House Bill No. 444

Introduced By wells, bitney, mcgee, emerson, denny, wiseman, brainard, jore, walters



A Bill for an Act entitled: An Act making the designated model year of certain property subject to a fee in lieu of tax correspond with the purchase year for the purposes of imposing fees in lieu of tax if the purchase year precedes the model year; amending sections 23-2-517, 23-2-615.1, 23-2-803, 61-3-522, 61-3-523, 61-3-527, and 67-3-206, MCA; and providing effective dates and applicability dates.



Be it enacted by the Legislature of the State of Montana:



Section 1.  Section 23-2-517, MCA, is amended to read:

"23-2-517.  Fees for motorboats, sailboats, personal watercraft, motorized canoes, motorized rubber rafts, and motorized pontoons. (1) The owner of a motorboat 10 feet in length or longer or a sailboat 12 feet in length or longer shall pay a fee based on the length and age of the motorboat or sailboat as follows:

(a)  The fee schedule for a motorboat at least 10 feet in length but less than 14 feet in length or sailboat at least 12 feet in length but less than 14 feet in length is as follows:

(i)  for a motorboat or sailboat less than 5 years of age, $7.50;

(ii) for a motorboat or sailboat 5 years of age or older but less than 10 years of age, $5.65; and

(iii) for a motorboat or sailboat 10 years of age or older, $3.75.

(b)  The fee schedule for a motorboat or sailboat at least 14 feet in length but less than 16 feet in length is as follows:

(i)  for a motorboat or sailboat less than 5 years of age, $15;

(ii) for a motorboat or sailboat 5 years of age or older but less than 10 years of age, $11.25; and

(iii) for a motorboat or sailboat 10 years of age or older, $7.50.

(c)  The fee schedule for a motorboat or sailboat at least 16 feet in length but less than 17 feet in length is as follows:

(i)  for a motorboat or sailboat less than 5 years of age, $32;

(ii) for a motorboat or sailboat 5 years of age or older but less than 10 years of age, $24; and

(iii) for a motorboat or sailboat 10 years of age or older, $16.

(d)  The fee schedule for a motorboat or sailboat at least 17 feet in length but less than 19 feet in length is as follows:

(i)  for a motorboat or sailboat less than 5 years of age, $3 a foot or fraction of a foot;

(ii) for a motorboat or sailboat 5 years of age or older but less than 10 years of age, $2.25 a foot or fraction of a foot; and

(iii) for a motorboat or sailboat 10 years of age or older, $1.50 a foot or fraction of a foot.

(e)  The fee schedule for a motorboat or sailboat 19 feet in length or longer is as follows:

(i)  for a motorboat or sailboat less than 5 years of age, $4 a foot or fraction of a foot;

(ii) for a motorboat or sailboat 5 years of age or older but less than 10 years of age, $3 a foot or fraction of a foot; and

(iii) for a motorboat or sailboat 10 years of age or older, $2 a foot or fraction of a foot.

(2)  The owner of a personal watercraft shall pay a fee based on the age of the watercraft as follows:

(a)  The fee for a personal watercraft less than 4 years of age is $22.

(b)  The fee for a personal watercraft 4 years of age or older is $15.

(3) (a) Except as provided in subsection (3)(b), the age of a motorboat, sailboat, or personal watercraft is determined by subtracting the manufacturer's designated model year from the current calendar year.

(b) If the purchase year of a motorboat, sailboat, or personal watercraft precedes the designated model year of the motorboat, sailboat, or personal watercraft and the motorboat, sailboat, or personal watercraft is originally titled in Montana, then the purchase year is considered the model year for the purposes of calculating the fee in lieu of tax.

(3)(4)  The fee for a motorized canoe, a canoe or kayak propelled by wind, or a motorized rubber raft is $7.50, regardless of its length or age.

(4)(5)  The fee for a motorized pontoon is $20, regardless of its length or age."



Section 2.  Section 23-2-615.1, MCA, is amended to read:

"23-2-615.1. Fee in lieu of tax on snowmobiles. (1) There is a fee in lieu of tax on snowmobiles.

(2) The fee for a snowmobile less than 4 years old is $22. In all other cases the fee is $15.

(3) (a) The Except as provided in subsection (3)(b), the age of a snowmobile is determined by subtracting the manufacturer's designated model year from the current calendar year.

(b) If the purchase year of a snowmobile precedes the designated model year of the snowmobile and the snowmobile is originally titled in Montana, then the purchase year is considered the model year for the purposes of calculating the fee in lieu of tax.

(4) The fee need not be paid by a dealer for snowmobiles that constitute inventory of the dealership."



Section 3.  Section 23-2-803, MCA, is amended to read:

"23-2-803.  Fee in lieu of tax on off-highway vehicles -- exception -- disposition of fees. (1) There is a fee in lieu of tax on off-highway vehicles, other than off-highway vehicles constituting the inventory of a dealership licensed under 23-2-818, to be paid to the county treasurer of the county in which the owner of the off-highway vehicle resides.

(a)  The fee for an off-highway vehicle less than 3 years old is $19. In all other cases the fee is $9.

(b)  The Except as provided in subsection (1)(c), the age of an off-highway vehicle is determined by subtracting the manufacturer's designated model year from the current calendar year.

(c) If the purchase year of an off-highway vehicle precedes the designated model year of the off-highway vehicle and the off-highway vehicle is originally titled in Montana, then the purchase year is considered the model year for the purposes of calculating the fee in lieu of tax.

(2) (a) Except as provided in subsection (2)(b), the county treasurer shall distribute all fees in lieu of tax collected on off-highway vehicles pursuant to this section in the relative proportions required by the levies for state, county, school district, and municipal purposes in the same manner as personal property taxes are distributed.

(b)  The county treasurer shall remit $1 of the fee in lieu of tax collected on an off-highway vehicle to the department of agriculture for deposit in the noxious weed management trust fund provided for in 80-7-811."



Section 4.  Section 61-3-522, MCA, is amended to read:

"61-3-522.  Schedule of fees for motor homes. (1) The owner of a motor home shall pay a fee based on the age of the motor home according to the following schedule:

less than 2 years old $250

2 years old and less than 3 years old 230

3 years old and less than 4 years old 195

4 years old and less than 5 years old 150

5 years old and less than 6 years old 125

6 years old and less than 7 years old 100

7 years old and less than 8 years old 75

8 years old and older 65

(2) (a)  The Except as provided in subsection (2)(b), the age of a motor home is determined by subtracting the manufacturer's designated model year from the current calendar year.

(b) If the purchase year of a motor home precedes the designated model year of the motor home and the motor home is originally titled in Montana, then the purchase year is considered the model year for the purposes of calculating the fee in lieu of tax."



Section 5.  Section 61-3-523, MCA, is amended to read:

"61-3-523.  Schedule of fees for travel trailers and campers. (1) The fee imposed by 61-3-521 on a travel trailer that is less than 3 years old is $60. In all other cases the fee is $22.50.

(2)  The fee imposed by 61-3-521 on a camper that is less than 3 years old is $52.50. In all other cases the fee is $22.50.

(3) (a) The Except as provided in subsection (3)(b), the age of a travel trailer or camper is determined by subtracting the manufacturer's designated model year from the current calendar year.

(b) If the purchase year of a travel trailer or camper precedes the designated model year of the travel trailer or camper and the travel trailer or camper is originally titled in Montana, then the purchase year is considered the model year for the purposes of calculating the fee in lieu of tax."



Section 6.  Section 61-3-527, MCA, is amended to read:

"61-3-527.  Fee in lieu of tax for motorcycles -- schedule of fees. (1) (a) There is a fee in lieu of property tax imposed on motorcycles. The fee is in addition to annual registration fees.

(b)  The fee imposed by subsection (1)(a) need not be paid by a dealer for motorcycles that constitute inventory of the dealership.

(2)  The owner of a motorcycle shall pay a fee based on the age of the motorcycle and the size of the engine, as follows:

(a)  The fee schedule for a motorcycle with an engine that measures from 1 cubic centimeter to 600 cubic centimeters is as follows:

(i)  less than 2 years old, $30;

(ii) 2 years old and less than 5 years old, $25;

(iii) 5 years old and less than 11 years old, $15; and

(iv) 11 years old and older, $10.

(b)  The fee schedule for a motorcycle with an engine that measures from 601 cubic centimeters to 1,000 cubic centimeters is as follows:

(i)  less than 2 years old, $70;

(ii) 2 years old and less than 5 years old, $55;

(iii) 5 years old and less than 11 years old, $40; and

(iv) 11 years old and older, $30.

(c)  The fee schedule for a motorcycle with an engine that measures 1,001 cubic centimeters and larger is as follows:

(i)  less than 2 years old, $110;

(ii) 2 years old and less than 5 years old, $90;

(iii) 5 years old and less than 11 years old, $65; and

(iv) 11 years old and older, $40.

(d)(3) (a)  The Except as provided in subsection (3)(b), the age of a motorcycle is determined by subtracting the manufacturer's designated model year from the current calendar year.

(b) If the purchase year of a motorcycle [or quadricycle] precedes the designated model year of the motorcycle [or quadricycle] and the motorcycle [or quadricycle] is originally titled in Montana, then the purchase year is considered the model year for the purposes of calculating the fee in lieu of tax."



Section 7.  Section 67-3-206, MCA, is amended to read:

"67-3-206.  Schedule of fees in lieu of tax for aircraft. (1) The appropriate fee in lieu of tax imposed on aircraft is based on the age and type of aircraft and must be determined from the following schedule:

YEARS

0 -  5  6 - 10 11 - 20 21 - 30 31 - 40

Single engine, fixed gear,

200 horsepower and under $  300 $  175 $100 $ 50 $ 25

Single engine, fixed gear,

over 200 horsepower 500 250 150 75 50

Single engine, retractable gear,

200 horsepower and under 600 300 175 100 75

Single engine, retractable gear,

over 200 horsepower 700 400 200 125 100

Multi-engine, piston engine 800 500 250 175 150

Helicopter, piston engine 700 450 225 150 125

Single engine jet helicopter,

prop jet 1,500 700 450 300 175

Multi-engine jet helicopter,

prop jet 2,000 1,000 600 400 200

Jet engine, no propeller 3,000 1,500 800 500 250

(2) (a) Except as provided in subsection (2)(b), the age of an aircraft is determined by subtracting the manufacturer's designated model year from the current calendar year.

(b) If the purchase year of an aircraft precedes the designated model year of the aircraft and the aircraft is originally titled in Montana, then the purchase year is considered the model year for the purposes of calculating the fee in lieu of tax.

(2)(3)  The fee in lieu of tax imposed on any glider, ultralight, gyrocopter, balloon, homebuilt aircraft, antiques, or any aircraft over 40 years old is $20."



Section 8. Coordination instructions. (1) If Senate Bill No. 26 is passed and approved, then [section 10] of Senate Bill No. 26, second reading, second house, relating to the fee schedule for trailers having a declared weight of less than 26,000 pounds, must read as follows:

"NEW SECTION. Section 10.  Schedule of fees for trailers -- exception. (1) Except as provided in subsection (4), the owner of a trailer, pole trailer, or semitrailer that has a declared weight of less than 26,000 pounds shall pay the fee imposed pursuant to 61-3-521. The fee is based on the age and declared weight of the trailer or semitrailer according to the following schedule:

Age (in years) Declared Weight (in pounds)

0-6,000 6,001-16,000 16,001-25,999

Less than 5 years old $16 $55 $74

5 years old and less

than 10 years old 11 32 41

10 years old and older 6 17 23

(2) (a) Except as provided in subsection (2)(b), the age of a trailer, pole trailer, or semitrailer is determined by subtracting the manufacturer's designated model year from the current calendar year. For trailers, pole trailers, and semitrailers that do not have a designated model year, the department shall determine a year of manufacture.

(b) If the purchase year of a trailer, pole trailer, or semitrailer precedes the designated model year of the trailer, pole trailer, or semitrailer and the trailer, pole trailer, or semitrailer is originally titled in Montana, then the purchase year is considered the model year for the purposes of calculating the fee in lieu of tax.

(3) The declared weight is the total unladen weight of the trailer, pole trailer, or semitrailer plus the maximum load declared by the owner to be carried on the trailer, pole trailer, or semitrailer.

(4) This section does not apply to a trailer, pole trailer, or semitrailer that has a declared weight of less than 26,000 pounds and that is registered through a proportional registration agreement under 61-3-721."

(2) If Senate Bill No. 57 is passed and approved and it amends 61-3-527 to impose a fee in lieu of tax on quadricycles, then the bracketed language in 61-3-527(3)(b) of [this act], relating to quadricycles, is effective on [the effective date of section 6, amending 61-3-527, of this act]. If Senate Bill No. 57 is not passed and approved, then the bracketed language relating to quadricycles is void.



Section 9.  Effective dates -- applicability. (1) Except as provided in subsection (2), [this act] is effective January 1, 1998, and applies to property subject to a fee in lieu of tax purchased after December 31, 1997.

(2) [Section 2] and this section are effective July 1, 1997, and [section 2] applies to snowmobiles purchased after June 30, 1997.

-END-