_____________
bill NO. _____________
INTRODUCED
BY _________________________________________________
By Request of the ****
A BILL FOR AN ACT ENTITLED: "AN ACT PROVIDING FOR A FEE ON LOCAL GOVERNMENT ASSOCIATIONS; PROVIDING THAT THE FEE IS BASED ON DUES; PROVIDING THAT THE FEE MUST BE USED TO PROVIDE PROPERTY TAX RELIEF; PROVIDING THAT THE FEE IS SUBJECT TO PENALTY AND INTEREST PROVISIONS; providing definitions; PROVIDING A STATUTORY APPROPRIATION; AMENDING SECTION 17-7-502, MCA; and PROVIDING EFFECTIVE DATES."
WHEREAS, the property tax is perhaps the most unjust tax levied on the people of Montana; and
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
NEW SECTION. Section 1. Local government association fee -- penalty. (1) There is a fee levied on a county membership association provided for in 7-5-2141 or an organization of city and town officials provided for in 7-5-4141.
(2) The fee is equal to 10% of the annual dues collected by the organization and must be paid to the department of revenue by December 31 of each year.
(3) Fees collected under this section must be deposited in the account provided for in [section 2] and used by the department of revenue to provide property tax relief.
(4) Failure to accurately report and remit the fee provided for in this section is subject to the penalty and interest provisions provided for in 15-1-216.
NEW SECTION. Section 2. Local government property tax relief account. (1) There is an account in the state special revenue fund established by 17-2-102 known as the local government property tax relief account.
(2) The local government association fee provided for in [section 1] must be deposited in the account.
(3) Funds in the account are statutorily appropriated, as provided in 17-7-502, to the department of revenue for the purpose of providing property tax rebates pursuant to [sections 3 through 5] and for related administration costs. The department shall begin providing rebates in calendar year 2024.
NEW SECTION. Section 3. Definitions. As used in [sections 3 through 5], the following definitions apply:
(1) "Montana property taxes" means the ad valorem property taxes, special assessments, and other fees imposed on property classified under 15-6-134 that is a single-family dwelling unit, unit of a multiple-unit dwelling, trailer, manufactured home, or mobile home and as much of the surrounding land, not exceeding 1 acre, as is reasonably necessary for its use as a dwelling and that were assessed and paid by the taxpayer.
(2) "Owned" includes purchasing under a contract for deed and being the grantor or grantors under a revocable trust indenture.
(3) (a) "Principal residence" is, subject to the provisions of subsection (3)(b), a dwelling:
(i) in which a taxpayer can demonstrate the taxpayer owned and lived in for at least 7 months of the year for which the rebate is claimed;
(ii) that is the only residence for which the property tax rebate is claimed; and
(iii) for which the taxpayer made payment of the assessed Montana property taxes during the tax year.
(b) A taxpayer that cannot meet the requirements of subsection (3)(a)(i) because the taxpayer's principal residence changes during the tax year to another principal residence may still claim a rebate if the taxpayer paid the Montana property taxes while residing in each principal residence for a total of at least 7 consecutive months for each tax year.
NEW SECTION. Section 4. Property tax rebate -- manner of claiming -- limitations -- appropriation. (1) Subject to the conditions provided for in [sections 3 through 5], there is a rebate of Montana property taxes paid by a taxpayer who is 62 years of age or older or who qualifies for the property tax assistance program provided for in 15-6-305.
(2) The rebate provided for in subsection (1) is equal to the lesser of Montana property taxes assessed to and paid by a taxpayer or taxpayers on property they owned and occupied as a principal residence during the tax year or $1,000.
(3) The department shall mail a notice to potential claimants by June 30 of each tax year. Receipt of a notice does not establish that a taxpayer or property owner is eligible for a rebate, and a taxpayer who does not receive a notice may still be eligible to claim a rebate. All taxpayers, regardless of the receipt of notice, may claim a rebate as provided in subsection (5).
(4) Except as provided in subsections (5)(c) and (5)(d), a single-family dwelling unit, unit of a multiple-unit dwelling, trailer, manufactured home, or mobile home and as much of the surrounding land, not exceeding 1 acre, that is owned by an entity is not eligible to claim the rebate.
(5) (a) All claims for this property tax rebate must be submitted to the department electronically or by mail for each tax year the rebate is claimed.
(i) Electronic claims must be submitted between August 15 and October 1 each year through the department's website.
(ii) Claims submitted by mail must be made on a form prescribed by the department and postmarked by October 1 each year.
(b) Subject to subsections (5)(c) and (5)(d), a claim for a rebate must be submitted, under penalty of false swearing and the penalties provided in [section 5], on a form prescribed by the department and must contain:
(i) an affirmation that the claimant owns and maintains the land and improvements as the principal residence as defined in [section 3];
(ii) the geocode or other property identifier for the principal residence that the claimant is requesting the rebate on;
(iii) the social security number of the claimant, the claimant's spouse, and any dependents;
(iv) affirmation that the taxpayer is 62 years of age or older or eligible for the property tax assistance program provided for in 15-6-305; and
(v) any other information as required by the department that is relevant to the claimant's eligibility.
(c) The personal representative of the estate of a deceased taxpayer may execute and file the claim for a rebate on behalf of a deceased taxpayer who qualifies for the rebate.
(d) The trustee of a grantor revocable trust may file a claim on behalf of the trust if the dwelling meets the definition of a principal residence for the grantor.
(6) Only one rebate for each tax year may be issued to a taxpayer for the Montana property taxes paid by the taxpayer.
(7) If a debt is due and owing to the state, the department may offset the rebate in this section as provided in sections 15-30-2629, 15-30-2630, 17-4-105, or as otherwise provided by law.
NEW SECTION. Section 5. Property tax rebate -- penalty for false or fraudulent claim. (1) Except as provided in subsection (2), if the department discovers that a rebate paid to a taxpayer exceeded the amount allowed by [sections 3 through 5], the department may, within 1 year from the date the rebate was transmitted to the taxpayer, assess the taxpayer for the difference. The assessment is subject to the uniform dispute review procedure established in 15-1-211.
(2) A person who files a false or fraudulent claim for a property tax rebate under [sections 3 through 5] is subject to criminal prosecution under the provisions of 45-7-202. If a false or fraudulent claim has been paid by the department, the amount paid may be recovered as any other tax owed the state, together with a penalty of 300% of the rebate claimed and interest on the amount of the rebate claimed plus penalty at the rate of 12% a year, until paid. If this rebate plus penalty becomes due and owing, the department may issue a warrant for distraint as provided in Title 15, chapter 1, part 7.
Section 6. Section 17-7-502, MCA, is amended to read:
"17-7-502. Statutory appropriations -- definition -- requisites for validity. (1) A statutory appropriation is an appropriation made by permanent law that authorizes spending by a state agency without the need for a biennial legislative appropriation or budget amendment.
(2) Except as provided in subsection (4), to be effective, a statutory appropriation must comply with both of the following provisions:
(a) The law containing the statutory authority must be listed in subsection (3).
(b) The law or portion of the law making a statutory appropriation must specifically state that a statutory appropriation is made as provided in this section.
(3) The following laws are the only laws containing statutory appropriations: 2-17-105; 5-11-120; 5-11-407; 5-13-403; 5-13-404; 7-4-2502; 7-4-2924; [section 2]; 7-32-236; 10-1-108; 10-1-1202; 10-1-1303; 10-2-603; 10-2-807; 10-3-203; 10-3-310; 10-3-312; 10-3-314; 10-3-802; 10-3-1304; 10-4-304; 10-4-310; 15-1-121; 15-1-218; 15-31-165; 15-31-1004; 15-31-1005; 15-35-108; 15-36-332; 15-37-117; 15-39-110; 15-65-121; 15-70-101; 15-70-130; 15-70-433; 16-11-119; 16-11-509; 17-3-106; 17-3-212; 17-3-222; 17-3-241; 17-6-101; 17-7-215; 18-11-112; 19-3-319; 19-3-320; 19-6-404; 19-6-410; 19-9-702; 19-13-604; 19-17-301; 19-18-512; 19-19-305; 19-19-506; 19-20-604; 19-20-607; 19-21-203; 20-8-107; 20-9-534; 20-9-622; [20-15-328]; 20-26-617; 20-26-1503; 22-1-327; 22-3-116; 22-3-117; [22-3-1004]; 23-4-105; 23-5-306; 23-5-409; 23-5-612; 23-7-301; 23-7-402; 30-10-1004; 37-43-204; 37-50-209; 37-54-113; 39-71-503; 41-5-2011; 42-2-105; 44-4-1101; 44-12-213; 44-13-102; 46-32-108; 50-1-115; 53-1-109; 53-6-148; 53-9-113; 53-24-108; 53-24-206; 60-5-530; 60-11-115; 61-3-321; 61-3-415; 67-1-309; 69-3-870; 69-4-527; 75-1-1101; 75-5-1108; 75-6-214; 75-11-313; 75-26-308; 76-13-150; 76-13-151; 76-13-417; 76-17-103; 77-1-108; 77-2-362; 80-2-222; 80-4-416; 80-11-518; 80-11-1006; 81-1-112; 81-1-113; 81-7-106; 81-7-123; 81-10-103; 82-11-161; 85-2-526; 85-20-1504; 85-20-1505; [85-25-102]; 87-1-603; 87-5-909; 90-1-115; 90-1-205; 90-1-504; 90-6-331; and 90-9-306.
(4) There is a statutory appropriation to pay the principal, interest, premiums, and costs of issuing, paying, and securing all bonds, notes, or other obligations, as due, that have been authorized and issued pursuant to the laws of Montana. Agencies that have entered into agreements authorized by the laws of Montana to pay the state treasurer, for deposit in accordance with 17-2-101 through 17-2-107, as determined by the state treasurer, an amount sufficient to pay the principal and interest as due on the bonds or notes have statutory appropriation authority for the payments. (In subsection (3): pursuant to sec. 10, Ch. 360, L. 1999, the inclusion of 19-20-604 terminates contingently when the amortization period for the teachers' retirement system's unfunded liability is 10 years or less; pursuant to sec. 73, Ch. 44, L. 2007, the inclusion of 19-6-410 terminates contingently upon the death of the last recipient eligible under 19-6-709(2) for the supplemental benefit provided by 19-6-709; pursuant to sec. 5, Ch. 383, L. 2015, the inclusion of 85-25-102 is effective on occurrence of contingency; pursuant to sec. 6, Ch. 423, L. 2015, the inclusion of 22-3-116 and 22-3-117 terminates June 30, 2025; pursuant to sec. 12, Ch. 55, L. 2017, the inclusion of 37-54-113 terminates June 30, 2023; pursuant to sec. 4, Ch. 122, L. 2017, the inclusion of 10-3-1304 terminates September 30, 2025; pursuant to sec. 1, Ch. 213, L. 2017, the inclusion of 90-6-331 terminates June 30, 2027; pursuant to secs. 5, 8, Ch. 284, L. 2017, the inclusion of 81-1-112, 81-1-113, and 81-7-106 terminates June 30, 2023; pursuant to sec. 1, Ch. 340, L. 2017, the inclusion of 22-1-327 terminates July 1, 2023; pursuant to sec. 10, Ch. 374, L. 2017, the inclusion of 76-17-103 terminates June 30, 2027; pursuant to sec. 5, Ch, 50, L. 2019, the inclusion of 37-50-209 terminates September 30, 2023; pursuant to sec. 1, Ch. 408, L. 2019, the inclusion of 17-7-215 terminates June 30, 2029; pursuant to secs. 11, 12, and 14, Ch. 343, L. 2019, the inclusion of 15-35-108 terminates June 30, 2027; pursuant to sec. 7, Ch. 465, L. 2019, the inclusion of 85-2-526 terminates July 1, 2023; pursuant to sec. 5, Ch. 477, L. 2019, the inclusion of 10-3-802 terminates June 30, 2023; pursuant to secs. 1, 2, 3, Ch. 139, L. 2021, the inclusion of 53-9-113 terminates June 30, 2027; pursuant to sec. 8, Ch. 200, L. 2021, the inclusion of 10-4-310 terminates July 1, 2031; pursuant to secs. 3, 4, Ch. 404, L. 2021, the inclusion of 30-10-1004 terminates June 30, 2027; pursuant to sec. 5, Ch. 548, L. 2021, the inclusion of 50-1-115 terminates June 30, 2025; pursuant to secs. 5 and 12, Ch. 563, L. 2021, the inclusion of 22-3-1004 is effective July 1, 2027; and pursuant to sec. 15, Ch. 574, L. 2021, the inclusion of 46-32-108 terminates June 30, 2023.)"
NEW SECTION. Section 7. Codification instruction. (1) [Sections 1 and 2] are intended to be codified as an integral part of Title 7, chapter 5, and the provisions of Title 7, chapter 5, apply to [sections 1 and 2].
(2) [Sections 3 through 5] are intended to be codified as an integral part of Title 15, chapter 6, part 3, and the provisions of Title 15, chapter 6, part 3, apply to [sections 3 through 5].
NEW SECTION. Section 8. Effective dates. (1) Except as provided in subsection (2), [this act] is effective October 1, 2023.
(2) [Sections 3 through 6] are effective January 1, 2024.