House Bill No. 609
Introduced By _______________________________________________________________________________
A Bill for an Act entitled: "An Act gradually increasing the taxes on the gross income of video gambling machines and decreasing the taxes on business equipment; using the increased proceeds from the taxes on the gross income of video gambling machines to reimburse local governments for lost revenue from taxes on business equipment; providing a statutory appropriation; amending sections 15-1-111, 15-1-112, 15-6-138, 15-6-201, and 23-5-610, MCA; repealing section 15-6-138, MCA; and providing effective dates."
Be it enacted by the Legislature of the State of Montana:
Section 1. Section 15-1-111, MCA, is amended to read:
"15-1-111. Reimbursement to local governments and schools -- duties of department and county treasurer -- statutory appropriation. (1) Prior to September 1, 1990, the department's agent in the county shall supply the following information to the department for each taxing jurisdiction within the county:
(a) the number of mills levied in the jurisdiction for tax year 1989;
(b) the number of mills levied in the jurisdiction for tax year 1990;
(c) the total taxable valuation for tax years 1989 and 1990, reported separately for each year, of all personal property not secured by real property; and
(d) the total taxable valuation for tax years 1989 and 1990, reported separately for each year, of all personal property secured by real property.
(2) After receipt of the information from its agent, the department shall calculate the amount of revenue lost to each taxing jurisdiction, using current year mill levies, due to the annual reduction in personal property tax rates set forth in 15-6-138, as that section read prior to 1994, and any reduction in taxes based upon recalculation of the effective tax rate for property in 15-6-145, prior to 1994. The department shall total the amounts for all taxing jurisdictions within the county.
(3) (a) The department shall remit to the county treasurer 50% of the amount of revenue reimbursable, determined pursuant to subsection (1), on or before November 30 and the remaining 50% on or before May 31.
(b) For tax year 1993 through tax year 1998, the department shall remit to the county treasurer of each county the same amount remitted to the county treasurer for the fiscal year 1991, as adjusted by the result of dissolved or combined taxing jurisdictions, as provided for in subsection (7). Fifty percent of the amount must be remitted on or before November 30 and the remaining 50% on or before May 31.
(c) (i) For tax year 1999 through tax year 2008, the department shall remit to the county treasurer of each county the same amount remitted to the county treasurer for the fiscal year 1991, progressively reduced by 10% of the 1991 amount each year, in accordance with the following schedule:
Tax Year Percentage of
1991 Remittance Amount
1999 90
2000 80
2001 70
2002 60
2003 50
2004 40
2005 30
2006 20
2007 10
2008 and following years 0
(ii) The amount remitted must be adjusted by the result of dissolved or combined taxing jurisdictions, as provided for in subsection (7). Fifty percent of the amount must be remitted on or before November 30 and the remaining 50% on or before May 31.
(4) Upon receipt of the reimbursement from the department, the county treasurer shall distribute the reimbursement to each taxing jurisdiction as calculated by the department.
(5) For the purposes of this section and subject to subsection (7), "taxing jurisdiction" means a jurisdiction levying mills against personal property and includes but is not limited to a county, city, school district, tax increment financing district, and miscellaneous taxing district and the state of Montana.
(6) The amounts necessary for the administration of this section are statutorily appropriated, as provided in 17-7-502, from the general fund to reimburse eligible taxing jurisdictions for reductions in tax rates on personal property.
(7) The following apply to taxing jurisdictions that were altered after tax year 1989:
(a) A taxing jurisdiction that existed in tax year 1989 and that no longer exists is not entitled to reimbursement under this section.
(b) A taxing jurisdiction that existed in tax year 1989 and that is split into two or more taxing jurisdictions or that is annexed to or is consolidated with another taxing jurisdiction is entitled to reimbursement based on the portion of 1989 taxable value within each new taxing jurisdiction. The department shall determine the portion of 1989 taxable value located in each taxing jurisdiction.
(c) A taxing jurisdiction that did not exist in tax year 1989 is not entitled to reimbursement under this section unless the jurisdiction was created as described in subsection (7)(b)."
Section 2. Section 15-1-112, MCA, is amended to read:
"15-1-112. Business equipment tax rate reduction reimbursement to local government taxing jurisdictions. (1) On
or before January 1, 1996, for the reduction in payment under subsection (4) and by By June 1 of 1996, 1997, and 1998,
1999, 2000, and 2001 for all other reimbursements in this section, the department of revenue shall determine a
reimbursement amount associated with reducing the tax rate in 15-6-138, as that section read on January 1, 1998, and
provide that information to each county treasurer. The reimbursement amount must be determined for each local
government taxing jurisdiction that levied mills on the taxable value of property described in 15-6-138, as that section read
on January 1, 1998, in the corresponding tax year. However, the reimbursement does not apply to property described in
15-6-138, as that section read on January 1, 1998, that has a reduced tax rate under 15-24-1402.
(2) (a) The reimbursement amount to be used as the basis for the payment reduction under subsection (4) reimbursement is
the product of multiplying the tax year 1995 taxable value of property described in 15-6-138, as that section read on
January 1, 1998, for each local government taxing jurisdiction by the tax year 1995 mill levy for the jurisdiction and then
multiplying by 1/9th.
(b) (i) The reimbursement amount for each local government taxing jurisdiction for tax year 1996 is the amount
determined under subsection (2)(a) unless the tax year 1996 market value of property described in 15-6-138, for the
particular local government taxing jurisdiction, is more than the tax year 1995 market value for property described in
15-6-138 in the same jurisdiction.
(ii) If the tax year 1996 market value is greater than the tax year 1995 market value for a particular jurisdiction, then the
reimbursement amount for tax year 1996 is the result of subtracting the simulated 1996 tax from the 1995 tax. The 1995 tax
is the tax for the particular jurisdiction, determined by multiplying the actual taxable valuation of property described in
15-6-138, for tax year 1995, by the tax year 1995 mill levy for the jurisdiction. The simulated 1996 tax for the particular
jurisdiction is the actual tax year 1996 taxable value of property described in 15-6-138 multiplied by the tax year 1995 mill
levy for the particular jurisdiction. If the simulated 1996 tax is greater than the 1995 tax, the reimbursement amount is zero.
(c) (i) The reimbursement amount for each local government taxing jurisdiction for tax year 1997 is the amount determined
under subsection (2)(a) multiplied by two unless the tax year 1997 market value of property described in 15-6-138, for the
particular local government taxing jurisdiction, is more than the tax year 1995 market value for property described in
15-6-138 in the same jurisdiction.
(ii) If the tax year 1997 market value is greater than the tax year 1995 market value for a particular jurisdiction, then the
reimbursement amount for tax year 1997 is the result of subtracting the simulated 1997 tax from the 1995 tax. The 1995 tax
is the tax for the particular jurisdiction, determined by multiplying the actual taxable valuation of property described in
15-6-138, for tax year 1995, by the tax year 1995 mill levy for the jurisdiction. The simulated 1997 tax for the particular
jurisdiction is the actual tax year 1997 taxable value of property described in 15-6-138 multiplied by the tax year 1995 mill
levy for the particular jurisdiction. If the simulated 1997 tax is greater than the 1995 tax, the reimbursement amount is zero.
(d) (i) The reimbursement amount for each local government taxing jurisdiction for tax year 1998 is the amount
determined under subsection (2)(a) multiplied by three unless the tax year 1998 market value of property described in
15-6-138, for the particular local government taxing jurisdiction, is more than the tax year 1995 market value for property
described in 15-6-138 in the same jurisdiction.
(ii) If the tax year 1998 market value is greater than the tax year 1995 market value for a particular jurisdiction, then the
reimbursement amount for tax year 1998 is the result of subtracting the simulated 1998 tax from the 1995 tax. The 1995 tax
is the tax for the particular jurisdiction, determined by multiplying the actual taxable valuation of property described in
15-6-138, for tax year 1995, by the tax year 1995 mill levy for the jurisdiction. The simulated 1998 tax for the particular
jurisdiction is the actual tax year 1998 taxable value of property described in 15-6-138 multiplied by the tax year 1995 mill
levy for the particular jurisdiction. If the simulated 1998 tax is greater than the 1995 tax, the reimbursement amount is zero.
(3) (a) For purposes of this section, "local government taxing jurisdiction" means a local government rather than a state taxing jurisdiction that levied mills against property described in 15-6-138, as that section read on January 1, 1998, including county governments, incorporated city and town governments, consolidated county and city governments, tax increment financing districts, local elementary and high school districts, local community college districts, miscellaneous districts, and special districts. The term includes countywide mills levied for equalization of school retirement or transportation.
(b) The term does not include county or state school equalization levies provided for in 20-9-331, 20-9-333, and 20-9-360 or the university levy provided for in 15-10-106. It also does not include any state levy for welfare programs provided for in 53-2-813.
(c) Each tax increment financing district must receive the benefit of the state mill on the incremental taxable value of the district.
(4) County treasurers shall reduce the county payment to the state for the levy imposed under 20-9-360 in June of 1996 by
an amount equal to 38% of the reimbursement amount determined under subsection (2)(a) for all of the local government
taxing jurisdictions in the county.
(5) County treasurers shall reduce the county payment to the state for the levy imposed under 20-9-360 in December of
1996 by an amount equal to 31% of the reimbursement amount for tax year 1996 for all of the local government taxing
jurisdictions in the county, as determined by the department under subsection (2).
(6) County treasurers shall reduce the county payment to the state for the levy imposed under 20-9-360 in June of 1997 by
an amount equal to 31% of the reimbursement amount for tax year 1996 for all of the local government taxing jurisdictions
in the county and by an amount equal to 38% of the reimbursement amount for tax year 1997 for all of the local
government taxing jurisdictions in the county, as determined by the department under subsection (2).
(7) County treasurers shall reduce the county payment to the state for the levy imposed under 20-9-360 in December of
1997 by an amount equal to 31% of the reimbursement amount for tax year 1997 for all of the local government taxing
jurisdictions in the county, as determined by the department under subsection (2).
(8) County treasurers shall reduce the county payment to the state for the levy imposed under 20-9-360 in June of 1998 by
an amount equal to 31% of the reimbursement amount for tax year 1997 for all of the local government taxing jurisdictions
in the county and by an amount equal to 38% of the reimbursement amount for tax year 1998 for all of the local
government taxing jurisdictions in the county, as determined by the department under subsection (2).
(9) County treasurers shall reduce the county payment to the state for the levy imposed under 20-9-360 in December of
1998 by an amount equal to 31% of the reimbursement amount for tax year 1998 for all of the local government taxing
jurisdictions in the county, as determined by the department under subsection (2).
(10) County treasurers shall reduce the county payment to the state for the levy imposed under 20-9-360 in June of 1999 by
an amount equal to 69% of the reimbursement amount for tax year 1998 for all of the local government taxing jurisdictions
in the county, as determined by the department under subsection (2).
(11) County treasurers shall reduce the county payment to the state for the levy imposed under 20-9-360 in December of
the years 1999 through 2007 by an amount equal to 31% of the reimbursement amount determined in subsection (13) for all
of the local government taxing jurisdictions in the county, as determined by the department under subsection (2).
(12) County treasurers shall reduce the county payment to the state for the levy imposed under 20-9-360 in June of the
years 2000 through 2008 by an amount equal to 69% of the reimbursement amount determined in subsection (13) for all of
the local government taxing jurisdictions in the county, as determined by the department under subsection (2).
(13) (a) The reimbursement amount for tax year 1999 and each subsequent tax year for 9 years must be progressively
reduced each year by 10% of the reimbursement amount for tax year 1999, according to the following schedule:
Tax Year Percentage of
1999 Reimbursement Amount
1999 90
2000 80
2001 70
2002 60
2003 50
2004 40
2005 30
2006 20
2007 10
2008 and following years 0
(b) The reimbursement amount for each tax year must be the basis for reducing the amount remitted to the state for the
levy imposed under 20-9-360 in December of the same year and June of the following year.
(14)(4) The county treasurer shall use the funds from the reduced payment to by the state for the levy imposed under
20-9-360 23-5-610 to reimburse each local government taxing jurisdiction in the amount determined by the department
under subsection (2). The reimbursement must be distributed to funds within local government taxing jurisdictions in the
same manner as taxes on property described in 15-6-138, as that section read on January 1, 1998, are distributed. The
reimbursement in June must be distributed based on the prior year's mill levy, and the reimbursement in December must be
based on the current year's mill levy.
(15)(5) Each local government taxing jurisdiction receiving reimbursements shall consider the amount of reimbursement
that will be received and lower the mill levy otherwise necessary to fund the budget by the amount that would otherwise
have to be raised by the mill levy.
(16)(6) A local government taxing jurisdiction that ceases to exist after October 1, 1995, will no longer be considered for
revenue loss or reimbursement purposes. A local government taxing jurisdiction that is created after January 1, 1996, will
not be considered for revenue loss or reimbursement purposes. If a local government taxing jurisdiction that existed prior to
January of 1996 is split between two or more taxing jurisdictions or is annexed to or is consolidated with another taxing
jurisdiction, the department shall determine how much of the revenue loss and reimbursement is attributed to the new
jurisdictions."
Section 3. Section 15-6-138, MCA, is amended to read:
"15-6-138. Class eight property -- description -- taxable percentage. (1) Class eight property includes:
(a) all agricultural implements and equipment;
(b) all mining machinery, fixtures, equipment, tools that are not exempt under 15-6-201(1)(r), and supplies except those included in class five;
(c) all manufacturing machinery, fixtures, equipment, tools that are not exempt under 15-6-201(1)(r), and supplies except those included in class five;
(d) all trailers and semitrailers, including those prorated under 15-24-102, except those subject to taxation under 61-3-504(2) or exempt under 15-6-201(1)(v);
(e) all goods and equipment intended for rent or lease, except goods and equipment specifically included and taxed in another class;
(f) buses and trucks having a rated capacity of more than 1 ton, including those prorated under 15-24-102;
(g) truck toppers weighing more than 300 pounds;
(h) furniture, fixtures, and equipment, except that specifically included in another class, used in commercial establishments as defined in this section;
(i) x-ray and medical and dental equipment;
(j) citizens' band radios and mobile telephones;
(k) radio and television broadcasting and transmitting equipment;
(l) cable television systems;
(m) coal and ore haulers;
(n) theater projectors and sound equipment; and
(o) all other property not included in any other class in this part, except that property subject to a fee in lieu of a property tax.
(2) As used in this section, "coal and ore haulers" means nonhighway vehicles that exceed 18,000 pounds per axle and that are primarily designed and used to transport coal, ore, or other earthen material in a mining or quarrying environment.
(3) "Commercial establishment" includes any hotel;, motel;, office;, petroleum marketing station;, or service, wholesale,
retail, or food-handling business.
(4) Class eight property is taxed at:
(a) 9% of its market value for tax years ending on or before December 31, 1995;
(b) 8% of its market value for tax year 1996;
(c) 7% of its market value for tax year 1997; and
(d)(a) 6% 3% of its market value for tax years beginning after December 31, 1997 year 1998;
(b) 2% of its market value in tax year 1999; and
(c) 1% of its market value in tax year 2000."
Section 4. 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 they occupy and furnishings in the buildings, 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 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 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) a truck canopy cover or topper weighing less than 300 pounds and having no accommodations attached. This property is also exempt from taxation under 61-3-504(2) and 61-3-537.
(j) a bicycle, as defined in 61-1-123, used by the owner for personal transportation purposes;
(k) motor homes, travel trailers, and campers;
(l) all watercraft;
(m) 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) 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) property that is owned and used by a corporation or association organized and operated exclusively for the care of persons with developmental disabilities, the mentally ill, or the vocationally handicapped as defined in 18-5-101 and that is not operated for gain or profit and property 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) 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) 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 not held or used for private or corporate gain or profit. For purposes of this subsection (1)(q), "nonprofit corporation" means an organization 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) harness, saddlery, and other tack equipment;
(t) a title plant owned by a title insurer or a title insurance producer, as those terms are defined in 33-25-105;
(u) timber as defined in 15-44-102;
(v) all trailers and semitrailers that have a licensed gross weight of 26,000 pounds or more or that are registered through a proportional registration agreement under 61-3-721. For purposes of this subsection (1)(v), the terms "trailer" and "semitrailer" mean a vehicle with or without motive power that is:
(i) designed and used only for carrying property;
(ii) designed and used to be drawn by a motor vehicle; and
(iii) either constructed so that no part of its weight rests upon the towing vehicle or constructed so that some part of its weight and the weight of its load rests upon or is carried by another vehicle.
(w) all vehicles registered under 61-3-456;
(x) all agricultural implements and equipment;
(y) all mining machinery, fixtures, equipment, tools that are not exempt under subsection (1)(r), and supplies except those included in class five;
(z) all manufacturing machinery, fixtures, equipment, tools that are not exempt under subsection (1)(r), and supplies except those included in class five;
(aa) all trailers and semitrailers, including those prorated under 15-24-102, except those subject to taxation under 61-3-504(2) or exempt under subsection (1)(v) of this section;
(bb) all goods and equipment intended for rent or lease, except goods and equipment specifically included and taxed in another class;
(cc) buses and trucks having a rated capacity of more than 1 ton, including those prorated under 15-24-102;
(dd) truck toppers weighing more than 300 pounds;
(ee) furniture, fixtures, and equipment, except that specifically included in another class, used in commercial establishments as defined in this section;
(ff) x-ray and medical and dental equipment;
(gg) citizens' band radios and mobile telephones;
(hh) radio and television broadcasting and transmitting equipment;
(ii) cable television systems;
(jj) coal and ore haulers;
(kk) theater projectors and sound equipment.
(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 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 owned by other persons is exempt if it 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.
(c) For purposes of subsection (1)(ee), "commercial establishment" means any hotel, motel, office, petroleum marketing station, or service, wholesale, retail, or food-handling business.
(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 5. Section 15-24-102, MCA, is amended to read:
"15-24-102. Valuation of interstate fleets -- determination of aggregate tax due -- exemption from mill levies. The department of revenue shall assess the taxable vehicles of any interstate motor vehicle fleet making application for proportional registration, as follows:
(1) The purchase price of the taxable vehicles depreciated by a schedule as prescribed by the department determines the depreciated value.
(2) The depreciated value multiplied by the percent of miles traveled in Montana, as prescribed by 61-3-721, is the market value.
(3) The sum of the market value of all taxable vehicles included in the fleet multiplied by the tax rate for class eight
property in 15-6-138 is the taxable value for the entire fleet as provided in 15-6-138.
(4)(3) To determine the amount of tax due, the taxable value of the entire fleet must be multiplied by the statewide average
county mill levy plus state levies as provided in 15-24-103.
(5)(4) To determine the tax due under this chapter, state levies applicable to interstate motor vehicle fleets include but are
not limited to levies imposed under 15-10-101, 15-10-106, 20-9-331, 20-9-333, 20-9-360, and 53-2-813.
(6)(5) All taxes and fees collected on motor vehicle fleets under this chapter must be deposited and distributed as provided
in 15-24-105."
Section 6. Section 23-5-610, MCA, is amended to read:
"23-5-610. Video gambling machine gross income tax -- records -- distribution -- quarterly statement and payment.
(1) A licensed operator issued a permit under this part shall pay to the department a video gambling machine tax of 15% of
based on the gross income from each video gambling machine licensed under this part. A licensed operator may deduct
from the gross income amounts equal to amounts stolen from machines if the amounts stolen are not repaid by insurance or
under a court order, if a law enforcement agency investigated the theft, and if the theft is the result of either unauthorized
entry and physical removal of the money from the machines or of machine tampering and the amounts stolen are
documented.
(2) A licensed operator issued a permit under this part shall keep a record of the gross income from each machine in the form the department requires. The records must at all times during the business hours of the licensee be subject to inspection by the department.
(3) A licensed operator issued a permit under this part shall, within 15 days after the end of each quarter, complete and deliver to the department a statement showing the total gross income from each video gambling machine licensed to the operator, together with the total amount due the state as video gambling machine gross income tax for the preceding quarter. The statement must contain other relevant information that the department requires. The tax is calculated as follows:
(a) 30% in 1998;
(b) 35% in 1999;
(c) 40% in 2000; and
(d) 45% in 2001 and future years.
(4) (a) The department shall calculate the total amount of video gambling machine tax received in 1997. The In each tax
year, the department shall, in accordance with the provisions of 15-1-501, forward one-third of the tax collected under
subsection (3) calculated amount to the general fund.
(b) The department shall, in accordance with the provisions of 15-1-501, forward the remaining two-thirds of the tax
collected under subsection (3) amount calculated under subsection (4)(a) to the treasurer of the county or the clerk, finance
officer, or treasurer of the city or town in which the licensed machine is located, for deposit to the county or municipal
treasury. Counties are not entitled to proceeds from taxes on income from video gambling machines located in incorporated
cities and towns. The two-thirds local government portion of tax collected under subsection (3) is statutorily appropriated to
the department as provided in 17-7-502 for deposit to the county or municipal treasury.
(c) The remainder of the taxes on income from video gambling machines must be deposited in the state special revenue fund for distribution to local governments for reimbursement for reduced taxes on business equipment. The reimbursements to local governments are statutorily appropriated as provided in 17-7-502."
NEW SECTION. Section 7. Repealer. Section 15-6-138, MCA, is repealed.
NEW SECTION. Section 8. Effective dates. (1) Except as provided in subsection (2), [this act] is effective January 1, 1998.
(2) [Sections 4, 5, and 7] are effective January 1, 2001.
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