House Bill No. 532

Introduced By Barnett, Hargrove



A Bill for an Act entitled: "An Act generally revising the laws relating to mobile homes and manufactured homes; defining "manufactured home"; allowing for the untitling and retitling of a manufactured home; treating a manufactured home as a mobile home for purposes of taxation; changing the dates for the payment of personal property taxes on a mobile or manufactured home; requiring that all taxes on a mobile home be paid before a transfer of interest can occur; amending sections 7-13-4502, 15-1-101, 15-6-134, 15-8-201, 15-8-205, 15-16-202, 15-24-201, 15-24-202, 15-24-203, 15-24-204, 15-24-205, 15-24-206, 15-24-208, 15-24-209, 15-24-210, 15-32-102, 61-3-207, 61-3-303, 61-3-503, and 69-12-331, MCA; and providing a delayed effective date."



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



NEW SECTION. Section 1.  Manufactured home. (1) "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.

(2) A manufactured home does not include a mobile home, as defined in 61-4-309 or 15-1-101, 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.



NEW SECTION. Section 2.  Declaration of manufactured MANUFACTURED home CONSIDERED as improvement to real property -- requirements. (1) An owner of a A manufactured home may declare the home as WILL BE CONSIDERED FOR TAX PURPOSES an improvement to real property if:

(a) the running gear is removed; AND

(b) the manufactured home is attached to a permanent foundation on land that is owned or being purchased by the owner of the manufactured home or, if the land is owned by another person, with the permission of the landowner; and.

(c) the owner files (2) TO ELIMINATE THE CERTIFICATE OF OWNERSHIP OF A MANUFACTURED HOME, AN OWNER MAY FILE a statement of intent on a form furnished by the department OF JUSTICE to declare the manufactured home as an improvement to real property.

(2) The statement of intent must include:

(a) the serial number of the manufactured home;

(b) the legal description of the real property to which the manufactured home has been permanently attached;

(c) a description of any security interests in the manufactured home; and

(d) approval from all lienholders of the intent to eliminate the title.

(3) The owner shall present the statement of intent to the county treasurer of the county in which the manufactured home is located and shall surrender the certificate of ownership. Upon receipt of a titling fee of $5, the county treasurer shall issue the owner a duplicate receipt for the surrendered certificate and forward a copy of the statement of intent, the original receipt, and the surrendered certificate to the department of justice. The county treasurer may not issue the receipt unless all taxes, interest, and penalties on the manufactured home have been paid in full. The county treasurer shall:

(a) deposit $1.50 of the titling fee in the county general fund; and

(b) remit $3.50 of the titling fee to the state treasurer for deposit in the state general fund.

(4) The owner shall file the statement of intent and the receipt of surrender to the department in the county in which the manufactured home is located. Upon the recording of the statement of intent and the receipt of surrender, the manufactured home is declared an improvement to real property for purposes of taxation and may not be physically removed without the consent of all persons who have an interest in the manufactured home.

(5) A manufactured home that has been declared an improvement to real property in accordance with this section must be treated by the department and by lending institutions in the same manner as any other residence that is classified as an improvement.



NEW SECTION. Section 3.  Reversal of declaration -- exception. (1) Before a manufactured home can be physically removed from its location, the owner shall obtain an abstract A SEARCH OF THE TITLE TO THE LAND from a title insurance company in order to identify those persons or entities whose consent for removal must be obtained. The owner shall obtain permission in writing from the affected persons or entities before removing the manufactured home from its location.

(2) At least 30 days before the manufactured home is removed, the owner shall give written notice to the department of AND THE COUNTY TREASURER IN WHICH THE HOME IS CURRENTLY LOCATED, OF the intended removal of the home. The written notice must include the written consents of the affected persons or entities identified in subsection (1). The department OWNER may not give permission for the removal REMOVE THE HOME until the written consents are received and all of the taxes that have been assessed have been paid in full to the county treasurer.

(3) Within 5 days of the removal of the home, the purchaser shall MAKE A DECLARATION OF REVERSAL AND apply for a certificate of ownership for the manufactured home from the department of justice in accordance with the provisions of Title 61, chapter 3, part 2. Upon issuance of the certificate, the owner shall file a declaration of reversal with the department upon a form furnished by the department. Once the declaration is filed with the department, the manufactured home is classified as personal property.



NEW SECTION. Section 4.  Exception to certificate of ownership requirements for manufactured homes. (1) A manufactured home is subject to the provisions of this part unless the manufactured home has been declared an improvement to real property in accordance with the provisions of [section 2].

(2) A manufactured home that has been classified as personal property in accordance with the provisions of [section 3] is subject to the provisions of this part.



Section 5.  Section 7-13-4502, MCA, is amended to read:

"7-13-4502.   Definitions. As used in this part, unless the context indicates otherwise, the following definitions apply:

(1)  "Board of directors" means the board of directors provided for in 7-13-4516 or a joint board of directors provided for in 7-13-4527.

(2)  "Board of environmental review" means the board of environmental review as provided in 2-15-3502.

(3)  "Commissioners" means the board of county commissioners or the governing body of a city-county consolidated government.

(4)  "Family residential unit" means a single-family dwelling.

(5)  "Fee-assessed units" means all real property with improvements, including taxable and tax-exempt property as shown on the property assessment records maintained by the county, and mobile homes and manufactured homes as defined in 15-24-201.

(6)  "Local water quality district" means an area established with definite boundaries for the purpose of protecting, preserving, and improving the quality of surface water and ground water in the district as authorized by this part."



Section 6.  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;

(D)  mobile homes and manufactured homes used exclusively as a residence except when held by a distributor or dealer of trailers or mobile homes as stock in trade;

(E)  all property described in 15-6-135; and

(F)  all property described in 15-6-136.

(e)  The term "comparable property" means property that:

(i) has similar use, function, and utility;

(ii) is influenced by the same set of economic trends and physical, governmental, and social factors; and

(iii) has the potential of a similar highest and best use.

(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)  The term "improvements" includes all buildings, structures, fences, and improvements situated upon, erected upon, or affixed to land. 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 61-4-309 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.

(l)(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.

(m)(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".

(n)(o)  The term "poultry" includes all chickens, turkeys, geese, ducks, and other birds raised in domestication to produce food or feathers.

(o)(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.

(p)(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.

(q)(r)  "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.

(s) 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.

(r)(t)  The term "taxable value" means the percentage of market or assessed value as provided for in Title 15, chapter 6, part 1.

(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 7.  Section 15-6-134, MCA, is amended to read:

"15-6-134.   Class four property -- description -- taxable percentage. (1) Class four property includes:

(a)  all land, except that specifically included in another class;

(b)  all improvements, including trailers, manufactured homes, or mobile homes used as a residence, except those specifically included in another class;

(c)  the first $100,000 or less of the market value of any improvement on real property, including trailers, manufactured homes, or mobile homes, and appurtenant land not exceeding 5 acres owned or under contract for deed and actually occupied for at least 7 months a year as the primary residential dwelling of any person whose total income from all sources, including net business income and otherwise tax-exempt income of all types but not including social security income paid directly to a nursing home, is not more than $15,000 for a single person or $20,000 for a married couple or a head of household, as adjusted according to subsection (2)(b)(ii). For the purposes of this subsection (1)(c), net business income is gross income less ordinary operating expenses but before deducting depreciation or depletion allowance, or both.

(d)  all golf courses, including land and improvements actually and necessarily used for that purpose, that consist of at least nine holes and not less than 3,000 lineal yards; and

(e)  all improvements on land that is eligible for valuation, assessment, and taxation as agricultural land under 15-7-202, including 1 acre of real property beneath improvements on land described in 15-6-133(1)(c). The 1 acre must be valued at market value.

(2)  Class four property is taxed as follows:

(a)  Except as provided in 15-24-1402 or 15-24-1501, property described in subsections (1)(a), (1)(b), and (1)(e) is taxed at 3.86% of its market value.

(b)  (i) Property qualifying under the property tax assistance program in subsection (1)(c) is taxed at 3.86% of its market value multiplied by a percentage figure based on income and determined from the following table:

Income Income Percentage

Single Person Married Couple Multiplier

Head of Household

$  0 - $ 6,000 $ 0 -$ 8,000 20%

6,001 - 9,200 8,001 - 14,000 50%

9,201 - 15,000 14,001 - 20,000 70%

(ii) The income levels contained in the table in subsection (2)(b)(i) must be adjusted for inflation annually by the department of revenue. The adjustment to the income levels is determined by:

(A)  multiplying the appropriate dollar amount from the table in subsection (2)(b)(i) by the ratio of the PCE for the second quarter of the year prior to the year of application to the PCE for the second quarter of 1995; and

(B)  rounding the product thus obtained to the nearest whole dollar amount.

(iii) "PCE" means the implicit price deflator for personal consumption expenditures as published quarterly in the Survey of Current Business by the bureau of economic analysis of the U.S. department of commerce.

(c)  Property described in subsection (1)(d) is taxed at one-half the taxable percentage rate established in subsection (2)(a).

(3)  Within the meaning of comparable property, as defined in 15-1-101, 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."



Section 8.  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. The department shall assess property to the person by whom it was owned or claimed or in whose possession or control it was at midnight of the preceding January 1. The department shall also ascertain and assess all mobile homes arriving in the county after midnight of the preceding January 1. A mistake in the name of the owner or supposed owner of real property does not invalidate the assessment.

(2)  The procedure provided by this section does not apply to:

(a)  motor vehicles that are required by 15-8-202 to be assessed on January 1 or upon their anniversary registration date;

(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)  mobile homes and manufactured homes held by a distributor or dealer of mobile homes as stock in trade; and

(g)  property subject to the provisions of 15-16-203.

(3)  Credits must be assessed as provided in 15-1-101(1)(f)."



Section 9.  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 10.  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 personal property 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 such the taxes or fees have already been paid."



Section 11.  Section 15-24-201, MCA, is amended to read:

"15-24-201.   Definitions. As used in this part, the following definitions apply:

(1)  "Dealer" means a person engaged in the distribution or sale of mobile homes or manufactured homes.

(2)  "Housetrailer" means a form of housing designed to be moved from one place to another by an independent power connected thereto to the housetrailer, which is either 8 feet wide or less or 32 45 feet long or less.

(3) "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 or a housetrailer.

(3)(4)  "Mobile home" means forms of housing known as "trailers", "housetrailers", or "trailer coaches" exceeding 8 feet in width or 32 45 feet in length, designed to be moved from one place to another by an independent power connected thereto to the mobile home or any trailer, housetrailer, or trailer coach up to 8 feet in width or 45 feet in length used as a principal residence."



Section 12.  Section 15-24-202, MCA, is amended to read:

"15-24-202.   Payment of tax -- interest and penalty -- display of tax-paid sticker. (1) (a) The owner of a mobile home, manufactured home, or housetrailer which is not taxed as an improvement, as improvements are defined in 15-1-101, shall pay the personal property tax in two payments, except as provided in 15-24-206.

(b)  The first payment is due on or before May 31 or within 30 days from the date of the notice of taxes due, WHICHEVER IS LATER.

(c)  The second payment is due no later than September November 30 of the year in which the property is assessed.

(d)  If not paid on or before the date due, the tax is considered delinquent and subject to the penalty and interest provisions in 15-16-102 applicable to other delinquent property taxes. The penalty must be assessed and interest begins to accrue on the first day of delinquency.

(2)  Upon request, the treasurer shall notify a lienholder if taxes on a mobile home, manufactured home, or housetrailer have not been paid.

(3)  Taxes assessed against a mobile home or manufactured home after the second payment date must be prorated to reflect the remaining portion of the tax year. The prorated taxes must be added to the following year's tax roll and, except as provided in 15-24-206, are due with and must be collected with the first payment due in that year.

(4)  The department of revenue shall issue tax-paid stickers to the county treasurers. Except as provided in 15-24-206 and 15-24-209, if a mobile home, manufactured home, or housetrailer is to be moved and all taxes, interest, and penalties on the mobile home or housetrailer are paid in full, the treasurer shall issue a tax-paid sticker to the owner of the mobile home, manufactured home, or housetrailer. Prior to and while in the process of moving the mobile home, manufactured home, or housetrailer, the owner shall display the tax-paid sticker, which must be visible from the exterior of the mobile home, manufactured home, or housetrailer. No A mobile home or manufactured home movement declaration of destination provided for in 15-24-206 may not be issued unless:

(a)  the taxes have been paid in full to the county treasurer; or

(b)  the exceptions in 15-24-206(3) or 15-24-209 apply.

(5)  On the movement of a mobile home, manufactured home, or housetrailer in violation of this part, the county treasurer for the county where the mobile home, manufactured home, or housetrailer first comes to rest shall issue a written notice to the owner, showing the amount of delinquent taxes, special assessments, penalties, and interest due. In addition to the penalties provided in 15-16-102, 20% or $50, whichever is greater, must be added to the delinquent taxes as penalty for violation of this part. On receipt of the delinquent taxes, special assessments, penalties, and interest, the county treasurer shall forward all delinquent taxes, special assessments, penalties, and interest collected under 15-16-102 to the county treasurer for the county of origin. The county of destination shall retain the penalty."



Section 13.  Section 15-24-203, MCA, is amended to read:

"15-24-203.   Tax receipt -- when production required. If stopped on a highway or at a state vehicle weight station by a state highway patrol officer or state vehicle weight station attendant, a person transporting a mobile home, manufactured home, or housetrailer must shall produce, if requested, the property-tax-paid receipt or a duplicate issued by the county treasurer where the vehicle was taxed."



Section 14.  Section 15-24-204, MCA, is amended to read:

"15-24-204.   Failure to display or produce declaration, sticker, or receipt -- penalty. (1) Whoever makes a false or fraudulent declaration of destination or, when required, fails to execute a declaration of destination or fails to display or produce a declaration of destination or tax-paid receipt, if a tax-paid receipt is required, is guilty of a misdemeanor and upon conviction is punishable by imprisonment in a county jail for not more than 6 months or by a fine of not more than $500, or both.

(2)  Whoever fails to display a property-tax-paid sticker while in the process of moving a mobile home, manufactured home, or housetrailer or to produce a property-tax-paid receipt from 15 days after the due date for personal property taxes of 1 year to the due date for personal property taxes of the next year, when the display of a tax-paid receipt is required, commits a misdemeanor punishable by a fine of not less than $10 or more than $50 or confinement in the county jail for not more than 30 days or both such a fine and imprisonment."



Section 15.  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 shall 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 16.  Section 15-24-206, MCA, is amended to read:

"15-24-206.   Declaration of destination on imported mobile homes and manufactured homes -- display -- tax receipt -- exemptions. (1) A person who brings a mobile home or manufactured home into the state shall immediately upon arrival in the state execute a written declaration, verified under oath, stating the destination of the mobile home or manufactured home and any other information the department of revenue may require and shall deliver the original of the declaration to whomever is on duty at the nearest port of entry station, state vehicle weight station, or other place the department may prescribe. He The person shall also immediately upon arrival in the state affix a copy of the declaration to the mobile home or manufactured home at a conspicuous place.

(2)  The treasurer shall issue the mobile home or manufactured home movement declaration provided for in this section to a person required by this section to execute it, in quantities he the person requests to a maximum of 100. The treasurer shall issue additional quantities of the declaration to a maximum of 100 as the person requests at the discretion of the county treasurer upon receipt from the person of the previously issued declarations properly executed. Executed declarations must be delivered to the treasurer within 30 days from their issue.

(3)  A person who moves a mobile home or a manufactured home from a point within the state to another point within or without outside of the state shall first:

(a)  execute the declaration provided for in subsection (1), deliver the original of it to the treasurer of the county in which the move originates or to any other person the department may prescribe prescribes, and affix a copy of it in a conspicuous place on the mobile home or manufactured home to be moved;

(b)  obtain from the county treasurer of the county in which the move originates a receipt showing:

(i)  payment in full of property taxes with respect to that mobile home or manufactured home; or

(ii) payment of the property taxes provided for in 15-24-209.

(4)  The provisions of subsection (3)(b) do not apply whenever a person moves a mobile home or manufactured home:

(a)  from a point without outside of to a point within the state;

(b)  between places of business of dealers within or without outside of the state;

(c)  from the place of business of a dealer to a point within or without outside of the state; or

(d)  pursuant to the repossession of a mobile home or manufactured home, unless the treasurer has furnished the lienholder or secured party with timely notice of the delinquent tax due when information has been requested under 15-24-202(2)."



Section 17.  Section 15-24-208, MCA, is amended to read:

"15-24-208.   Penalty for moving mobile home or manufactured home on which taxes due. Any person that who moves a mobile home or manufactured home on which property taxes are unpaid is guilty of a misdemeanor."



Section 18.  Section 15-24-209, MCA, is amended to read:

"15-24-209.   Limit on delinquent mobile home or manufactured home taxes chargeable to security interest holder. The holder of a perfected security interest in a mobile home, manufactured home, or housetrailer who repossesses the mobile home, manufactured home, or housetrailer as provided by law and as authorized in the contract between the owner and the secured party may not be required to pay delinquent property taxes for more than 3 years as a condition of moving the mobile home, manufactured home, or housetrailer or transferring it to another person. Any additional delinquent taxes due upon the mobile home, manufactured home, or housetrailer are a lien upon any other personal or real property of the person who was required by law to pay the delinquent taxes at the time the taxes were due."



Section 19.  Section 15-24-210, MCA, is amended to read:

"15-24-210.   Notice of impending sale to certain lienholders. After entry of a notation under 15-16-115(2) concerning a mobile home or manufactured home that is not taxed as an improvement to real property but before directing the sheriff to make a levy and sale on the mobile home or manufactured home, the treasurer shall notify a person who has a properly perfected security interest in the mobile home or manufactured home and who has furnished the treasurer a copy of the instrument by which the interest was perfected of the levy and sale. The notice must state that the sheriff may soon be requested to make a levy and sale on the mobile home or manufactured home."



Section 20.  Section 15-32-102, MCA, is amended to read:

"15-32-102.   Definitions. As used in this part, the following definitions apply:

(1)  "Building" means a single or multiple dwelling, including a mobile home or manufactured home, or a building used for commercial, industrial, or agricultural purposes, that is enclosed with walls and a roof.

(2)  "Capital investment" means any material or equipment purchased and installed in a building or land with or without improvements.

(3)  "Energy conservation purpose" means one or both of the following results of an investment:

(a)  reducing the waste or dissipation of energy; or

(b)  reducing the amount of energy required to accomplish a given quantity of work.

(4)  "Geothermal system" means a system that transfers energy either from the ground, by way of a closed loop, or from ground water, by way of an open loop, for the purpose of heating or cooling a residential building.

(5)  "Passive solar system" means a direct thermal energy system that uses the structure of a building and its operable components to provide heating or cooling during the appropriate times of the year by using the climate resources available at the site. It includes only those portions and components of a building that are expressly designed and required for the collection, storage, and distribution of solar energy and that are not standard components of a conventional building.

(6)  "Low emission wood or biomass combustion device" means a noncatalytic stove or furnace that:

(a)  (i) is specifically designed to burn wood pellets or other nonfossil biomass pellets; and

(ii) has a particulate emission rate of less than 4.1 grams per hour when tested in conformance with the standard method for measuring the emissions and efficiencies of residential wood stoves, as adopted by the department of environmental quality pursuant to 15-32-203; or

(iii) has an air-to-fuel ratio of 35 to 1 or greater when tested in conformance with the standard method for measuring the air-to-fuel ratio and minimum achievable burn rates for wood-fired appliances, as adopted by the department of environmental quality pursuant to 15-32-203; or

(b)  burns wood or other nonfossil biomass and has a particulate emission rate of less than 4.1 grams per hour when tested in conformance with the standard method for measuring the emissions and efficiencies of residential wood stoves, as adopted by the department of environmental quality pursuant to 15-32-203.

(7)  "Recognized nonfossil forms of energy generation" means:

(a)  a system that captures energy or converts energy sources into usable sources by using solar energy, including passive solar systems; wind; solid waste; or the decomposition of organic wastes;

(b)  a system that produces electric power from solid wood wastes; or

(c)  a small system that uses water power by means of an impoundment that is not over 20 acres in surface area."



Section 21.  Section 61-3-207, MCA, is amended to read:

"61-3-207.   Mobile home or housetrailer -- transfer of interest. (1) Upon a transfer of any interest in a mobile home or housetrailer under the provisions of this chapter, the application for the transfer must be made through the county treasurer's office in the county in which the mobile home or housetrailer is located at the time of the transfer. The county treasurer may not accept the application unless all taxes, interest, and penalties that have been assessed on the mobile home or housetrailer have been paid in full.

(2)  When a mobile home or housetrailer is sold under contract or under such conditions that title is not immediately conveyed, the parties to the transaction shall immediately file with the county clerk and recorder a notice of intention to transfer title. The notice must indicate the name of the party who is responsible for payment of taxes upon the mobile home or housetrailer after the transfer. The clerk and recorder shall immediately notify the department of revenue of the information in the notice. The penalty provisions of 61-3-201(2) do not apply if the notice of intent to transfer is filed with the county clerk and recorder within 20 days after the transfer."



Section 22.  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 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 upon a blank form to be prepared and furnished by the department. The application must contain:

(a)  name and address of owner, giving 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)  name and address of the holder of any security interest in the motor vehicle;

(c)  description of 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 rated capacity is 1 ton or less, and type of body and, if a truck, rated capacity;

(d)  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:

(i)  the personal property taxes assessed against the vehicle for the current year of registration and the immediately previous year; or

(ii) the new motor vehicle sales tax against the vehicle for the current year of registration.

(3)  The application may not be accepted by the county treasurer unless the payments required by subsection (2) accompany the application. The department of revenue may not assess 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 of revenue 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 of revenue."



Section 23.  Section 61-3-503, MCA, is amended to read:

"61-3-503.   Assessment. (1) Except as provided in 61-3-520 and subsection (2) of this section, the following apply to the taxation of motor vehicles:

(a)  Except as provided in subsections (1)(c) through (1)(e), a person who files an application for registration or reregistration of a motor vehicle shall before filing the application with the county treasurer submit the application to the department of revenue. The department of revenue shall enter on the application in a space to be provided for that purpose the market value and taxable value of the vehicle as of January 1 of the year for which the application for registration is made.

(b)  Except as provided in subsection (1)(c), motor vehicles are assessed for taxes on January 1 in each year irrespective of the time fixed by law for the assessment of other classes of personal property and irrespective of whether the levy and tax may be a lien upon real property within the state. A motor vehicle is not subject to assessment, levy, and taxation more than once in each year.

(c)  Vehicles subject to the provisions of 61-3-313 through 61-3-316 must be assessed as of the first day of the registration period, using the average trade-in or wholesale value as of January 1 of the year of assessment of the vehicle as contained in the most recent volume of the Mountain States Edition of the National Automobile Dealers Association (N.A.D.A.) Official Used Car Guide, the National Edition of N.A.D.A. Appraisal Guides Official Older Used Car Guide, or another nationally published used vehicle or appraisal guide approved by the department of revenue or, for a vehicle that was never listed in any edition of the preceding guides, the retail value of the vehicle as determined by the department of revenue, and depreciated 10% a year until a value of $500 is reached, not including additions or deductions for options and mileage but including additions or deductions, whether or not one of the preceding guides is used, for diesel engines; and a lien for taxes and fees due on the vehicle occurs on the anniversary date of the registration and continues until the fees and taxes have been paid. If the value shown in any of the appraisal guides listed in this section is less than $500, the department shall value the vehicle at $500.

(d)  Quadricycles must be assessed, using the greater of the following:

(i)  $250; or

(ii) the average trade-in or wholesale value as of January 1 of the year of assessment of the vehicle as contained in the most recent volume of the applicable National Edition of the N.A.D.A. Motorcycle/Moped/ATV Appraisal Guide or N.A.D.A. Recreational Vehicle Appraisal Guide or another nationally published used vehicle or appraisal guide approved by the department of revenue, not including additions or deductions for options and mileage.

(e)  If a vehicle assessed under subsection (1)(c) or (1)(d) is not originally listed in the applicable N.A.D.A. guide or other approved guide, the department of revenue shall depreciate the original f.o.b. factory list price, f.o.b. port-of-entry list price, or the manufacturer's suggested list price, using the following methods:

(i)  if the new car sales tax has been previously paid and the vehicle is less than 1 year in age, the depreciation percentage is 20%; or

(ii) if the vehicle is 1 year or older in age and it is not listed in any of the appraisal guides listed in this section, the department of revenue shall determine the depreciation percentage to approximate the average wholesale or trade-in values in the current N.A.D.A. guides or other approved guides referred to in this subsection (1). For purposes of this subsection (1), the age of the vehicle is determined by subtracting the manufacturer's model year of the vehicle from the calendar year of assessment.

(f)  When a minimum value of $500 is reached, the value must remain at that minimum as long as the vehicle is registered.

(g)  If a previously registered vehicle is no longer listed in the applicable N.A.D.A. guide or other approved guide, the department of revenue shall depreciate the value of the vehicle at the rate of 10% a year until a minimum amount of $500 is attained, and the value must remain at that amount as long as the vehicle is registered.

(2)  The provisions of subsections (1)(a) through (1)(g) do not apply to motorcycles, motor homes, travel trailers, campers, or mobile homes or manufactured homes as those terms are defined in 15-1-101(1)."



Section 24.  Section 69-12-331, MCA, is amended to read:

"69-12-331.   Special provisions relating to transportation of buildings. A certificate that permits the transportation of a building other than a mobile home or a manufactured home, as defined in 15-1-101, from its existing foundation to a new location must permit transportation throughout the state and may not restrict transportation to a particular region of the state."



NEW SECTION. Section 25.  Codification instruction. (1) [Section 1] is intended to be codified as an integral part of Title 61, chapter 1, part 5, and the provisions of Title 61, chapter 1, part 5, apply to [section 1].

(2) [Sections 2 and 3] are intended to be codified as an integral part of Title 15, chapter 1, part 1, and the provisions of Title 15, chapter 1, part 1, apply to [sections 2 and 3].

(3) [Section 4] is intended to be codified as an integral part of Title 61, chapter 3, part 2, and the provisions of Title 61, chapter 3, part 2, apply to [section 4].



NEW SECTION. Section 26.  Effective date. [This act] is effective January 1, 1998.

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