SECTION. Section 179. Contingent voidness. If Constitutional Initiative No. 75, enacting Article VIII, section 17, of the Montana constitution:
(1) is declared invalid prior to [the effective date of this act], then [section 149] is void; or
(2) remains valid on [the effective date of this act], then [section 150] is void.
NEW SECTION. Section 180. Coordination. If [LC 220] and [LC 1227] are not passed and approved, this act is void.
NEW SECTION. Section 181. Effective date. [This act] is effective:
(1) on approval by the electorate of [LC 220]; and
(2) (a) on approval by the electorate of [LC 1227]; or
(b) if Constitutional Initiative No. 75, enacting Article VIII, section 17, of the Montana constitution, is declared invalid, upon passage and approval of [LC 1227].
NEW SECTION. Section 182. Applicability. (1) [Sections 1 through 29, 95 through 144, and 162 through 165] apply to fiscal years beginning after June 30, 2000.
(2) [Sections 30 through 94, 145 through 161, and 166 through 175] apply on and after January 1, 2000, and to tax years beginning after December 31, 1999.
- END -
Latest Version of SB 157 (SB0157.01)
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Status of this Bill
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