Senate Bill No. 395
Introduced By mahlum, cole, swysgood, tash, stang, beaudry, devlin, beck, ohs, swanson, eck
A Bill for an Act entitled: "An Act relating to the equalized tax treatment between in-state and out-of-state owners of rental
vehicles; imposing a 6 percent surcharge on rental vehicles; PROVIDING THAT THE SURCHARGE BE REMITTED TO
THE DEPARTMENT OF TRANSPORTATION; providing
that the surcharge is a reimbursement FROM THE
SURCHARGE COLLECTED for 75 PERCENT OF THE taxes and fees paid IN MONTANA on rental vehicles; providing
that the amount by which the surcharge exceeds taxes and fees paid be remitted to the department of transportation;
providing for the distribution of the excess surcharge; establishing a Montana heritage preservation and development
account for the deposit of a portion of the excess surcharge; requiring the preservation of records relating to the surcharge;
amending section 61-3-728, MCA; and providing a delayed AN IMMEDIATE effective date."
Be it enacted by the Legislature of the State of Montana:
NEW SECTION. Section 1. Definitions. As used in [section 2], the following definitions apply:
(1) "Department" means the department of transportation provided for in 2-15-2501.
(2) "Rental vehicle" means a passenger vehicle that:
(a) is rented for a period of not more than 30 days;
(b) is rented without a driver;
(c) is designed to transport 15 or fewer passengers;
(d) has a manufacturer's rated capacity of 1 ton or less; AND
(E) IS NOT RENTED PURSUANT TO A CONTRACT OF INSURANCE.
NEW SECTION. Section 2. Rental vehicle surcharge -- reimbursement -- COLLECTION AND REPORTING. (1) There is imposed a surcharge on a rental vehicle as defined in [section 1]. The surcharge is 6% on the rental base price, exclusive of gas and insurance, as stated in the rental contract. The surcharge must be stated in the rental contract and collected in accordance with the terms of the contract. The surcharge is a reimbursement for 75% OF THE taxes and fees paid IN MONTANA at the time of registration AS PROVIDED IN [SECTION 4].
(a) On or before February 15 of each year, the owner of the rental vehicles on which the surcharge was collected shall
file a report with the department stating the: (i) gross receipts, exclusive of gas and insurance, of the rental contracts; (ii) total amount of vehicle taxes and fees paid the previous calendar year; (iii) total amount of the surcharge collected in the previous calendar year; and (iv) amount, if any, by which the surcharge exceeded the taxes and fees. (b) The owner shall remit the excess surcharge with the annual report to the department. The annual report must be on a
form provided by the department. The department shall remit the excess surcharge to the state treasurer for deposit as
follows: (i) 70% to the Montana heritage preservation and development account as provided in [section 4]; (ii) 20% to the state highway account of the state special revenue fund; (iii) 7.5% to be distributed equally to the general fund of all counties; (iv) 2.5% to the state general fund. THE OWNER OF THE RENTAL VEHICLES SHALL REPORT TO THE
DEPARTMENT, AT THE END OF EACH CALENDAR QUARTER, THE GROSS RECEIPTS, EXCLUSIVE OF GAS
AND INSURANCE, ACTUALLY COLLECTED DURING THAT QUARTER ATTRIBUTABLE TO THE RENTAL
CONTRACTS. THE REPORT MUST BE ON A FORM PROVIDED BY THE DEPARTMENT. THE REPORT IS DUE
ON OR BEFORE THE LAST DAY OF THE MONTH FOLLOWING THE END OF THE CALENDAR QUARTER
AND MUST BE ACCOMPANIED BY A PAYMENT IN AN AMOUNT EQUAL TO THE SURCHARGE REQUIRED
TO BE COLLECTED UNDER SUBSECTION (1).
(3) THE DEPARTMENT SHALL CREDIT THE SURCHARGE AND ANY INTEREST AND PENALTIES TO A
RENTAL VEHICLE SURCHARGE
REIMBURSEMENT SUSPENSE ACCOUNT. (3)(4) The auditing requirements of 61-3-728 apply to this section.
NEW SECTION. SECTION 3. RENTAL VEHICLE SURCHARGE -- FAILURE TO PAY OR FILE -- PENALTY -- REVIEW -- INTEREST. (1) AN OWNER OF RENTAL VEHICLES WHO FAILS TO FILE THE REPORT AS REQUIRED BY [SECTION 2] MUST BE ASSESSED A PENALTY OF 10% OF THE SURCHARGE THAT WAS NOT COLLECTED DURING THE CALENDAR QUARTER. UPON A SHOWING OF GOOD CAUSE, THE DEPARTMENT MAY WAIVE THE PENALTY.
(2) AN OWNER OF RENTAL VEHICLES WHO FAILS TO MAKE PAYMENT OR FAILS TO REPORT AND MAKE PAYMENT AS REQUIRED BY [SECTION 2] MUST BE ASSESSED A PENALTY OF 10% OF THE AMOUNT THAT WAS NOT PAID. UPON A SHOWING OF GOOD CAUSE, THE DEPARTMENT MAY WAIVE THE PENALTY.
(3) (A) IF AN OWNER OF RENTAL VEHICLES FAILS TO FILE THE REPORT REQUIRED BY [SECTION 2] OR IF THE DEPARTMENT DETERMINES THAT THE REPORT UNDERSTATES THE AMOUNT OF SURCHARGE DUE, THE DEPARTMENT MAY DETERMINE THE AMOUNT OF THE SURCHARGE DUE AND ASSESS THAT AMOUNT AGAINST THE OWNER.
(B) WHEN A DEFICIENCY IS DETERMINED AND THE SURCHARGE BECOMES FINAL, THE DEPARTMENT SHALL MAIL A NOTICE AND DEMAND FOR PAYMENT TO THE OWNER. THE TAX IS DUE AND PAYABLE AT THE EXPIRATION OF 10 DAYS AFTER THE NOTICE AND DEMAND WERE MAILED. INTEREST ON ANY DEFICIENCY ASSESSMENT BEARS INTEREST UNTIL PAID, AT THE RATE OF 1% A MONTH OR FRACTION OF A MONTH, COMPUTED FROM THE ORIGINAL DUE DATE OF THE RETURN.
(4) THE AMOUNT REQUIRED TO BE PAID UNDER [SECTION 2] ACCRUES INTEREST AT THE RATE OF 1% A MONTH OR PART OF A MONTH FROM DELINQUENCY UNTIL PAID.
NEW SECTION. SECTION 4. RENTAL VEHICLE SURCHARGE -- REIMBURSEMENT -- DISTRIBUTION. (1) AN OWNER OF RENTAL VEHICLES IS ENTITLED TO A REIMBURSEMENT OF THE RENTAL VEHICLE SURCHARGE PAID TO THE DEPARTMENT IN THE PREVIOUS CALENDAR YEAR UNDER THE PROVISIONS OF [SECTION 2]. THE REIMBURSEMENT AMOUNT IS EQUAL TO 75% OF THE TAXES AND FEES PAID IN MONTANA AT THE TIME OF REGISTRATION IN THE PREVIOUS CALENDAR YEAR.
(2) (A) ON OR BEFORE FEBRUARY 15 OF EACH YEAR, THE OWNER OF THE RENTAL VEHICLES ON WHICH THE SURCHARGE WAS COLLECTED SHALL FILE A REPORT WITH THE DEPARTMENT STATING THE:
(I) GROSS RECEIPTS, EXCLUSIVE OF GAS AND INSURANCE, COLLECTED ON THE RENTAL CONTRACTS;
(II) TOTAL AMOUNT OF VEHICLE TAXES AND FEES PAID IN MONTANA AT THE TIME OF REGISTRATION IN THE PREVIOUS CALENDAR YEAR;
(III) TOTAL AMOUNT OF THE SURCHARGE COLLECTED IN THE PREVIOUS CALENDAR YEAR; AND
(IV) AMOUNT, IF ANY, BY WHICH THE SURCHARGE EXCEEDED 75% OF THE TAXES AND FEES.
(3) WITHIN 45 DAYS OF RECEIVING THE REPORT, THE DEPARTMENT SHALL REFUND FROM THE RENTAL VEHICLE SURCHARGE SUSPENSE ACCOUNT TO THE OWNER OF RENTAL VEHICLES THE AMOUNT OF THE SURCHARGE COLLECTED THAT DOES NOT EXCEED 75% OF THE TAXES AND FEES PAID.
(4) WITHIN 30 DAYS OF MAKING REFUND TO RENTAL CAR OWNERS UNDER SUBSECTION (3), THE DEPARTMENT SHALL REMIT THE AMOUNT REMAINING IN THE ACCOUNT FOR THE SURCHARGE COLLECTED IN THE PREVIOUS YEAR TO THE STATE TREASURER FOR DEPOSIT AS FOLLOWS:
(A) 80% TO THE MONTANA HERITAGE PRESERVATION AND DEVELOPMENT ACCOUNT AS PROVIDED IN [SECTION 6];
(B) 10% TO THE STATE HIGHWAY ACCOUNT OF THE STATE SPECIAL REVENUE FUND;
(C) 7.5% TO BE DISTRIBUTED EQUALLY TO THE GENERAL FUND OF ALL COUNTIES;
(D) 2.5% TO THE STATE GENERAL FUND.
Section 5. Section 61-3-728, MCA, is amended to read:
"61-3-728. Preservation of proportional registration records and surcharge payment records. (1) An owner whose application for proportional registration has been accepted shall preserve the records on which the application is based for a period of 4 years following the year or period upon which the application is based. Upon request of the department, the owner shall make these records available to the department for audit as to accuracy of the computations and payments or pay the reasonable costs of an audit at the owner's home office by an appointed representative of the department.
(2) The owner of
a rental vehicle VEHICLES on which the surcharge provided for in [ section 2 SECTIONS 1 THROUGH
4] was collected shall preserve the records pertaining to the collection and payment of the surcharge for a period of 4 years
following the year or period upon which the surcharge is based. Upon request of the department, the owner shall make
these records available to the department for audit as to the accuracy of the computations and the collections.
(3) The department may make arrangements with agencies of other jurisdictions administering motor vehicle registration laws for joint audits of the owner."
NEW SECTION. Section 6. Montana heritage preservation and development account. (1) There is established a Montana heritage preservation and development account in the state special revenue fund.
(2) Money deposited in the account from the surcharge as provided by [section
2(2)(b)(i) 4(4)(A)] must be used to service
revenue bonds issued for:
(a) the purchase of properties in Virginia City and Nevada City;
(b) restoration, maintenance, and operation of historic properties in Virginia City and Nevada City; AND
(C) IF ADDITIONAL MONEY IS AVAILABLE, PURCHASING, RESTORING, AND MAINTAINING HISTORICALLY SIGNIFICANT PROPERTIES IN OR FROM MONTANA.
NEW SECTION. Section 7. Codification instruction. (1) [Sections 1
and 2 THROUGH 4] 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 1 and 2
4 6] is intended to be codified as an integral part of Title 22, chapter 3, part 1, and the provisions of Title 22,
chapter 3, part 1, apply to [section 4 6].
NEW SECTION. Section 8. Effective date. [This act] is effective
January 1, 1998 ON PASSAGE AND APPROVAL
JUNE 1, 1997.