2007 Montana Legislature

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SENATE BILL NO. 525

INTRODUCED BY ELLIOTT

 

AN ACT CLARIFYING THAT TAX AND FEE REVENUE MUST BE RECORDED AS PRESCRIBED BY THE DEPARTMENT OF ADMINISTRATION IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES; AMENDING SECTIONS 15-35-108, 15-36-331, 15-37-117, 15-38-106, 15-50-311, 15-51-103, 15-53-156, 15-59-108, 15-60-210, 15-65-121, 15-66-102, 15-67-102, 15-68-820, 15-70-101, 15-70-125, 15-72-106, 16-1-306, 16-1-401, 16-1-404, 16-1-406, 16-1-411, 16-11-114, 16-11-119, 23-5-610, AND 39-71-2321, MCA; REPEALING SECTION 15-1-501, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE AND A RETROACTIVE APPLICABILITY DATE.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

 

     Section 1.  Disposition of money from certain designated license and other taxes. (1) The state treasurer shall deposit to the credit of the appropriate fund in accordance with the provisions of subsection (3) all money received from the collection of taxes and fees.

     (2) The department of revenue shall deposit to the credit of the state general fund all money received from the collection of license taxes and all net revenue and receipts from all sources, other than certain fees, under Title 16, chapters 1 through 4 and 6.

     (3) The distribution of tax and fee revenue must be made according to the provisions of the law governing allocation of the tax or fee that were in effect for the period in which the tax or fee revenue was recorded for accounting purposes. Tax revenue must be recorded as prescribed by the department of administration, pursuant to 17-1-102(2) and (4), in accordance with generally accepted accounting principles.

     (4) All refunds of taxes or fees must be attributed to the funds in which the taxes or fees are currently being recorded. All refunds of interest and penalties must be attributed to the funds in which the interest and penalties are currently being recorded.

 

     Section 2.  Section 15-35-108, MCA, is amended to read:

     "15-35-108.  (Temporary) Disposal of severance taxes. Severance taxes collected under this chapter must, in accordance with the provisions of 15-1-501 [section 1], be allocated as follows:

     (1)  Fifty percent of total coal severance tax collections is allocated to the trust fund created by Article IX, section 5, of the Montana constitution. The trust fund money must be deposited in the fund established under 17-6-203(6) and invested by the board of investments as provided by law.

     (2)  The amount of 12% of coal severance tax collections is allocated to the long-range building program account established in 17-7-205.

     (3)  The amount of 5.46% must be credited to an account in the state special revenue fund to be allocated by the legislature for provision of basic library services for the residents of all counties through library federations and for payment of the costs of participating in regional and national networking, conservation districts, and the Montana Growth Through Agriculture Act. Expenditures of the allocation may be made only from this account. Money may not be transferred from this account to another account other than the general fund. Any unreserved fund balance at the end of each fiscal year must be deposited in the general fund.

     (4)  The amount of 1.27% must be allocated to a permanent fund account for the purpose of parks acquisition or management. Income from this permanent fund account, excluding unrealized gains and losses, must be appropriated for the acquisition, development, operation, and maintenance of any sites and areas described in 23-1-102.

     (5)  The amount of 0.95% must be allocated to the debt service fund type to the credit of the renewable resource loan debt service fund.

     (6)  The amount of 0.63% must be allocated to a trust fund for the purpose of protection of works of art in the capitol and for other cultural and aesthetic projects. Income from this trust fund account, excluding unrealized gains and losses, must be appropriated for protection of works of art in the state capitol and for other cultural and aesthetic projects.

     (7)  The amount of 2.9% must be credited to the oil, gas, and coal natural resource account established in 90-6-1001.

     (8)  (a) Subject to subsection (8)(b), all other revenue from severance taxes collected under the provisions of this chapter must be credited to the general fund of the state.

     (b)  The interest income from $140 million of the coal severance tax permanent fund that is deposited in the general fund is statutorily appropriated, as provided in 17-7-502, on an annual basis as follows:

     (i)  $65,000 to the cooperative development center;

     (ii) $1.25 million for the growth through agriculture program provided for in Title 90, chapter 9;

     (iii) $3.65 million to the research and commercialization state special revenue account created in 90-3-1002;

     (iv) to the department of commerce:

     (A)  $125,000 for a small business development center;

     (B)  $50,000 for a small business innovative research program;

     (C)  $425,000 for certified regional development corporations;

     (D)  $200,000 for the Montana manufacturing extension center at Montana state university-Bozeman; and

     (E)  $300,000 for export trade enhancement. (Terminates June 30, 2010--sec. 6, Ch. 481, L. 2003.)

     15-35-108.  (Effective July 1, 2010) Disposal of severance taxes. Severance taxes collected under this chapter must, in accordance with the provisions of 15-1-501 [section 1], be allocated as follows:

     (1)  Fifty percent of total coal severance tax collections is allocated to the trust fund created by Article IX, section 5, of the Montana constitution. The trust fund money must be deposited in the fund established under 17-6-203(6) and invested by the board of investments as provided by law.

     (2)  The amount of 12% of coal severance tax collections is allocated to the long-range building program account established in 17-7-205.

     (3)  The amount of 5.46% must be credited to an account in the state special revenue fund to be allocated by the legislature for provision of basic library services for the residents of all counties through library federations and for payment of the costs of participating in regional and national networking, conservation districts, and the Montana Growth Through Agriculture Act. Expenditures of the allocation may be made only from this account. Money may not be transferred from this account to another account other than the general fund. Any unreserved fund balance at the end of each fiscal year must be deposited in the general fund.

     (4)  The amount of 1.27% must be allocated to a permanent fund account for the purpose of parks acquisition or management. Income from this permanent fund account, excluding unrealized gains and losses, must be appropriated for the acquisition, development, operation, and maintenance of any sites and areas described in 23-1-102.

     (5)  The amount of 0.95% must be allocated to the debt service fund type to the credit of the renewable resource loan debt service fund.

     (6)  The amount of 0.63% must be allocated to a trust fund for the purpose of protection of works of art in the capitol and for other cultural and aesthetic projects. Income from this trust fund account, excluding unrealized gains and losses, must be appropriated for protection of works of art in the state capitol and for other cultural and aesthetic projects.

     (7)  The amount of 2.9% must be credited to the oil, gas, and coal natural resource account established in 90-6-1001.

     (8)  All other revenue from severance taxes collected under the provisions of this chapter must be credited to the general fund of the state."

 

     Section 3.  Section 15-36-331, MCA, is amended to read:

     "15-36-331.  Distribution of taxes. (1) (a) For each calendar quarter, the department shall determine the amount of tax, late payment interest, and penalties collected under this part.

     (b)  For the purposes of distribution of oil and natural gas production taxes to county and school district taxing units under 15-36-332 and to the state, the department shall determine the amount of oil and natural gas production taxes paid on production in the taxing unit.

     (2)  (a) The amount of oil and natural gas production taxes collected for the privilege and license tax pursuant to 82-11-131 must be deposited, in accordance with the provisions of 15-1-501 [section 1], in the state special revenue fund for the purpose of paying expenses of the board, as provided in 82-11-135.

     (b)  The amount of the tax for the oil, gas, and coal natural resource account established in 90-6-1001 must be deposited in the account.

     (3)  (a) For each tax year, the amount of oil and natural gas production taxes determined under subsection (1)(b) is allocated to each county according to the following schedule:

          & #160;                          0;            &# 160;                          0;            &# 160;                          0;         2005                       0;     2006 and

          0;            &# 160;                          0;            &# 160;                          0;            &# 160;                          0;          &# 160;                  succeeding

          0;            &# 160;                          0;            &# 160;                          0;            &# 160;                          0;          &# 160;                      tax years

Big Horn                         0;            &# 160;                          0;            &# 160;                          0;   45.04%        0;            &# 160;        45.05%

Blaine         &# 160;                          0;            &# 160;                          0;            &# 160;                      58.11%        0;            &# 160;        58.39%

Carbon         & #160;                          0;            &# 160;                          0;            &# 160;                    48.93%        0;            &# 160;        48.27%

Chouteau                       0;            &# 160;                          0;            &# 160;                          0;   57.65%        0;            &# 160;        58.14%

Custer         &# 160;                          0;            &# 160;                          0;            &# 160;                       80.9%         ;             60;        69.53%

Daniels         & #160;                          0;            &# 160;                          0;            &# 160;                    49.98%        0;            &# 160;        50.81%

Dawson         & #160;                          0;            &# 160;                          0;            &# 160;                   50.64%        0;            &# 160;        47.79%

Fallon         &# 160;                          0;            &# 160;                          0;            &# 160;                      41.15%        0;            &# 160;        41.78%

Fergus         &# 160;                          0;            &# 160;                          0;            &# 160;                     83.52%        0;            &# 160;        69.18%

Garfield         & #160;                          0;            &# 160;                          0;            &# 160;                   48.81%        0;            &# 160;        45.96%

Glacier         & #160;                          0;            &# 160;                          0;            &# 160;                    64.74%        0;            &# 160;        58.83%

Golden Valley            ;             60;            & #160;                          0;            &# 160;                    57.41%        0;            &# 160;        58.37%

Hill          0;            &# 160;                          0;            &# 160;                          0;            &# 160;              65.33%        0;            &# 160;        64.51%

Liberty         & #160;                          0;            &# 160;                          0;            &# 160;                     59.73%        0;            &# 160;        57.94%

McCone                       0;            &# 160;                          0;            &# 160;                          0;     52.86%        0;            &# 160;        49.92%

Musselshell         0;            &# 160;                          0;            &# 160;                          0;            &# 160;51.44%        0;            &# 160;        48.64%

Petroleum                       0;            &# 160;                          0;            &# 160;                          0;  54.62%        0;            &# 160;        48.04%

Phillips         & #160;                          0;            &# 160;                          0;            &# 160;                    53.78%        0;            &# 160;        54.02%

Pondera         & #160;                          0;            &# 160;                          0;            &# 160;                  70.89%        0;            &# 160;        54.26%

Powder River                         0;            &# 160;                          0;            &# 160;                     62.17%        0;            &# 160;            60.9%

Prairie         &# 160;                          0;            &# 160;                          0;            &# 160;                     39.73%        0;            &# 160;        40.38%

Richland                       0;            &# 160;                          0;            &# 160;                          0;     46.72%        0;            &# 160;        47.47%

Roosevelt                       0;            &# 160;                          0;            &# 160;                          0;   46.06%        0;            &# 160;        45.71%

Rosebud                       0;            &# 160;                          0;            &# 160;                          0;    38.69%        0;            &# 160;        39.33%

Sheridan                       0;            &# 160;                          0;            &# 160;                          0;    47.54%        0;            &# 160;        47.99%

Stillwater                       0;            &# 160;                          0;            &# 160;                          0;    54.35%        0;            &# 160;        53.51%

Sweet Grass                         0;            &# 160;                          0;            &# 160;                      60.24%        0;            &# 160;        61.24%

Teton          60;            & #160;                          0;            &# 160;                          0;            &# 160;            48.4%         ;             60;          46.1%

Toole          60;            & #160;                          0;            &# 160;                          0;            &# 160;         57.14%        0;            &# 160;        57.61%

Valley         &# 160;                          0;            &# 160;                          0;            &# 160;                      54.22%        0;            &# 160;        51.43%

Wibaux         & #160;                          0;            &# 160;                          0;            &# 160;                    48.68%        0;            &# 160;        49.16%

Yellowstone         60;            & #160;                          0;            &# 160;                          0;            48.06%        0;            &# 160;        46.74%

All other counties           60;            & #160;                          0;            &# 160;                          0;  50.15%        0;            &# 160;        50.15%

     (b)  The oil and natural gas production taxes allocated to each county must be deposited in the state special revenue fund and transferred to each county for distribution, as provided in 15-36-332.

     (4)  The department shall, in accordance with the provisions of 15-1-501 [section 1], distribute the state portion of oil and natural gas production taxes remaining after the distributions pursuant to subsections (2) and (3) as follows:

     (a)  for each fiscal year through the fiscal year ending June 30, 2011, to be distributed as follows:

     (i)  1.23% to the coal bed methane protection account established in 76-15-904;

     (ii) 2.95% to the reclamation and development grants special revenue account established in 90-2-1104;

     (iii) 2.95% to the orphan share account established in 75-10-743;

     (iv) 2.65% to the state special revenue fund to be appropriated to the Montana university system for the purposes of the state tax levy as provided in 20-25-423; and

     (v)  all remaining proceeds to the state general fund;

     (b)  for fiscal years beginning after June 30, 2011, to be distributed as follows:

     (i)  4.18% to the reclamation and development grants special revenue account established in 90-2-1104;

     (ii) 2.95% to the orphan share account established in 75-10-743;

     (iii) 2.65% to the state special revenue fund to be appropriated to the Montana university system for the purposes of the state tax levy as provided in 20-25-423; and

     (iv) all remaining proceeds to the state general fund."

 

     Section 4.  Section 15-37-117, MCA, is amended to read:

     "15-37-117.  Disposition of metalliferous mines license taxes. (1) Metalliferous mines license taxes collected under the provisions of this part must, in accordance with the provisions of 15-1-501 [section 1], be allocated as follows:

     (a)  to the credit of the general fund of the state, 57% of total collections each year;

     (b)  to the state special revenue fund to the credit of a hard-rock mining impact trust account, 2.5% of total collections each year;

     (c)  to the hard-rock mining reclamation debt service fund created in 82-4-312, 8.5% of total collections each year;

     (d)  to the reclamation and development grants program state special revenue account, 7% of total collections each year; and

     (e)  within 60 days of the date the tax is payable pursuant to 15-37-105, to the county or counties identified as experiencing fiscal and economic impacts, resulting in increased employment or local government costs, under an impact plan for a large-scale mineral development prepared and approved pursuant to 90-6-307, in direct proportion to the fiscal and economic impacts determined in the plan or, if an impact plan has not been prepared, to the county in which the mine is located, 25% of total collections each year, to be allocated by the county commissioners as follows:

     (i)  not less than 37.5% to the county hard-rock mine trust account established in 7-6-2225; and

     (ii) all money not allocated to the account pursuant to subsection (1)(e)(i) to be further allocated as follows:

     (A)  33 1/3% is allocated to the county for general planning functions or economic development activities as described in 7-6-2225(3)(c) through (3)(e);

     (B)  33 1/3% is allocated to the elementary school districts within the county that have been affected by the development or operation of the metal mine; and

     (C)  33 1/3% is allocated to the high school districts within the county that have been affected by the development or operation of the metal mine.

     (2)  When an impact plan for a large-scale mineral development approved pursuant to 90-6-307 identifies a jurisdictional revenue disparity, the county shall distribute the proceeds allocated under subsection (1)(e) in a manner similar to that provided for property tax sharing under Title 90, chapter 6, part 4.

     (3)  The department shall return to the county in which metals are produced the tax collections allocated under subsection (1)(e). The allocation to the county described by subsection (1)(e) is a statutory appropriation pursuant to 17-7-502."

 

     Section 5.  Section 15-38-106, MCA, is amended to read:

     "15-38-106.  (Temporary) Payment of tax -- records -- collection of taxes -- refunds. (1) The tax imposed by this chapter must be paid by each person to which the tax applies, on or before the due date of the annual statement established in 15-38-105, on the value of product in the year preceding January 1 of the year in which the tax is paid. The tax must be paid to the department at the time that the statement of yield for the preceding calendar year is filed with the department.

     (2)  The department shall, in accordance with the provisions of 15-1-501 [section 1], deposit in the following order:

     (a)  annually in due course, from the proceeds of the tax to the CERCLA match debt service fund provided in 75-10-622, the amount necessary, as certified by the department of environmental quality, after crediting to the CERCLA match debt service fund amounts transferred from the CERCLA cost recovery account established under 75-10-631, to pay the principal of, premium, if any, and interest during the next fiscal year on bonds or notes issued pursuant to 75-10-623;

     (b)  $366,000 of the proceeds of the resource indemnity and ground water assessment taxes in the ground water assessment account established by 85-2-905;

     (c)  50% of the remaining proceeds in the reclamation and development grants account established by 90-2-1104, for the purpose of making grants to be used for mineral development reclamation projects;

     (d)  $150,000 of the remaining proceeds of the resource indemnity and ground water assessment taxes in the natural resource workers' tuition scholarship account established in 39-10-106 for the first fiscal year following July 1 immediately after the date that the governor certifies that the resource indemnity trust fund balance has reached $100 million and for succeeding fiscal years, the amount required under 39-10-106(4);

     (e)  all remaining proceeds in the orphan share account established in 75-10-743.

     (3)  Each person to whom the tax applies shall keep records in accordance with 15-38-105, and the records are subject to inspection by the department upon reasonable notice during normal business hours.

     (4)  The department shall examine the statement and compute the taxes to be imposed, and the amount computed by the department is the tax imposed, assessed against, and payable by the taxpayer. If the tax found to be due is greater than the amount paid, the excess must be paid by the taxpayer to the department within 30 days after written notice of the amount of deficiency is mailed by the department to the taxpayer. If the tax imposed is less than the amount paid, the difference must be applied as a tax credit against tax liability for subsequent years or refunded if requested by the taxpayer. (Terminates June 30, 2007--sec. 10, Ch. 586, L. 2001.)

     15-38-106.  (Effective July 1, 2007) Payment of tax -- records -- collection of taxes -- refunds. (1) The tax imposed by this chapter must be paid by each person to which the tax applies, on or before the due date of the annual statement established in 15-38-105, on the value of product in the year preceding January 1 of the year in which the tax is paid. The tax must be paid to the department at the time that the statement of yield for the preceding calendar year is filed with the department.

     (2)  The department shall, in accordance with the provisions of 15-1-501 [section 1], deposit in the following order:

     (a)  annually in due course, from the proceeds of the tax to the CERCLA match debt service fund provided in 75-10-622, the amount necessary, as certified by the department of environmental quality, after crediting to the CERCLA match debt service fund amounts transferred from the CERCLA cost recovery account established under 75-10-631, to pay the principal of, premium, if any, and interest during the next fiscal year on bonds or notes issued pursuant to 75-10-623;

     (b)  $366,000 of the proceeds in the ground water assessment account established by 85-2-905;

     (c)  50% of the remaining proceeds in the orphan share account established in 75-10-743; and

     (d)  all remaining proceeds in the reclamation and development grants account established by 90-2-1104, for the purpose of making grants to be used for mineral development reclamation projects.

     (3)  Each person to whom the tax applies shall keep records in accordance with 15-38-105, and the records are subject to inspection by the department upon reasonable notice during normal business hours.

     (4)  The department shall examine the statement and compute the taxes to be imposed, and the amount computed by the department is the tax imposed, assessed against, and payable by the taxpayer. If the tax found to be due is greater than the amount paid, the excess must be paid by the taxpayer to the department within 30 days after written notice of the amount of deficiency is mailed by the department to the taxpayer. If the tax imposed is less than the amount paid, the difference must be applied as a tax credit against tax liability for subsequent years or refunded if requested by the taxpayer."

 

     Section 6.  Section 15-50-311, MCA, is amended to read:

     "15-50-311.  Disposal of license taxes. License taxes collected under this chapter must be deposited by the department with the state treasurer, who shall, in accordance with the provisions of [section 1], credit them the license taxes to the state general fund of the state."

 

     Section 7.  Section 15-51-103, MCA, is amended to read:

     "15-51-103.  Disposition of revenue -- penalty and interest on delinquency. The department shall, in accordance with the provisions of 15-1-501 [section 1], promptly remit the collected taxes to the state treasurer. Taxes not paid on the due date are delinquent, and penalty and interest must be added to the delinquent taxes as provided in 15-1-216."

 

     Section 8.  Section 15-53-156, MCA, is amended to read:

     "15-53-156.  Retail telecommunications excise tax revenue. After retaining an allowance for refunds, retail telecommunications excise tax revenue collected by the department must, in accordance with [section 1], be deposited in the state general fund."

 

     Section 9.  Section 15-59-108, MCA, is amended to read:

     "15-59-108.  Deposit of taxes. All license taxes collected under the provisions of this part must, in accordance with the provisions of 15-1-501 [section 1], be deposited to the credit of the general fund of the state."

 

     Section 10.  Section 15-60-210, MCA, is amended to read:

     "15-60-210.  (Temporary) Disposition of fee. (1) Except as provided in subsection (2), all proceeds from the collection of utilization fees, including penalties and interest, must, in accordance with the provisions of 15-1-501 [section 1], be deposited in the general fund.

     (2)  Utilization fees, including penalties and interest, collected from the Montana mental health nursing care center must be allocated as follows:

     (a)  30% to the state general fund; and

     (b)  70% to the prevention and stabilization account in the state special revenue fund established pursuant to 53-6-1101 to the credit of the department of public health and human services to finance, administer, and provide health and human services. (Void on occurrence of contingency--sec. 18, Ch. 746, L. 1991--see chapter compiler's comment.)"

 

     Section 11.  Section 15-65-121, MCA, is amended to read:

     "15-65-121.  (Temporary) Distribution of tax proceeds. (1) The proceeds of the tax imposed by 15-65-111 must, in accordance with the provisions of 15-1-501 [section 1], be deposited in an account in the state special revenue fund to the credit of the department. The department may spend from that account in accordance with an expenditure appropriation by the legislature based on an estimate of the costs of collecting and disbursing the proceeds of the tax. Before allocating the balance of the tax proceeds in accordance with the provisions of 15-1-501 [section 1] and as provided in subsections (1)(a) through (1)(e) of this section, the department shall determine the expenditures by state agencies for in-state lodging for each reporting period and deduct 4% of that amount from the tax proceeds received each reporting period. The amount deducted must be deposited in the fund or funds from which in-state lodging expenditures were paid by state agencies. The amount of $400,000 each year must be deposited in the Montana heritage preservation and development account provided for in 22-3-1004. The balance of the tax proceeds received each reporting period and not deducted pursuant to the expenditure appropriation, deposited in the fund or funds from which in-state lodging expenditures were paid by state agencies, or deposited in the heritage preservation and development account is statutorily appropriated, as provided in 17-7-502, and must be transferred to an account in the state special revenue fund to the credit of the department of commerce for tourism promotion and promotion of the state as a location for the production of motion pictures and television commercials, to the Montana historical society, to the university system, and to the department of fish, wildlife, and parks, as follows:

     (a)  1% to the Montana historical society to be used for the installation or maintenance of roadside historical signs and historic sites;

     (b)  2.5% to the university system for the establishment and maintenance of a Montana travel research program;

     (c)  6.5% to the department of fish, wildlife, and parks for the maintenance of facilities in state parks that have both resident and nonresident use;

     (d)  67.5% to be used directly by the department of commerce; and

     (e)  (i) except as provided in subsection (1)(e)(ii), 22.5% to be distributed by the department to regional nonprofit tourism corporations in the ratio of the proceeds collected in each tourism region to the total proceeds collected statewide; and

     (ii) if 22.5% of the proceeds collected annually within the limits of a city, consolidated city-county, resort area, or resort area district exceeds $35,000, 50% of the amount available for distribution to the regional nonprofit tourism corporation in the region where the city, consolidated city-county, resort area, or resort area district is located, to be distributed to the nonprofit convention and visitors bureau in that city, consolidated city-county, resort area, or resort area district.

     (2)  If a city, consolidated city-county, resort area, or resort area district qualifies under this section for funds but fails to either recognize a nonprofit convention and visitors bureau or submit and gain approval for an annual marketing plan as required in 15-65-122, then those funds must be allocated to the regional nonprofit tourism corporation in the region in which the city, consolidated city-county, resort area, or resort area district is located.

     (3)  If a regional nonprofit tourism corporation fails to submit and gain approval for an annual marketing plan as required in 15-65-122, then those funds otherwise allocated to the regional nonprofit tourism corporation may be used by the department of commerce for tourism promotion and promotion of the state as a location for the production of motion pictures and television commercials. (Terminates July 1, 2007--sec. 3, Ch. 469, L. 2001.)

     15-65-121.  (Effective July 1, 2007) Distribution of tax proceeds. (1) The proceeds of the tax imposed by 15-65-111 must, in accordance with the provisions of 15-1-501 [section 1], be deposited in an account in the state special revenue fund to the credit of the department. The department may spend from that account in accordance with an expenditure appropriation by the legislature based on an estimate of the costs of collecting and disbursing the proceeds of the tax. Before allocating the balance of the tax proceeds in accordance with the provisions of 15-1-501 [section 1] and as provided in subsections (1)(a) through (1)(e) of this section, the department shall determine the expenditures by state agencies for in-state lodging for each reporting period and deduct 4% of that amount from the tax proceeds received each reporting period. The amount deducted must be deposited in the fund or funds from which in-state lodging expenditures were paid by state agencies. The balance of the tax proceeds received each reporting period and not deducted pursuant to the expenditure appropriation or deposited in the fund or funds from which in-state lodging expenditures were paid by state agencies is statutorily appropriated, as provided in 17-7-502, and must be transferred to an account in the state special revenue fund to the credit of the department of commerce for tourism promotion and promotion of the state as a location for the production of motion pictures and television commercials, to the Montana historical society, to the university system, and to the department of fish, wildlife, and parks, as follows:

     (a)  1% to the Montana historical society to be used for the installation or maintenance of roadside historical signs and historic sites;

     (b)  2.5% to the university system for the establishment and maintenance of a Montana travel research program;

     (c)  6.5% to the department of fish, wildlife, and parks for the maintenance of facilities in state parks that have both resident and nonresident use;

     (d)  67.5% to be used directly by the department of commerce; and

     (e)  (i) except as provided in subsection (1)(e)(ii), 22.5% to be distributed by the department to regional nonprofit tourism corporations in the ratio of the proceeds collected in each tourism region to the total proceeds collected statewide; and

     (ii) if 22.5% of the proceeds collected annually within the limits of a city, consolidated city-county, resort area, or resort area district exceeds $35,000, 50% of the amount available for distribution to the regional nonprofit tourism corporation in the region where the city, consolidated city-county, resort area, or resort area district is located, to be distributed to the nonprofit convention and visitors bureau in that city, consolidated city-county, resort area, or resort area district.

     (2)  If a city, consolidated city-county, resort area, or resort area district qualifies under this section for funds but fails to either recognize a nonprofit convention and visitors bureau or submit and gain approval for an annual marketing plan as required in 15-65-122, then those funds must be allocated to the regional nonprofit tourism corporation in the region in which the city, consolidated city-county, resort area, or resort area district is located.

     (3)  If a regional nonprofit tourism corporation fails to submit and gain approval for an annual marketing plan as required in 15-65-122, then those funds otherwise allocated to the regional nonprofit tourism corporation may be used by the department of commerce for tourism promotion and promotion of the state as a location for the production of motion pictures and television commercials."

 

     Section 12.  Section 15-66-102, MCA, is amended to read:

     "15-66-102.  (Temporary) Utilization fee for inpatient bed days. (1) Each hospital in the state shall pay to the department a utilization fee:

     (a)  in the amount of $19.43 for each inpatient bed day between January 1, 2004, and June 30, 2005;

     (b)  in the amount of $29.75 for each inpatient bed day between July 1, 2005, and December 31, 2005;

     (c)  in the amount of $27.70 for each inpatient bed day between January 1, 2006, and December 31, 2006; and

     (d)  after January 1, 2007, in an amount determined by rule as provided in subsection (2).

     (2)  Prior to each calendar year that will be subject to the fee, the department by rule shall determine the amount of the fee, not to exceed $50, based upon:

     (a)  an estimate of the unpaid medicaid hospital costs, total inpatient days, and the federal medical assistance percentages;

     (b)  an estimate of any federal limit on federal financial participation for hospital services; and

     (c)  an estimate of federal disproportionate share funds not matched by state general funds.

     (3)  (a) All proceeds from the collection of utilization fees, including penalties and interest, must, in accordance with the provisions of [section 1], be deposited to the credit of the department of public health and human services in a state special revenue account as provided in 53-6-149.

     (b)  A hospital may not place a fee created in this chapter on a patient's bill. (Void on occurrence of contingency--sec. 18, Ch. 390, L. 2003. Terminates June 30, 2007--secs. 4, 7, Ch. 606, L. 2005.)"

 

     Section 13.  Section 15-67-102, MCA, is amended to read:

     "15-67-102.  (Temporary) Utilization fee for resident bed days. (1) Each calendar quarter, an intermediate care facility shall pay to the department a utilization fee for each resident bed day calculated as provided in subsection (2).

     (2)  The utilization fee is 6% of the intermediate care facility's quarterly revenue divided by the resident bed days for the quarter.

     (3)  In accordance with the provisions of 15-1-501 [section 1], all proceeds of the utilization fee, including penalty and interest, must be deposited as follows:

     (a)  30% in the state general fund; and

     (b)  70% in an account in the state special revenue fund established pursuant to 53-6-1101 to the credit of the department of public health and human services to finance, administer, and provide health and human services. (Void on occurrence of contingency--sec. 17, Ch. 531, L. 2003--see chapter compiler's comment.)"

 

     Section 14.  Section 15-68-820, MCA, is amended to read:

     "15-68-820.  Sales tax and use tax proceeds. All money collected under this chapter must, in accordance with the provisions of [section 1], be deposited by the department into the general fund."

 

     Section 15.  Section 15-70-101, MCA, is amended to read:

     "15-70-101.  Disposition of funds. (1) All taxes collected under this chapter must, in accordance with the provisions of 15-1-501 [section 1], be placed in a highway revenue account in the state special revenue fund to the credit of the department of transportation. All interest and income earned on the account must be deposited to the credit of the account and any unexpended balance in the account must remain in the account. Those funds allocated to cities, towns, counties, and consolidated city-county governments in this section must, in accordance with the provisions of 15-1-501 [section 1], be paid by the department of transportation from the state special revenue fund to the cities, towns, counties, and consolidated city-county governments.

     (2)  The amount of $16,766,000 of the taxes collected under this chapter is statutorily appropriated, as provided in 17-7-502, to the department of transportation and must be allocated each fiscal year on a monthly basis to the counties, incorporated cities and towns, and consolidated city-county governments in Montana for construction, reconstruction, maintenance, and repair of rural roads and city or town streets and alleys, as provided in subsections (2)(a) through (2)(c):

     (a)  The amount of $100,000 must be designated for the purposes and functions of the Montana local technical assistance transportation program in Bozeman.

     (b)  The amount of $6,306,000 must be divided among the various counties in the following manner:

     (i)  40% in the ratio that the rural road mileage in each county, exclusive of the national highway system and the primary system, bears to the total rural road mileage in the state, exclusive of the national highway system and the primary system;

     (ii) 40% in the ratio that the rural population in each county outside incorporated cities and towns bears to the total rural population in the state outside incorporated cities and towns;

     (iii) 20% in the ratio that the land area of each county bears to the total land area of the state.

     (c)  The amount of $10,360,000 must be divided among the incorporated cities and towns in the following manner:

     (i)  50% of the sum in the ratio that the population within the corporate limits of the city or town bears to the total population within corporate limits of all the cities and towns in Montana;

     (ii) 50% in the ratio that the city or town street and alley mileage, exclusive of the national highway system and the primary system, within corporate limits bears to the total street and alley mileage, exclusive of the national highway system and primary system, within the corporate limits of all cities and towns in Montana.

     (3)  (a) For the purpose of allocating the funds in subsections (2)(b) and (2)(c) to a consolidated city-county government, each entity must be considered to have separate city and county boundaries. The city limit boundaries are the last official city limit boundaries for the former city unless revised boundaries based on the location of the urban area have been approved by the department of transportation and must be used to determine city and county populations and road mileages in the following manner:

     (i)  Percentage factors must be calculated to determine separate populations for the city and rural county by using the last official decennial federal census population figures that recognized an incorporated city and the rural county. The factors must be based on the ratio of the city to the rural county population, considering the total population in the county minus the population of any other incorporated city or town in the county.

     (ii) The city and county populations must be calculated by multiplying the total county population, as determined by the latest official decennial census or the latest interim year population estimates from the Montana department of commerce as supplied by the United States bureau of the census, minus the population of any other incorporated city or town in that county, by the factors established in subsection (3)(a)(i).

     (b)  The amount allocated by this method for the city and the county must be combined, and single monthly payments must be made to the consolidated city-county government.

     (4)  All funds allocated by this section to counties, cities, towns, and consolidated city-county governments must be used for the construction, reconstruction, maintenance, and repair of rural roads or city or town streets and alleys or for the share that the city, town, county, or consolidated city-county government might otherwise expend for proportionate matching of federal funds allocated for the construction of roads or streets that are part of the primary or secondary highway system or urban extensions to those systems. The governing body of a town or third-class city, as defined in 7-1-4111, may each year expend no more than 25% of the funds allocated to that town or third-class city for the purchase of capital equipment and supplies to be used for the maintenance and repair of town or third-class city streets and alleys.

     (5)  All funds allocated by this section to counties, cities, towns, and consolidated city-county governments must be disbursed to the lowest responsible bidder according to applicable bidding procedures followed in all cases in which the contract for construction, reconstruction, maintenance, or repair is in excess of $25,000.

     (6)  For the purposes of this section in which distribution of funds is made on a basis related to population, the population must be determined annually for counties and biennially for cities according to the latest official decennial census or the latest interim year population estimates from the Montana department of commerce as supplied by the United States bureau of the census.

     (7)  For the purposes of this section in which determination of mileage is necessary for distribution of funds, it is the responsibility of the cities, towns, counties, and consolidated city-county governments to furnish to the department of transportation a yearly certified statement indicating the total mileage within their respective areas applicable to this chapter. All mileage submitted is subject to review and approval by the department of transportation.

     (8)  Except by a town or third-class city as provided in subsection (4), the funds authorized by this section may not be used for the purchase of capital equipment.

     (9)  Funds authorized by this section must be used for construction and maintenance programs."

 

     Section 16.  Section 15-70-125, MCA, is amended to read:

     "15-70-125.  Highway nonrestricted account. There is a highway nonrestricted account in the state special revenue fund. All interest and penalties collected under this chapter, except those collected by a justice's court, must, in accordance with the provisions of 15-1-501 [section 1], be placed in the highway nonrestricted account. Beginning July 1, 2001, all All interest and income earned on the account must be deposited to the credit of the account and any unexpended balance in the account must remain in the account."

 

     Section 17.  Section 15-72-106, MCA, is amended to read:

     "15-72-106.  Collection of wholesale energy transaction tax -- disposition of revenue. (1) A transmission services provider shall collect the tax imposed under 15-72-104 from the taxpayer and pay the tax collected to the department. If the transmission services provider collects a tax in excess of the tax imposed by 15-72-104, both the tax and the excess must be remitted to the department.

     (2)  A self-assessing distribution services provider is subject to the provisions of this part.

     (3)  The wholesale energy transaction tax collected under this part must, in accordance with the provisions of [section 1], be deposited in the general fund."

 

     Section 18.  Section 16-1-306, MCA, is amended to read:

     "16-1-306.  Revenue to be paid to state treasurer. Except as provided in 16-1-404, 16-1-405, 16-1-406, and 16-1-411, all fees, charges, taxes, and revenue collected by or under authority of the department must, in accordance with the provisions of 15-1-501 [section 1], be deposited to the credit of the state general fund."

 

     Section 19.  Section 16-1-401, MCA, is amended to read:

     "16-1-401.  Liquor excise tax. (1) The department shall collect at the time of the sale and delivery of any liquor as authorized under any provision of the laws of the state of Montana an excise tax at the rate of:

     (a)  16% of the retail selling price on all liquor sold and delivered in the state by a company that manufactured, distilled, rectified, bottled, or processed, and sold more than 200,000 proof gallons of liquor nationwide in the calendar year preceding imposition of the tax pursuant to this section;

     (b)  13.8% of the retail selling price on all liquor sold and delivered in the state by a company that manufactured, distilled, rectified, bottled, or processed, and sold not more than 200,000 proof gallons of liquor nationwide in the calendar year preceding imposition of the tax pursuant to this section.

     (2)  The department shall retain the amount of the excise tax received in a separate account and shall, in accordance with the provisions of 15-1-501 [section 1], deposit, to the credit of the general fund, the amount collected and received not later than the 10th day of each month."

 

     Section 20.  Section 16-1-404, MCA, is amended to read:

     "16-1-404.  License tax on liquor -- amount -- distribution of proceeds. (1) The department shall collect at the time of sale and delivery of any liquor under any provisions of the laws of the state of Montana a license tax of:

     (a)  10% of the retail selling price on all liquor sold and delivered in the state by a company that manufactured, distilled, rectified, bottled, or processed and that sold more than 200,000 proof gallons of liquor nationwide in the calendar year preceding imposition of the tax pursuant to this section;

     (b)  8.6% of the retail selling price on all liquor sold and delivered in the state by a company that manufactured, distilled, rectified, bottled, or processed and that sold more than 50,000 proof gallons but not more than 200,000 proof gallons of liquor nationwide in the calendar year preceding imposition of the tax pursuant to this section;

     (c)  2% of the retail selling price on all liquor sold and delivered in the state by a company that manufactured, distilled, rectified, bottled, or processed and that sold not more than 50,000 proof gallons of liquor nationwide in the calendar year preceding imposition of the tax pursuant to this section.

     (2)  The license tax must be charged and collected on all liquor produced in or brought into the state and taxed by the department. The retail selling price must be computed by adding to the cost of the liquor the state markup as designated by the department. The license tax must be figured in the same manner as the state excise tax and is in addition to the state excise tax. The department shall retain in a separate account the amount of the license tax received. The department, in accordance with the provisions of 15-1-501 [section 1], shall allocate the revenue as follows:

     (a)  Thirty-four and one-half percent is allocated to the state general fund.

     (b)  Sixty-five and one-half percent must be deposited in the state special revenue fund to the credit of the department of public health and human services for the treatment, rehabilitation, and prevention of alcoholism and chemical dependency.

     (3)  The license tax proceeds that are allocated to the department of public health and human services for the treatment, rehabilitation, and prevention of alcoholism and chemical dependency must be credited quarterly to the department of public health and human services. The legislature may appropriate a portion of the license tax proceeds to support alcohol and chemical dependency programs. The remainder must be distributed as provided in 53-24-206."

 

     Section 21.  Section 16-1-406, MCA, is amended to read:

     "16-1-406.  Taxes on beer. (1) (a) A tax is imposed on each barrel of 31 gallons of beer sold in Montana by a wholesaler. A barrel of beer equals 31 gallons. The tax is based upon the total number of barrels of beer produced by a brewer in a year. A brewer who produces less than 20,000 barrels of beer a year is taxed on the following increments of production:

     (i)  up to 5,000 barrels, $1.30;

     (ii) 5,001 barrels to 10,000 barrels, $2.30; and

     (iii) 10,001 barrels to 20,000 barrels, $3.30.

     (b)  The tax on beer sold for a brewer who produces over 20,000 barrels is $4.30.

     (2)  The tax imposed pursuant to subsection (1) is due at the end of each month from the wholesaler upon beer sold by the wholesaler during that month. The department shall compute the tax due on beer sold in containers other than barrels or in barrels of more or less capacity than 31 gallons.

     (3)  Each quarter, in accordance with the provisions of 15-1-501 [section 1], of the tax collected pursuant to subsection (1), an amount equal to:

     (a)  23.26% must be deposited in the state treasury to the credit of the department of public health and human services for the treatment, rehabilitation, and prevention of alcoholism and chemical dependency; and

     (b)  the balance must be deposited in the state general fund."

 

     Section 22.  Section 16-1-411, MCA, is amended to read:

     "16-1-411.  Tax on wine and hard cider -- penalty and interest. (1) (a) A tax of 27 cents per liter is imposed on table wine, except hard cider, imported by a table wine distributor or the department.

     (b)  A tax of 3.7 cents per liter is imposed on hard cider imported by a table wine distributor or the department.

     (2)  The tax imposed in subsection (1) must be paid by the table wine distributor by the 15th day of the month following sale of the table wine or hard cider from the table wine distributor's warehouse. Failure to file a tax return or failure to pay the tax required by this section subjects the table wine distributor to the penalties and interest provided for in 15-1-216.

     (3)  The tax paid by a table wine distributor in accordance with subsection (2) must, in accordance with the provisions of 15-1-501 [section 1], be distributed as follows:

     (a)  69% to the state general fund; and

     (b)  31% to the state special revenue fund to the credit of the department of public health and human services for the treatment, rehabilitation, and prevention of alcoholism and chemical dependency.

     (4)  The tax computed and paid in accordance with this section is the only tax imposed by the state or any of its subdivisions, including cities and towns.

     (5)  For purposes of this section, "table wine" has the meaning assigned in 16-1-106, but does not include hard cider."

 

     Section 23.  Section 16-11-114, MCA, is amended to read:

     "16-11-114.  Insignia discount. (1) Each licensed wholesaler is entitled to purchase an insignia at full face value less the following percentage of the face value upon payment for the insignia as defrayment of the costs of affixing insignia and precollecting the tax on behalf of the state of Montana:

     (a)  0.90% for the first 2,580 cartons or portion of 2,580 cartons purchased in any calendar month;

     (b)  0.60% for the next 2,580 cartons or portion of 2,580 cartons purchased in any calendar month; and

     (c)  0.45% for purchases in excess of 5,160 cartons in any calendar month.

     (2)  The taxes for tobacco products, other than cigarettes, that are paid by the wholesaler must be paid to the department in full less a 1.5% defrayment for the wholesaler's collection and administrative expenses and must, in accordance with the provisions of 15-1-501 [section 1], be deposited by the department in the state general fund except as provided in 16-11-119. Refunds of the tax paid must be made as provided in 15-1-503 in cases in which the tobacco products purchased become unsalable."

 

     Section 24.  Section 16-11-119, MCA, is amended to read:

     "16-11-119.  Disposition of taxes. (1) Cigarette taxes collected under the provisions of 16-11-111 must, in accordance with the provisions of 15-1-501 [section 1], be deposited as follows:

     (a)  8.3% or $2 million, whichever is greater, in the state special revenue fund to the credit of the department of public health and human services for the operation and maintenance of state veterans' nursing homes;

     (b)  2.6% in the long-range building program account provided for in 17-7-205;

     (c)  44% in the state special revenue fund to the credit of the health and medicaid initiatives account provided for in 53-6-1201; and

     (d)  the remainder to the state general fund.

     (2)  If money in the state special revenue fund for the operation and maintenance of state veterans' nursing homes exceeds $2 million at the end of the fiscal year, the excess must be transferred to the state general fund.

     (3)  The taxes collected on tobacco products, other than cigarettes, must in accordance with the provisions of 15-1-501 [section 1] be deposited as follows:

     (a)  one-half in the state general fund; and

     (b)  one-half in the state special revenue fund account for health and medicaid initiatives provided for in 53-6-1201."

 

     Section 25.  Section 23-5-610, MCA, is amended to read:

     "23-5-610.  Video gambling machine gross income tax -- records -- distribution -- quarterly statement and payment. (1) A licensed machine owner shall pay to the department a video gambling machine tax of 15% of the gross income from each video gambling machine issued a permit under this part. A licensed machine owner may deduct from the gross income amounts equal to amounts stolen from machines if the amounts stolen are not repaid by insurance or under a court order, if a law enforcement agency investigated the theft, and if the theft is the result of either unauthorized entry and physical removal of the money from the machines or of machine tampering and the amounts stolen are documented.

     (2)  A licensed machine owner shall keep a record of the gross income from each video gambling machine issued a permit under this part in the form the department requires. The records must at all times during the business hours of the licensee be subject to inspection by the department.

     (3) For each video gambling machine issued a permit under this part, a licensed machine owner shall, within 15 days after the end of each quarter and in the manner prescribed by the department, complete and deliver to the department a statement showing the total gross income, together with the total amount due the state as video gambling machine gross income tax for the preceding quarter. The statement must contain other relevant information that the department requires.

     (4)  The department shall, in accordance with the provisions of 15-1-501 [section 1], forward the tax collected under subsection (3) of this section to the state treasurer for deposit in the general fund."

 

     Section 26.  Section 39-71-2321, MCA, is amended to read:

     "39-71-2321.  What to be deposited in state fund. (1) All premiums, penalties, recoveries by subrogation, interest earned upon money belonging to the state fund, securities acquired by or through use of money, and all interest and penalties on taxes in accordance with 15-1-501 [section 1] must be deposited in the state fund. Except for a transfer authorized under 39-71-2352, the money must be separated into two accounts based upon whether they relate to claims for injuries resulting from accidents that occurred before July 1, 1990, or claims for injuries resulting from accidents that occur on or after that date.

     (2)  All funds deposited in the state fund may be spent as provided in 17-8-101(2)(b)."

 

     Section 27.  Repealer. Section 15-1-501, MCA, is repealed.

 

     Section 28.  Codification instruction. [Section 1] is intended to be codified as an integral part of Title 17, chapter 2, and the provisions of Title 17, chapter 2, apply to [section 1].

 

     Section 29.  Coordination instruction. If Senate Bill No. 118 and [this act] are both passed and approved and they contain a section amending 15-66-102, then the sections amending 15-66-102 are void and 15-66-102 must be amended as follows:

     "15-66-102.  (Temporary) Utilization fee for inpatient bed days. (1) Each hospital in the state shall pay to the department a utilization fee:

     (a)  in the amount of $19.43 $27.70 for each inpatient bed day between January 1, 2004 2006, and June 30, 2005 2007;

     (b)  in the amount of $29.75 $47 for each inpatient bed day between July 1, 2005 2007, and December 31, 2005 2007;

     (c)  in the amount of $27.70 $43 for each inpatient bed day between January 1, 2006 2008, and December 31, 2006 2008;

     (d) in the amount of $48 for each inpatient bed day between January 1, 2009, and December 31, 2009; and

     (d)(e)  after beginning January 1, 2007 2010, in an amount determined by rule as provided in subsection (2) in the amount of $50 for each inpatient bed day.

     (2)  Prior to each calendar year that will be subject to the fee, the department by rule shall determine the amount of the fee, not to exceed $50, based upon:

     (a)  an estimate of the unpaid medicaid hospital costs, total inpatient days, and the federal medical assistance percentages;

     (b)  an estimate of any federal limit on federal financial participation for hospital services; and

     (c)  an estimate of federal disproportionate share funds not matched by state general funds.

     (3)(2)  (a) All proceeds from the collection of utilization fees, including penalties and interest, must, in accordance with the provisions of [section 1 of Senate Bill No. 525], be deposited to the credit of the department of public health and human services in a state special revenue account as provided in 53-6-149.

     (b)  A hospital may not place a fee created in this chapter on a patient's bill. (Void on occurrence of contingency--sec. 18, Ch. 390, L. 2003. Terminates June 30, 2007--secs. 4, 7, Ch. 606, L. 2005.)"

 

     Section 30.  Effective date. [This act] is effective on passage and approval.

 

     Section 31.  Retroactive applicability. [This act] applies retroactively, within the meaning of 1-2-109, to all tax and fee periods beginning after December 31, 2006, and to taxes and fees collected by audit after December 31, 2006, or taxes and fees collected after December 31, 2006, if the payment was made after the date on which the tax was payable.

- END -

 


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