About Bill -- Links
HOUSE BILL NO. 386
INTRODUCED BY R. JORE
A BILL FOR AN ACT ENTITLED: "AN ACT
PHASING IN A 20 PERCENT PROVIDING FOR A REDUCTION IN
INCOME TAXES BY REDUCING TAXES PAYABLE, BEFORE CREDITS, BY 5 3 PERCENT PROVIDING A
CREDIT EQUAL TO 4 PERCENT OF THE PROPERTY TAXES PAID ON RESIDENTIAL PROPERTY EACH YEAR
FOR 4 CONSECUTIVE YEARS, BEGINNING IN 1999; AMENDING SECTIONS 15-30-101 AND 15-30-103, 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. Section 15-30-101, MCA, is amended to read: "15-30-101. Definitions. For the purpose of this chapter, unless otherwise required by the context, the following
definitions apply: (1) "Base year structure" means the following elements of the income tax structure: (a) the tax brackets established in 15-30-103, but unadjusted by 15-30-103(2)(3), in effect on June 30 of the taxable tax
year; (b) the exemptions contained in 15-30-112, but unadjusted by 15-30-112(6), in effect on June 30 of the taxable tax year; (c) the maximum standard deduction provided in 15-30-122, but unadjusted by 15-30-122(2), in effect on June 30 of the
taxable tax year. (2) "Consumer price index" means the consumer price index, United States city average, for all items, using the 1967
base of 100 as published by the bureau of labor statistics of the U.S. department of labor. (3) "Department" means the department of revenue. (4) "Dividend" means any distribution made by a corporation out of its earnings or profits to its shareholders or
members, whether in cash or in other property or in stock of the corporation, other than stock dividends. (5) "Fiduciary" means a guardian, trustee, executor, administrator, receiver, conservator, or any person, whether
individual or corporate, acting in any fiduciary capacity for any person, trust, or estate. (6) "Foreign government" means any jurisdiction other than the one embraced within the United States, its territories,
and its possessions. (7) "Gross income" means the taxpayer's gross income for federal income tax purposes as defined in section 61 of the
Internal Revenue Code of 1954 (26 U.S.C. 61) or as that section may be labeled or amended, excluding unemployment
compensation included in federal gross income under the provisions of section 85 of the Internal Revenue Code of 1954 (26
U.S.C. 85), as amended. (8) "Inflation factor" means a number determined for each taxable tax year by dividing the consumer price index for
June of the taxable tax year by the consumer price index for June 1980. (9) "Information agents" includes all individuals, corporations, associations, and partnerships, acting in whatever
capacity, including lessees or mortgagors of real or personal property, fiduciaries, brokers, real estate brokers, employers,
and all officers and employees of the state or of any municipal corporation or political subdivision of the state, having the
control, receipt, custody, disposal, or payment of interest, rent, salaries, wages, premiums, annuities, compensations,
remunerations, emoluments, or other fixed or determinable annual or periodical gains, profits, and income with respect to
which any person or fiduciary is taxable under this chapter. (10) "Knowingly" is as defined in 45-2-101. (11) "Net income" means the adjusted gross income of a taxpayer less the deductions allowed by this chapter. (12) "Paid", for the purposes of the deductions and credits under this chapter, means paid or accrued or paid or incurred,
and the terms "paid or accrued" and "paid or incurred" must be construed according to the method of accounting upon the
basis of which the taxable income is computed under this chapter. (13) "Pension and annuity income" means: (a) systematic payments of a definitely determinable amount from a qualified pension plan, as that term is used in
section 401 of the Internal Revenue Code (26 U.S.C. 401), or systematic payments received as the result of contributions
made to a qualified pension plan that are paid to the recipient or recipient's beneficiary upon the cessation of employment; (b) payments received as the result of past service and cessation of employment in the uniformed services of the United
States; (c) lump-sum distributions from pension or profit-sharing plans to the extent that the distributions are included in
federal adjusted gross income; (d) distributions from individual retirement, deferred compensation, and self-employed retirement plans recognized
under sections 401 through 408 of the Internal Revenue Code (26 U.S.C. 401 through 408) to the extent that the
distributions are not considered to be premature distributions for federal income tax purposes; or (e) amounts received from fully matured, privately purchased annuity contracts after cessation of regular employment. (14) "Purposely" is as defined in 45-2-101. (15) "Received", for the purpose of computation of taxable income under this chapter, means received or accrued, and
the term "received or accrued" must be construed according to the method of accounting upon the basis of which the
taxable income is computed under this chapter. (16) "Resident" applies only to natural persons and includes, for the purpose of determining liability to for the tax
imposed by this chapter with reference to the income of any taxable tax year, any a person domiciled in the state of
Montana and any other person who maintains a permanent place of abode within the state even though temporarily absent
from the state and who has not established a residence elsewhere. (17) "Stock dividends" means new stock issued, for surplus or profits capitalized, to shareholders in proportion to their
previous holdings. (18) "Taxable income" means the adjusted gross income of a taxpayer less the deductions and exemptions provided for
in this chapter. (19) "Taxable year" or "tax year" means the taxpayer's taxable tax year for federal income tax purposes. (20) "Taxpayer" includes any person or fiduciary, resident or nonresident, subject to a tax imposed by this chapter and
does not include corporations." Section 2. Section 15-30-103, MCA, is amended to read: "15-30-103. Rate of tax. (1) There Except as provided in subsection (2), there shall must be levied, collected, and paid
for each taxable tax year commencing on or after December 31, 1968, upon the taxable income of every taxpayer subject to
this tax, after making allowance for exemptions and deductions as hereinafter provided in this chapter, a tax on the
following brackets of taxable income as adjusted under subsection (2)(3) at the following rates: (a) on the first $1,000 of taxable income or any part thereof of that amount, 2%; (b) on the next $1,000 of taxable income or any part thereof of that amount, 3%; (c) on the next $2,000 of taxable income or any part thereof of that amount, 4%; (d) on the next $2,000 of taxable income or any part thereof of that amount, 5%; (e) on the next $2,000 of taxable income or any part thereof of that amount, 6%; (f) on the next $2,000 of taxable income or any part thereof of that amount, 7%; (g) on the next $4,000 of taxable income or any part thereof of that amount, 8%; (h) on the next $6,000 of taxable income or any part thereof of that amount, 9%; (i) on the next $15,000 of taxable income or any part thereof of that amount, 10%; (j) on any taxable income in excess of $35,000 or any part thereof of that amount, 11%. (2) For tax years beginning after December 31, 1998, a taxpayer shall, after determining the amount of tax payable
under subsection (1) but before accounting for any credits against the tax due, adjust the amount of tax payable under
subsection (1) as follows: (a) For the tax year beginning January 1, 1999, the tax payable under subsection (1) must be multiplied by 95%. (b) For the tax year beginning January 1, 2000, the tax payable under subsection (1) must be multiplied by 90%. (c) For the tax year beginning January 1, 2001, the tax payable under subsection (1) must be multiplied by 85%. (d) For tax years beginning on and after January 1, 2002, the tax payable under subsection (1) must be multiplied by
80% BY MULTIPLYING THE AMOUNT BY 97%. (3) By November 1 of each year, the department shall multiply the bracket amount contained in subsection (1) by the
inflation factor for that taxable tax year and round the cumulative brackets to the nearest $100. The resulting adjusted
brackets are effective for that taxable tax year and shall must be used as the basis for imposition of the tax in subsection (1)
of this section."
NEW SECTION. SECTION 1. TAX CREDIT FOR RESIDENTIAL PROPERTY -- DEFINITION. (1) A TAXPAYER IS ALLOWED A REFUNDABLE CREDIT AGAINST TAXES OTHERWISE DUE UNDER THIS CHAPTER IN AN AMOUNT EQUAL TO 4% OF THE AMOUNT OF PROPERTY TAXES ACTUALLY PAID BY THE TAXPAYER ON THE TAXPAYER'S RESIDENTIAL PROPERTY. THE CREDIT IS IN ADDITION TO ANY DEDUCTION CLAIMED FOR THE PROPERTY TAXES PAID.
(2) FOR PURPOSES OF THIS SECTION, "RESIDENTIAL PROPERTY" MEANS:
(A) A SINGLE-FAMILY RESIDENCE OR A RENTAL MULTIFAMILY DWELLING UNIT, INCLUDING A TRAILER, MANUFACTURED HOME, OR MOBILE HOME;
(B) APPURTENANT IMPROVEMENTS TO THE RESIDENCE OR DWELLING;
(C) THE PARCEL OF LAND UPON WHICH THE SINGLE-FAMILY RESIDENCE OR RENTAL MULTIFAMILY DWELLING UNIT AND THE APPURTENANT IMPROVEMENTS TO THE RESIDENCE OR DWELLING UNIT ARE LOCATED; AND
(D) LEASEHOLD IMPROVEMENTS.
NEW SECTION. SECTION 2. CODIFICATION INSTRUCTION. [SECTION 1] IS INTENDED TO BE CODIFIED AS AN INTEGRAL PART OF TITLE 15, CHAPTER 30, PART 1, AND THE PROVISIONS OF TITLE 15, CHAPTER 30, PART 1, APPLY TO [SECTION 1].
NEW SECTION. Section 3. Effective date. [This act] is effective on passage and approval.
NEW SECTION. Section 4. Retroactive applicability. [This act] applies retroactively, within the meaning of 1-2-109, to tax years beginning after December 31, 1998.
- END -
Latest Version of HB 386 (HB0386.03)
Processed for the Web on March 24, 1999 (4:11PM)
New language in a bill appears underlined, deleted material appears stricken.
Sponsor names are handwritten on introduced bills, hence do not appear on the bill until it is reprinted. See the status of the bill for the bill's primary sponsor.
Status of this Bill | 1999 Session | Leg. Branch Home
This bill in WP 5.1 | All versions of all bills in WP 5.1
Prepared by Montana Legislative Services