House Bill No. 63
Introduced By harrington
By Request of the Department of Commerce
A Bill for an Act entitled: "An Act
increasing REALLOCATING THE PROCEEDS OF the sales tax on new motor
vehicles by DEPOSITING $1 PER VEHICLE IN A SPECIAL REVENUE ACCOUNT; providing that the revenue
REALLOCATED FUNDS be used by the department of commerce to administer the new vehicle warranty laws; excluding
from the definition of "consumer" the purchase of motor vehicles to be used as part of a fleet; amending sections SECTION
61-3-502 and 61-4-501, MCA; and providing an effective date."
Be it enacted by the Legislature of the State of Montana:
Section 1. Section 61-3-502, MCA, is amended to read:
"61-3-502. Sales tax on new motor vehicles -- exemptions. (1) In consideration of the right to use the highways of the state, there is imposed a tax upon all sales of new motor vehicles, excluding trailers, semitrailers, and housetrailers, for which a license is sought and an original application for title is made. The tax must be paid by the purchaser when the purchaser applies for an original Montana license through the county treasurer. For purposes of this section, "new motor vehicle" means a new motor vehicle for which original registration is sought or a motor vehicle previously furnished without charge by a dealer to a school district for use in a state-approved traffic education program, whether or not titled by the dealer or the school district, and for which original registration is sought.
(2) Except as provided in subsections (4) and (5), the sales tax is:
(a) 1 1/2% of the f.o.b. factory list price or f.o.b. port-of-entry list price, during the first quarter of the year or for a registration period other than a calendar year or calendar quarter;
(b) 1 1/8% of the list price during the second quarter of the year;
(c) 3/4 of 1% during the third quarter of the year;
(d) 3/8 of 1% during the fourth quarter of the year
; and (e) $1 in addition to the amount collected in subsections (2)(a) through (2)(d).
(3) If the manufacturer or importer fails to furnish the f.o.b. factory list price or f.o.b. port-of-entry list price, the department may use published price lists.
(4) The new car sales tax on vehicles subject to the provisions of 61-3-313 through 61-3-316 is
: (a) 1 1/2% of the f.o.b. factory list price or f.o.b. port-of-entry list price regardless of the month in which the new vehicle is
purchased ; and (b) $1 in addition to the amount collected in subsection (4)(a).
(5) The sales tax on new motor vehicles registered as part of a fleet under 61-3-318 is
: (a) 3/4 of 1% of the f.o.b. factory list price or f.o.b. port-of-entry list price ; and (b) $1 in addition to the amount collected in subsection (5)(a).
(a) Except as provided in subsection (6)(b), the The THE proceeds from this tax must be remitted to the state treasurer
every 30 days for credit. THE STATE TREASURER SHALL DEPOSIT $1 OF THE TAX ON EACH NEW MOTOR
VEHICLE IN A SPECIAL REVENUE ACCOUNT TO BE USED BY THE DEPARTMENT OF COMMERCE IN
CARRYING OUT ITS DUTIES UNDER TITLE 61, CHAPTER 4, PART 5, WITH THE BALANCE OF THE
PROCEEDS TO BE CREDITED to the highway nonrestricted account of the state special revenue fund. The county
treasurer shall retain 5% of the taxes collected to pay for the cost of administration. (b) The state treasurer shall place the $1 tax collected pursuant to subsections (2)(e), (4)(b), and (5)(b) in a special revenue
account to be used by the department of commerce in carrying out its duties under Title 61, chapter 4, part 5.
(7) The new vehicle is not subject to any other assessment, fee in lieu of tax, or tax during the calendar year in which the original application for title is made.
(8) A motor vehicle may not be registered or licensed unless the application for registration is accompanied by a statement of origin that is furnished by the dealer selling the vehicle and that shows that the vehicle has not previously been registered or owned, except as otherwise provided in this section, by any person, firm, corporation, or association other than a new motor vehicle dealer holding a franchise or distribution agreement from a new car manufacturer, distributor, or importer.
(9) (a) 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 the provisions of subsection (1).
(b) Motor vehicles brought or driven into Montana by nonresident, migratory, bona fide agricultural workers who are temporarily employed in agricultural work in this state, when those motor vehicles are used exclusively for transportation of agricultural workers, are also exempt from the provisions of subsection (1).
(c) Vehicles lawfully displaying a licensed dealer's plate as provided in 61-4-103 are exempt from the provisions of subsection (1):
(i) when moving to or from a dealer's place of business when unloaded or loaded with dealer's property only; and
(ii) in the case of vehicles having a gross loaded weight of less than 24,000 pounds, while being demonstrated in the course of the dealer's business.
(d) Motor vehicles owned or controlled by a special district, as defined in 18-8-202, are exempt from subsection (1).
(e) A vehicle registered under 61-3-456 is exempt from the provisions of subsection (1)."
Section 2. Section 61-4-501, MCA, is amended to read: "61-4-501. Definitions. For purposes of this part, the following definitions apply: (1) "Collateral charge" means all governmental charges, including but not limited to sales tax, property tax, license and
registration fees, and fees in lieu of tax. (2) "Consumer" means the purchaser, other than for purposes of resale or as part of a fleet as defined in 61-3-318, of a
motor vehicle that has not been brought into nonconformity as the result of abuse, neglect, or unauthorized modifications or
alterations by the purchaser, any person to whom the motor vehicle is transferred during the duration of an express warranty
applicable to the motor vehicle, or any other person entitled by the terms of the warranty to the benefits of its provisions. (3) "Incidental damage" means incidental and consequential damage as defined in 30-2-715. (4) "Manufacturer" has the meaning applied to that word in 61-4-201. (5) (a) "Motor vehicle" means a vehicle, including the nonresidential portion of a motor home as defined in 61-1-130,
propelled by its own power, designed primarily to transport persons or property upon the public highways, and sold in this
state. (b) The term does not include a truck with 10,000 pounds or more gross vehicle weight rating or a motorcycle as defined in
61-1-105. Motor vehicle does not include components, systems, fixtures, appliances, furnishings, accessories, and features
that are designed, used, and maintained primarily for residential purposes. (6) "Reasonable allowance for use" is an amount directly attributable to use of the motor vehicle by the consumer and any
previous consumers prior to the first written notice of the nonconformity to the manufacturer or its agent and during any
subsequent period when the vehicle is not out of service because of nonconformity. The reasonable allowance for use shall
must be computed by multiplying the total contract price of the vehicle by a fraction having as its denominator 100,000 and
having as its numerator the number of miles that the vehicle traveled prior to the manufacturer's acceptance of its return. (7) "Warranty period" means the period ending 2 years after the date of the original delivery to the consumer of a new
motor vehicle or during the first 18,000 miles of operation, whichever is earlier."
NEW SECTION. Section 2. Effective date. [This act] is effective July 1, 1997.