Senate Bill No. 57

Introduced By waterman, christiaens, foster, cole, gage, stang, harrington, tropila, ream, m. hanson, hibbard, anderson

By Request of the Revenue Oversight Committee



A Bill for an Act entitled: "An Act generally revising the classification, valuation, and taxation of CERTAIN motor vehicles; taxing automobiles, trucks having a manufacturer's rated capacity of 1 ton or less, vans, and sport utility vehicles at 2 percent of the depreciated value of the manufacturer's suggested retail price; exempting from property taxation buses, trucks having a manufacturer's rated capacity of more than 1 ton, truck tractors, and personal property attached to these exempt vehicles; imposing a fee in lieu of property taxes on buses, trucks having a manufacturer's rated capacity of more than 1 ton, and truck tractors; providing for the proration of the fee in lieu of tax; clarifying that special mobile equipment is subject to property tax; replacing the tax on quadricycles with a fee in lieu of tax; PROVIDING THAT A COUNTY TREASURER IS AN AGENT OF THE DEPARTMENT OF REVENUE FOR THE PURPOSES OF ASSESSING CERTAIN MOTOR VEHICLES UPON APPLICATION FOR REGISTRATION OR REREGISTRATION OF THE VEHICLE; PROVIDING FOR AN ANALYSIS OF ALTERNATIVE METHODS OF CLASSIFICATION, VALUATION, AND TAXATION OF AUTOMOBILES AND TRUCKS HAVING A MANUFACTURER'S RATED CAPACITY OF 1 TON OR LESS; amending sections 7-1-2111, 15-6-138, 15-6-201, 15-8-111, 15-8-201, 15-8-202, 15-16-202, 15-50-207; 20-9-141, 20-9-331, 20-9-333, 20-9-360, 20-9-501, 20-10-144, 20-10-146, 61-3-101, 61-3-208, 61-3-303, 61-3-456, 61-3-501, 61-3-503, 61-3-504, 61-3-506, 61-3-507, 61-3-509, 61-3-520, 61-3-527, 61-3-535, 61-3-537, AND 61-3-701, and 61-12-402, MCA; repealing sections 15-24-101, 15-24-102, 15-24-103, 15-24-104, 15-24-105, and 15-24-2501, MCA; and providing effective dates and an applicability date."



STATEMENT OF INTENT

A statement of intent is required for this bill because 61-3-506 gives rulemaking authority to the department of justice to implement the new methods for the valuation and taxation of light motor vehicles and for the imposition of fees in lieu of tax on buses and trucks. The rules adopted by the department may contain criteria for determining the manufacturer's suggested retail price, an alternative valuation when the manufacturer's suggested retail price is unavailable, the date of manufacture for vehicles not commercially manufactured for consumer purchase, and the age and rated capacity of buses and trucks.

The legislature contemplates that the rules adopted by the department should address, at a minimum, the following:

(1) the methods for determining the valuation of light motor vehicles for taxation purposes;

(2)(1) the assessment and collection of taxes and fees on motor vehicles and buses and trucks; AND

(3) the methods for determining the manufacturer's suggested retail price for the valuation of motor vehicles;

(4) the procedures for establishing an equitable alternative value for vehicles that do not have a published manufacturer's suggested retail price; and

(5)(2) the procedures for determining the age and manufacturer's rated capacity for buses and trucks.



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



Section 1.  Section 7-1-2111, MCA, is amended to read:

"7-1-2111.   Classification of counties. (1) For the purpose of regulating the compensation and salaries of all county officers, not otherwise provided for, and for fixing the penalties of officers' bonds, the counties of this state must be classified according to the taxable valuation of the property in the counties upon which the tax levy is made, except for vehicles subject to taxation under 61-3-504(2), as follows:

(a)  first class--all counties having a taxable valuation of $50 million or over more;

(b)  second class--all counties having a taxable valuation of more than $30 million or more and less than $50 million;

(c)  third class--all counties having a taxable valuation of more than $20 million or more and less than $30 million;

(d)  fourth class--all counties having a taxable valuation of more than $15 million or more and less than $20 million;

(e)  fifth class--all counties having a taxable valuation of more than $10 million or more and less than $15 million;

(f)  sixth class--all counties having a taxable valuation of more than $5 million or more and less than $10 million;

(g)  seventh class--all counties having a taxable valuation of less than $5 million.

(2)  As used in this section, taxable valuation means the taxable value of taxable property in the county as of the time of determination plus:

(a)  that portion of the taxable value of the county on December 31, 1981, attributable to automobiles and trucks having a rated capacity of three-quarters of a ton or less;

(b)  that portion of the taxable value of the county on December 31, 1989, attributable to automobiles and trucks having a manufacturer's rated capacity of more than three-quarters of a ton but less than or equal to 1 ton;

(c)  that portion of the taxable value of the county on December 31, 1997, attributable to buses, trucks having a manufacturer's rated capacity of more than 1 ton, and truck tractors;

(d) the value provided by the department of revenue under 15-36-324(10); and

(d)(e)  6% of the taxable value of the county on January 1 of each tax year."



Section 2.  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;

(g) special mobile equipment as defined in 61-1-104;

(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)  6% of its market value for tax years beginning after December 31, 1997."



Section 3.  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) (i) buses, trucks having a manufacturer's rated capacity of more than 1 ton, and truck tractors, including buses, trucks, and truck tractors apportioned under Title 61, chapter 3, part 7; and

(ii) personal property that is attached to a bus, truck, or truck tractor that is exempt under subsection (1)(x)(i); and

(y) motorcycles and quadricycles.

(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.

(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 4.  Section 15-8-111, MCA, is amended to read:

"15-8-111.   Assessment -- market value standard -- exceptions. (1) All taxable property must be assessed at 100% of its market value except as otherwise provided.

(2)  (a) Market value is the value at which property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts.

(b)  If the department uses construction cost as one approximation of market value, the department shall fully consider reduction in value caused by depreciation, whether through physical depreciation, functional obsolescence, or economic obsolescence.

(c)  Except as provided in subsection (3), the market value of all motor trucks; special mobile equipment and agricultural tools, implements, and machinery; and vehicles of all kinds is the average wholesale value shown in national appraisal guides and manuals or the value of the vehicle before reconditioning and profit margin. The department shall prepare valuation schedules showing the average wholesale value when a national appraisal guide does not exist.

(3)  The department may not adopt a lower or different standard of value from market value in making the official assessment and appraisal of the value of property, except:

(a)  the wholesale value for agricultural implements and machinery is the loan value as shown in the Official Guide, Tractor and Farm Equipment, published by the national farm and power equipment dealers association, St. Louis, Missouri;

(b)  for agricultural implements and machinery not listed in the official guide, the department shall prepare a supplemental manual in which the values reflect the same depreciation as those found in the official guide; and

(c)  as otherwise authorized in Title 15 and Title 61.

(4)  For purposes of taxation, assessed value is the same as appraised value.

(5)  The taxable value for all property is the percentage of market or assessed value established for each class of property.

(6)  The assessed value of properties in 15-6-131 through 15-6-133 is as follows:

(a)  Properties in 15-6-131, under class one, are assessed at 100% of the annual net proceeds after deducting the expenses specified and allowed by 15-23-503 or, if applicable, as provided in 15-23-515, 15-23-516, 15-23-517, or 15-23-518.

(b)  Properties in 15-6-132, under class two, are assessed at 100% of the annual gross proceeds.

(c)  Properties in 15-6-133, under class three, are assessed at 100% of the productive capacity of the lands when valued for agricultural purposes. All lands that meet the qualifications of 15-7-202 are valued as agricultural lands for tax purposes.

(d)  Properties in 15-6-143, under class ten, are assessed at 100% of the forest productivity value of the land when valued as forest land.

(7)  Land and the improvements on the land are separately assessed when any of the following conditions occur:

(a)  ownership of the improvements is different from ownership of the land;

(b)  the taxpayer makes a written request; or

(c)  the land is outside an incorporated city or town."



Section 5.  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 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 5.  Section 15-8-202, MCA, is amended to read:

"15-8-202.   Motor vehicle assessment by department of justice. (1) (a) The department shall, in each year, ascertain and assess all motor vehicles, other than motor homes, travel trailers, and campers or mobile homes, in each county subject to taxation as of January 1 or as of the anniversary registration date of those vehicles as provided by law, subject to 61-3-313 through 61-3-316 and 61-3-501. The DEPARTMENT SHALL, IN EACH YEAR, ASCERTAIN AND ASSESS ALL MOTOR VEHICLES, OTHER THAN MOTOR HOMES, TRAVEL TRAILERS, CAMPERS, OR MOBILE HOMES, AND BUSES AND TRUCKS HAVING A RATED CAPACITY OF MORE THAN 1 TON IN EACH COUNTY SUBJECT TO TAXATION AS OF THE ANNIVERSARY REGISTRATION DATE OF THOSE VEHICLES AS PROVIDED BY LAW, SUBJECT TO 61-3-313 THROUGH 61-3-316 AND 61-3-501. THE ASSESSMENT FOR assessment for department of justice shall assess all motor light MOTOR vehicles, must be made subject to 61-3-313 through 61-3-316 and 61-3-501, for taxation MUST BE MADE in accordance with 61-3-503.

(b) The department of justice shall determine the fee in lieu of tax for all buses, trucks having a manufacturer's rated capacity of more than 1 ton, and truck tractors in accordance with [sections 31 32 and 32 33].

(c) The motor vehicles Taxes or fees in lieu of tax on motor vehicles under this subsection (1) THE MOTOR VEHICLES must be assessed or imposed in each year to on TO the persons by whom who owned or claimed the motor vehicles or in whose possession or control they were at midnight of January 1 or the motor vehicle was VEHICLES WERE on the anniversary registration date, whichever is applicable.

(2)  A tax or fee in lieu of tax may not be assessed or imposed against motor vehicles subject to taxation or to a fee in lieu of tax that constitute inventory of motor vehicle dealers as of January 1. These vehicles and all other motor vehicles subject to taxation or a fee in lieu of tax that are brought into the state subsequent to after January 1 as motor vehicle dealers' inventories must be assessed to their respective purchasers as of the dates the vehicles are registered by the purchasers.

(3)  "Purchasers" includes dealers who apply for registration or reregistration of motor vehicles, except as otherwise provided by 61-3-502.

(4)  Goods, wares, and merchandise of motor vehicle dealers, other than new motor vehicles and new mobile homes, must be assessed at market value as of January 1."



Section 6.  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 as defined in 15-1-101, the new motor vehicle sales tax and the personal property motor vehicle 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 7.  Section 15-50-207, MCA, is amended to read:

"15-50-207.   Credit against other taxes -- credit for personal property taxes and certain fees. (1) The additional license fees withheld or otherwise paid as provided herein in this chapter may be used as a credit on the contractor's corporation license tax provided for in chapter 31 of this title or on the contractor's income tax provided for in chapter 30, depending upon the type of tax the contractor is required to pay under the laws of the state.

(2)  Personal property taxes and the fee in lieu of tax on buses, trucks having a manufacturer's rated capacity of more than 1 ton, or truck tractors as provided in [section 32 33 29] paid in Montana on any personal property or vehicle of the contractor which that is used in the business of the contractor and is located within this state may be credited against the license fees required under this chapter. However, in computing the tax credit allowed by this section against the contractor's corporation license tax or income tax, the personal property tax credit against the license fees herein required shall under this chapter may not be considered as license fees paid for the purpose of such the income tax or corporation license tax credit."



Section 8.  Section 20-9-141, MCA, is amended to read:

"20-9-141.   Computation of general fund net levy requirement by county superintendent. (1) The county superintendent shall compute the levy requirement for each district's general fund on the basis of the following procedure:

(a)  Determine the funding required for the district's final general fund budget less the sum of direct state aid and the special education allowable cost payment for the district by totaling:

(i)  the district's nonisolated school BASE budget requirement to be met by a district levy as provided in 20-9-303; and

(ii)  any general fund budget amount adopted by the trustees of the district under the provisions of 20-9-308 and 20-9-353, including any additional funding for a general fund budget that exceeds the maximum general fund budget.

(b)  Determine the money available for the reduction of the property tax on the district for the general fund by totaling:

(i)  the general fund balance reappropriated, as established under the provisions of 20-9-104;

(ii)  amounts received in the last fiscal year for which revenue reporting was required for each of the following:

(A)  tuition payments for out-of-district pupils under the provisions of 20-5-321 through 20-5-323;

(B)  revenue from property taxes and fees imposed under 23-2-517, 23-2-803, 61-3-504(2), 61-3-521, 61-3-527, 61-3-537, [section 32 33 29], and 67-3-204;

(C)  oil and natural gas production taxes;

(D)  interest earned by the investment of general fund cash in accordance with the provisions of 20-9-213(4);

(E)  revenue from corporation license taxes collected from financial institutions under the provisions of 15-31-702; and

(F)  any other revenue received during the school fiscal year that may be used to finance the general fund, excluding any guaranteed tax base aid; and

(iii)  pursuant to subsection (4), anticipated revenue from coal gross proceeds under 15-23-703.

(c)  Notwithstanding the provisions of subsection (2), subtract the money available to reduce the property tax required to finance the general fund that has been determined in subsection (1)(b) from any general fund budget amount adopted by the trustees of the district, up to the BASE budget amount, to determine the general fund BASE budget levy requirement.

(d)  Subtract any amount remaining after the determination in subsection (1)(c) from any additional funding requirement to be met by an over-BASE budget amount, a district levy as provided in 20-9-303, and any additional financing as provided in 20-9-353 to determine any additional general fund levy requirements.

(2)  The county superintendent shall calculate the number of mills to be levied on the taxable property in the district to finance the general fund levy requirement for any amount that does not exceed the BASE budget amount for the district by dividing the amount determined in subsection (1)(c) by the sum of:

(a)  the amount of guaranteed tax base aid that the district will receive for each mill levied, as certified by the superintendent of public instruction; and

(b)  the taxable valuation of the district divided by 1,000.

(3)  The net general fund levy requirement determined in subsections (1)(c) and (1)(d) must be reported to the county commissioners on the fourth Monday of August by the county superintendent as the general fund net levy requirement for the district, and a levy must be set by the county commissioners in accordance with 20-9-142.

(4)  For each school district, the department of revenue shall calculate and report to the county superintendent the amount of revenue anticipated for the ensuing fiscal year from revenue from coal gross proceeds under 15-23-703."



Section 9.  Section 20-9-331, MCA, is amended to read:

"20-9-331.   Basic county tax and other revenues for county equalization of the elementary district BASE funding program. (1) The county commissioners of each county shall levy an annual basic tax of 33 mills on the dollar of the taxable value of all taxable property within the county, except for property subject to a tax or fee under 23-2-517, 23-2-803, 61-3-504(2), 61-3-521, 61-3-527, 61-3-537, [section 32 33 29], and 67-3-204, for the purposes of local and state BASE funding program support. The revenue collected from this levy must be apportioned to the support of the elementary BASE funding programs of the school districts in the county and to the state general fund in the following manner:

(a)  In order to determine the amount of revenue raised by this levy that is retained by the county, the sum of the estimated revenue identified in subsection (2) must be subtracted from the total of the BASE funding programs of all elementary districts of the county.

(b)  If the basic levy and other revenue prescribed by this section produce more revenue than is required to repay a state advance for county equalization, the county treasurer shall remit the surplus funds to the state treasurer for deposit to the state general fund immediately upon occurrence of a surplus balance and each subsequent month thereafter, with any final remittance due no later than June 20 of the fiscal year for which the levy has been set.

(2)  The revenue realized from the county's portion of the levy prescribed by this section and the revenue from the following sources must be used for the equalization of the elementary BASE funding program of the county as prescribed in 20-9-335, and a separate accounting must be kept of the revenue by the county treasurer in accordance with 20-9-212(1):

(a)  the portion of the federal Taylor Grazing Act funds distributed to a county and designated for the common school fund under the provisions of 17-3-222;

(b)  the portion of the federal flood control act funds distributed to a county and designated for expenditure for the benefit of the county common schools under the provisions of 17-3-232;

(c)  all money paid into the county treasury as a result of fines for violations of law, except money paid to a justice's court, and the use of which is not otherwise specified by law;

(d)  any money remaining at the end of the immediately preceding school fiscal year in the county treasurer's accounts for the various sources of revenue established or referred to in this section;

(e)  any federal or state money distributed to the county as payment in lieu of property taxation, including federal forest reserve funds allocated under the provisions of 17-3-213;

(f)  gross proceeds taxes from coal under 15-23-703;

(g)  oil and natural gas production taxes;

(h)  anticipated local government severance tax payments for calendar year 1995 production as provided in 15-36-325; and

(i)  anticipated revenue from property taxes and fees imposed under 23-2-517, 23-2-803, 61-3-504(2), 61-3-521, 61-3-527, 61-3-537, [section 32 33 29], and 67-3-204."



Section 10.  Section 20-9-333, MCA, is amended to read:

"20-9-333.   Basic special levy and other revenue for county equalization of high school district BASE funding program. (1) The county commissioners of each county shall levy an annual basic special tax for high schools of 22 mills on the dollar of the taxable value of all taxable property within the county, except for property subject to a tax or fee under 23-2-517, 23-2-803, 61-3-504(2), 61-3-521, 61-3-527, 61-3-537, [section 32 33 29], and 67-3-204, for the purposes of local and state BASE funding program support. The revenue collected from this levy must be apportioned to the support of the BASE funding programs of high school districts in the county and to the state general fund in the following manner:

(a)  In order to determine the amount of revenue raised by this levy that is retained by the county, the sum of the estimated revenue identified in subsection (2) must be subtracted from the sum of the county's high school tuition obligation and the total of the BASE funding programs of all high school districts of the county.

(b)  If the basic levy and other revenue prescribed by this section produce more revenue than is required to repay a state advance for county equalization, the county treasurer shall remit the surplus funds to the state treasurer for deposit to the state general fund immediately upon occurrence of a surplus balance and each subsequent month thereafter, with any final remittance due no later than June 20 of the fiscal year for which the levy has been set.

(2)  The revenue realized from the county's portion of the levy prescribed in this section and the revenue from the following sources must be used for the equalization of the high school BASE funding program of the county as prescribed in 20-9-335, and a separate accounting must be kept of the revenue by the county treasurer in accordance with 20-9-212(1):

(a)  any money remaining at the end of the immediately preceding school fiscal year in the county treasurer's accounts for the various sources of revenue established in this section;

(b)  any federal or state money distributed to the county as payment in lieu of property taxation, including federal forest reserve funds allocated under the provisions of 17-3-213;

(c)  gross proceeds taxes from coal under 15-23-703;

(d)  oil and natural gas production taxes;

(e)  anticipated local government severance tax payments for calendar year 1995 production as provided in 15-36-325; and

(f)  anticipated revenue from property taxes and fees imposed under 23-2-517, 23-2-803, 61-3-504(2), 61-3-521, 61-3-527, 61-3-537, [section 32 33 29], and 67-3-204."



Section 11.  Section 20-9-360, MCA, is amended to read:

"20-9-360.   State equalization aid levy. (1) There is a levy of 40 mills imposed by the county commissioners of each county on all taxable property within the state, except property for which a tax or fee is required under 23-2-517, 23-2-803, 61-3-504(2), 61-3-521, 61-3-527, 61-3-537, [section 32 33 29], and 67-3-204. Except as provided in subsection (2), proceeds of the levy must be remitted to the state treasurer and must be deposited to the credit of the state general fund for state equalization aid to the public schools of Montana.

(2)  For the benefit of each municipality that created an urban renewal area and adopted a tax increment financing provision for the urban renewal area prior to July 1, 1990, the state treasurer shall distribute each fiscal year from the state equalization aid levy to the municipality the amount, if any, equal to the product of the incremental taxable value of the urban renewal area times the reduced school levy for the area, each calculated for the fiscal year. The reduced school levy for a fiscal year is the difference between the aggregate amount of all property tax levies for school purposes in the urban renewal area, expressed in mills, in the fiscal year ended June 30, 1989, and the aggregate amount of all property tax levies for school purposes in the area or the district, expressed in mills, in the fiscal year, including the state equalization aid levy. The state treasurer shall distribute the amounts to municipalities in two equal installments on December 31 and June 30 of the fiscal year."



Section 12.  Section 20-9-501, MCA, is amended to read:

"20-9-501.   Retirement fund. (1) The trustees of a district employing personnel who are members of the teachers' retirement system or the public employees' retirement system or who are covered by unemployment insurance or who are covered by any federal social security system requiring employer contributions shall establish a retirement fund for the purposes of budgeting and paying the employer's contributions to the systems. The district's contribution for each employee who is a member of the teachers' retirement system must be calculated in accordance with Title 19, chapter 20, part 6. The district's contribution for each employee who is a member of the public employees' retirement system must be calculated in accordance with 19-3-316. The district's contributions for each employee covered by any federal social security system must be paid in accordance with federal law and regulation. The district's contribution for each employee who is covered by unemployment insurance must be paid in accordance with Title 39, chapter 51, part 11.

(2)  The trustees of a district required to make a contribution to a system referred to in subsection (1) shall include in the retirement fund of the preliminary budget the estimated amount of the employer's contribution. After the final retirement fund budget has been adopted, the trustees shall pay the employer contributions to the systems in accordance with the financial administration provisions of this title.

(3)  When the final retirement fund budget has been adopted, the county superintendent shall establish the levy requirement by:

(a)  determining the sum of the money available to reduce the retirement fund levy requirement by adding:

(i)  any anticipated money that may be realized in the retirement fund during the ensuing school fiscal year, including anticipated revenue from property taxes and fees imposed under 23-2-517, 23-2-803, 61-3-504(2), 61-3-521, 61-3-527, 61-3-537, [section 32 33 29], and 67-3-204;

(ii)  oil and natural gas production taxes;

(iii) anticipated local government severance tax payments for calendar year 1995 production as provided in 15-36-325;

(iv) coal gross proceeds taxes under 15-23-703;

(v)  any fund balance available for reappropriation as determined by subtracting the amount of the end-of-the-year fund balance earmarked as the retirement fund operating reserve for the ensuing school fiscal year by the trustees from the end-of-the-year fund balance in the retirement fund. The retirement fund operating reserve may not be more than 35% of the final retirement fund budget for the ensuing school fiscal year and must be used for the purpose of paying retirement fund warrants issued by the district under the final retirement fund budget.

(vi) any other revenue anticipated that may be realized in the retirement fund during the ensuing school fiscal year, excluding any guaranteed tax base aid.

(b)  notwithstanding the provisions of subsection (8), subtracting the money available for reduction of the levy requirement, as determined in subsection (3)(a), from the budgeted amount for expenditures in the final retirement fund budget.

(4)  The county superintendent shall:

(a)  total the net retirement fund levy requirements separately for all elementary school districts, all high school districts, and all community college districts of the county, including any prorated joint district or special education cooperative agreement levy requirements; and

(b)  report each levy requirement to the county commissioners on the fourth Monday of August as the respective county levy requirements for elementary district, high school district, and community college district retirement funds.

(5)  The county commissioners shall fix and set the county levy in accordance with 20-9-142.

(6)  The net retirement fund levy requirement for a joint elementary district or a joint high school district must be prorated to each county in which a part of the district is located in the same proportion as the district ANB of the joint district is distributed by pupil residence in each county. The county superintendents of the counties affected shall jointly determine the net retirement fund levy requirement for each county as provided in 20-9-151.

(7)  The net retirement fund levy requirement for districts that are members of special education cooperative agreements must be prorated to each county in which the district is located in the same proportion as the special education cooperative budget is prorated to the member school districts. The county superintendents of the counties affected shall jointly determine the net retirement fund levy requirement for each county in the same manner as provided in 20-9-151, and the county commissioners shall fix and levy the net retirement fund levy for each county in the same manner as provided in 20-9-152.

(8)  The county superintendent shall calculate the number of mills to be levied on the taxable property in the county to finance the retirement fund net levy requirement by dividing the amount determined in subsection (4)(a) by the sum of:

(a)  the amount of guaranteed tax base aid that the county will receive for each mill levied, as certified by the superintendent of public instruction; and

(b)  the taxable valuation of the district divided by 1,000."



Section 13.  Section 20-10-144, MCA, is amended to read:

"20-10-144.   Computation of revenue and net tax levy requirements for district transportation fund budget. Before the fourth Monday of July and in accordance with 20-9-123, the county superintendent shall compute the revenue available to finance the transportation fund budget of each district. The county superintendent shall compute the revenue for each district on the following basis:

(1)  The "schedule amount" of the preliminary budget expenditures that is derived from the rate schedules in 20-10-141 and 20-10-142 must be determined by adding the following amounts:

(a)  the sum of the maximum reimbursable expenditures for all approved school bus routes maintained by the district (to determine the maximum reimbursable expenditure, multiply the applicable rate per bus mile by the total number of miles to be traveled during the ensuing school fiscal year on each bus route approved by the county transportation committee and maintained by the district); plus

(b)  the total of all individual transportation per diem reimbursement rates for the district as determined from the contracts submitted by the district multiplied by the number of pupil-instruction days scheduled for the ensuing school attendance year; plus

(c)  any estimated costs for supervised home study or supervised correspondence study for the ensuing school fiscal year; plus

(d)  the amount budgeted on the preliminary budget for the contingency amount permitted in 20-10-143, except if the amount exceeds 10% of the total of subsections (1)(a), (1)(b), and (1)(c) or $100, whichever is larger, the contingency amount on the preliminary budget must be reduced to the limitation amount and used in this determination of the schedule amount; plus

(e)  any estimated costs for transporting a child out of district when the child has mandatory approval to attend school in a district outside the district of residence.

(2)  (a) The schedule amount determined in subsection (1) or the total preliminary transportation fund budget, whichever is smaller, is divided by 2 and is used to determine the available state and county revenue to be budgeted on the following basis:

(i)  one-half is the budgeted state transportation reimbursement, except that the state transportation reimbursement for the transportation of special education pupils under the provisions of 20-7-442 must be 50% of the schedule amount attributed to the transportation of special education pupils; and

(ii) one-half is the budgeted county transportation fund reimbursement and must be financed in the manner provided in 20-10-146.

(b)  When the district has a sufficient amount of cash for reappropriation and other sources of district revenue, as determined in subsection (3), to reduce the total district obligation for financing to zero, any remaining amount of district revenue and cash reappropriated must be used to reduce the county financing obligation in subsection (2)(a)(ii) and, if the county financing obligations are reduced to zero, to reduce the state financial obligation in subsection (2)(a)(i).

(c)  The county revenue requirement for a joint district, after the application of any district money under subsection (2)(b), must be prorated to each county incorporated by the joint district in the same proportion as the ANB of the joint district is distributed by pupil residence in each county.

(3)  The total of the money available for the reduction of property tax on the district for the transportation fund must be determined by totaling:

(a)  anticipated federal money received under the provisions of Title I of Public Law 81-874 or other anticipated federal money received in lieu of that federal act;

(b)  anticipated payments from other districts for providing school bus transportation services for the district;

(c)  anticipated payments from a parent or guardian for providing school bus transportation services for a child;

(d)  anticipated or reappropriated interest to be earned by the investment of transportation fund cash in accordance with the provisions of 20-9-213(4);

(e)  anticipated or reappropriated revenue from property taxes and fees imposed under 23-2-517, 23-2-803, 61-3-504(2), 61-3-521, 61-3-527, 61-3-537, [section 32 33 29], and 67-3-204;

(f)  anticipated revenue from coal gross proceeds under 15-23-703;

(g)  anticipated oil and natural gas production taxes;

(h)  anticipated local government severance tax payments for calendar year 1995 production;

(i)  anticipated transportation payments for out-of-district pupils under the provisions of 20-5-320 through 20-5-324;

(j)  any other revenue anticipated by the trustees to be earned during the ensuing school fiscal year that may be used to finance the transportation fund; and

(k)  any fund balance available for reappropriation as determined by subtracting the amount of the end-of-the-year fund balance earmarked as the transportation fund operating reserve for the ensuing school fiscal year by the trustees from the end-of-the-year fund balance in the transportation fund. The operating reserve may not be more than 20% of the final transportation fund budget for the ensuing school fiscal year and is for the purpose of paying transportation fund warrants issued by the district under the final transportation fund budget.

(4)  The district levy requirement for each district's transportation fund must be computed by:

(a)  subtracting the schedule amount calculated in subsection (1) from the total preliminary transportation budget amount; and

(b)  subtracting the amount of money available to reduce the property tax on the district, as determined in subsection (3), from the amount determined in subsection (4)(a).

(5)  The transportation fund levy requirements determined in subsection (4) for each district must be reported to the county commissioners on the fourth Monday of August by the county superintendent as the transportation fund levy requirements for the district, and the levy must be made by the county commissioners in accordance with 20-9-142."



Section 14.  Section 20-10-146, MCA, is amended to read:

"20-10-146.   County transportation reimbursement. (1) The apportionment of the county transportation reimbursement by the county superintendent for school bus transportation or individual transportation that is actually rendered by a district in accordance with this title, board of public education transportation policy, and the transportation rules of the superintendent of public instruction must be the same as the state transportation reimbursement payment, except that:

(a)  if any cash was used to reduce the budgeted county transportation reimbursement under the provisions of 20-10-144(2)(b), the annual apportionment is limited to the budget amount;

(b)  when the county transportation reimbursement for a school bus has been prorated between two or more counties because the school bus is conveying pupils of more than one district located in the counties, the apportionment of the county transportation reimbursement must be adjusted to pay the amount computed under the proration; and

(c)  when county transportation reimbursement is required under the mandatory attendance agreement provisions of 20-5-321.

(2)  The county transportation net levy requirement for the financing of the county transportation fund reimbursements to districts is computed by:

(a)  totaling the net requirement for all districts of the county, including reimbursements to a special education cooperative or prorated reimbursements to joint districts or reimbursements under the mandatory attendance agreement provisions of 20-5-321;

(b)  determining the sum of the money available to reduce the county transportation net levy requirement by adding:

(i)  anticipated money that may be realized in the county transportation fund during the ensuing school fiscal year, including anticipated revenue from property taxes and fees imposed under 23-2-517, 23-2-803, 61-3-504(2), 61-3-521, 61-3-527, 61-3-537, [section 32 33 29], and 67-3-204;

(ii) oil and natural gas production taxes;

(iii) anticipated local government severance tax payments for calendar year 1995 production;

(iv) coal gross proceeds taxes under 15-23-703;

(v)  any fund balance available for reappropriation from the end-of-the-year fund balance in the county transportation fund;

(vi) federal forest reserve funds allocated under the provisions of 17-3-213; and

(vii) other revenue anticipated that may be realized in the county transportation fund during the ensuing school fiscal year; and

(c)  subtracting the money available, as determined in subsection (2)(b), to reduce the levy requirement from the county transportation net levy requirement.

(3)  The net levy requirement determined in subsection (2)(c) must be reported to the county commissioners on the fourth Monday of August by the county superintendent, and a levy must be set by the county commissioners in accordance with 20-9-142.

(4)  The county superintendent shall apportion the county transportation reimbursement from the proceeds of the county transportation fund. The county superintendent shall order the county treasurer to make the apportionments in accordance with 20-9-212(2) and after the receipt of the semiannual state transportation reimbursement payments."



NEW SECTION. Section 16.  Light vehicle. "Light vehicle" means a motor vehicle commonly referred to as an automobile, van, sport utility vehicle, or truck having a manufacturer's rated capacity of 1 ton or less.



NEW SECTION. Section 17.  Sport utility vehicle. "Sport utility vehicle" means a light vehicle designed to transport 10 or fewer persons that is constructed on a truck chassis or that has special features for occasional off-road use. The term does not include trucks having a manufacturer's rated capacity of 1 ton or less.



Section 15.  Section 61-3-101, MCA, is amended to read:

"61-3-101.   Duties of department -- records. (1) The department shall keep a record as specified in this section of all motor vehicles, trailers, and semitrailers of every kind, and of certificates of registration and ownership of those vehicles, and of all manufacturers and dealers in motor vehicles.

(2)  The record must show the following:

(a)  name of owner, residence address by street or rural route, town, and county, and mailing address if different than residence address;

(b)  name and address of conditional sales vendor, mortgagee, or other lienholder and amount due under contract or lien;

(c)  manufacturer of vehicle;

(d)  manufacturer's designation of style of vehicle;

(e)  identifying number;

(f)  year of manufacture;

(g)  character of motive power and shipping weight of vehicle as shown by the manufacturer;

(h)  the distinctive license number assigned to the vehicle, if any;

(i)  if a truck or trailer, the number of tons' capacity or GVW if imprinted on manufacturer's identification plate;

(j)  except as provided in 61-3-103, the name and complete address of any holder of a perfected security interest in the vehicle; and

(k)  other information that may from time to time be found desirable.

(3)  The department shall file applications for registration received by it from the county treasurers of the state and register the vehicles and the vehicle owners as follows:

(a)  under the distinctive license number assigned to the vehicle by the county treasurer;

(b)  alphabetically under the name of the owner;

(c)  numerically under make and identifying number of the vehicle; and

(d)  other another index of registration as the department considers expedient.

(4) The department shall determine the amount of motor vehicle taxes and fees THE FEE to be collected at the time of registration for each light vehicle subject to tax under 61-3-503 and for each bus, truck having a manufacturer's rated capacity of more than 1 ton, and truck tractors subject to a fee in lieu of tax under [sections 31 32 28 and 32 33 29]. The county treasurer shall collect the taxes and fees on each motor vehicle at the time of its registration.

(5)  Vehicle registration records and indexes and driver's license records and indexes may be maintained by electronic recording and storage media.

(5)(6)  In the case of dealers, the records must show the information contained in the application for a dealer's license as required by 61-4-101 through 61-4-105, as well as the distinctive license number assigned to the dealer.

(6)(7)  In order to prevent an accumulation of unneeded records and files, regardless of any other statutory requirements, the department may destroy all records and files that relate to vehicles that have not been registered within the preceding 4 years and that do not have an active lien.

(7)(8)  All records must be open to inspection during all reasonable business hours, and the department shall furnish any information from the records upon payment by the applicant of the cost of the information requested. Prior to providing the information, the department may require the applicant to provide identification. However, the department may, by rule, reasonably restrict disclosure of information on an owner or the owner's vehicle if the owner has requested in writing that the department not disclose the information."



Section 16.  Section 61-3-208, MCA, is amended to read:

"61-3-208.   Affidavit and bond for certificate. (1) If an applicant for a motor vehicle certificate of title cannot provide the department with a certificate of title transferred to the applicant, the department may issue a certificate of title for the vehicle if the applicant furnishes an affidavit in a form prescribed by the department.

(2)  The affidavit must be signed and sworn to before an officer authorized to administer oaths and affirmations. The affidavit must accompany the application for the certificate of title and include:

(a)  the facts and circumstances through which the applicant acquired ownership and possession of the motor vehicle;

(b)  information as required by the department to enable it to determine what security interests, liens, and encumbrances against the motor vehicle, if any, are outstanding against the motor vehicle;

(c)  the date and the amount secured by the security interests, liens, and encumbrances, if any; and

(d)  a statement that the applicant has the right to have a certificate of title issued.

(3)  If after examination of the application, affidavit, and any other evidence the department determines that a certificate of title for the motor vehicle should be issued to the applicant, the department shall require the applicant to file with the department a good and sufficient bond before issuing the certificate of title. The bond must be:

(a)  in an amount equal to the average trade-in or wholesale value of the motor vehicle as determined under the provisions of 61-3-503(1)(c) by the applicable national appraisal guide for the vehicle as of January 1 for the year in which the application for certificate of title is made;. When a national appraisal guide is not available for a vehicle, the department shall determine an alternative value for the vehicle.

(b)  conditioned to indemnify a prior owner, lienholder, subsequent purchaser, secured creditor, or encumbrancer of the motor vehicle, and any respective successors in interest, against expenses, losses, or damages caused by the issuance of the certificate or by a defect in or undisclosed security interest upon the right, title, and interest of the applicant in the motor vehicle; and

(c)  issued by a surety company authorized to do business in the state.

(4)  Any interested person has a right of action to recover on the bond for a breach of its conditions, but the aggregate liability of the surety to all persons may not exceed the amount of the bond.

(5)  Unless the department has been notified of a pending action to recover the bond, the department shall return the bond at the earlier of:

(a)  3 years from the date of issuance of the certificate of title; or

(b)  the date of surrender of the valid certificate of title to the department if the vehicle is no longer registered in this state."



Section 17.  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 on a form to be prepared and furnished prescribed by the department. The application must contain:

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

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

(d)  the 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 as 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 motor vehicle taxes or fees in lieu of tax assessed or imposed 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 or impose 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 18.  Section 61-3-456, MCA, is amended to read:

"61-3-456.   Registration of motor vehicle owned and operated by Montana resident on active military duty stationed outside Montana. (1) An owner of a motor vehicle who is a Montana resident on active military duty and stationed outside Montana may file with the department an application for the registration of the motor vehicle. The application must be sworn to before an officer authorized to administer oaths. The application must state:

(a)  the name and address of the owner;

(b)  the make, the gross weight, the year and number of the model, and the manufacturer's identification number and serial number of the motor vehicle; and

(c)  that the vehicle is owned and operated by a Montana resident who is on active military duty and stationed outside Montana.

(2)  The registration fee for a motor vehicle registered under subsection (1) is as provided in 61-3-311 and 61-3-321.

(3)  A vehicle registered under this section is not subject to:

(a)  the taxes described in 61-3-303(2)(b);

(b)  assessment under 15-8-202 or 61-3-503 or the fee in lieu of tax under [section 32 33 29]; or

(c)  any of the fees provided in part 5 of this chapter."



Section 22.  Section 61-3-501, MCA, is amended to read:

"61-3-501.   When vehicle taxes and fees are due. (1) Property Motor vehicle taxes, fees in lieu of tax, new car taxes, and fees must be paid on the date of registration or reregistration of the vehicle.

(2)  If the anniversary date for reregistration of a vehicle passes while the vehicle is owned and held for sale by a licensed new or used car dealer, property motor vehicle taxes or fees in lieu of tax abate on such the vehicle properly reported with the department of revenue county treasurer until the vehicle is sold and thereafter. After the sale, the purchaser shall pay the pro rata balance of the taxes or fees in lieu of tax due and owing on the vehicle.

(3)  In the event that a vehicle's registration period is changed under 61-3-315, all taxes or fees in lieu of tax and other fees due thereon shall must be prorated and paid from the last day of the old period until the first day of the new period in which the vehicle shall be is registered. Thereafter The taxes or fees in lieu of tax and other fees must be paid from the first day of the new period for a minimum period of 1 year. When the change is to a later registration period, taxes and fees shall must be prorated and paid based on the same tax year as the original registration period. Thereafter, during the appropriate anniversary registration period, each vehicle shall must again register or reregister be registered or reregistered and shall pay all taxes and fees due thereon must be paid for a 12-month period."



Section 19.  Section 61-3-503, MCA, is amended to read:

"61-3-503.   Assessment. (1) Except as provided in 61-3-520 and subsection (2)(4)(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.

(A)  A PERSON SHALL FILE AN APPLICATION FOR REGISTRATION OR REREGISTRATION OF A MOTOR VEHICLE WITH THE COUNTY TREASURER. THE COUNTY TREASURER, AS AN AGENT OF 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)(a)(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 depreciated value of the manufacturer's suggested retail price as determined in subsection (2).

(b) A 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 depreciated value shown in any of the appraisal guides listed in this section 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) (a) Except as provided in subsections (2)(c) and (2)(d), the depreciated value for the taxation of light vehicles is computed by multiplying the manufacturer's suggested retail price by a percentage multiplier based on the type and age of the vehicle determined from the following table:

Age of Vehicle Type of Vehicle

(in years) Automobile Truck Van Sport Utility

-1 100% 100% 100% 100%

0 90 96 93 98

1 80 91 86 94

2 69 86 78 90

3 58 80 69 84

4 49 73 60 76

5 41 66 52 67

6 33 57 45 57

7 26 49 38 48

8 21 43 32 39

9 17 37 27 33

10 14 31 22 29

11 12 26 18 25

12 10 22 15 22

13 09 18 13 21

14 09 15 11 19

15 09 13 09 17

16 09 12 09 15

(b) The age for the light vehicle is determined by subtracting the manufacturer's model year of the vehicle from the calendar year for which the tax is due.

(c) If the value of the vehicle determined under subsection (2)(a) is $500 or less, the value of the vehicle is $500 and the value must remain at that amount as long as the vehicle is registered.

(d) The depreciated value of a light vehicle that is 17 years old or older is computed by depreciating the value obtained for the vehicle at 16 years old as determined under subsection (2)(a) by 10% a year until a minimum value of $500 is attained. The value must remain at that amount as long as the vehicle is registered.

(3) (a) For the purposes of this section, "manufacturer's suggested retail price" means the price suggested by the manufacturer for each given type, style, or model of light vehicle produced and first made available for retail sale by the manufacturer.

(b) The manufacturer's suggested retail price is based on standard equipment of a vehicle and does not contain price additions or deductions for optional accessories.

(c) When a manufacturer's suggested retail price is unavailable for a motor vehicle, the department shall determine an alternative valuation for the vehicle.

(D)  IF A VEHICLE ASSESSED UNDER SUBSECTION (1)(A) OR (1)(B) 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.

(E)  WHEN A MINIMUM VALUE OF $500 IS REACHED, THE VALUE MUST REMAIN AT THAT MINIMUM AS LONG AS THE VEHICLE IS REGISTERED.

(F)  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)(4)(2)  The provisions of subsections (1)(a) (1)(A) through (1)(g) (3) (1)(F) do not apply to buses, trucks having a manufacturer's rated capacity of more than 1 ton, truck tractors, motorcycles, motor homes, quadricycles, travel trailers, campers, or mobile homes as defined in 15-1-101(1)."



Section 20.  Section 61-3-504, MCA, is amended to read:

"61-3-504.   Computation of tax. (1) The amount of taxes on a motor light vehicle, other than an automobile, truck having a rated capacity of 1 ton or less, motorcycle, quadricycle, motor home, travel trailer, camper, or mobile home, is computed and determined by the county treasurer on the basis of the levy of the year preceding the current year of application for registration or reregistration.

(2)  The amount of tax on an automobile or truck having a rated capacity of 1 ton or less, THE AMOUNT OF TAX ON AN AUTOMOBILE OR TRUCK HAVING A RATED CAPACITY OF 1 TON OR LESS, except for vehicles registered under 61-3-456 or owned by disabled veterans qualifying for special license plates under 61-3-332(10)(c)(i)(A) or 61-3-426(2), and on a quadricycle is 2% of the value determined under 61-3-503.

(3)(2)  The amount of tax on fleet vehicles subject to the provisions of 61-3-318 is 1% of the value determined under 61-3-503.

(4)  For all taxable motor vehicles, the amount of tax is entered on the application form in a space provided for that purpose."



Section 21.  Section 61-3-506, MCA, is amended to read:

"61-3-506.   Rules. (1) The department of revenue shall adopt rules for the payment of property taxes and the DEPARTMENT OF REVENUE SHALL ADOPT RULES FOR THE PAYMENT OF PROPERTY TAXES, OTHER THAN FOR MOTOR VEHICLES HAVING A RATED CAPACITY OF MORE THAN 1 TON, AND THE department of transportation shall adopt rules for the payment of new car taxes under the provisions of 61-3-313 through 61-3-316, 61-3-501, and 61-3-520. The department of revenue may adopt rules for the proration of taxes for the implementation and administration of 61-3-313 through 61-3-316, 61-3-501, and 61-3-520, but shall specifically provide that new car taxes shall be for a 12-month period THE DEPARTMENT OF REVENUE MAY ADOPT RULES FOR THE PRORATION OF TAXES FOR THE IMPLEMENTATION AND ADMINISTRATION OF 61-3-313 THROUGH 61-3-316, 61-3-501, AND 61-3-520, BUT SHALL SPECIFICALLY PROVIDE THAT NEW CAR TAXES MUST BE FOR A 12-MONTH PERIOD.

(2) The department of justice may adopt rules:

(a) for the assessment and collection of taxes and fees on light vehicles, INCLUDING THE PRORATION OF TAXES UNDER 61-3-520; and

(b) for the imposition and collection of fees in lieu of tax, INCLUDING THE PRORATION OF FEES IN LIEU OF TAX UNDER 61-3-520, on buses, trucks having a manufacturer's rated capacity of more than 1 ton, and truck tractors, including criteria for determining the vehicle's age and manufacturer's rated capacity."



Section 22.  Section 61-3-507, MCA, is amended to read:

"61-3-507.   Exemption. (1) A motor vehicle subject to anniversary date registration as provided in 61-3-313 through 61-3-316 is exempt from the provisions of 61-3-503(1)(b).

(2)  A vehicle that is exempt from taxation under 15-6-215 or subject to the provisions of 61-3-520 is exempt from all other taxes and fees generally imposed on a vehicle by this part."



Section 23.  Section 61-3-509, MCA, is amended to read:

"61-3-509.   Disposition of taxes. (1) Except as provided in subsection (2), the county treasurer shall, after deducting the district court fee, credit all taxes on motor vehicles and fees in lieu of tax on motorcycles, quadricycles, motor homes, travel trailers, and campers, buses, trucks having a manufacturer's rated capacity of more than 1 ton, and truck tractors collected under 61-3-504, 61-3-521, 61-3-527, and 61-3-537, and [section 32 33 29] to a motor vehicle suspense fund, and at. At some time between March 1 and March 10 of each year and every 60 days after that date, the county treasurer shall distribute the money in the motor vehicle suspense fund 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.

(2)  The county treasurer shall deduct as a district court fee 7% of the amount of the 2% tax collected on an automobile or truck having a rated capacity of 1 ton or less light vehicles. The county treasurer shall credit the fee for district courts to a separate suspense account and shall forward the amount in the account to the state treasurer at the time that the county treasurer distributes money from the motor vehicle suspense fund. The state treasurer shall credit amounts received under this subsection to the general fund to be used for purposes of state funding of the district court expenses as provided in 3-5-901."



SECTION 24.  SECTION 61-3-520, MCA, IS AMENDED TO READ:

"61-3-520.   Taxation of Taxes and fees on vehicles used exclusively in filming motion pictures or television commercials. (1) A vehicle used exclusively in the filming of motion pictures or television commercials that has been in the state for a period exceeding 180 consecutive days in a calendar year must be assessed is subject to assessment or a fee in lieu of tax as if the vehicle were not used exclusively for filming motion pictures or television commercials, but the assessment or fee in lieu of tax must be prorated as provided in subsection (2).

(2)  The taxes assessed or the fees in lieu of tax imposed under subsection (1) must be prorated by dividing the number of days in excess of 180 consecutive days in the calendar year by 365.

(3) (a) Taxes on a vehicle imposed pursuant to this section must be collected as provided in Title 15, chapter 16, part 1, for the collection of personal property taxes generally.

(b) Fees on a vehicle imposed pursuant to this section must be collected as provided in this chapter."



Section 25.  Section 61-3-527, MCA, is amended to read:

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

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

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

(a)  The fee schedule for a motorcycle or quadricycle 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 or quadricycle 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 or quadricycle 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)  The age of a motorcycle or quadricycle is determined by subtracting the manufacturer's designated model year from the current calendar year."



Section 26.  Section 61-3-535, MCA, is amended to read:

"61-3-535.   Vehicle reregistration by mail -- renewal cards reminder notice and reregistration notice by mail. (1) Except as provided in subsection (2), an owner of the following types of motor vehicles may reregister by mail:

(a)  light vehicles, quadricycles, and other vehicles subject to tax under 61-3-504(2); and

(b)  motorcycles, travel trailers, campers, and motor homes subject to a fee in lieu of tax under 61-3-521 and 61-3-527.

(2)  The option to reregister by mail need only be made available for vehicles, motor homes, and travel trailers registered at the close of the expiring registration period in the name of the applicant for reregistration and only if The department may allow the owner of a motor vehicle to renew the registration of a vehicle by mail when EXCEPT AS PROVIDED IN SUBSECTION (2), AN OWNER OF THE FOLLOWING TYPES OF MOTOR VEHICLES MAY REREGISTER BY MAIL:

(A)  LIGHT VEHICLES AND OTHER VEHICLES SUBJECT TO TAX UNDER 61-3-504(1); AND

(B)  MOTORCYCLES, QUADRICYCLES, TRAVEL TRAILERS, CAMPERS, AND MOTOR HOMES SUBJECT TO A FEE IN LIEU OF TAX UNDER 61-3-521 AND 61-3-527.

(2)  THE OPTION TO REREGISTER BY MAIL NEED ONLY BE MADE AVAILABLE FOR VEHICLES, MOTOR HOMES, AND TRAVEL TRAILERS REGISTERED AT THE CLOSE OF THE EXPIRING REGISTRATION PERIOD IN THE NAME OF THE APPLICANT FOR REREGISTRATION AND ONLY IF the value, age, length, weight, or other criteria used to determine the tax or fee for a particular type of vehicle is available to the department by electronic means.

(3)(2)(3)  The department shall develop a procedure to facilitate the reregistration by mail of the vehicles listed in subsection (1). The Any THE DEPARTMENT SHALL DEVELOP A PROCEDURE TO FACILITATE THE REREGISTRATION BY MAIL OF THE VEHICLES LISTED IN SUBSECTION (1). THE mail reregistration procedure developed by the department must include a procedure to facilitate automated handling of mail reregistration or recertification.

(4)  The procedure implemented by the department to permit reregistration or camper decal application by mail must and must.

(4)  THE PROCEDURE IMPLEMENTED BY THE DEPARTMENT TO PERMIT REREGISTRATION OR CAMPER DECAL APPLICATION BY MAIL MUST provide for a written reminder notice by mail to a vehicle owner of the requirement to reregister the owner's vehicle with the county treasurer or to apply for the annual camper decal.

(5)(3)(5)  The department shall adopt rules to implement the mail reregistration and decal application procedure."



Section 27.  Section 61-3-537, MCA, is amended to read:

"61-3-537.   (Temporary) Local option vehicle tax. (1) A county may impose a local vehicle tax on vehicles subject to a property tax under 61-3-504(2) at a rate of up to 0.5% of the value determined under 61-3-503, in addition to the tax imposed under 61-3-504(2).

(2)  A local vehicle tax is payable at the same time and in the same manner as the tax imposed under 61-3-504(2). The first priority of the local vehicle tax is for district court funding, and the tax is distributed as follows:

(a)  50% to the county; and

(b)  the remaining 50% to the county and the incorporated cities and towns within the county, apportioned on the basis of population. The distribution to a city or town is determined by multiplying the amount of money available by the ratio of the population of the city or town to the total county population. The distribution to the county is determined by multiplying the amount of money available by the ratio of the population of unincorporated areas within the county to the total county population.

(3)  The governing body of a county may impose, revise, or revoke a local vehicle tax by adopting a resolution before July 1, after conducting a public hearing on the proposed resolution. The resolution may provide for the distribution of the local vehicle tax. (Terminates June 30, 2005--sec. 2, 3, Ch. 217, L. 1995.)

61-3-537.   (Effective July 1, 2005) Local option vehicle tax. (1) A county may impose a local vehicle tax on vehicles subject to a property tax under 61-3-504(2) at a rate of up to 0.5% of the value determined under 61-3-503, in addition to the tax imposed under 61-3-504(2).

(2)  A local vehicle tax is payable at the same time and in the same manner as the tax imposed under 61-3-504(2) and is distributed in the same manner, based on the registration address of the owner of the motor vehicle.

(3)  The governing body of a county may impose, revise, or revoke a local vehicle tax by adopting a resolution before July 1, after conducting a public hearing on the proposed resolution."



NEW SECTION. Section 28.  Definitions. As used in [section 32 33 29] and this section, unless the context requires otherwise, the following definitions apply:

(1) "Bus" has the same meaning as provided in 61-1-115.

(2) "Manufacturer's rated gross combined weight" means the manufacturer's published weight of the allowable load for a truck tractor and trailer combined and includes the weight of the truck tractor and the trailer.

(3) "Manufacturer's rated gross vehicle weight" means the manufacturer's published weight of the allowable load for a truck and includes the weight of the truck.

(4) "Truck" means a motor vehicle designed to carry an entire load. The truck may consist of a chassis and body or a chassis-cab and body or it may be of unitized construction so that the body and cab appear to be a single unit.

(5) "Truck tractor" has the same meaning as provided in 61-1-108.



NEW SECTION. Section 29.  Schedule of fees for buses, motor vehicles having rated capacity of more than 1 ton, and truck tractors -- proration -- EXEMPTION. (1) (a) There is a fee in lieu of property tax imposed on buses, trucks having a manufacturer's rated capacity of more than 1 ton, and truck tractors. The fee is in addition to annual registration fees.

(b) The fee imposed by subsection (1)(a) is not required to be paid by a dealer of buses, trucks, or truck tractors that constitute inventory of the dealership.

(2) Subject to the conditions of subsection (4), the owner of a bus, truck with a manufacturer's rated capacity of more than 1 ton, or truck tractor shall pay a fee in lieu of tax based on the age and manufacturer's rated capacity of the vehicle according to the following schedule:

Age of Vehicle Rated Capacity (in pounds)

(in years) 16,999 or less 17,000-26,999 27,000-54,999 55,000 or more

1 or less $234 $334 $568 $750

2 218 300 500 600

3 200 268 440 532

4 184 234 368 484

5 166 218 320 390

6 150 200 268 334

7 132 182 234 294

8 116 166 200 250

9 100 150 184 218

10 82 116 158 184

11-12 66 100 134 152

13-14 56 74 104 122

15-16 50 60 76 94

17-18 36 52 58 72

19-20 26 38 44 52

21 or more 20 24 32 40

(3) The age of the vehicle is determined by subtracting the manufacturer's model year of the vehicle from the calendar year for which the fee in lieu of tax is due.

(4) (a) The manufacturer's rated capacity for a bus or truck with a manufacturer's rated capacity of more than 1 ton is the manufacturer's rated gross vehicle weight.

(b) The manufacturer's rated capacity for a truck tractor is the manufacturer's rated gross combined weight.

(5) A MOTOR VEHICLE BROUGHT INTO THE STATE OR OTHERWISE USED FOR THE EXCLUSIVE PURPOSE OF FILMING MOTION PICTURES OR TELEVISION COMMERCIALS IS EXEMPT FROM THE FEE IN LIEU OF TAX IF THE VEHICLE DOES NOT REMAIN IN THE STATE FOR A PERIOD IN EXCESS OF 180 CONSECUTIVE DAYS IN A CALENDAR YEAR.

(5)(6) The EXCEPT AS PROVIDED IN 61-3-520, THE fee in lieu of tax on a vehicle subject to this section that is brought or driven into this state by a nonresident person for hire, compensation, or profit must be prorated according to the ratio that the remaining number of months in the year bears to the total number of months in the year.

(6)(7) (a) The fee in lieu of tax on a vehicle subject to this section that is registered in the state for the first time must be prorated as provided in subsection (5) (6).

(b) The fee in lieu of tax on a vehicle subject to this section that is reregistered in the state is for a full year.

(7)(8) The fee in lieu of tax may not be refunded.



NEW SECTION. Section 30.  Assessment of proportionally registered interstate motor vehicle fleets -- payment of tax or fee in lieu of tax required for registration. (1) (a) Except as provided in subsection (2), the department of transportation shall determine the fee for the purpose of imposing the fee in lieu of tax as provided in [sections 31 32 28 and 32 33 29] on buses, trucks having a manufacturer's rated capacity of more than 1 ton, and truck tractors, in interstate motor vehicle fleets that are proportionally registered under the provisions of 61-3-711 through 61-3-733. The fee must be apportioned on the ratio of total miles traveled to in-state miles traveled as prescribed by 61-3-721. The fee in lieu of tax on interstate motor vehicle fleets is imposed upon application for proportional registration and must be paid by the persons who own or claim the fleet or in whose possession or control the fleet is at the time of the application.

(b)  With respect to an original application for a fleet that has a situs in Montana for the purpose of the fee in lieu of tax under this part or any other provision of the laws of Montana, the fee in lieu of tax on fleet vehicles must be prorated according to the ratio that the remaining number of months in the year bears to the total number of months in the year.

(2)  For the purpose of taxation, the department of transportation shall assess light vehicles, as defined in [section 16], that are part of an interstate motor vehicle fleet as follows:

(a) The value of each vehicle is determined in the same manner as provided in 61-3-503.

(b) The value determined under subsection (2)(a) multiplied by the percent of miles traveled in Montana, as prescribed by 61-3-721, is the market value.

(c) The sum of the market value of all vehicles subject to tax under this subsection (2) multiplied by 2% is the tax for the entire fleet.

(d)  With respect to an original application for a fleet that has a situs in Montana for the purpose of taxation under this part or any other provision of the laws of Montana, the taxes on taxable vehicles are determined as provided in subsection (2)(b).

(e) Vehicles taxed as part of a fleet under this subsection (2) are not subject to the local option tax imposed under 61-3-537.

(3)  With respect to a renewal application for a fleet, taxable vehicles are assessed and taxed for a full year and for all other vehicles the fee in lieu of tax is imposed for a full year.

(4)  Vehicles contained in a fleet for which current taxes or fees, or both, have been assessed and paid may not be assessed or charged fees under this section upon presentation to the department of proof of payment of taxes, fees, or both for the current registration year. The payment of fleet vehicle taxes, fees in lieu of tax, and license fees is a condition precedent to proportional registration or reregistration of an interstate motor vehicle fleet.

(5) All taxes and fees collected on motor vehicle fleets under this chapter must be deposited and distributed as provided in [section 35 36 31].



NEW SECTION. Section 31.  Situs in state of proportionally registered fleets -- collection of taxes and fees. (1) For the purposes of this part, any vehicle previously registered or that has had application for registration made under the provisions of 61-3-711 through 61-3-733 has a situs in Montana for the purposes of taxation or the fee in lieu of tax.

(2)  The department of transportation shall collect the fleet vehicle taxes, the fees in lieu of tax, and license fees prescribed in this part.



NEW SECTION. Section 32.  Deposit and distribution of taxes and fees on proportionally registered fleets. The taxes, fees in lieu of tax, and license fees collected under this part must be deposited with the state treasurer for distribution to the general fund of each county on the following basis:

(1)  for fleet vehicle taxes and fees in lieu of tax, according to the ratio of the taxable valuation of each county to the total state taxable valuation; and

(2)  for fleet vehicle license fees, according to the ratio of vehicle license fees, other than fees derived from interstate motor vehicle fleets, collected in each county to the sum of all fleet vehicle fees collected in all the counties.



Section 33.  Section 61-3-701, MCA, is amended to read:

"61-3-701.   Foreign vehicles used in gainful occupation to be registered -- reciprocity. (1) Before any a foreign licensed motor vehicle may be operated on the highways of this state for hire, compensation, or profit or before the owner and/or or user thereof of the vehicle uses the vehicle if such the owner and/or or user is engaged in gainful occupation or business enterprise in the state, including highway work, the owner of the vehicle shall make application apply to a county treasurer for registration upon an application form furnished by the department. Upon satisfactory evidence of ownership submitted to the county treasurer and the payment of property motor vehicle taxes or fees in lieu of taxes, if appropriate, as required by 15-8-201, 15-8-202, 15-24-301, 61-3-504, or 61-3-537, or [section 32 33 29], the treasurer shall accept the application for registration and shall collect the regular license fee required for the vehicle.

(2)  The Upon payment of the fees or taxes, the treasurer shall thereupon issue to the applicant a copy of the certificate entitled "Owner's Certificate of Registration and Payment Receipt" and forward a duplicate copy of the certificate to the department. The treasurer shall at the same time issue to the applicant the proper license plates or other identification markers, which shall must at all times be displayed upon the vehicle when operated or driven upon roads and highways of this state during the effective period of the life of the license.

(3)  The registration receipt shall does not constitute evidence of ownership but shall must be used only for registration purposes. No A Montana certificate of ownership shall may not be issued for this type of registration.

(4)  This section is not applicable to any a vehicle covered by a valid and existing reciprocal agreement or declaration entered into under the provisions of the laws of Montana."



Section 38.  Section 61-12-402, MCA, is amended to read:

"61-12-402.   Notice to owner. (1) Within 72 hours after any a vehicle is removed and held by or at the direction of the Montana highway patrol, the highway patrol shall notify the sheriff of the county in which the vehicle was located at the time it was taken into custody and of the place where the vehicle is being held. In addition, the Montana highway patrol shall furnish the sheriff:

(a)  a complete description of the vehicle, including year, make, model, serial number, and license number if available;

(b)  any costs incurred to that date in the removal, storage, and custody of the vehicle; and

(c)  any available information concerning its ownership.

(2)  The sheriff or the city police shall make reasonable efforts to ascertain the name and address of the owner, lienholder, or person entitled to possession of the vehicle taken into custody under 61-12-401. If a name and address are ascertained, the sheriff or the city police shall notify the owner, and lienholder, or person of the location of the vehicle.

(3)  If the vehicle is registered in the office of the department, notice is considered to have been given when a registered or certified letter addressed to the registered owner of the vehicle and lienholder, if any, at the latest address shown by the records in the office of the department, return receipt requested and postage prepaid, is mailed at least 30 days before the vehicle is sold.

(4)  If the identity of the last-registered owner cannot be determined, if the registration does not contain an address for the owner, or if it is impossible to determine with reasonable certainty the identity and addresses of all lienholders, notice by one publication in one newspaper of general circulation in the county where the motor vehicle was abandoned is sufficient to meet all requirements of notice pursuant to this part. The notice by publication can may contain multiple listings of abandoned vehicles. The notice must be provided in the same manner as prescribed in 25-13-701(1)(b).

(5)  If the abandoned vehicle is in the possession of a motor vehicle wrecking facility licensed under 75-10-511, the wrecking facility may make the required search to ascertain the name and address of the owner, lienholder, or person entitled to possession of the vehicle and shall give the notices required in subsections (2) through (4). The wrecking facility shall deliver to the sheriff or the city police a certificate describing the efforts made to ascertain the name and address of the owner, lienholder, or person entitled to possession of the vehicle and shall deliver to the sheriff or the city police proof of the notice given.

(6)  A vehicle found by law enforcement officials to be a "junk vehicle", as defined by 75-10-501, and certified as having an appraised that has a value of $500 or less, as determined by the department of revenue, may be directly submitted for disposal in accordance with the provisions of part 5 of chapter 10, Title 75, chapter 10, part 5, upon a release given by the sheriff or the city police. In the release, the sheriff or the city police shall include a description of the vehicle, including year, make, model, serial number, and license number if available. A release provided by the sheriff or the city police under this section must be transmitted to the motor vehicle wrecking facility and must be considered by that facility to meet the requirements for records under 75-10-512 and 75-10-513. Vehicles described in this section may be submitted for disposal without notice and without a required holding period."



NEW SECTION. SECTION 34.  LEGISLATIVE AUDIT COMMITTEE ANALYSIS. (1) THE LEGISLATIVE AUDIT COMMITTEE SHALL CONDUCT OR HAVE CONDUCTED AN ANALYSIS OF ALTERNATIVE METHODS OF CLASSIFICATION, VALUATION, AND TAXATION OF AUTOMOBILES AND TRUCKS HAVING A MANUFACTURER'S RATED CAPACITY OF 1 TON OR LESS. THE ANALYSIS MUST INCLUDE:

(A) ALTERNATIVE METHODS OF VALUATION AND TAXATION;

(B) IMPOSITION OF A FLAT TAX OR FEES IN LIEU OF TAXES;

(C) MULTIYEAR LICENSING;

(D) COST-EFFECTIVENESS AND PUBLIC CONVENIENCE OF ALTERNATIVE METHODS OF CLASSIFYING MOTOR VEHICLES AND OF COLLECTING MOTOR VEHICLE TAXES OR FEES;

(E) ANTICIPATED COSTS AND REVENUES OF ALTERNATIVE SYSTEMS COMPARED WITH THE PRESENT SYSTEM OF CLASSIFYING, VALUING, AND TAXING MOTOR VEHICLES; AND

(F) ALTERNATIVE METHODS FOR FORMULAS BASED ON REVENUE ALLOCATIONS TO COUNTIES.

(2) THE COMMITTEE SHALL REPORT THE RESULTS OF ITS ANALYSIS TO THE 56TH LEGISLATURE.



NEW SECTION. Section 35.  Codification instruction. (1) [Sections 16 and 17] are intended to be codified as an integral part of Title 61, chapter 1, part 1, and the provisions of Title 61, chapter 1, part 1, apply to [sections 16 and 17].

(2) [Sections 31 32 28 and 32 33 29] are intended to be codified as an integral part of Title 61, chapter 3, part 5, and the provisions of Title 61, chapter 3, part 5, apply to [sections 31 32 28 and 32 33 29].

(3) [Sections 33 34 30 through 35 36 32] are intended to be codified as an integral part of Title 61, chapter 3, part 7, and the provisions of Title 61, chapter 3, part 7, apply to [sections 33 34 30 through 35 36 32].



NEW SECTION. Section 36.  Repealer. Sections 15-24-101, 15-24-102, 15-24-103, 15-24-104, 15-24-105, and 15-24-2501, MCA, are repealed.



NEW SECTION. Section 37.  Effective dates -- applicability -- rulemaking. (1) Except for the purposes of subsection (2), [this act] is effective January 1, 1998, and applies to tax years beginning after December 31, 1997.

(2) For the purposes of promulgating administrative rules AND CONDUCTING THE ANALYSIS REQUIRED BY [SECTION 34] under 61-3-506, [section SECTIONS 25 21 AND 34 and this section] are effective on passage and approval.

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