HOUSE BILL NO. 662
INTRODUCED BY A. WALTERS
A BILL FOR AN ACT ENTITLED: "AN ACT EXEMPTING THE FIRST $2,500 OR LESS OF THE DEPRECIATED VALUE OF A LIGHT VEHICLE FROM MOTOR VEHICLE TAXES; REVISING THE DISTRIBUTION OF MOTOR VEHICLE TAXES; AMENDING SECTIONS 27-1-306, 61-3-503, AND 61-3-509, MCA; AND PROVIDING A DELAYED EFFECTIVE DATE AND AN APPLICABILITY DATE."
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 27-1-306, MCA, is amended to read:
"27-1-306. When replacement value to be allowed. The measure of damages in a case in which the cost of repairing a
motor vehicle exceeds its value is the actual replacement value of the motor vehicle rather than its "book" value unless,
after the damages arise, the parties agree to use the "book" value. "Book" value must be determined by referring to the used
car national appraisal guides listed in 61-3-503(1)(c) referred to in 61-3-208. Actual replacement value is the actual cash
value of the motor vehicle immediately prior to the damage. "Book" value may be used to assist in determining the actual
replacement value of the motor vehicle."
Section 2. Section 61-3-503, MCA, is amended to read:
"61-3-503. Assessment. (1) Except as provided in 61-3-520 and subsection (4) of this section, the following apply to the taxation of motor vehicles:
(a) Vehicles subject to the provisions of 61-3-313 through 61-3-316 must be assessed as of the first day of the registration period, using the depreciated value of the manufacturer's suggested retail price as determined in subsection (2).
(b) A lien for taxes and fees due on the vehicle occurs on the anniversary date of the registration and continues until the fees and taxes have been paid. If the depreciated value is less than $500, the department shall value the vehicle at $500.
(2) (a) Except as provided in subsections (2)(c) and (2)(d), the depreciated value for the taxation of light vehicles is computed by multiplying the manufacturer's suggested retail price by a percentage multiplier based on the type and age of the vehicle determined from the following table:
Age of Vehicle Type of Vehicle
(in years)
Automobile Truck Van Sport Utility
-1 100% 100% 100% 100%
0 90 96 93 98
1 80 91 86 94
2 69 86 78 90
3 58 80 69 84
4 49 73 60 76
5 41 66 52 67
6 33 57 45 57
7 26 49 38 48
8 21 43 32 39
9 17 37 27 33
10 14 31 22 29
11 12 26 18 25
12 10 22 15 22
13 09 18 13 21
14 09 15 11 19
15 09 13 09 17
16 09 12 09 15
(b) The age for the light vehicle is determined by subtracting the manufacturer's model year of the vehicle from the calendar year for which the tax is due.
(c) Except as provided in subsections (2)(d) and (2)(e), the first $2,500 or less of the depreciated value determined in subsection (2)(a) is exempt from the motor vehicle tax.
(d) If the value of the vehicle determined under subsection (2)(a) as adjusted by subsection (2)(c) is $500 or less, the value of the vehicle is $500 and the value must remain at that amount as long as the vehicle is registered.
(d)(e) The depreciated value of a light vehicle that is 17 years old or older is computed by depreciating the value
obtained for the vehicle at 16 years old as determined under subsection (2)(a) as adjusted by subsection (2)(c) by 10% a
year until a minimum value of $500 or less is attained. The For the purposes of this subsection (2)(e), the value of the
vehicle is $500 and must remain at that amount as long as the vehicle is registered.
(3) (a) For the purposes of this section, "manufacturer's suggested retail price" means the price suggested by the manufacturer for each given type, style, or model of light vehicle produced and first made available for retail sale by the manufacturer.
(b) The manufacturer's suggested retail price is based on standard equipment of a vehicle and does not contain price additions or deductions for optional accessories.
(c) When a manufacturer's suggested retail price is unavailable for a motor vehicle, the department shall determine an alternative valuation for the vehicle.
(4) The provisions of subsections (1) through (3) do not apply to buses, trucks having a manufacturer's rated capacity of more than 1 ton, truck tractors, motorcycles, motor homes, quadricycles, travel trailers, campers, mobile homes or manufactured homes as those terms are defined in 15-1-101(1)."
Section 3. Section 61-3-509, MCA, is amended to read:
"61-3-509. Disposition of taxes. (1) Except as provided in subsection (2), the county treasurer shall, after deducting the district court fee, credit all taxes on motor vehicles and fees in lieu of tax on motorcycles, quadricycles, motor homes, travel trailers, campers, trailers, pole trailers, semitrailers, buses, trucks having a manufacturer's rated capacity of more than 1 ton, and truck tractors collected under 61-3-504, 61-3-521, 61-3-527, 61-3-529, and 61-3-537, to a motor vehicle suspense fund. At some time between March 1 and March 10 of each year and every 60 days after that date, the county treasurer shall distribute the money in the motor vehicle suspense fund. Except for taxes collected under 61-3-504, the county treasurer shall distribute the money in the fund in the relative proportions required by the levies for state, county, school district, and municipal purposes in the same manner as personal property taxes are distributed. For money in the fund collected under 61-3-504, the county treasurer shall disregard the statewide mills levied for county elementary and high school equalization under 20-9-331 and 20-9-333, the statewide mills levied for state equalization aid under 20-9-360, and the statewide mills levied for the university system in determining distribution proportions of the money and may not distribute money from 61-3-504 to the state for these levies.
(2) The county treasurer shall deduct as a district court fee 7% of the amount of the 2% tax collected on light vehicles. The county treasurer shall credit the fee for district courts to a separate suspense account and shall forward the amount in the account to the state treasurer at the time that the county treasurer distributes money from the motor vehicle suspense fund. The state treasurer shall credit amounts received under this subsection to the state special revenue fund to be used for purposes of state funding of district court expenses as provided in 3-5-901."
NEW SECTION. Section 4. Effective date. [This act] is effective January 1, 2000.
NEW SECTION. Section 5. Applicability. [This act] applies to tax years beginning after December 31, 1999.
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Latest Version of HB 662 (HB0662.01)
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