SENATE BILL NO. 205
INTRODUCED BY W. MCNUTT, B. PAVLOVICH, S. ROSE, S. GALLUS, B. GLASER, D. HARRINGTON, G. MATTHEWS, D. MAHLUM, K. GALVIN-HALCRO, G. BECK, J. HERTEL, B. CRIPPEN, D. GRIMES,
J. MERCER, B. MCCARTHY, K. OHS, A. ELLIS, S. KITZENBERG, S. BARTLETT, W. REHBEIN,
M. HANSON, C. HIBBARD, K. MESAROS, H. HARPER, C.SQUIRES, W. MENAHAN, J. TROPILA,
J. QUILICI, M. TAYLOR, L. GRINDE, J. LYNCH, D. SHEA, G. MASOLO, B. RYAN, L. GROSFIELD,
E. SWANSON, L. NELSON, T. BECK, R. DEPRATU, R. HOLDEN, F. SMITH, D. MOOD
AN ACT INCREASING THE AVIATION GASOLINE LICENSE TAX FROM 3 CENTS TO 4 CENTS A GALLON; PROVIDING THAT 50 PERCENT OF THE 1 CENT INCREASE COLLECTED FROM PASSENGER AIR CARRIERS BE DEPOSITED IN THE STATE SPECIAL REVENUE FUND TO THE CREDIT OF THE DEPARTMENT OF TRANSPORTATION FOR AIRPORT PAVEMENT PRESERVATION PROJECTS; EXCLUDING FUEL SOLD TO THE FEDERAL DEFENSE FUEL SUPPLY CENTER; AMENDING SECTIONS 15-70-204, 15-70-205, 15-70-221, AND 67-1-301, MCA; AND PROVIDING AN EFFECTIVE DATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 15-70-204, MCA, is amended to read:
"15-70-204. (Temporary) Gasoline license tax -- rate. (1) Every distributor shall pay to the department of
transportation a license tax for the privilege of engaging in and carrying on business in this state in an amount equal to:
(a) 3 4 cents for each gallon of aviation fuel, other than fuel sold to the federal defense fuel supply center, which is
allocated to the department of transportation as provided by 67-1-301; and
(b) 27 cents, beginning July 1, 1994, for each gallon of all other gasoline distributed by the distributor within the state
and upon which the gasoline license tax has not been paid by any other distributor:
(i) 24 cents per gallon beginning July 1, 1993; and
(ii) 27 cents per gallon beginning July 1, 1994.
(2) Gasoline exported may not be included in the measure of the distributor's license tax unless the distributor is not licensed and is not paying the tax to the state the fuel is destined for.
(3) Alcohol that is blended or is to be blended with gasoline to be sold as gasohol is subject to a tax per gallon equal to the license tax imposed on nonaviation gasoline distributors under subsection (1). (Terminates on occurrence of contingency--sec. 17, Ch. 642, L. 1993.)
15-70-204. (Effective on occurrence of contingency) Gasoline license tax -- rate. (1) Every distributor shall pay to
the department of transportation a license tax for the privilege of engaging in and carrying on business in this state in an
amount equal to:
(a) 2 cents for each gallon of aviation fuel, which is allocated to the department of transportation as provided by
67-1-301; and
(b) 27 cents, beginning July 1, 1994, for each gallon of all other gasoline distributed by the distributor within the state
and upon which the gasoline license tax has not been paid by any other distributor:
(i) 24 cents per gallon beginning July 1, 1993; and
(ii) 27 cents per gallon beginning July 1, 1994.
(2) Gasoline exported may not be included in the measure of the distributor's license tax unless the distributor is not licensed and is not paying the tax to the state the fuel is destined for.
(3) Alcohol that is blended or is to be blended with gasoline to be sold as gasohol is subject to a tax per gallon equal to the license tax imposed on nonaviation gasoline distributors under subsection (1)."
Section 2. Section 15-70-205, MCA, is amended to read:
"15-70-205. (Temporary) Distributor's statement and payment -- confidentiality. (1) Each distributor shall, not
later than the 25th day of each calendar month, render a true signed statement to the department of transportation of all
gasoline distributed and received by the distributor in this state during the preceding calendar month and containing any
other information that the department may reasonably require in order to administer the gasoline license tax law. The
statement must be accompanied by a payment in an amount equal to the tax imposed by 15-70-204 less any refund credit
issued under 15-70-226 and less 1% of the total tax that may be deducted by the distributor as an allowance for collecting
the tax. An allowance may not be deducted from the 3-cent 4-cent tax on aviation fuel.
(2) A distributor engaged in or carrying on a business at more than one place or location in this state may include all places of business in one statement.
(3) The department or a deputy, assistant, agent, clerk, or other employee of the department may not publish or otherwise disseminate information contained in a statement required under this section in a form that allows identification of a distributor or a purchaser of gasoline. This section may not be construed to prohibit:
(a) the delivery to a distributor or the distributor's authorized representative of a certified copy of any return or report filed in connection with the tax;
(b) the inspection by the attorney general or other legal representative of the state of the report or return of a distributor who brings an action to set aside or review the tax based on the report or return or against whom an action or proceeding has been instituted in accordance with the provisions of Title 15;
(c) the publication of statistics classified to prevent the identification of particular reports or returns and the items in the reports or returns;
(d) the inspection by the commissioner of internal revenue of the United States or the proper officer or any representative of either officer of the report or return of any distributor or the furnishing to the officer or authorized representative of an abstract of the report or return, but permission must be granted or information must be furnished to the officer or the officer's representative if the statutes of the United States or the other state grant substantially similar privileges to the proper officer of this state charged with the administration of this chapter or must be in compliance with 15-70-121 and 15-70-122; or
(e) the compliance of the department with any order of a court of competent jurisdiction. (Terminates on occurrence of contingency--sec. 17, Ch. 642, L. 1993.)
15-70-205. (Effective on occurrence of contingency) Distributor's statement and payment -- confidentiality. (1)
Each distributor shall, not later than the 25th day of each calendar month, render a true signed statement to the department
of transportation of all gasoline distributed and received by the distributor in this state during the preceding calendar month
and containing any other information that the department may reasonably require in order to administer the gasoline license
tax law. The statement must be accompanied by a payment in an amount equal to the tax imposed by 15-70-204 less any
refund credit issued under 15-70-226 and less 1% of the total tax that may be deducted by the distributor as an allowance
for collecting the tax. An allowance may not be deducted from the 2-cent tax on aviation fuel.
(2) A distributor engaged in or carrying on a business at more than one place or location in this state may include all places of business in one statement.
(3) The department or a deputy, assistant, agent, clerk, or other employee of the department may not publish or otherwise disseminate information contained in a statement required under this section in a form that allows identification of a distributor or a purchaser of gasoline. This section may not be construed to prohibit:
(a) the delivery to a distributor or the distributor's authorized representative of a certified copy of any return or report filed in connection with the tax;
(b) the inspection by the attorney general or other legal representative of the state of the report or return of a distributor who brings an action to set aside or review the tax based on the report or return or against whom an action or proceeding has been instituted in accordance with the provisions of Title 15;
(c) the publication of statistics classified to prevent the identification of particular reports or returns and the items in the reports or returns;
(d) the inspection by the commissioner of internal revenue of the United States or the proper officer or any representative of either officer of the report or return of any distributor or the furnishing to the officer or authorized representative of an abstract of the report or return, but permission must be granted or information must be furnished to the officer or the officer's representative if the statutes of the United States or the other state grant substantially similar privileges to the proper officer of this state charged with the administration of this chapter or must be in compliance with 15-70-121 and 15-70-122; or
(e) the compliance of the department with any order of a court of competent jurisdiction."
Section 3. Section 15-70-221, MCA, is amended to read:
"15-70-221. (Temporary) Refund or credit authorized. (1) A person who purchases and uses any gasoline on which
the Montana gasoline license tax has been paid for denaturing alcohol to be used in gasohol, for operating or propelling
stationary gasoline engines or tractors used off the public highways and streets, or for any commercial use other than
propelling vehicles upon any of the public highways or streets of this state is allowed a refund of the amount of tax paid
directly or indirectly on the gasoline. The refund may not exceed the tax paid or to be paid to the state. Except as provided
in subsection (5) or (6), a refund is not allowed for the tax per gallon upon aviation fuel allocated to the department of
transportation by 67-1-301.
(2) A distributor who pays the gasoline license tax to this state erroneously is allowed a credit or refund of the amount of tax paid.
(3) (a) A distributor is entitled to a credit for the tax paid to the department on those sales of gasoline with a tax liability of $200 or greater for which the distributor has not received consideration from or on behalf of the purchaser and for which the distributor has not forgiven any liability. The distributor may not have declared the accounts of the purchaser worthless more than once during a 3-year period, and the distributor must have claimed those accounts as bad debts for federal income tax purposes.
(b) If a credit has been granted under this subsection (3), any amount collected on the accounts that were declared worthless must be reported to the department and the tax due must be prorated on the collected amount and must be paid to the department.
(c) The department may require a distributor to submit periodic reports listing accounts that are delinquent for 90 days or more.
(4) A person who purchases and exports for sale, use, or consumption outside Montana gasoline on which the Montana gasoline tax has been paid is entitled to a credit or refund of the amount of tax paid unless the person is not licensed and is not paying the tax to the state the fuel is destined for. The credit or refund will be made upon completion of the information reports required under 15-70-209 and presentation to the department of proof of delivery outside Montana as it may by rule require.
(5) A scheduled passenger air carrier certified under 14 CFR, part 121 or 135, may claim a refund of 2 cents on each gallon of aviation fuel purchased by the carrier on which the Montana gasoline license tax has been paid.
(6) A Montana refinery or distributor who sells JP-4 or JP-8 jet fuel to the federal defense fuel supply center is entitled
to a credit or refund of 2 cents a gallon for each gallon that is sold to the supply center and on which the gasoline license tax
has been paid. (Terminates on occurrence of contingency--sec. 17, Ch. 642, L. 1993.)
15-70-221. (Effective on occurrence of contingency) Refund or credit authorized. (1) A person who purchases and
uses any gasoline on which the Montana gasoline license tax has been paid for denaturing alcohol to be used in gasohol, for
operating or propelling stationary gasoline engines or tractors used off the public highways and streets, or for any
commercial use other than propelling vehicles upon any of the public highways or streets of this state is allowed a refund of
the amount of tax paid directly or indirectly on the gasoline. The refund may not exceed the tax paid or to be paid to the
state. Except as provided in subsection (5) or (6), a refund is not allowed for the tax per gallon upon aviation fuel allocated
to the department of transportation by 67-1-301.
(2) A distributor who pays the gasoline license tax to this state erroneously is allowed a credit or refund of the amount of tax so paid.
(3) (a) A distributor is entitled to a credit for the tax paid to the department on those sales of gasoline with a tax liability of $200 or greater for which the distributor has not received consideration from or on behalf of the purchaser and for which the distributor has not forgiven any liability. The distributor may not have declared the accounts of the purchaser worthless more than once during a 3-year period, and the distributor must have claimed those accounts as bad debts for federal income tax purposes.
(b) If a credit has been granted under this subsection (3), any amount collected on the accounts that were declared worthless must be reported to the department and the tax due must be prorated on the collected amount and must be paid to the department.
(c) The department may require a distributor to submit periodic reports listing accounts that are delinquent for 90 days or more.
(4) A person who purchases and exports for sale, use, or consumption outside Montana gasoline on which the Montana gasoline tax has been paid is entitled to a credit or refund of the amount of tax paid unless the person is not licensed and is not paying the tax to the state the fuel is destined for. The credit or refund will be made upon completion of the information reports required under 15-70-209 and presentation to the department of proof of delivery outside Montana as it may by rule require.
(5) A scheduled passenger air carrier certified under 14 CFR, part 121 or 135, may claim a refund of 1 cent on each gallon of aviation fuel purchased by the carrier on which the Montana gasoline license tax has been paid.
(6) A Montana refinery or distributor who sells JP-4 or JP-8 jet fuel to the federal defense fuel supply center is entitled
to a credit or refund of 1 cent a gallon for each gallon that is sold to the supply center and on which the gasoline license tax
has been paid."
Section 4. Section 67-1-301, MCA, is amended to read:
"67-1-301. (Temporary) Money -- receipt and disbursement. (1) All costs and expenses of administering this title, including the salaries of employees of the department engaged in functions pertaining to aeronautics, the expenses of members of the board, and all other disbursements necessary to carry out the purposes of this title, must be paid out of the following revenue:
(a) all gifts and all legislative appropriations to the department for aeronautics;
(b) all money received from any branch or department of the federal government or from other sources for the purposes mentioned in this title or for the furtherance of aeronautics generally in this state.
(2) All money collected under subsection (1) must be deposited in the state treasury to the credit of the department.
(3) When the airport loan program is terminated, any balance of the bond proceeds that is not loaned must remain in the state special revenue fund to be invested, and the income must be used to retire the outstanding debt on the remaining bond proceeds.
(4) (a) The following amounts must be deposited from the proceeds of the 3-cent-per-gallon 4-cent-a-gallon tax
imposed on aviation fuel by 15-70-204(1):
(i) in the state special revenue fund to the credit of the department, an amount equal to the proceeds of 1 cent 2 cents a
gallon collected under 15-70-204(1) for the sole purpose of carrying out its functions pertaining to aeronautics;
(ii) in the aeronautical loan account created in 67-1-305 to the credit of the department, an amount equal to the proceeds of 1 cent a gallon for loans to local governments and state agencies; and
(iii) in a separate account in the state special revenue fund to the credit of the department,:
(A) an amount equal to the proceeds of 1 cent a gallon to provide grants to municipalities for airport development or improvement programs and to provide navigational aids, safety improvements, weather reporting services, and other aeronautical services for airports and landing fields and for the state's airways; and
(B) 25% of the amount collected from scheduled passenger air carriers certified under 14 CFR, part 121 or 135.
(b) Money deposited in the account created in 67-1-305 may, with the approval of the board, be used only to provide loans to local governments and state agencies for aeronautical purposes, including airport improvement. The board shall establish procedures, including the interest rate charged, for providing loans. Proceeds of all repayments of loans, including interest, made under this subsection (4)(b) must be deposited in the account created in 67-1-305.
(c) Money deposited in the separate account established in subsection (4)(a)(iii) may, with the approval of the board, be used only to provide grants to municipalities for airport development or improvement programs and to provide navigational aids, safety improvements, weather reporting services, and other aeronautical services for airports and landing fields and for the state's airways. The board shall establish procedures for the awarding of grants.
(5) Except as provided in 15-70-221, the gasoline license tax imposed by the laws of this state on aviation fuel purchased and used for the operation of airplanes or aircraft may not be refunded.
(6) Of the amount of aviation fuel tax collected from the scheduled passenger air carriers certified under 14 CFR, part 121 or 135, 25% must be deposited in the separate account provided for in 67-1-305 to be used only for pavement preservation on airports served by these air carriers. (Terminates on occurrence of contingency--sec. 17, Ch. 642, L. 1993.)
67-1-301. (Effective on occurrence of contingency) Money -- receipt and disbursement. (1) All costs and expenses of administering this title, including the salaries of employees of the department engaged in functions pertaining to aeronautics, the expenses of members of the board, and all other disbursements necessary to carry out the purposes of this title, must be paid out of the following revenue:
(a) all gifts and all legislative appropriations to the department for aeronautics;
(b) all money received from any branch or department of the federal government or from other sources for the purposes mentioned in this title or for the furtherance of aeronautics generally in this state.
(2) All money collected under subsection (1) must be deposited in the state treasury to the credit of the department.
(3) When the airport loan program is terminated, any balance of the bond proceeds that is not loaned must remain in the state special revenue fund to be invested, and the income must be used to retire the outstanding debt on the remaining bond proceeds.
(4) (a) The following amounts must be deposited from the proceeds of the 2-cent-per-gallon tax imposed on aviation fuel by 15-70-204(1):
(i) in the state special revenue fund to the credit of the department, an amount equal to the proceeds of 1 cent a gallon collected under 15-70-204(1) for the sole purpose of carrying out its functions pertaining to aeronautics; and
(ii) in a separate account in the state special revenue fund to the credit of the department, an amount equal to the proceeds of 1 cent a gallon for grants to municipalities and for other aeronautical purposes as provided in subsection (4)(b).
(b) Money deposited in the separate account established in subsection (4)(a)(ii) may, with the approval of the board, be used only to provide grants to municipalities for airport development or improvement programs and to provide navigational aids, safety improvements, weather reporting services, and other aeronautical services for airports and landing fields and for the state's airways. The board shall establish procedures for the awarding of grants.
(5) Except as provided in 15-70-221, the gasoline license tax imposed by the laws of this state on aviation fuel purchased and used for the operation of airplanes or aircraft may not be refunded."
Section 5. Effective date. [This act] is effective July 1, 1999.
- END -
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