HOUSE BILL NO. 675
INTRODUCED BY D. FUCHS
A BILL FOR AN ACT ENTITLED: "AN ACT ENACTING A 4 PERCENT SALES TAX AND USE TAX ON SELECTED GOODS AND TOURISM SERVICES; ALLOWING CERTAIN TAX EXEMPTIONS; PROVIDING FOR DISTRIBUTION OF TAX REVENUE; PROVIDING AN INCOME TAX CREDIT; EXEMPTING OWNER-OCCUPIED HOMES FROM PROPERTY TAXATION; REDUCING THE TAX RATE ON BUSINESS EQUIPMENT; REVISING BONDING, DEBT, AND LEVY LIMITS FOR LOCAL GOVERNMENTS AND SCHOOLS; REVISING CERTAIN PROVISIONS OF LOCAL GOVERNMENT AND SCHOOL FINANCE; PROVIDING FOR AN ELECTION TO IMPOSE A 4 PERCENT SALES TAX AND USE TAX; AMENDING SECTIONS 7-1-2111, 7-3-1321, 7-6-2211, 7-6-2512, 7-6-2514, 7-6-2522, 7-6-4121, 7-6-4452, 7-7-107, 7-7-108, 7-7-2101, 7-7-2203, 7-7-4201, 7-7-4202, 7-13-4103, 7-14-236, 7-14-2524, 7-14-2525, 7-14-4402, 7-16-2327, 7-16-4104, 7-31-106, 7-31-107, 7-34-2131, 7-34-2133, 7-34-2134, 15-1-101, 15-6-134, 15-6-138, 15-6-201, 15-6-207, 15-7-122, 15-16-202, 15-16-603, 15-24-303, 15-24-902, 15-24-903, 15-24-904, 15-24-921, 15-24-922, 15-24-925, 15-36-323, 15-36-325, 16-1-306, 16-1-411, 16-2-301, 17-7-502, 19-18-503, 19-18-504, 20-7-714, 20-9-141, 20-9-306, 20-9-367, 20-9-406, 20-9-407, 20-10-144, 20-15-311, 23-2-515, 23-2-616, 27-1-306, 33-7-410, 53-2-322, 53-2-801, 53-2-813, 61-3-303, 61-3-317, 61-3-501, 61-3-502, 61-3-506, 61-3-509, 61-3-605, 61-3-701, 61-4-112, 76-1-405, 81-7-303, 81-7-603, AND 90-5-112, MCA; REPEALING SECTIONS 15-6-136, 15-6-151, 15-10-401, 15-10-402, 15-10-406, 15-10-412, 15-16-613, 15-24-920, 15-24-926, 15-24-927, 15-24-931, 15-24-2401, 15-24-2402, 15-24-2403, 15-24-2404, AND 15-24-2405, MCA; AND PROVIDING AN EFFECTIVE DATE AND APPLICABILITY DATES."
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
NEW SECTION. Section 1. Definitions. For purposes of [sections 1 through 62], unless the context requires otherwise, the following definitions apply:
(1) "Engaging in business" means carrying on or causing to be carried on any activity with the purpose of direct or indirect benefit.
(2) "Food product for human consumption":
(a) means food for domestic home consumption as defined in 7 U.S.C. 2012(g), as amended, for purposes of the federal food stamp program as defined in 7 U.S.C. 2012(h), as amended; and
(b) does not mean or include:
(i) medicine or preparations, in liquid, powdered, granular, bottled, capsule, lozenge, or pill form, sold as a dietary supplement or adjunct not prescribed by a licensed physician;
(ii) carbonated water or soft drinks marketed in containers;
(iii) chewing gum;
(iv) candies or confectioneries; or
(v) seeds and plants to grow food.
(3) "Lease", "leasing", or "rental" means an arrangement in which, for consideration, property is used for or by a person other than the owner of the property.
(4) "Maintaining an office or other place of business" means:
(a) any person having or maintaining within this state, directly or by a subsidiary, an office, distribution house, sales house, warehouse, or place of business; or
(b) any agent operating within this state under the authority of the person or its subsidiary, whether the place of business or agent is located in the state permanently or temporarily or whether or not the person or subsidiary is authorized to do business within this state.
(5) (a) "Manufacturing" means combining or processing components or materials, including the processing of ores in a mill, smelter, refinery, or reduction facility, to increase their value for sale in the ordinary course of business.
(b) The term does not include construction.
(6) "Medical services" means a service:
(a) performed by a person licensed to practice a health care profession or health care occupation licensed under Title 37 or licensed as a mental health professional or certified under Title 53, chapter 24, as a chemical dependency counselor as a regular part of the person's business activities; and
(b) applied externally or internally to the human body or mind for the diagnosis, cure, mitigation, treatment, or prevention of disease.
(7) "Medicine" or "drug" means any substance or preparation that is:
(a) intended for use by external or internal application to the human body or mind in the diagnosis, cure, mitigation, treatment, or prevention of disease; and
(b) required by law or regulation to be prescribed by a person licensed to prescribe the medicine or drug.
(8) "Permit" or "seller's permit" means a seller's permit as described in [section 39].
(9) "Person" means an individual, estate, trust, receiver, cooperative association, club, corporation, company, firm, partnership, joint venture, syndicate, or other entity, including any gas, water, or electric utility owned or operated by a county, municipality, or other political subdivision of the state.
(10) "Sale", "selling", or "buying" means the transfer of property for consideration or the performance of a service for consideration.
(11) (a) "Sales price", in addition to the other meanings provided in this subsection (11), means the total amount of money or the value of other consideration, except trade-in property of like kind, received from selling property in Montana, from leasing property used in Montana, or from performing services in Montana. The term includes all consideration from the sale of property handled on consignment but excludes cash discounts allowed and taken and any type of time-price differential.
(b) In an exchange in which the money or other consideration received does not represent the value of the property or service exchanged, sales price means the reasonable value of the property or service exchanged.
(c) (i) Except as provided in [section 46], when the sale of property or services is made under any type of charge or conditional or time-sales contract or the leasing of property is made under a leasing contract, the seller or lessor shall treat the sales price, excluding any type of time-price differential, under the contract as the sales price at the time of the sale.
(ii) If the seller or lessor transfers an interest in a contract referred to in subsection (11)(c)(i) to a third person, the third person or lessee shall pay the sales tax or use tax upon the full sale or leasing contract amount, excluding any type of time-price differential.
(d) Sales price includes the total commissions or fees derived from the business of buying, selling, or promoting the purchase, sale, or lease, as an agent or broker on a commission or fee basis, of any property, service, stock, bond, or security.
(e) Sales price includes all amounts paid by members of a cooperative association or similar organization for sales or leases of personal property or performance of services by the organization.
(12) "Sales tax" and "use tax" mean the applicable tax imposed by [section 2].
(13) (a) "Service" means an activity that is engaged in for another person for consideration and that is distinguished from the sale or lease of property. The term includes:
(i) activities performed by a person for its members or shareholders; and
(ii) construction activities and all tangible personal property that will become an ingredient or component part of a construction project.
(b) In determining what a service is, the intended use, principal objective, or ultimate objective of the contracting parties is irrelevant.
(14) "Therapeutic and prosthetic devices" include but are not limited to prescription eyeglasses, contact lenses, dentures, or artificial limbs, prescribed or ordered by a person licensed to perform medical services.
(15) "Use" or "using" includes use, consumption, or storage, other than storage for resale or for use solely outside this state, in the ordinary course of business.
NEW SECTION. Section 2. Imposition and rate of sales tax and use tax -- exceptions. (1) Except as provided in subsection (5), a sales tax of 4% is imposed on all sales of property or services. The tax is imposed on the purchaser and must be collected by the seller and paid to the department by the seller. The seller holds all taxes collected in trust for the state. The tax must be applied to the sales price.
(2) For the privilege of using property in this state, there is imposed on the person using property a use tax equal to 4% of the value of the property that was:
(a) manufactured by the person using the property in this state;
(b) acquired outside this state as the result of a transaction that would have been subject to the sales tax had it occurred within this state;
(c) acquired within the exterior boundaries of an Indian reservation within this state as a result of a transaction that would have been subject to the sales tax had it occurred outside of the exterior boundaries of an Indian reservation within this state; or
(d) acquired as the result of a transaction that was not initially subject to the sales tax imposed by subsection (1) or the use tax imposed by subsection (2)(b) or (2)(c) but which transaction, because of the buyer's subsequent use of the property, is subject to the sales tax or use tax.
(3) For the privilege of using services in this state, there is imposed on the person using services a use tax equal to 4% of the value of the services at the time at which they were rendered. Services taxable under this section must have been rendered as the result of a transaction that was not initially subject to the sales tax or use tax but that because of the buyer's subsequent use of the service is subject to the sales tax or use tax.
(4) For purposes of this section, the value of property must be determined as of the time of acquisition, introduction into this state, or conversion to use, whichever is latest.
(5) (a) The sales tax or use tax on a motor vehicle is imposed by 61-3-502 and [section 64]. The sale or use of a vehicle subject to the tax imposed under 61-3-502 or [section 64] is exempt from the sales tax and use tax imposed under this section.
(b) The sale of property or services exempt or nontaxable under [sections 1 through 62] is exempt from the tax imposed in subsections (1) through (3).
NEW SECTION. Section 3. Presumption of taxability -- value -- rules. (1) In order to prevent evasion of the sales tax or use tax and to aid in its administration, it is presumed that:
(a) all sales by a person engaging in business are subject to the sales tax or use tax; and
(b) all property bought or sold by any person for delivery into this state is bought or sold for a taxable use in this state.
(2) In determining the amount of tax due on the use of property or services, it is presumed, in the absence of preponderant evidence of another value, that value means the total amount of property or the reasonable value of other consideration paid for the use of the property or service, exclusive of any type of time-price differential. However, in an exchange in which the amount of money paid does not represent the value of the property or service purchased, the use tax must be imposed on the reasonable value of the property or service purchased.
(3) The department shall adopt rules providing for the payment of the sales tax and use tax based on a bracket amount method rather than a rounding method or other method.
NEW SECTION. Section 4. Separate statement of tax -- no advertising to absorb or refund tax. (1) If any person collects a tax in excess of the tax imposed by [section 2], both the tax and the excess tax must be remitted to the department.
(2) The sales tax must be stated separately for all sales, except for sales from coin-operated or currency-operated machines.
(3) A person may not advertise, hold out, or state to the public or to any customer that the tax imposed by [sections 1 through 62] will be absorbed or refunded.
NEW SECTION. Section 5. Liability of user for payment of use tax. (1) A person in this state who uses property is liable to the state for payment of the use tax if the tax is payable on the value of the property but has not been paid.
(2) The liability imposed by this section is discharged if the buyer has paid the use tax to the seller for payment to the department.
NEW SECTION. Section 6. Collection of sales tax and use tax -- listing of business locations and agents -- severability. (1) A person engaged in the business of selling property or services subject to taxation under [sections 1 through 62] shall collect the sales tax from the purchaser and pay the tax collected to the department.
(2) (a) A person who solicits or exploits the consumer market in this state by regularly and systematically performing an activity within this state and whose sales are not subject to the sales tax shall collect the use tax from the purchaser and pay the tax collected to the department.
(b) "Activity", for the purposes of this section, includes but is not limited to engaging in any of the following in this state:
(i) maintaining an office or other place of business that solicits orders through employees or independent contractors;
(ii) canvassing;
(iii) demonstrating;
(iv) collecting money;
(v) warehousing or storing merchandise;
(vi) delivering or distributing products as a consequence of an advertising or other sales program directed at potential customers;
(vii) soliciting orders for property or services by means of telecommunication or a television shopping system or by providing telecommunication services that use toll or toll-free numbers and that are intended to be broadcast by cable television or other means to consumers in this state;
(viii) soliciting orders, pursuant to a contract with a broadcaster or publisher located within this state, for property or services by means of advertising disseminated primarily to consumers located in this state and only secondarily to bordering jurisdictions;
(ix) soliciting orders for property or services by mail through the distribution of catalogs, periodicals, advertising flyers, or other advertising;
(x) soliciting orders, pursuant to a contract with a cable television operator located in this state, for tangible property or services by means of advertising transmitted or distributed over a cable television system in this state; or
(xi) any act that benefits from banking, financing, debt collection, telecommunication, or marketing activities occurring in this state or that benefits from the location in this state of authorized installation, servicing, or repair facilities.
(3) A person engaging in business in this state shall, before making any sales, obtain a seller's permit as provided in [section 39] and at the time of making a sale, whether within or outside of the state, collect the tax imposed by [section 2] from the purchaser and give to the purchaser a receipt, in the manner and form prescribed by rule, for the tax paid.
(4) The department may authorize the collection of the tax imposed by [section 2] by any retailer who does not maintain a place of business within this state but who, to the satisfaction of the department, is in compliance with the law. When authorized, the person shall collect the tax upon all property and services that, to the person's knowledge, are for use within this state and subject to taxation under [sections 1 through 62].
(5) All sales tax and use tax required to be collected and all sales tax and use tax collected by any person under [sections 1 through 62] constitute a debt owed to this state by the person required to collect the tax.
(6) A person selling property or services to residents of this state, when the property is delivered to a location within this state or when the use of the service occurs within this state, shall, upon request by the department, provide a list of all sales to the department. The list must include the name and address of each purchaser and the amount of each sale. The department may pay to any person furnishing a list of sales or purchasers the reasonable costs of reproducing the list.
(7) A person engaging in business in this state shall provide to the department:
(a) the names and addresses of all the person's agents operating in this state; and
(b) the location of each of the person's distribution houses or offices, sales houses or offices, and other places of business in this state.
(8) If any application of this section is held invalid, the application to other situations or persons is not affected.
NEW SECTION. Section 7. Nontaxable transaction certificate -- requirements. (1) A nontaxable transaction certificate executed by a buyer or lessee must be in the possession of the seller or lessor at the time that a nontaxable transaction occurs.
(2) A nontaxable transaction certificate must contain the information and be in the form prescribed by the department.
(3) Only a buyer or lessee who has registered with the department and whose seller's permit is valid may execute a nontaxable transaction certificate.
(4) If the seller or lessor accepts a nontaxable transaction certificate within the required time and believes in good faith that the buyer or lessee will employ the property or service transferred in a nontaxable manner, the properly executed nontaxable transaction certificate is considered conclusive evidence that the sale is nontaxable.
NEW SECTION. Section 8. Nontaxable transaction certificate -- form. (1) The department shall provide for a uniform nontaxable transaction certificate. A purchaser shall use the certificate when purchasing goods or services for resale or for other nontaxable transactions.
(2) At a minimum, the certificate must provide:
(a) the number of the seller's permit issued to the purchaser as provided in [section 39];
(b) the general character of property or service sold by the purchaser in the regular course of business;
(c) the property or service purchased for resale;
(d) the name and address of the purchaser; and
(e) a signature line for the purchaser.
(3) The department shall adopt rules to provide procedures for application for and provision of a nontaxable transaction certificate to a person engaging in business in this state prior to [the applicability date of this section]. The rules adopted by the department must ensure that each person engaging in business in this state prior to [the applicability date of this section] who has applied in a timely fashion is issued a nontaxable transaction certificate prior to [the applicability date of this section].
NEW SECTION. Section 9. Exemption -- government agencies -- utilities. (1) All sales by, sales to, or uses by the United States, this state, an agency or instrumentality of the United States or of this state, a political subdivision of this state, an Indian tribe, or a foreign government are exempt from the sales tax and use tax.
(2) The sale of natural gas, water, electricity, telephone communications services, refuse collection, or other utility services is exempt from the sales tax and use tax.
NEW SECTION. Section 10. Exemption -- food products. (1) Except as provided in subsection (2), the sale or use of food products for human consumption is exempt from the sales tax and use tax.
(2) The sale of food products sold in the following manner is subject to the sales tax:
(a) food products served as meals on or off the premises of the retailer;
(b) milk or cream sold as beverages commonly referred to as milkshakes, malted milks, or any similar beverage;
(c) food products furnished, prepared, or served for consumption at tables, chairs, or counters or from trays, glasses, dishes, or other tableware, whether provided by the retailer or by a person with whom the retailer contracts to furnish, prepare, or serve food products to others;
(d) food products sold for immediate consumption, even though the products are sold on a "takeout", "to go", or "U-bake" order and are actually packaged or wrapped and taken from the premises of the retailer;
(e) food products sold for consumption within a place that charges an admission fee; or
(f) food or drink vended by or through machines on behalf of a vendor.
(3) The sale of food or a food service offered or delivered as part of a residential living arrangement and consumed by a person who is party to the arrangement is exempt from the sales tax and use tax.
NEW SECTION. Section 11. Exemption -- special supplemental food program for women, infants, and children. The sale of food purchased under the special supplemental food program for women, infants, and children as specified in 42 U.S.C. 1786, as amended, is exempt from the sales tax and use tax.
NEW SECTION. Section 12. Exemption -- prescribed medicine, drugs, and certain devices -- medical services. (1) Medicine, drugs, insulin, and therapeutic and prosthetic devices are exempt from the sales tax and use tax.
(2) The following are exempt from the sales tax and use tax:
(a) medical services;
(b) any service reasonably related to the delivery of a medical service:
(i) by or at a health care facility as defined in 50-5-101; or
(ii) by or at the office of a health care professional or a person engaged in a health care occupation.
NEW SECTION. Section 13. Exemption -- wages. Except as provided in [sections 1 through 62], wages, salaries, commissions, and any other form of remuneration for personal services are exempt from the sales tax if paid by an employer to an employee.
NEW SECTION. Section 14. Exemption -- agricultural products -- livestock feeding. (1) (a) The sale of livestock, live poultry, unprocessed agricultural products, hides, or pelts by a grower, producer, trapper, or nonprofit marketing association is exempt from the sales tax.
(b) A person engaged in the business of buying and selling wool or mohair or of buying and selling livestock on the person's own account and without the services of a broker, auctioneer, or other agent is considered a producer for the purposes of subsection (1)(a).
(2) Sales from feeding, pasturing, penning, or handling or training livestock prior to sale are exempt from the sales tax.
NEW SECTION. Section 15. Exemption -- gambling and amusement services. All gambling or amusement services that are conducted or licensed pursuant to Title 23, chapter 4, 5, or 7, are exempt from the sales tax and use tax.
NEW SECTION. Section 16. Exemption -- insurance premiums. The premiums of an insurance company, a health service corporation, a health maintenance organization, or a fraternal benefit society or of an agent of the company, corporation, organization, or society are exempt from the sales tax.
NEW SECTION. Section 17. Exemption -- dividends and interest. The following are exempt from the sales tax:
(1) interest on money loaned or deposited;
(2) dividends or interest from stocks, bonds, or securities;
(3) proceeds from the sale of stocks, bonds, or securities; and
(4) commissions or fees derived from the business of buying, selling, or promoting any stock, bond, or security.
NEW SECTION. Section 18. Exemption -- fuel. (1) The sale and use of gasoline, ethanol blended for fuel, and special fuel, including natural gas or propane, upon which tax has been paid or will be paid under Title 15, chapter 70, is exempt from the sales tax and use tax.
(2) The sale and use of special fuel that is exempt from taxation under Title 15, chapter 70, part 3, is exempt from the sales tax and use tax.
(3) The sale and use of liquefied petroleum gas for use to power a motor vehicle upon which the license tax fee has been paid or will be paid under Title 15, chapter 71, is exempt from the sales tax and use tax.
NEW SECTION. Section 19. Exemption -- isolated or occasional sale or lease of property or services. The isolated or occasional sale or lease of property, other than a vehicle, or the performance of a service by a person who is not regularly engaged in or who does not claim to be engaged in the business of selling or leasing the same or a similar property or service is exempt from the sales tax and use tax. Occasional sales include sales that are occasional but not continuous and that are made for the purpose of fundraising by nonprofit organizations, including but not limited to youth clubs, service clubs, and fraternal organizations.
NEW SECTION. Section 20. Exemption -- oil, gas, and mineral interests. The sale or lease of interests in minerals, as defined in 15-38-103, is exempt from the sales tax and use tax.
NEW SECTION. Section 21. Exemption -- minerals -- exceptions. (1) Except as provided in subsections (4) and (5), the sale or use of a mineral, as defined in 15-38-103, is exempt from the sales tax and use tax.
(2) Minerals used by the producer of the minerals for purposes of exploring for, producing, or transporting minerals are exempt from the sales tax and use tax except that the exemption does not include refined petroleum products.
(3) The sale or use of platinum and palladium, whenever refined and preserved in coins, ingots, bars, or other similar forms, are exempt from the sales tax and use tax.
(4) Minerals used as or integrated into jewelry, art, or sculpture or used as a decorative embellishment or adornment, either in their own right, in combination with other property, or after being refined, reduced, polished, cut, faceted, or otherwise processed, are not included in the exemption provided in this section.
(5) Minerals that are used for producing energy or that are used for conversion into energy are subject to the sales tax or use tax unless the energy is produced or converted for resale as a form of energy.
NEW SECTION. Section 22. Exemption -- personal effects. The use by an individual of personal or household effects brought into the state for the establishment by the individual of an initial residence in this state and the use of property brought into the state by a nonresident for the nonresident's own nonbusiness use while temporarily within this state is exempt from the use tax.
NEW SECTION. Section 23. Exemption -- printed material -- advertising services. (1) The sale or use of newspapers, magazines, and books is exempt from the sales tax and use tax.
(2) The sale or use of advertising services, including the actual creation or development of the advertising, is exempt from the sales tax and use tax.
(3) For purposes of this section, "advertising services" includes but is not limited to all advertising by:
(a) newspaper, magazine, or other publication;
(b) radio or television;
(c) billboard, banner, sign, placard, or the like;
(d) handbill; or
(e) any other means, media, or method.
NEW SECTION. Section 24. Exemption -- services. (1) Except as provided in subsection (2), the sale or use of services is exempt from the sales tax and use tax.
(2) The following services are subject to the sales tax and use tax:
(a) sightseeing services provided by means of:
(i) a car, a truck, a bus, a motorhome, a boat or other watercraft, aircraft, railroad, a bicycle, a motorcycle, a quadricycle, an all-terrain vehicle, a carriage, a wagon, a sled, a balloon, or any other vehicle, motorized or otherwise; or
(ii) a horse, mule, llama, or other animal or a dog sled;
(b) personal services;
(c) rental vehicles;
(d) bus charters;
(e) lodging;
(f) equipment rental; and
(g) motor vehicle repair and maintenance.
NEW SECTION. Section 25. Exemption -- feed, fertilizers, and agricultural services. (1) The sale or use of the following is exempt from the sales tax and use tax:
(a) feed for livestock, fish raised for human consumption, poultry, or animals raised for their hides or pelts;
(b) semen, ova, or embryos used in animal husbandry;
(c) seeds;
(d) Christmas trees;
(e) roots;
(f) bulbs;
(g) soil conditioners;
(h) fertilizers;
(i) insecticides;
(j) insects used to control weeds or the population of other insects;
(k) fungicides;
(l) weedicides;
(m) herbicides;
(n) whenever used in agriculture, as defined in 15-1-101, supplies, feed supplies, additives, feed additives, medicine, and vaccines; or
(o) water for commercial irrigation.
(2) The sale or use of an agricultural service, including the service of a veterinarian when employed in animal husbandry of livestock, is exempt from the sales tax and use tax.
NEW SECTION. Section 26. Exemption -- certain chemicals, reagents, and substances. (1) The sale or use by any person of any chemical, reagent, or other substance that is normally used or consumed in the processing of ores or petroleum, in a mill, smelter, refinery, or reduction facility or in acidizing oil wells, is exempt from the sales tax and use tax.
(2) The sale or use of explosives, blasting material, or dynamite is not exempt under this section.
NEW SECTION. Section 27. Exemption -- sale of certain services of mining or manufacturing. The sale or use of the service of mining, manufacturing, combining, or processing components or materials, including minerals, is exempt from the sales tax and use tax.
NEW SECTION. Section 28. Nontaxability -- sale of property for resale. The sale of property is nontaxable if:
(1) the sale is made to a buyer who delivers a nontaxable transaction certificate to the seller; and
(2) the buyer resells the property either by itself or in combination with other property in the ordinary course of business and the property will be subject to the sales tax.
NEW SECTION. Section 29. Nontaxability -- sale of service for resale. The sale of a service for resale is nontaxable if:
(1) the sale is made to a person who delivers a nontaxable transaction certificate;
(2) the buyer resells the service and separately states the value of the service purchased in the charge for the service in the subsequent sale; and
(3) the subsequent sale is in the ordinary course of business and subject to the sales tax.
NEW SECTION. Section 30. Nontaxability -- sale to miner or manufacturer. (1) The sale of property to a buyer engaged in the business of mining or manufacturing is nontaxable if:
(a) the buyer delivers a nontaxable transaction certificate to the seller; and
(b) the buyer incorporates the property as an ingredient or component part of the product in the business of mining or manufacturing; or
(c) the buyer uses the property to extract a mineral and the property is required to be abandoned in place, in accordance with state regulations, when production of the mineral from a mine or wellhead permanently ceases.
(2) For the purposes of this section, electrical energy or electricity used or consumed by electrolytic reduction used in the reduction or refinement of ores is considered a component part of the product.
NEW SECTION. Section 31. Nontaxability -- sale of tangible personal property for leasing. The sale of property, other than furniture or appliances, and the rental or lease of mobile homes and property, other than coin-operated or currency-operated machines, is nontaxable if:
(1) the sale is made to a buyer who delivers a nontaxable transaction certificate to the seller;
(2) the buyer is engaged in a business deriving more than 50% of its receipts from leasing or selling property of the type leased; and
(3) the buyer does not use the property in any manner other than holding it for lease or sale or leasing or selling it, either by itself or in combination with other property, in the ordinary course of business.
NEW SECTION. Section 32. Lease for subsequent lease. The lease of property, other than furniture or appliances, and the rental or lease of mobile homes and property, other than coin-operated or currency-operated machines, is nontaxable if:
(1) the lease is made to a lessee who delivers a nontaxable transaction certificate; and
(2) the lessee does not use the property in any manner other than for subsequent lease in the ordinary course of business.
NEW SECTION. Section 33. Nontaxability -- sale or lease of real property or improvements and lease of mobile homes. (1) (a) The sale or lease of real property or improvements is nontaxable.
(b) The lease or rental of a mobile home for a period of 1 month or more is nontaxable.
(2) The inclusion of furniture or appliances furnished by the landlord or lessor as part of a leased or rented dwelling, house, mobile home, cabin, condominium, or apartment is nontaxable.
NEW SECTION. Section 34. Nontaxability -- transactions in interstate commerce -- certain property used in interstate commerce -- exception. (1) A transaction in interstate commerce is nontaxable to the extent that the imposition of the sales tax or use tax would be unlawful under the United States constitution.
(2) The following are also nontaxable:
(a) transmitting messages or conversations by radio when the transmissions originate from a point outside this state and are received at a point within this state; and
(b) the sale of radio or television broadcast time if the advertising message is supplied by or on behalf of a national or regional seller or an advertiser that does not have its principal place of business in this state or that is not incorporated under the laws of this state.
(3) The sale of a vehicle with a gross vehicle weight in excess of 46,000 pounds used exclusively in interstate commerce is nontaxable.
NEW SECTION. Section 35. Nontaxability -- certain intrastate transportation and services in interstate commerce. (1) The transport of persons or property from one point within this state to another point within this state is not taxable if the persons or property, including any reasonably necessary services, are being transported in interstate or foreign commerce under a single contract.
(2) Handling, storage, drayage, or packing of property or any other accessorial services on property are not taxable if:
(a) the property has been or will be moved in interstate or foreign commerce;
(b) the services are performed by a local agent for a carrier or by a carrier; and
(c) the services are performed under a single contract in relation to interstate transportation services.
NEW SECTION. Section 36. Nontaxability -- sale of certain services to out-of-state buyer. (1) Except as provided in subsection (3), sales of a service are not taxable if the sale is made to a buyer who delivers to the seller either a nontaxable transaction certificate or other evidence acceptable to the department that the transaction and the person who delivers the nontaxable transaction certificate or other evidence acceptable to the department meet the conditions set out in subsection (2).
(2) Sales of a service are not taxable if the buyer of the service, any of the buyer's employees, or any person in privity with the buyer:
(a) does not make initial use of the product or the service in this state;
(b) does not take delivery of the product or the service in this state; or
(c) concurrent with the performance of the service, does not maintain an office or other place of business in this state or spend more than brief and occasional periods of time in this state and:
(i) does not have any communication in this state related in any way to the subject matter, performance, or administration of the service with the person performing the service; or
(ii) does not personally perform work in this state related to the subject matter of the service.
(3) Architectural, engineering, surveying, or graphic design services are nontaxable if the product resulting from the service or the service is used or applied exclusively outside of Montana. For the purposes of this subsection, the provisions of subsection (2) do not apply.
(4) Services that initially were nontaxable under this section but that no longer meet the criteria in subsection (2) are nontaxable only for the period prior to the disqualification and are, after disqualification, taxable.
NEW SECTION. Section 37. Nontaxability -- use of property for leasing. The value of leased property is not considered in computing the use tax due if the person holding the property for lease:
(1) is engaged in a business that derives a substantial portion of its receipts from leasing or selling property of the type leased;
(2) does not use the property in any manner other than holding it for lease or sale or leasing or selling it either by itself or in combination with other tangible personal property in the ordinary course of business; and
(3) does not use the property in a manner incidental to the performance of a service.
NEW SECTION. Section 38. Credit -- out-of-state taxes. If a sales, use, or similar tax has been levied by another state or a political subdivision of another state on property that was bought outside this state but that will be used or consumed in this state and the tax was paid by the current user, the amount of tax paid may be credited against any use tax due this state on the same property. The credit may not exceed the sales tax or use tax due this state.
NEW SECTION. Section 39. Seller's permit. (1) A person wishing to engage in business in this state shall obtain a seller's permit before engaging in business in this state.
(2) Upon an applicant's compliance with [sections 1 through 62], the department shall issue to the applicant a separate, numbered seller's permit for each location in which the applicant maintains an office or other place of business within Montana. A permit is valid until revoked or suspended but is not assignable. A permit is valid only for the person in whose name it is issued and for the transaction of business at the place designated. The permit must be conspicuously displayed at all times at the place for which it is issued.
(3) The department shall adopt rules to provide procedures for application for and provision of a seller's permit to a person engaging in business in this state prior to [the applicability date of this section]. The rules adopted by the department must ensure that each person engaging in business in this state prior to [the applicability date of this section] is issued a seller's permit prior to [the applicability date of this section].
NEW SECTION. Section 40. Permit application -- requirements -- place of business -- form. (1) (a) A person desiring to engage in the business of making retail sales or providing services in Montana shall file with the department an application for a permit. If the person has more than one location in which the person maintains an office or other place of business, an application may include multiple locations.
(b) A vending machine operator who has more than one vending machine location is considered to have only one place of business for purposes of this section.
(c) An applicant who does not maintain an office or other place of business and who moves from place to place is considered to have only one place of business and shall attach the permit to the applicant's cart, stand, truck, or other merchandising device.
(2) Each person or class of persons obligated to file a return under [sections 1 through 62] is required to file an application for a permit.
(3) Each application for a permit must be on a form prescribed by the department and must set forth the name under which the applicant intends to transact business, the location of the applicant's place or places of business, and other information that the department may require. The application must be filed by the owner if the owner is a natural person, by a member or partner if the owner is an association or partnership, or by a person authorized to sign the application if the owner is a corporation.
NEW SECTION. Section 41. Revocation or suspension of permit -- hearing -- notice -- appeal. (1) Subject to the provisions of subsection (2), the department may, for reasonable cause, revoke or suspend any permit held by a person who fails to comply with the provisions of [sections 1 through 62].
(2) The department shall provide written notice and an opportunity for a hearing on a proposed revocation or suspension. The hearing must be conducted informally and is not subject to the Montana Administrative Procedure Act.
(3) If a permit is revoked, the department may not issue a new permit except upon application accompanied by reasonable evidence of the intention of the applicant to comply with the provisions of [sections 1 through 62]. The department may require security in addition to that authorized by [section 50] in an amount reasonably necessary to ensure compliance with [sections 1 through 62] as a condition for the issuance of a new permit to the applicant.
(4) A person aggrieved by the department's final decision to revoke a permit as provided in subsection (1) may appeal the decision to the state tax appeal board within 30 days following the date on which the department issued its final decision.
(5) A decision of the state tax appeal board may be appealed to the district court.
NEW SECTION. Section 42. Improper use of subject of purchase obtained with nontaxable transaction certificate -- penalty. (1) If a purchaser who uses a nontaxable transaction certificate uses the subject of the purchase for a purpose other than one allowed as nontaxable under [sections 1 through 62], the use is considered a taxable sale as of the time of first use by the purchaser and the sales price is the price that the purchaser paid. If the sole nonexempt use is rental while holding for sale, the purchaser shall include in the sales price the amount of the rental charged. Upon subsequent sale of the property, the seller shall include the entire amount of the sales price, without deduction of amounts previously received as rentals.
(2) A person who uses a certificate for property that will be used for purposes other than the purpose claimed is subject to a penalty, payable to the department, of $100 for each transaction in which an improper use of a certificate has occurred.
(3) Upon a showing of good cause, the department may abate or waive the penalty or a portion of the penalty.
NEW SECTION. Section 43. Commingling nontaxable certificate goods. If a purchaser uses a nontaxable transaction certificate with respect to the purchase of fungible goods and commingles these goods with fungible goods that were not purchased with a nontaxable transaction certificate but that are of such similarity that the identity of the goods in the commingled mass cannot be determined, sales from the mass of commingled goods are considered to be sales of the goods purchased with the certificate until the quantity of commingled goods sold equals the quantity of goods originally purchased under the certificate.
NEW SECTION. Section 44. Liability for payment of tax -- security for retailer without place of business -- penalty. (1) Liability for the payment of the sales tax and use tax is not extinguished until the taxes have been paid to the department.
(2) A retailer who does not maintain an office or other place of business in this state is liable for the sales tax or use tax in accordance with [sections 1 through 62] and may be required to furnish adequate security as provided in [section 50] to ensure collection and payment of the taxes. When authorized and except as otherwise provided in [sections 1 through 62], the retailer is liable for the taxes upon all property sold and services provided in this state in the same manner as a retailer who maintains an office or other place of business within this state. The seller's permit provided for in [section 39] may be canceled at any time if the department considers the security inadequate or believes that the taxes can be collected more effectively in another manner.
(3) An agent, canvasser, or employee of a retailer doing business in this state who does not possess a seller's permit issued by the department may not sell, solicit orders for, or deliver any property or services in Montana. If an agent, canvasser, or employee violates the provisions of [sections 1 through 62], the person is subject to a fine of not more than $100 for each separate transaction or event.
NEW SECTION. Section 45. Interstate and intrastate carriers as retailers. A person engaged in the business of intrastate or interstate transportation of property or passengers shall register as a retailer and pay the taxes imposed by [sections 1 through 62].
NEW SECTION. Section 46. Application for permission to report on accrual basis. (1) A person who has a seller's permit may apply to the department for permission to report and pay the sales tax or use tax on an accrual basis.
(2) The application must be made on a form, prescribed by the department, that contains information that the department may require.
(3) A person may not report or pay the sales tax or use tax on an accrual basis unless the person has received written permission from the department.
NEW SECTION. Section 47. Returns -- payment -- authority of department. (1) Except as provided in subsection (2), on or before the 15th day of each month in which the tax imposed by [sections 1 through 62] is payable, a return, on a form provided by the department, and payment of the tax for the preceding month must be filed with the department. Each person engaged in business in this state or using property in this state that is subject to tax under [sections 1 through 62] shall file a return. A person making retail sales at two or more places of business shall file a separate return for each separate place of business.
(2) A person who has a tax liability that averages less than $100 per month may report and pay the tax imposed by [sections 1 through 62] on a quarterly basis and shall file a return with payment on or before the 15th day of the month following the end of the quarter.
(3) (a) For the purposes of the sales tax or use tax, a return must be filed by:
(i) a retailer required to collect the tax; and
(ii) a person who:
(A) purchases any items the storage, use, or other consumption of which is subject to the sales tax or use tax; and
(B) has not paid the tax to a retailer required to pay the tax.
(b) Each return must be authenticated by the person filing the return or by the person's agent authorized in writing to file the return.
(4) (a) A person required to collect and pay to the department the taxes imposed by [sections 1 through 62] shall keep records, render statements, make returns, and comply with the provisions of [sections 1 through 62] and the rules prescribed by the department. Each return or statement must include the information required by the rules of the department.
(b) For the purpose of determining compliance with the provisions of [sections 1 through 62], the department is authorized to examine or cause to be examined any books, papers, records, or memoranda relevant to making a determination of the amount of tax due, whether the books, papers, records, or memoranda are the property of or in the possession of the person filing the return or another person. In determining compliance, the department may use statistical sampling and other sampling techniques consistent with generally accepted auditing standards. The department may also:
(i) require the attendance of a person having knowledge or information relevant to a return;
(ii) compel the production of books, papers, records, or memoranda by the person required to attend;
(iii) implement the provisions of 15-1-703 if the department determines that the collection of the tax is or may be jeopardized because of delay;
(iv) take testimony on matters material to the determination; and
(v) administer oaths or affirmations.
(5) Pursuant to rules established by the department, returns may be computer-generated and electronically filed.
NEW SECTION. Section 48. Credit for taxes paid on worthless accounts -- taxes paid if account collected. (1) Sales taxes paid on an accrual basis by a person filing a return under [section 47] on sales found to be worthless and actually deducted by the person as a bad debt for federal income tax purposes may be credited on a subsequent payment of the tax.
(2) If the accounts are subsequently collected, the sales tax must be paid on the amount collected.
NEW SECTION. Section 49. Vendor allowance. (1) A person filing a return under [section 47] may claim a monthly vendor allowance for each permitted location in the amount of 1.5% of the tax determined to be payable to the state or $50 a month, whichever is less.
(2) A person filing a quarterly return may claim 1.5% of the tax determined to be payable to the state or $150 a quarter, whichever is less.
(3) The allowance may be deducted on the return.
NEW SECTION. Section 50. Security -- limitations -- sale of security deposit at auction -- bond. (1) The department may require a retailer to deposit, with the department, security in a form and amount that the department determines is appropriate. The deposit may not be more than twice the estimated average liability for the period for which the return is required to be filed or $10,000, whichever is less. The amount of security may be increased or decreased by the department, subject to the limitations provided in this section.
(2) (a) If necessary, the department may sell, at public auction, property deposited as security to recover any sales tax or use tax amount required to be collected, including interest and penalties.
(b) Notice of the sale must be served personally upon or sent by certified mail to the person who deposited the security.
(c) After the sale, any surplus above the amount due that is not required as security under this section must be returned to the person who deposited the security.
(3) In lieu of security, the department may require a retailer to file a bond, issued by a surety company authorized to transact business in this state, to guarantee solvency and responsibility.
(4) In addition to the other requirements of this section, the department may require the corporate officers, directors, or shareholders of a corporation to provide a personal guaranty and assumption of liability for the payment of the tax due under [sections 1 through 62].
NEW SECTION. Section 51. Examination of return -- adjustments -- delivery of notices and demands. (1) If the department determines that the amount of tax due is different from the amount reported, the amount of tax computed on the basis of the examination conducted pursuant to [section 47] constitutes the tax to be paid.
(2) If the tax due exceeds the amount of tax reported as due on the taxpayer's return, the excess must be paid to the department within 30 days after notice of the amount and demand for payment is mailed or delivered to the person making the return unless the taxpayer files a timely objection as provided in 15-1-211. If the amount of the tax found due by the department is less than that reported as due on the return and has been paid, the excess must be credited or, if no tax liability exists or is likely to exist, refunded to the person making the return.
(3) The notice and demand provided for in this section must contain a statement of the computation of the tax and interest and must be:
(a) sent by mail to the taxpayer at the address given in the taxpayer's return, if any, or to the taxpayer's last-known address; or
(b) served personally upon the taxpayer.
(4) A taxpayer filing an objection to the demand for payment is subject to and governed by the uniform tax review procedure provided in 15-1-211.
NEW SECTION. Section 52. Penalties and interest for violation. (1) (a) If a person, without purposely or knowingly violating any requirement imposed by [sections 1 through 62], fails to file a return and pay the tax on or before the due date, there must be imposed a penalty of 5% of the balance of debt unpaid with respect to the return as of the date due, but the penalty for failure to file a return by its due date may not be less than $20. The department may abate the penalty if the person establishes that the failure to file on time was due to reasonable cause and was not due to neglect by the taxpayer.
(b) If a person, without purposely or knowingly violating any requirement imposed by [sections 1 through 62], fails to pay a debt on or before its due date, there must be added to the debt a penalty of 10% of the debt, but not less than $20, and interest must accrue on the debt at a rate of 1% for each month or fraction of a month for the entire period that the debt remains unpaid. The department may abate the penalty if the person establishes that the failure to pay was due to reasonable cause and was not due to neglect by the taxpayer. The department shall adopt rules that define reasonable cause.
(2) If a person purposely or knowingly violates any requirement imposed by [sections 1 through 62] by failing to file a return or to pay a debt, there must be added to the debt an additional amount equal to 25% of the debt, but not less than $50, and interest at 1% for each month or fraction of a month during which the debt remains unpaid.
NEW SECTION. Section 53. Authority to collect delinquent taxes. (1) (a) The department shall collect taxes that are delinquent as determined under [sections 1 through 62].
(b) If a tax imposed by [sections 1 through 62] or any portion of the tax is not paid when due, the department may issue a warrant for distraint as provided in Title 15, chapter 1, part 7.
(2) In addition to any other remedy, in order to collect delinquent taxes after the time for appeal has expired, the department may direct the offset of tax refunds or other funds due the taxpayer from the state, except wages subject to the provisions of 25-13-614 and retirement benefits.
(3) As provided in 15-1-705, the taxpayer has the right to a review of the tax liability prior to any offset by the department.
(4) The department may file a claim for state funds on behalf of the taxpayer if a claim is required before funds are available for offset.
NEW SECTION. Section 54. Interest on deficiency -- penalty. (1) Interest accrues on unpaid or delinquent taxes at the rate of 1% for each month or fraction of a month during which the taxes remain unpaid. The interest must be computed from the date the return and tax were originally due.
(2) If the payment of a tax deficiency is not made within 60 days after it is due and payable and if the deficiency is due to negligence on the part of the taxpayer but without fraud, there must be added to the amount of the deficiency a penalty of 10% of the tax, but in no case less than $25.
NEW SECTION. Section 55. Limitations. (1) Except in the case of a person who purposely or knowingly, as those terms are defined in 45-2-101, files a false or fraudulent return violating the provisions of [sections 1 through 62], a deficiency may not be assessed or collected with respect to a month or quarter for which a return is filed unless the notice of additional tax proposed to be assessed is mailed to or personally served upon the taxpayer within 5 years from the date the return was filed. For purposes of this section, a return filed before the last day prescribed for filing is considered to be filed on the last day.
(2) If, before the expiration of the 5-year period prescribed in subsection (1) for assessment of the tax, the taxpayer consents in writing to an assessment after expiration of the 5-year period, a deficiency may be assessed at any time prior to the expiration of the period consented to.
(3) The limitations prescribed for giving notice of a proposed assessment of additional tax under subsection (1) do not apply if:
(a) the taxpayer has by written agreement suspended the federal statute of limitations for collection of federal tax, provided that the suspension of the limitation set forth in this section lasts:
(i) only as long as the suspension of the federal statute of limitations; or
(ii) until 1 year after any changes in the person's federal tax have become final or any amended federal return is filed as a result of a suspension of the federal statute, whichever occurs later; or
(b) a taxpayer has failed to file a report of changes in federal taxable income or an amended return as required by 15-30-146 or 15-31-506 until 5 years after the federal changes become final or the amended federal return was filed, whichever the case may be.
NEW SECTION. Section 56. Refunds -- interest -- limitations. (1) A claim for a refund or credit as a result of overpayment of taxes collected under [sections 1 through 62] must be filed within 5 years of the date that the return was due, without regard to any extension of time for filing.
(2) (a) Interest on an overpayment must be paid or credited at the same rate as the rate charged on delinquent taxes in [section 52].
(b) Except as provided in subsection (2)(c), interest must be paid from the date that the return was due or the date of overpayment, whichever is later. Interest does not accrue during any period in which the processing of a claim is delayed more than 30 days because the taxpayer has not furnished necessary information.
(c) The department is not required to pay interest if:
(i) the overpayment is credited or refunded within 6 months of the date that a claim was filed; or
(ii) the amount of overpayment and interest does not exceed $1.
NEW SECTION. Section 57. Administration -- rules. The department shall:
(1) administer and enforce the provisions of [sections 1 through 62];
(2) cause to be prepared and distributed forms and information that may be necessary to administer the provisions of [sections 1 through 62]; and
(3) adopt rules that may be necessary or appropriate to administer and enforce the provisions of [sections 1 through 62].
NEW SECTION. Section 58. Revocation of corporate license -- hearing authorized -- appeal. (1) If a corporation authorized to do business in this state and required to pay the taxes imposed under [sections 1 through 62] fails to comply with any of the provisions of [sections 1 through 62] or any rule of the department, the department may, for reasonable cause, certify to the secretary of state a copy of an order finding that the corporation has failed to comply with specific statutory provisions or rules.
(2) The secretary of state shall, upon receipt of the certification, revoke the certificate authorizing the corporation to do business in this state and may issue a new certificate only when the corporation has obtained from the department an order finding that the corporation has complied with its obligations under [sections 1 through 62].
(3) An order authorized in this section may not be made until the corporation is given an opportunity to be heard before the department. A hearing conducted under this section is informal.
(4) A final decision of the department may be appealed to the state tax appeal board.
NEW SECTION. Section 59. Taxpayer quitting business -- liability of successor. (1) (a) All taxes payable under [sections 1 through 62] are due and payable immediately whenever a taxpayer quits business, sells, exchanges, or otherwise disposes of the business or disposes of the stock of goods.
(b) The taxpayer shall make a return and pay the taxes due within 10 days after the taxpayer quits business, sells, exchanges, or otherwise disposes of the business or disposes of the stock of goods.
(2) Except as provided in subsection (4), a person who becomes a successor is liable for the full amount of the tax and shall withhold from the sales price payable to the taxpayer a sum sufficient to pay any tax due until the taxpayer produces either a receipt from the department showing payment in full of any tax due or a statement from the department that tax is not due.
(3) If a tax is due but has not been paid as provided in subsection (1)(b), the successor is liable for the payment of the full amount of tax. The payment of the tax by the successor is considered to be a payment upon the sales price and, if the payment is greater in amount than the sales price, the amount of the difference becomes a debt due to the successor from the taxpayer owing the tax under subsection (1).
(4) (a) A successor is not liable for any tax due from the person from whom the successor acquired a business or stock of goods if:
(i) the successor gives written notice to the department of the acquisition; and
(ii) an assessment is not issued by the department against the former operator of the business within 6 months of receipt of the notice from the successor.
(b) If an assessment is issued by the department, a copy of the assessment must also be mailed to the successor, or if an assessment is not mailed to the successor, the successor is not liable for the tax due.
NEW SECTION. Section 60. Tax as debt. (1) The tax imposed by [sections 1 through 62] and related interest and penalties become a personal debt of the person required to file a return from the time the liability arises, regardless of when the time for payment of the liability occurs.
(2) The debt of the personal representative of the estate of a decedent or a fiduciary is limited to the person's official or fiduciary capacity. However, if the person has voluntarily distributed the assets held in that capacity without reserving sufficient assets to pay the taxes, interest, and penalties, the person is personally liable for any deficiency.
(3) (a) This section applies to those corporate officers, directors, or shareholders required by the department to personally guarantee the payment of the taxes for their corporations.
(b) In addition to the liability imposed by subsection (3)(a), the officer or employee of a corporation whose duty it is to collect, truthfully account for, and pay to the state the amounts imposed by [sections 1 through 62] and who fails to pay the tax is liable to the state for the amounts imposed by [sections 1 through 62] and the penalty and interest due on the amounts.
NEW SECTION. Section 61. Information -- confidentiality -- agreements with another state. (1) (a) Except as provided in subsections (2) and (3), it is unlawful for an employee of the department or any other public official or public employee to divulge or otherwise make known information that is disclosed in a report or return required to be filed under [sections 1 through 62] or information that concerns the affairs of the person making the return and that is acquired from the person's records, officers, or employees in an examination or audit.
(b) This section may not be construed to prohibit the department from publishing statistics if they are classified in a way that does not disclose the identity and content of any particular return or report. A person violating the provisions of this section is subject to the penalty provided in 15-30-303 for violating the confidentiality of individual income tax information.
(2) (a) The department may enter into an agreement with the taxing officials of another state for the interpretation and administration of the laws of their state that provide for the collection of a sales tax or use tax in order to promote fair and equitable administration of the laws and to eliminate double taxation.
(b) In order to implement the provisions of [sections 1 through 62], the department may furnish information on a reciprocal basis to the taxing officials of another state, provided that the information remains confidential under statutes in the state receiving the information that are similar to this section.
(3) In order to facilitate processing of returns and payment of taxes required by [sections 1 through 62], the department may contract with vendors and may disclose data to the vendors. The data disclosed must be administered by the vendor in a manner consistent with this section.
NEW SECTION. Section 62. Sales tax and use tax account. (1) There is within the state special revenue fund an account for sales tax and use tax money.
(2) All money collected under [sections 1 through 62] must be paid by the department into the account for sales tax and use tax money.
(3) (a) There must be retained in the account for sales tax and use tax money the amounts necessary under [sections 1 through 62] to repay overpayments, pay any erroneous receipts illegally assessed or collected or that are excessive in amount, and pay any other refunds otherwise required.
(b) There must be retained in the account for sales tax and use tax money the amounts necessary to pay the credits claimed under [section 66].
NEW SECTION. Section 63. Disposition of sales tax and use tax revenue -- statutory appropriation. (1) Sales tax and use tax revenue deposited in the account for sales tax and use tax money established in [section 62] must be allocated, after allowances for credits and refunds, on an annual basis, as follows:
(a) 65% or $215 million, whichever is less, to the state general fund for state aid for public schools;
(b) 35% or $115 million, whichever is less, as reimbursement for the loss of taxable valuation due to the statutory rate reduction applicable to business equipment, to be distributed to the counties for their subsequent allocation, proportionately, to the jurisdictions within each county; and
(c) the remainder, if any, to the state general fund for the primary purpose of funding the administration of the sales tax and use tax.
(2) The allocations provided for in subsection (1) must be made at least quarterly, in March, June, September, and December, but may be made more frequently at the discretion of the department of administration. At least 25% of the annual revenue must be allocated each quarter.
(3) The allocations provided for in this section are statutorily appropriated, as provided in 17-7-502.
NEW SECTION. Section 64. Sales tax and use tax on used vehicles -- distribution by county treasurer. (1)(a) A sales tax of 4% is imposed on the sale, measured by the sales price, as defined in [section 1], of all motor vehicles, except vehicles with a gross vehicle weight in excess of 46,000 pounds used exclusively in interstate commerce, that are not subject to the sales tax on new motor vehicles imposed under 61-3-502. The tax is imposed on the purchaser and must be paid at the time the motor vehicle is registered pursuant to 61-3-317.
(b) A use tax of 4% is imposed on the value of all used motor vehicles, except vehicles with a gross vehicle weight in excess of 46,000 pounds used exclusively in interstate commerce, that are:
(i) manufactured by the person using the motor vehicle in this state;
(ii) acquired outside this state as the result of a transaction that would have been subject to the sales tax had it occurred within this state;
(iii) acquired within the exterior boundaries of an Indian reservation within this state as a result of a transaction that would have been subject to the sales tax had it occurred outside of the exterior boundaries of an Indian reservation within this state; or
(iv) acquired as the result of a transaction that was not initially subject to the sales tax imposed by subsection (1)(a) or the use tax imposed by subsection (1)(b) but which transaction, because of the buyer's subsequent use of the property, is subject to the sales tax or use tax.
(2) For the purpose of imposing the use tax imposed by subsection (1)(b), the motor vehicle must be valued according to the provisions for assessment contained in 61-3-503.
(3) A used motor vehicle is not subject to any other assessment, fee in lieu of tax, or tax during the calendar year in which the original application for title is made.
(4) The county treasurer shall:
(a) immediately upon collection, credit 50% of the sales tax and use tax collected pursuant to 61-3-303(2)(b)(ii) to the motor vehicle suspense fund described in 61-3-509; and
(b) on or before the 25th day of each month, remit the remaining 50% to the state treasurer for deposit in the sales tax and use tax account established in [section 62].
NEW SECTION. Section 65. Credit for sales tax and use tax -- definitions. As used in [sections 65 through 69], the following definitions apply:
(1) "Claimant" means an individual natural person who is eligible under [section 66] to file a claim.
(2) "Gross household income" means federal adjusted gross income of each member of the household, without regard to losses of any kind, as that quantity is defined in the Internal Revenue Code, plus all nontaxable income of each member of the household. Gross household income includes but is not limited to the following:
(a) 100% of the gains on all sales;
(b) maintenance following a dissolution of marriage, child support, or any other type of maintenance payments;
(c) cash public assistance and relief, excluding the face value of all food stamps received;
(d) life insurance and endowment contracts;
(e) social security, except social security income paid directly to a nursing home, and the gross amount of any pension or annuity, including railroad retirement benefits and veterans' disability benefits;
(f) unemployment and workers' compensation benefits;
(g) all tax refunds; and
(h) any monetary benefits defined as income in the Internal Revenue Code or by this chapter.
(3) (a) "Household" means an association of individuals who live in the same dwelling and who share its furnishings, facilities, accommodations, and expenses.
(b) The term does not include bona fide lessees, tenants, or roomers and boarders on contract.
NEW SECTION. Section 66. Credit for sales tax and use tax. (1) Except as provided in subsection (2), there is allowed a credit, as provided in subsections (3) through (6), against tax liability for each resident or part-year resident who files an individual Montana income tax return under this chapter. The credit may be claimed even though the resident does not have taxable income under this chapter.
(2) A claim for the tax credit provided in this section may not be filed by a resident who:
(a) is confined in a public institution or another institution as a result of a criminal penalty or as a result of mental incapacity for more than 6 months during the tax year for which the tax credit is claimed; or
(b) is not physically present in Montana for at least 6 months during the tax year for which the tax credit is claimed.
(3) A credit may be claimed for each exemption allowed under 26 U.S.C. 151 for federal income tax purposes according to the following schedule:
GROSS HOUSEHOLD INCOME CREDIT PER EXEMPTION
$ 0 - 15,999 $90
16,000 - 17,999 80
18,000 - 20,999 50
21,000 - 22,999 30
23,000 or more 0
(4) If the amount of credit allowed in this section exceeds the claimant's tax liability under this chapter by $1 or more, the department shall refund the amount. If the excess is less than $1, the department may not make a refund.
(5) (a) For the tax year beginning January 1,[of the calendar year in which this section becomes effective], the amount of credit allowed under this section is equal to the amount determined under subsection (3), multiplied by the number of months during the tax year that the sales tax and use tax were in effect, and divided by 12.
(b) For tax years beginning after December 31,[of the calendar year preceding the year in which this section becomes effective] the amount of credit allowed under this section is equal to the full amount determined under subsection (3).
(6) The income levels contained in the table in subsection (3) must be adjusted for inflation annually by the department. By November of each year, the department shall multiply the gross household income amounts in the table in subsection (3) by the inflation factor as defined in subsection (7) for that tax year and round the cumulative amounts to the nearest $10. The resulting adjusted gross household income amounts are effective for that tax year and must be used as the basis for determining the credit allowed under [sections 65 through 69].
(7) As used in this section, the following definitions apply:
(a) "Consumer price index" means the consumer price index, United States city average, for all items, using the 1982-1984 base of 100 as published by the bureau of labor statistics of the U.S. department of labor.
(b) "Inflation factor" means a number determined for each tax year by dividing the consumer price index for June of the tax year by the consumer price index for June 1998.
NEW SECTION. Section 67. Credit for sales tax and use tax -- filing date -- extension. (1) Except as provided in subsection (2), a claim for a credit must be submitted at the same time that the claimant's individual income tax return is due. For a claimant not required to file a tax return, a claim must be submitted on or before April 15 of the year following the year for which the credit is claimed. The claimant shall provide the social security number for each exemption, except dependent children under 1 year of age, for which the credit is claimed.
(2) The department may grant a reasonable extension for filing a claim whenever in its judgment good cause exists. The department shall keep a record of each extension and the reason for granting the extension.
(3) If an individual who would have a claim under [sections 65 through 69] dies before filing the claim, the personal representative of the estate of the decedent may file the claim.
NEW SECTION. Section 68. Examination of credit claims -- adjustments -- delivery of notices and demands. (1) The department may examine a claim for a credit and may make an investigation of the records and accounts of a claimant if the department considers it necessary to determine the accuracy of the claim.
(2) If the department determines that the amount of the credit due is different from the amount reported, the amount of credit computed on the basis of the investigation conducted pursuant to subsection (1) constitutes the amount of credit due.
(3) If the credit due is less than the amount claimed as due by the claimant, the excess must be paid to the department within 60 days after notice and demand for payment is mailed to the claimant.
(4) The notice and demand provided for in this section must contain a statement of the computation of the credit and must be:
(a) sent to the claimant at the address given on the claim, if any, or to the claimant's last-known address; or
(b) served personally upon the claimant.
NEW SECTION. Section 69. Penalties for violation. (1) If a claimant, without purposely or knowingly, as those terms are defined in 45-2-101, violating the provisions of [section 66 or 67], receives a credit to which the claimant is not entitled, there must be added a penalty of 10% of the amount of excess, but the penalty may not be less than $20. Interest in the amount of 1% for each month or fraction of a month on the amount of excess must be added to the penalty until the debt is satisfied.
(2) If a claimant purposely or knowingly violates the provisions of [section 66 or 67], future claims for credits may be denied by the department.
Section 70. Section 7-1-2111, MCA, is amended to read:
"7-1-2111. Classification of counties. (1) For the purpose of regulating the compensation and salaries of all county officers, not otherwise provided for, and for fixing the penalties of officers' bonds, the counties of this state must be classified according to the taxable valuation of the property in the counties upon which the tax levy is made, except for vehicles subject to taxation under 61-3-504, as follows:
(a) first class--all counties having a taxable valuation of $50 $37 million or more;
(b) second class--all counties having a taxable valuation of $30 $22 million or more and less than $50 $37 million;
(c) third class--all counties having a taxable valuation of $20 $15 million or more and less than $30 $22 million;
(d) fourth class--all counties having a taxable valuation of $15 $11 million or more and less than $20 $15 million;
(e) fifth class--all counties having a taxable valuation of $10 $7 million or more and less than $15 $11 million;
(f) sixth class--all counties having a taxable valuation of $5 $4 million or more and less than $10 $7 million;
(g) seventh class--all counties having a taxable valuation of less than $5 $4 million.
(2) As used in this section, "taxable valuation" means the taxable value of taxable property in the county as of the time of determination plus:
(a) that portion of the taxable value of the county on December 31, 1981, attributable to automobiles and trucks having a rated capacity of three-quarters of a ton or less;
(b) that portion of the taxable value of the county on December 31, 1989, attributable to automobiles and trucks having a manufacturer's rated capacity of more than three-quarters of a ton but less than or equal to 1 ton;
(c) that portion of the taxable value of the county on December 31, 1997, attributable to buses, trucks having a manufacturer's rated capacity of more than 1 ton, and truck tractors;
(d) that portion of the taxable value of the county on December 31, 1997, attributable to trailers, pole trailers, and semitrailers with a declared weight of less than 26,000 pounds;
(e) the value provided by the department of revenue under 15-36-324(13); and
(f) 6% of the taxable value of the county on January 1 of each tax year; and
(g) the amount of revenue received during the prior fiscal year under [section 63(1)(b)]."
Section 71. Section 7-3-1321, MCA, is amended to read:
"7-3-1321. Authorization to incur indebtedness -- limitation. (1) The consolidated municipality may borrow money or issue bonds for any municipal purpose to the extent and in the manner provided by the constitution and laws of Montana for the borrowing of money or issuing of bonds by counties and cities and towns.
(2) The municipality may not become indebted in any manner or for any purpose to an amount, including existing
indebtedness, in the aggregate exceeding 28% 38% of the taxable value of the taxable property therein in the municipality,
as ascertained by the last assessment for state and county taxes prior to incurring such the indebtedness. All warrants,
bonds, or obligations in excess of such the amount given by or on behalf of the municipality shall be are void."
Section 72. Section 7-6-2211, MCA, is amended to read:
"7-6-2211. Authorization to conduct county business on a cash basis. (1) If the total indebtedness of a county,
lawful when incurred, exceeds the debt limit of 23% established in 7-7-2101 by reason of great diminution of taxable value,
the county may conduct its business affairs on a cash basis and pay the reasonable and necessary current expenses of the
county out of the cash in the county treasury derived from its current revenue and under the restrictions and regulations that
may be imposed by the board of county commissioners of the county by a resolution duly adopted and included in the
minutes of the board.
(2) This section does not restrict the right of the board to make the necessary tax levies for interest and sinking fund purposes, and this section does not affect the right of any creditor of the county to pursue any remedy now given by law to obtain payment of a claim.
(3) Subsection (1) does not apply to a county that has adopted the alternative accounting method provided for in Title 7, chapter 6, part 6."
Section 73. Section 7-6-2512, MCA, is amended to read:
"7-6-2512. County tax levy for health care facilities. (1) The board of county commissioners may, annually at the
time of levying county taxes, fix and levy a tax, not to exceed 10 14 mills on each dollar of taxable valuation of property,
upon all property within the county to erect, furnish, equip, expand, improve, maintain, and operate county-owned or
county-operated health care facilities created under 7-8-2102, 7-34-2201, and 7-34-2502. "Health care facilities", as used in
this section, has the meaning as defined in 7-34-2201. The combined total number of mills levied under this section and for
the county poor fund under 53-2-322 may not exceed 18 14 mills. A higher levy may be made upon compliance with
7-6-2531 through 7-6-2537 or 53-2-322. If a hospital district is created under Title 7, chapter 34, part 21, the mill levy
authorized by this section may not be imposed on property within that hospital district.
(2) If a county issues bonds under 7-34-2411 to finance or refinance the costs of a health care facility, the board of county commissioners may covenant to levy the tax authorized by this section during the term of the bonds, to the extent necessary, and to apply the collections of the tax to the costs of erecting, furnishing, equipping, expanding, improving, maintaining, and operating the health care facility or facilities of the county or the payment of principal of or interest on the bonds. The pledge of the taxes to the payment of the bonds may not cause the bonds to be considered indebtedness of the county for the purpose of any statutory limitation or restriction. The pledge may be made by the board only upon authorization of a majority of the electors of the county voting on the pledge at a general or special election as provided in 7-34-2414."
Section 74. Section 7-6-2514, MCA, is amended to read:
"7-6-2514. Tax limitation applicable. The property tax limitation contained in Title 15, chapter 10, part 4, applies to
the county public safety levy authorized in 7-6-2513. The limitation for the levy authorized in 7-6-2513 is determined by
the total tax levied for the county general fund. The first year that a county public safety tax is levied, the public safety levy
and the general fund levy may not exceed the prior year's county general fund levy. In subsequent years, any increases in the
public safety levy and the general fund levy are limited under Title 15, chapter 10, part 4 15-7-122."
Section 75. Section 7-6-2522, MCA, is amended to read:
"7-6-2522. All-purpose levy -- maximum. (1) The all-purpose levy is an annual levy upon the taxable value of all property in the county subject to taxation for county purposes in lieu of the levies specified in 7-6-2523. The all-purpose levy may not exceed the lesser of:
(a) 55 74 mills on the dollar; or
(b) the total number of mills levied in the prior year pursuant to the levies set forth in 7-6-2523 as certified by the department of revenue under 15-10-202.
(2) If the county governing body determines that the interests of the county would be served by an all-purpose levy, it shall specify its intent to impose the all-purpose levy in the resolution approving and adopting the annual budget."
Section 76. Section 7-6-4121, MCA, is amended to read:
"7-6-4121. Authorization to conduct municipal business on a cash basis. (1) If the total indebtedness of a city or
town has reached 17% 23% of the total taxable value of the property of the city or town subject to taxation, as ascertained
by the last assessment for state and county taxes, the city or town may conduct its affairs and business on a cash basis as
provided by subsection (2).
(2) (a) Whenever a city or town is conducting its business affairs on a cash basis, the reasonable and necessary current expenses of the city or town may be paid out of the cash in the city or town treasury and derived from its current revenue, under any restrictions and regulations as the city or town governing body may by ordinance prescribe.
(b) In the event that payment is made in advance, the city or town may require a cash deposit as collateral security and indemnity, equal in amount to the payment, and may hold the deposit as a special deposit with the city treasurer or town clerk, in package form, as a pledge for the fulfillment and performance of the contract or obligation for which the advance is made.
(c) Before the payment of the current expenses described in subsection (2)(a), the city or town council shall first set apart sufficient money to pay the interest upon its legal, valid, and outstanding bonded indebtedness and any sinking funds provided for and is authorized to pay all valid claims against funds raised by tax especially authorized by law for the purpose of paying the claims.
(3) This section does not apply to a city or town that has adopted the alternative accounting method provided for in Title 7, chapter 6, part 6."
Section 77. Section 7-6-4452, MCA, is amended to read:
"7-6-4452. Maximum all-purpose mill levy. Except as provided elsewhere, the cities and towns of the state of
Montana may make an all-purpose annual levy upon the taxable value of all the property in the cities and towns subject to
taxation for municipal purposes in lieu of the multiple levies now authorized by statute. The total of the all-purpose levy
may not exceed 65 88 mills on the dollar."
Section 78. Section 7-7-107, MCA, is amended to read:
"7-7-107. Limitation on amount of bonds for city-county consolidated units. (1) Except as provided in 7-7-108, no
a city-county consolidated local government may not issue bonds for any purpose which in an amount that, with all
outstanding indebtedness, may exceed 39% exceeds 53% of the taxable value of the property therein in the city-county
consolidated government that is subject to taxation, as ascertained by the last assessment for state and county taxes.
(2) The issuing issuance of bonds for the purpose of funding or refunding outstanding warrants or bonds is does not the
incurring of constitute a new or additional indebtedness but is merely the changing of changes the evidence of outstanding
indebtedness."
Section 79. Section 7-7-108, MCA, is amended to read:
"7-7-108. Authorization for additional indebtedness for water or sewer systems. (1) For the purpose of
constructing a sewer system or procuring a water supply or constructing or acquiring a water system for a city-county
consolidated government which shall own that owns and control such controls the water supply and water system and
devote devotes the revenues therefrom revenue from the system to the payment of the debt, a city-county consolidated
government may incur an additional indebtedness by borrowing money or issuing bonds.
(2) The additional indebtedness which that may be incurred by borrowing money or issuing bonds for the construction
of a sewer system or for the procurement of a water supply or for both such purposes may not in the aggregate exceed 10%
over and above the 39% bond limits referred to in 7-7-107 of the taxable value of the property therein in the city-county
consolidated government subject to taxation, as ascertained by the last assessment for state and county taxes."
Section 80. Section 7-7-2101, MCA, is amended to read:
"7-7-2101. Limitation on amount of county indebtedness. (1) A county may not become indebted in any manner or
for any purpose in an amount, including existing indebtedness, in the aggregate exceeding 23% 31% of the total of the
taxable value of the property in the county subject to taxation, plus the value provided by the department of revenue in
15-36-324(13), as ascertained by the last assessment for state and county taxes previous to the incurring of the
indebtedness, plus, for indebtedness to be incurred during fiscal year 1997, an additional 11% of the taxable value of class
eight property within the county for tax year 1995, for indebtedness to be incurred during fiscal year 1998, an additional
22% of the taxable value of class eight property within the county for tax year 1995, and for indebtedness to be incurred
during fiscal years 1999 through 2008, an additional 33% of the taxable value of class eight property within the county for
tax year 1995, in each case of class eight property, multiplied by 23%.
(2) A county may not incur indebtedness or liability for any single purpose to an amount exceeding $500,000 without the approval of a majority of the electors of the county voting at an election to be provided by law, except as provided in 7-7-2402, 7-21-3413, and 7-21-3414.
(3) This section does not apply to the acquisition of conservation easements as set forth in Title 76, chapter 6."
Section 81. Section 7-7-2203, MCA, is amended to read:
"7-7-2203. Limitation on amount of bonded indebtedness. (1) Except as provided in subsections (2) through (4), a
county may not issue general obligation bonds for any purpose that, with all outstanding bonds and warrants except
emergency bonds, will exceed 11.25% 15% of the total of the taxable value of the property in the county, plus the value
provided by the department of revenue under 15-36-324(13), to be ascertained by the last assessment for state and county
taxes prior to the proposed issuance of bonds, plus, for general obligation bonds to be issued during fiscal year 1997, an
additional 11% of the taxable value of class eight property within the county for tax year 1995, for general obligation bonds
to be issued during fiscal year 1998, an additional 22% of the taxable value of class eight property within the county for tax
year 1995, and for general obligation bonds to be issued during fiscal years 1999 through 2008, an additional 33% of the
taxable value of class eight property within the county for tax year 1995, in each case of class eight property, multiplied by
11.25%.
(2) In addition to the bonds allowed by subsection (1), a county may issue bonds that, with all outstanding bonds and
warrants, will not exceed 27.75% 37% of the total of the taxable value of the property in the county subject to taxation, plus
the value provided by the department of revenue under 15-36-324(13), when necessary to do so, to be ascertained by the
last assessment for state and county taxes, plus, for bonds to be issued during fiscal year 1997, an additional 11% of the
taxable value of class eight property within the county for tax year 1995, and for bonds to be issued during fiscal year 1998,
an additional 22% of the taxable value of class eight property within the county for tax year 1995.
(3) In addition to the bonds allowed by subsections (1) and (2), a county may issue bonds for the construction or
improvement of a jail that will not exceed 12.5% 17% of the taxable value of the property in the county subject to taxation,
plus the adjustments permitted by 7-7-2101.
(4) The limitation in subsection (1) does not apply to refunding bonds issued for the purpose of paying or retiring
county bonds lawfully issued prior to January 1, 1932, or to bonds issued for the repayment of tax protests lost by the
county."
Section 82. Section 7-7-4201, MCA, is amended to read:
"7-7-4201. Limitation on amount of bonded indebtedness. (1) Except as otherwise provided, a city or town may not
issue bonds or incur other indebtedness for any purpose in an amount that with all outstanding and unpaid indebtedness will
exceed 28% 38% of the taxable value of the property in the city or town subject to taxation, to be as ascertained by the last
assessment for state and county taxes, plus, for bonds to be issued or other indebtedness to be incurred during fiscal year
1997, an additional 11% of the taxable value of class eight property within the city or town for tax year 1995, for bonds to
be issued or other indebtedness to be incurred during fiscal year 1998, an additional 22% of the taxable value of class eight
property within the city or town for tax year 1995, and for bonds to be issued or other indebtedness to be incurred during
fiscal years 1999 through 2008, an additional 33% of the taxable value of class eight property within the city or town for
tax year 1995, in each case of class eight property, multiplied by 28%.
(2) The issuing issuance of bonds for the purpose of funding or refunding outstanding warrants or bonds is does not the
incurring of a constitute new or additional indebtedness but is merely the changing of changes the evidence of outstanding
indebtedness.
(3) The limitation in subsection (1) does not apply to bonds issued for the repayment of tax protests lost by the city or town."
Section 83. Section 7-7-4202, MCA, is amended to read:
"7-7-4202. Special provisions relating to water and sewer systems. (1) Notwithstanding the provisions of 7-7-4201, for the purpose of constructing a sewer system, procuring a water supply, or constructing or acquiring a water system for a city or town that owns and controls the water supply and water system and devotes the revenue from the water supply and water system to the payment of the debt, a city or town may incur an additional indebtedness by borrowing money or issuing bonds.
(2) The additional total indebtedness that may be incurred by borrowing money or issuing bonds for the construction of
a sewer system, for the procurement of a water supply, or for both of the purposes, including all indebtedness that is
contracted and that is unpaid or outstanding, may not in the aggregate exceed 55% over and above the 28%, debt limitation
referred to in 7-7-4201, of the taxable value of the property in the city or town subject to taxation to be ascertained by the
last assessment for state and county taxes, plus, for indebtedness to be incurred during fiscal year 1997, an additional 11%
of the taxable value of class eight property within the city or town for tax year 1995, for indebtedness to be incurred during
fiscal year 1998, an additional 22% of the taxable value of class eight property within the city or town for tax year 1995,
and for indebtedness to be incurred during fiscal years 1999 through 2008, an additional 33% of the taxable value of class
eight property within the city or town for tax year 1995, in each case of class eight property, multiplied by 55%."
Section 84. Section 7-13-4103, MCA, is amended to read:
"7-13-4103. Limitation on indebtedness for acquisition of natural gas system. The total amount of indebtedness
authorized to be contracted in any form, including the then-existing indebtedness, must may not at any time exceed 17%
23% of the total taxable value of the property of the city or town subject to taxation, as ascertained by the last assessment
for state and county taxes."
Section 85. Section 7-14-236, MCA, is amended to read:
"7-14-236. Limitation on bonded indebtedness. The amount of bonds issued to provide funds for the district and
outstanding at any time shall may not exceed 28% 38% of the taxable value of taxable property therein in the district
subject to taxation, as ascertained by the last assessment for state and county taxes previous to the issuance of such the
bonds."
Section 86. Section 7-14-2524, MCA, is amended to read:
"7-14-2524. Limitation on amount of bonds issued -- excess void. (1) Except as otherwise provided in 7-7-2203,
7-7-2204, and this section, a county may not issue bonds that, with all outstanding bonds and warrants except emergency
bonds, will exceed 11.25% 15% of the total of the taxable value of the property in the county, plus the value provided by
the department of revenue under 15-36-324(13). The taxable property and the amount of taxes levied on new production,
production from horizontally completed wells, and incremental production must be, as ascertained by the last assessment
for state and county taxes prior to the issuance of the bonds.
(2) A county may issue bonds that, with all outstanding bonds and warrants, will exceed 11.25% 15% but will not
exceed 22.5% 30% of the total of the taxable value of the property, plus the value provided by the department of revenue
under 15-36-324(13) in the county subject to taxation when necessary for the purpose of replacing, rebuilding, or repairing
county buildings, bridges, or highways that have been destroyed or damaged by an act of God or by a disaster, catastrophe,
or accident.
(3) The value of the bonds issued and all other outstanding indebtedness of the county may not exceed 22.5% 30% of
the total of the taxable value of the property within the county, plus the value provided by the department of revenue under
15-36-324(13), subject to taxation, as ascertained by the last preceding general assessment."
Section 87. Section 7-14-2525, MCA, is amended to read:
"7-14-2525. Refunding agreements and refunding bonds authorized. (1) Whenever the total indebtedness of a
county exceeds 22.5% 30% of the total of the taxable value of the property in within the county, plus the value provided by
the department of revenue under 15-36-324(13), subject to taxation and the board determines that the county is unable to
pay the indebtedness in full, the board may:
(a) negotiate with the bondholders for an agreement under which the bondholders agree to accept less than the full amount of the bonds and the accrued unpaid interest in satisfaction of the bonds;
(b) enter into the agreement;
(c) issue refunding bonds for the amount agreed upon.
(2) These bonds may be issued in more than one series, and each series may be either amortization or serial bonds.
(3) The plan agreed upon between the board and the bondholders must be embodied in full in the resolution providing for the issuance of the bonds."
Section 88. Section 7-14-4402, MCA, is amended to read:
"7-14-4402. Limit on indebtedness to provide bus service. The total amount of indebtedness authorized under
7-14-4401(1) to be contracted in any form, including the then-existing indebtedness, may not at any time exceed 28% 38%
of the total taxable value of the property of the city or town subject to taxation, as ascertained by the last assessment for
state and county taxes. No money Money may not be borrowed or bonds issued for the purposes specified in 7-14-4401(1)
until the proposition has been submitted to the vote of the taxpayers of the city or town and the a majority vote is cast in its
favor."
Section 89. Section 7-16-2327, MCA, is amended to read:
"7-16-2327. Indebtedness for park purposes. (1) Subject to the provisions of subsection (2), a county park board, in addition to powers and duties now given under law, may contract an indebtedness in behalf of a county, upon the credit of the county, in order to carry out its powers and duties.
(2) (a) The total amount of indebtedness authorized to be contracted in any form, including the then-existing
indebtedness, may not at any time exceed 13% 18% of the total of the taxable value of the taxable property in the county,
plus the value provided by the department of revenue under 15-36-324(13), subject to taxation, as ascertained by the last
assessment for state and county taxes previous to the incurring of the indebtedness.
(b) Money may not be borrowed on bonds issued for the purchase of lands and land or improving the land for any
purpose until the proposition has been submitted to the vote of those electors qualified under the provisions of the state
constitution to vote at the election in the affected county and a majority vote is cast in favor of the bonds."
Section 90. Section 7-16-4104, MCA, is amended to read:
"7-16-4104. Authorization for municipal indebtedness for various cultural, social, and recreational purposes. (1)
A city or town council or commission may contract an indebtedness on behalf of the city or town, upon the credit of the city
or town, by borrowing money or issuing bonds:
(a) for the purpose of purchasing and improving lands for public parks and grounds;
(b) for procuring by purchase, construction, or otherwise swimming pool facilities, athletic fields, skating rinks, playgrounds, museums, a golf course, a site and building for a civic center, a youth center, or a combination of these facilities; and
(c) for furnishing, equipping, repairing, or rehabilitating a swimming pool facility, athletic field, skating rink, playground, museum, golf course, civic center, or youth center.
(2) The total amount of indebtedness authorized to be contracted in any form, including the then-existing indebtedness,
may not at any time exceed 16.5% 22% of the taxable value of the taxable property of the city or town subject to taxation,
as ascertained by the last assessment for state and county taxes previous to the incurring of the indebtedness. Money may
not be borrowed for any purpose on bonds issued for the purchase of lands and land or improving the land until the
proposition has been submitted to the vote of the qualified electors of the city or town and a majority vote is cast in favor of
the proposition."
Section 91. Section 7-31-106, MCA, is amended to read:
"7-31-106. Authorization for county to issue bonds -- election required. (1) If the petition is presented to the board of county commissioners, the board shall, for the purpose of raising money to meet the payments under the terms and conditions of the contract and other necessary and proper expenses for the contract and for the approval or disapproval of the petition:
(a) ascertain, within 30 days after submission of the petition, the existing indebtedness of the county in the aggregate; and
(b) submit, after ascertaining the aggregate indebtedness, to the electors of the county the proposition to approve or disapprove the contract and the issuance of bonds necessary to carry out the contract. The election must be held in conjunction with a regular or primary election.
(2) The amount of the bonds authorized by this section may not exceed 22.5% 30% of the taxable value of the taxable
property in the county, inclusive of the existing indebtedness of the county, to be subject to taxation, as ascertained by the
last assessment for state and county taxes previous to the issuance of the bonds and incurring of the indebtedness."
Section 92. Section 7-31-107, MCA, is amended to read:
"7-31-107. Authorization for municipality to issue bonds -- election required. (1) If the petition is presented to the council of any incorporated city or town, the council, for the purpose of raising money to meet the payments under the terms and conditions of the contract and other necessary and proper expenses for the contract and for the approval or disapproval of the petition, shall:
(a) ascertain, within 30 days after submission of the petition, the aggregate indebtedness of the city or town; and
(b) submit, after ascertaining the aggregate indebtedness, to the electors of the city or town the proposition to approve or disapprove the contract and the issuance of bonds necessary to carry out the contract. The election must be held in conjunction with a regular or primary election.
(2) The amount of the bonds authorized by this section may not exceed 16.5% 22% of the taxable value of the taxable
property in the city or town, inclusive of the existing indebtedness of the city or town, to be subject to taxation, as
ascertained in the manner provided in this part."
Section 93. Section 7-34-2131, MCA, is amended to read:
"7-34-2131. Hospital district bonds and notes authorized. (1) (a) A hospital district may borrow money by the issuance of its bonds to provide funds for payment of part or all of the cost of acquisition, furnishing, equipment, improvement, extension, and betterment of hospital facilities and to provide an adequate working capital for a new hospital.
(b) The amount of bonds issued for such purpose under this subsection (1) and outstanding at any time may not exceed
22.5% 30% of the taxable value of the property therein in the district subject to taxation, as ascertained by the last
assessment for state and county taxes previous to the issuance of such the bonds.
(c) Such The bonds shall must be authorized, sold, and issued and provisions made for their payment in the manner and
subject to the conditions and limitations prescribed for bonds of school districts by Title 20, chapter 9, part 4.
(2) (a) A hospital district may borrow money by the issuance of notes to provide funds to finance the costs described in subsection (1) and to finance the working capital requirements of the district. The notes must be authorized and in a form and terms prescribed by a resolution adopted by the board of trustees. The notes must mature over a term not to exceed 15 years.
(b) The principal and interest on the notes must be paid from the taxes levied pursuant to 7-34-2133 and 7-34-2134, exclusive of the taxes levied to pay bonds issued in accordance with subsection (1), and all other revenue of the district. The annual amount of principal and interest payable on notes in any fiscal year must be included in the district's budget for that year.
(c) The notes may be secured by a mortgage of or a security interest in all or part of the district's assets and by a pledge of the taxes and revenue of the district, or either of them.
(d) Notes may not be issued unless the projected annual revenue of the district, including the taxes levied pursuant to 7-34-2133 and 7-34-2134 but exclusive of the taxes levied to pay bonds, is at least equal to the sum of the cost of operating and maintaining the hospital district plus the maximum amount of principal and interest due in any future fiscal year on the notes proposed to be issued and all notes outstanding upon the issuance of the proposed notes.
(3) Nothing herein shall The provisions of this part may not be construed to preclude the provisions of Title 50, chapter
6, part 1, allowing the state to apply for and accept federal funds."
Section 94. Section 7-34-2133, MCA, is amended to read:
"7-34-2133. Levy of district taxes -- limit on mill levy. (1) The board of county commissioners must shall, annually at
the time of levying county taxes, fix and levy a tax (in mills) upon all property within said the hospital district clearly
sufficient to raise the amount certified by the board of hospital trustees under 7-34-2132.
(2) The tax so levied Except as provided in 7-34-2134, the levy for all hospital district purposes other than payment of
bonded indebtedness shall may not in any year exceed 3 4 mills on each dollar of taxable valuation of property within said
the district subject to taxation."
Section 95. Section 7-34-2134, MCA, is amended to read:
"7-34-2134. Special additional mill levy authorized. If the maximum levy of 3 mills on each dollar of taxable
valuation of property within the hospital district authorized in 7-34-2133 is levied but is inadequate to raise the amount of
money certified as necessary and proper by the board of hospital trustees as provided in 7-34-2132, the board of county
commissioners may make an additional levy for 2 years upon the taxable property within said the hospital district sufficient
to raise the amount certified by the board of hospital trustees."
Section 96. Section 15-1-101, MCA, is amended to read:
"15-1-101. Definitions. (1) Except as otherwise specifically provided, when terms mentioned in this section are used in connection with taxation, they are defined in the following manner:
(a) The term "agricultural" refers to:
(i) the production of food, feed, and fiber commodities, livestock and poultry, bees, fruits and vegetables, and sod, ornamental, nursery, and horticultural crops that are raised, grown, or produced for commercial purposes; and
(ii) the raising of domestic animals and wildlife in domestication or a captive environment.
(b) The term "assessed value" means the value of property as defined in 15-8-111.
(c) The term "average wholesale value" means the value to a dealer prior to reconditioning and the profit margin shown in national appraisal guides and manuals or the valuation schedules of the department.
(d) (i) The term "commercial", when used to describe property, means property used or owned by a business, a trade, or a corporation, as defined in 35-2-114, or used for the production of income, except property described in subsection (1)(d)(ii).
(ii) The following types of property are not commercial:
(A) agricultural lands;
(B) timberlands and forest lands;
(C) single-family residences and ancillary improvements and improvements necessary to the function of a bona fide farm, ranch, or stock operation;
(D) mobile homes and manufactured homes used exclusively as a residence except when held by a distributor or dealer as stock in trade; and
(E) all property described in 15-6-135; and
(F) all property described in 15-6-136.
(e) (i) The term "comparable property" means property that:
(i)(A) has similar use, function, and utility;
(ii)(B) is influenced by the same set of economic trends and physical, governmental, and social factors; and
(iii)(C) has the potential of a similar highest and best use.
(ii) Property assessed as commercial property is comparable only to other property assessed as commercial property, and property assessed as other than commercial property is comparable only to property assessed as other than commercial property.
(f) The term "credit" means solvent debts, secured or unsecured, owing to a person.
(g) (i) "Department", except as provided in subsection (1)(g)(ii), means the department of revenue provided for in 2-15-1301.
(ii) In chapters 70 and 71, department means the department of transportation provided for in 2-15-2501.
(h) The terms "gas" and "natural gas" are synonymous and mean gas as defined in 82-1-111(2). The terms include all natural gases and all other fluid hydrocarbons, including methane gas or any other natural gas found in any coal formation.
(i) (i) The term "improvements" includes all buildings, structures, fences, and improvements situated upon, erected upon, or affixed to land.
(ii) When the department determines that the permanency of location of a mobile home, manufactured home, or housetrailer has been established, the mobile home, manufactured home, or housetrailer is presumed to be an improvement to real property. A mobile home, manufactured home, or housetrailer may be determined to be permanently located only when it is attached to a foundation that cannot feasibly be relocated and only when the wheels are removed.
(j) The term "leasehold improvements" means improvements to mobile homes and mobile homes located on land owned by another person. This property is assessed under the appropriate classification, and the taxes are due and payable in two payments as provided in 15-24-202. Delinquent taxes on leasehold improvements are a lien only on the leasehold improvements.
(k) The term "livestock" means cattle, sheep, swine, goats, horses, mules, asses, llamas, alpacas, bison, ostriches, rheas, emus, and domestic ungulates.
(l) The term "manufactured home" means a residential dwelling built in a factory in accordance with the United States department of housing and urban development code and the federal Manufactured Home Construction and Safety Standards. A manufactured home does not include a mobile home, as defined in 61-1-501 and in subsection (1)(m) of this section, a housetrailer, as defined in 61-1-501, or a mobile home or housetrailer constructed before the federal Manufactured Home Construction and Safety Standards went into effect on June 15, 1976.
(m) The term "mobile home" means forms of housing known as "trailers", "housetrailers", or "trailer coaches" exceeding 8 feet in width or 45 feet in length, designed to be moved from one place to another by an independent power connected to them, or any trailer, housetrailer, or trailer coach up to 8 feet in width or 45 feet in length used as a principal residence.
(n) The term "personal property" includes everything that is the subject of ownership but that is not included within the meaning of the terms "real estate" and "improvements".
(o) The term "poultry" includes all chickens, turkeys, geese, ducks, and other birds raised in domestication to produce food or feathers.
(p) The term "property" includes money, credits, bonds, stocks, franchises, and all other matters and things, real, personal, and mixed, capable of private ownership. This definition may not be construed to authorize the taxation of the stocks of a company or corporation when the property of the company or corporation represented by the stocks is within the state and has been taxed.
(q) The term "real estate" includes:
(i) the possession of, claim to, ownership of, or right to the possession of land;
(ii) all mines, minerals, and quarries in and under the land subject to the provisions of 15-23-501 and Title 15, chapter 23, part 8;
(iii) all timber belonging to individuals or corporations growing or being on the lands of the United States; and
(iv) all rights and privileges appertaining to mines, minerals, quarries, and timber.
(r) "Recreational" means hunting, fishing, swimming, boating, waterskiing, camping, biking, hiking, and winter sports, including but not limited to skiing, skating, and snowmobiling.
(s) "Research and development firm" means an entity incorporated under the laws of this state or a foreign corporation authorized to do business in this state whose principal purpose is to engage in theoretical analysis, exploration, and experimentation and the extension of investigative findings and theories of a scientific and technical nature into practical application for experimental and demonstration purposes, including the experimental production and testing of models, devices, equipment, materials, and processes.
(t) The term "stock in trade" means any mobile home, manufactured home, or housetrailer that is listed by the dealer as inventory and that is offered for sale, is unoccupied, and is not located on a permanent foundation. Inventory does not have to be located at the business location of a dealer or a distributor.
(u) The term "taxable value" means the percentage of market or assessed value as provided for in Title 15, chapter 6, part 1.
(2) The phrase "municipal corporation" or "municipality" or "taxing unit" includes a county, city, incorporated town, township, school district, irrigation district, or drainage district or a person, persons, or organized body authorized by law to establish tax levies for the purpose of raising public revenue.
(3) The term "state board" or "board" when used without other qualification means the state tax appeal board."
Section 97. Section 15-6-134, MCA, is amended to read:
"15-6-134. Class four property -- description -- taxable percentage. (1) Class four property includes:
(a) all land, except that specifically included in another class or specifically exempt from property taxation;
(b) all improvements, including trailers, manufactured homes, or mobile homes used as a residence, except those specifically included in another class or specifically exempt from property taxation;
(c) the first $100,000 or less of the market value of any improvement on real property, including trailers, manufactured
homes, or mobile homes, and appurtenant land not exceeding 5 acres owned or under contract for deed and actually
occupied for at least 7 months a year as the primary residential dwelling of any person whose total income from all sources,
including net business income and otherwise tax-exempt income of all types but not including social security income paid
directly to a nursing home, is not more than $15,000 for a single person or $20,000 for a married couple or a head of
household, as adjusted according to subsection (2)(b)(ii). For the purposes of this subsection (1)(c), net business income is
gross income less ordinary operating expenses but before deducting depreciation or depletion allowance, or both.
(d)(c) all golf courses, including land and improvements actually and necessarily used for that purpose, that consist of at
least nine holes and not less than 3,000 lineal yards; and
(e)(d) all improvements on land that is eligible for valuation, assessment, and taxation as agricultural land under
15-7-202, including 1 acre of real property beneath improvements on land described in 15-6-133(1)(c). The 1 acre must be
valued at market value.
(2) Class four property is taxed as follows:
(a) (i) Except as provided in 15-24-1402 or 15-24-1501 and subsection (2)(a)(ii) of this section, property described in
subsections (1)(a), (1)(b), and (1)(e) (1)(d) of this section is taxed at 3.86% of its market value.
(ii) The taxable percentage rate in subsection (2)(a)(i) must be adjusted downward by subtracting 0.022 percentage points each year until the tax rate is equal to or less than 2.78%.
(b) (i) Property qualifying under the property tax assistance program in subsection (1)(c) is taxed at the rate provided in
subsection (2)(a)(ii) of its market value multiplied by a percentage figure based on income and determined from the
following table:
Income Income Percentage
Single Person Married Couple Multiplier
Head of Household
$0 - $ 6,000 $0 -$ 8,000 20%
6,001 - 9,200 8,001 - 14,000 50%
9,201 - 15,000 14,001 - 20,000 70%
(ii) The income levels contained in the table in subsection (2)(b)(i) must be adjusted for inflation annually by the
department of revenue. The adjustment to the income levels is determined by:
(A) multiplying the appropriate dollar amount from the table in subsection (2)(b)(i) by the ratio of the PCE for the
second quarter of the year prior to the year of application to the PCE for the second quarter of 1995; and
(B) rounding the product thus obtained to the nearest whole dollar amount.
(iii) "PCE" means the implicit price deflator for personal consumption expenditures as published quarterly in the Survey
of Current Business by the bureau of economic analysis of the U.S. department of commerce.
(c)(b) Property described in subsection (1)(d) (1)(c) is taxed at one-half the taxable percentage rate established in
subsection (2)(a)(i).
(3) Within the meaning of comparable property, as defined in 15-1-101, property assessed as commercial property is comparable only to other property assessed as commercial property and property assessed as other than commercial property is comparable only to other property assessed as other than commercial property."
Section 98. Section 15-6-138, MCA, is amended to read:
"15-6-138. Class eight property -- description -- taxable percentage. (1) Class eight property includes:
(a) all agricultural implements and equipment;
(b) all mining machinery, fixtures, equipment, tools that are not exempt under 15-6-201(1)(r), and supplies except those included in class five;
(c) all manufacturing machinery, fixtures, equipment, tools that are not exempt under 15-6-201(1)(r), and supplies except those included in class five;
(d) all goods and equipment that are intended for rent or lease, except goods and equipment that are specifically included and taxed in another class;
(e) special mobile equipment as defined in 61-1-104;
(f) furniture, fixtures, and equipment, except that specifically included in another class, used in commercial establishments as defined in this section;
(g) x-ray and medical and dental equipment;
(h) citizens' band radios and mobile telephones;
(i) radio and television broadcasting and transmitting equipment;
(j) cable television systems;
(k) coal and ore haulers;
(l) theater projectors and sound equipment; and
(m) all other property that is not included in any other class in this part, except that property that is subject to a fee in lieu of a property tax.
(2) As used in this section, "coal and ore haulers" means nonhighway vehicles that exceed 18,000 pounds per axle and that are primarily designed and used to transport coal, ore, or other earthen material in a mining or quarrying environment.
(3) "Commercial establishment" includes any hotel; motel; office; petroleum marketing station; or service, wholesale, retail, or food-handling business.
(4) Class eight property is taxed at:
(a) 7% of its market value for tax year 1997; and
(b) 6% 3% of its market value for tax years beginning after December 31, 1997 1999."
Section 99. Section 15-6-201, MCA, is amended to read:
"15-6-201. Exempt categories. (1) The following categories of property are exempt from taxation:
(a) except as provided in 15-24-1203, the property of:
(i) the United States, except:
(A) if congress passes legislation that allows the state to tax property owned by the federal government or an agency created by congress; or
(B) as provided in 15-24-1103;
(ii) the state, counties, cities, towns, and school districts;
(iii) irrigation districts organized under the laws of Montana and not operating for profit;
(iv) municipal corporations;
(v) public libraries; and
(vi) rural fire districts and other entities providing fire protection under Title 7, chapter 33;
(b) buildings, with land that they occupy and furnishings in the buildings, that are owned by a church and used for actual religious worship or for residences of the clergy, together with adjacent land reasonably necessary for convenient use of the buildings;
(c) property used exclusively for agricultural and horticultural societies, for educational purposes, and for nonprofit health care facilities, as defined in 50-5-101, licensed by the department of public health and human services and organized under Title 35, chapter 2 or 3. A health care facility that is not licensed by the department of public health and human services and organized under Title 35, chapter 2 or 3, is not exempt.
(d) property that is:
(i) owned and held by an association or corporation organized under Title 35, chapter 2, 3, 20, or 21;
(ii) devoted exclusively to use in connection with a cemetery or cemeteries for which a permanent care and improvement fund has been established as provided for in Title 35, chapter 20, part 3; and
(iii) not maintained and operated for private or corporate profit;
(e) property that is owned or property that is leased from a federal, state, or local governmental entity by institutions of purely public charity if the property is directly used for purely public charitable purposes;
(f) evidence of debt secured by mortgages of record upon real or personal property in the state of Montana;
(g) public museums, art galleries, zoos, and observatories that are not used or held for private or corporate profit;
(h) all household goods and furniture, including but not limited to clocks, musical instruments, sewing machines, and wearing apparel of members of the family, used by the owner for personal and domestic purposes or for furnishing or equipping the family residence;
(i) truck canopy covers or toppers and campers;
(j) a bicycle, as defined in 61-1-123, used by the owner for personal transportation purposes;
(k) motor homes;
(l) all watercraft;
(m) motor vehicles, land, fixtures, buildings, and improvements owned by a cooperative association or nonprofit corporation organized to furnish potable water to its members or customers for uses other than the irrigation of agricultural land;
(n) the right of entry that is a property right reserved in land or received by mesne conveyance (exclusive of leasehold interests), devise, or succession to enter land with a surface title that is held by another to explore, prospect, or dig for oil, gas, coal, or minerals;
(o) (i) property that is owned and used by a corporation or association organized and operated exclusively for the care of persons with developmental disabilities, persons with mental illness, or persons with physical or mental impairments that constitute or result in substantial impediments to employment and that is not operated for gain or profit; and
(ii) property that is owned and used by an organization owning and operating facilities that are for the care of the retired, aged, or chronically ill and that are not operated for gain or profit;
(p) all farm buildings with a market value of less than $500 and all agricultural implements and machinery with a market value of less than $100;
(q) property owned by a nonprofit corporation that is organized to provide facilities primarily for training and practice for or competition in international sports and athletic events and that is not held or used for private or corporate gain or profit. For purposes of this subsection (1)(q), "nonprofit corporation" means an organization that is exempt from taxation under section 501(c) of the Internal Revenue Code and incorporated and admitted under the Montana Nonprofit Corporation Act.
(r) the first $15,000 or less of market value of tools owned by the taxpayer that are customarily hand-held and that are used to:
(i) construct, repair, and maintain improvements to real property; or
(ii) repair and maintain machinery, equipment, appliances, or other personal property;
(s) harness, saddlery, and other tack equipment;
(t) a title plant owned by a title insurer or a title insurance producer, as those terms are defined in 33-25-105;
(u) timber as defined in 15-44-102;
(v) all trailers as defined in 61-1-111, semitrailers as defined in 61-1-112, pole trailers as defined in 61-1-114, and travel trailers as defined in 61-1-131;
(w) all vehicles registered under 61-3-456;
(x) (i) buses, trucks having a manufacturer's rated capacity of more than 1 ton, and truck tractors, including buses, trucks, and truck tractors apportioned under Title 61, chapter 3, part 7; and
(ii) personal property that is attached to a bus, truck, or truck tractor that is exempt under subsection (1)(x)(i); and
(y) motorcycles and quadricycles.
(2) (a) For the purposes of subsection (1)(e), the term "institutions of purely public charity" includes any organization that meets the following requirements:
(i) The organization qualifies as a tax-exempt organization under the provisions of section 501(c)(3), Internal Revenue Code, as amended.
(ii) The organization accomplishes its activities through absolute gratuity or grants. However, the organization may solicit or raise funds by the sale of merchandise, memberships, or tickets to public performances or entertainment or by other similar types of fundraising activities.
(b) For the purposes of subsection (1)(g), the term "public museums, art galleries, zoos, and observatories" means governmental entities or nonprofit organizations whose principal purpose is to hold property for public display or for use as a museum, art gallery, zoo, or observatory. The exempt property includes all real and personal property reasonably necessary for use in connection with the public display or observatory use. Unless the property is leased for a profit to a governmental entity or nonprofit organization by an individual or for-profit organization, real and personal property owned by other persons is exempt if it is:
(i) actually used by the governmental entity or nonprofit organization as a part of its public display;
(ii) held for future display; or
(iii) used to house or store a public display.
(3) The following portions of the appraised value of a capital investment in a recognized nonfossil form of energy generation or low emission wood or biomass combustion devices, as defined in 15-32-102, are exempt from taxation for a period of 10 years following installation of the property:
(a) $20,000 in the case of a single-family residential dwelling;
(b) $100,000 in the case of a multifamily residential dwelling or a nonresidential structure.
(4)(a) A residence that is occupied by the owner for at least 7 months during the tax year is exempt from taxation under 15-6-134.
(b) For the purposes of this subsection (4), a residence means any improvement on real property, including trailers, manufactured homes, or mobile homes, and appurtenant land not exceeding 5 acres owned or under contract for deed and actually occupied for at least 7 months a year as the primary residential dwelling of any person."
Section 100. Section 15-6-207, MCA, is amended to read:
"15-6-207. Agricultural exemptions. (1) The following agricultural products are exempt from taxation:
(a)(1) all unprocessed agricultural products on the farm or in storage and owned by the producer;
(b)(2) all producer-held grain in storage;
(c)(3) all unprocessed agricultural products, except livestock;
(d)(4) except as provided in subsection (1)(e), livestock that have not attained the age of 24 months as of February 1 or
as of the last day of any month of the prior tax year if assessed on the average inventory basis as provided in 15-24-902(2);
(e)(5) swine that have not attained the age of 6 months as of January 1;
(f)(6) poultry and the unprocessed products of poultry; and
(g)(7) bees and the unprocessed product of bees.
(2) Any beet digger, beet topper, beet defoliator, beet thinner, beet cultivator, beet planter, or beet top saver designed
exclusively to plant, cultivate, and harvest sugar beets is exempt from taxation if the implement has not been used to plant,
cultivate, or harvest sugar beets for the 2 years immediately preceding the current assessment date and there are no
available sugar beet contracts in the sugar beet grower's marketing area."
Section 101. Section 15-7-122, MCA, is amended to read:
"15-7-122. Temporary authority to exceed mill levy limitations Budget limitation. Taxing Unless otherwise
provided by law, taxing jurisdictions may not adopt and levy for a budget equal to 105% that exceeds 102% of the
preceding year's budget, statutory mill levy limitations provisions notwithstanding, unless the taxable valuation therein has
increased to a level which would allow statutory mill levies to produce a budget equal to 105% of the preceding year's
budget."
Section 102. Section 15-16-202, MCA, is amended to read:
"15-16-202. Boats, snowmobiles, and motor vehicles -- payment of current and back taxes and fees. (1) The fee in lieu of personal property taxes assessed against a boat for the year in which application for decals is made and the immediately previous year must be paid before license decals may be issued pursuant to 23-2-515.
(2) The fee in lieu of tax imposed on a snowmobile for the year in which application for registration is made and the immediately previous year must be paid before a snowmobile may be registered pursuant to 23-2-616.
(3) Except for mobile homes and manufactured homes as defined in 15-1-101, the new motor vehicle sales tax imposed
in 61-3-502 or [section 64] and the motor vehicle tax or fee in lieu of tax imposed or assessed against a motor vehicle for
the current year and the immediately previous year must be paid before a motor vehicle may be registered or reregistered
pursuant to 61-3-303.
(4) The provisions of subsections (1) through (3) do not require payment of the immediately previous year's taxes or fees if the taxes or fees have already been paid."
Section 103. Section 15-16-603, MCA, is amended to read:
"15-16-603. Refund of taxes -- limitations on refunds. (1) Subject to the provisions in subsections (2) and (3), a board of county commissioners shall order a refund:
(a) on a tax, penalty, interest, or cost paid more than once or erroneously or illegally collected if an appeal pursuant to 15-1-402 was not available;
(b) on a tax paid for which a refund is allowed under 15-16-612 or 15-16-613;
(c) on a tax, penalty, or interest collected as a result of an error in the description or location of real property or improvements or for duplicate taxes paid as determined by the department of revenue;
(d) on net or gross proceeds tax, centrally assessed property tax, or local government severance tax, penalty, or interest when the department of revenue notifies the board of county commissioners of an assessment revision completed pursuant to 15-8-601; or
(e) upon entry of a decision either by the district court or by the state tax appeal board under 15-2-306 that has not been appealed to a higher court.
(2) The taxpayer shall prove that a refund is due under subsection (1)(a) or (1)(b).
(3) (a) A refund may not be granted under subsection (1)(a) or (1)(b) unless the taxpayer or a representative of the taxpayer files a written claim with the board of county commissioners within 10 years after the date when the second half of the taxes would have become delinquent if the taxes had not been paid.
(b) The refund required under subsection (1)(c) must be made for 5 tax years or for the duration of the error, whichever period is shorter.
(c) A refund may not be made under subsection (1)(c) unless the taxpayer allowed the department of revenue access to the taxpayer's property for the purposes of appraising the property."
Section 104. Section 15-24-303, MCA, is amended to read:
"15-24-303. Proration of tax on personal property -- refund. (1) The tax on personal property brought, driven,
coming into, or otherwise located in the state on or after the assessment date must be prorated according to the ratio that the
remaining number of months in the year bears to the total number of months in the year. This section does not apply to
motor vehicles taxed under Title 61, chapter 3, part 5, or to livestock assessed under 15-24-902(2).
(2) If property upon which taxes have been paid is removed from the state, the taxpayer may obtain a refund of a prorated portion of the taxes, subject to the requirements of 15-16-613."
Section 105. Section 15-24-902, MCA, is amended to read:
"15-24-902. Assessment of livestock -- election for assessment on average inventory basis. (1) Except as provided
in subsection (2), the The department of revenue shall assess all nonexempt livestock for the purposes of the per capita levy
imposed under this part in each county where they are located on February 1 of each year. The livestock must be assessed
to the person by whom they were owned or claimed or in whose possession or control they were at midnight of February 1
in that year.
(2) An owner of livestock may elect to have nonexempt livestock assessed on the average inventory basis as provided in
15-24-927. The owner shall file an election with the department on the statement required under 15-24-903. An owner of
livestock making an election to have nonexempt livestock assessed on the average inventory basis is bound by that election
for 6 years. After 6 years, the election to have nonexempt livestock assessed on the average inventory basis remains in
effect unless the owner otherwise notifies the department before February 1."
Section 106. Section 15-24-903, MCA, is amended to read:
"15-24-903. Duty of owner to assist in assessment. (1) (a) Except as provided in subsection (1)(b), the The owner of
livestock, as defined in 15-24-901 15-24-921, or the owner's agent shall at the time of assessment make and deliver to the
department of revenue for the county or counties where the owner's livestock were located on February 1 a written
statement, under oath, listing the owner's different kinds of livestock within the county or counties, together with a listing
of their marks and brands.
(b) If the owner of livestock is assessed on the average inventory basis, as provided in 15-24-927, the owner or the
owner's agent shall, in the manner and timeframe provided in subsection (1)(a), report to the department the county or
counties where the livestock were located in the prior tax year and show the months during the prior tax year that the
livestock were within the county or counties.
(2) As used in this section, "agent" means any person, persons, company, or corporation, including a feedlot operator or owner of grazing land, who has charge of livestock on the assessment date."
Section 107. Section 15-24-904, MCA, is amended to read:
"15-24-904. Penalty for violation of law. If any person, persons, company, or corporation who is the owner or is in
charge of any livestock within this state fails to make the statement or statements as provided in 15-24-903, the department
may, after 10 days' notice to the person who failed to file the report, increase in addition to the assessment per capita levy,
as provided in 15-24-922, by add 10% of the levy amount as a penalty."
Section 108. Section 15-24-921, MCA, is amended to read:
"15-24-921. Per capita tax levy to pay expenses of enforcing livestock laws. (1) In addition to appropriations made
for those purposes, a per capita tax levy is authorized and directed to be levied by the department on all poultry and bees,
all swine 3 months of age or older, and all other livestock 9 months of age or older in each county of this state for the
purpose of aiding in the payment of the salaries and all expenses connected with the enforcement of the livestock laws of
the state and for the payment of bounties on wild animals as provided in 81-7-104.
(2) As used in this section, "livestock" means cattle, sheep, swine, poultry, bees, goats, horses, mules, asses, llamas, alpacas, domestic bison, ostriches, rheas, and emus, and domestic ungulates."
Section 109. Section 15-24-922, MCA, is amended to read:
"15-24-922. Board of livestock to prescribe per capita levy -- refunds -- per capita levy on average inventory. (1)
The board of livestock shall annually prescribe the amount of the per capita levy to be made against livestock of all classes
for the purpose indicated in 15-24-921.
(2) The per capita tax levy must be calculated each year to provide not more than 110% of the average annual revenue that was generated in the 3 previous years. The calculation must apply a reasonable factor for nonpayment and late payment of taxes and for reimbursement to the counties pursuant to 15-24-925 for collection of the levy.
(3) (a) A livestock owner taxed under 15-24-920 is entitled to a refund of the per capita levy collected under 15-24-921
based on the number of months the livestock have taxable situs in the state. The amount of the refund is equal to the ratio
of the number of months that the livestock do not have taxable situs in the state to the number of months in the tax year,
multiplied by the original per capita levy due. A taxpayer shall apply to the board of livestock on a form prescribed by the
board for a refund allowed under this subsection by January 31 following the taxable year. The application must include a
statement showing the date when the livestock were moved out of the state.
(b) Except as provided in subsection (3)(c), for the purposes of 15-24-921 and this section, the The per capita levy may
not be prorated.
(c) A taxpayer whose livestock are taxed on the average inventory basis for property tax purposes must also be taxed on
an average inventory basis for the purposes of 15-24-921 and this section. All other livestock subject to the per capita tax
levy must be reported on February 1 of each year."
Section 110. Section 15-24-925, MCA, is amended to read:
"15-24-925. Reimbursement to county -- transmission of taxes from county to state treasurer. (1) The county
treasurer may withhold 2% of the money received under 15-24-921 as reimbursement to the county for the collection of the
levy on livestock.
(2) Except for the amount withheld under subsection (1), the taxes levied and the money collected pursuant to the
provisions of 15-24-922 must be transmitted to the state treasury by the county treasurer of each county, as provided in
15-1-504, but not later than July 1 following assessment. The county treasurer shall designate the amount received from the
tax levied on sheep and the amount received from the tax levied on all other livestock and shall specify the separate
amounts in the report to the state treasurer. The money, when received by the state treasurer, must be deposited in an
account in the special revenue fund to the credit of the department of livestock. The money in the account must be kept
separate from other funds received by the department of livestock."
Section 111. Section 15-36-323, MCA, is amended to read:
"15-36-323. Calculation of unit value. For the purposes of distribution of oil and natural gas production taxes to county and school taxing units for production from pre-1985 wells, the department shall determine the unit value of oil and natural gas for each taxing unit as follows:
(1) Subject to the conditions of subsection (3), the unit value for oil for each taxing unit is the quotient obtained by dividing the net proceeds taxes calculated on oil produced and sold in that taxing unit in calendar year 1988 by the number of barrels of oil produced in that taxing unit during 1988, excluding post-1985 wells.
(2) Subject to the conditions of subsection (3), the unit value for natural gas is the quotient obtained by dividing the net proceeds taxes calculated on natural gas produced and sold in that taxing unit in calendar year 1988 by the number of cubic feet of natural gas produced in that taxing unit during 1988, excluding post-1985 wells.
(3) The amount of net proceeds taxes calculated under subsections (1) and (2) may not include the amount of taxes that are attributable to a voted levy, as described in 15-10-412(7), as that section read on December 31, 1998, for which additional mills were levied in fiscal year 1990."
Section 112. Section 15-36-325, MCA, is amended to read:
"15-36-325. Local government severance tax payments for calendar year 1995 production -- distribution of
payments -- not subject to I-105 limitations. (1) The local government severance tax imposed under 15-36-101, as that
section read before January 1, 1996, for calendar year 1995 production is due as follows:
(a) for oil and natural gas production occurring in the second calendar quarter of 1995, the tax is due May 31, 1997;
(b) for oil and natural gas production occurring in the third calendar quarter of 1995, the tax is due May 31, 1998; and
(c) for oil and natural gas production occurring in the fourth calendar quarter of 1995, the tax is due May 31, 1999.
(2) (a) If the taxpayer pays the entire local government severance tax liability for calendar year 1995 on or before June 30, 1996, the taxpayer must receive a 6% reduction in the total local government severance tax liability.
(b) Any payment of local government severance taxes for calendar year 1995 made on or before June 30, 1997, does not accrue interest. Any payment of local government severance taxes for calendar year 1995 made after June 30, 1997, must accrue interest at the rate of 1% a month or fraction of a month from July 1, 1997, to the date of payment. Any payment for the third quarter of 1995 received after May 31, 1998, and any payment for the fourth quarter of 1995 received after May 31, 1999, is subject to the late payment penalty provisions in 15-36-311.
(c) In the case of the dissolution of the operator or a change in the operator of any lease or unit, any unpaid local government severance tax for calendar year 1995 becomes due on the date of dissolution or on the date of the change in operator. The operator is subject to the provisions of subsection (2)(a) regarding the 6% tax liability reduction or the provisions of subsection (2)(b) regarding interest and penalties.
(3) The department shall determine the amount of tax collected under subsections (1) and (2) from within each taxing unit.
(4) For purposes of the distribution of local government severance taxes collected under this section, the department shall use the unit value of oil and gas for each taxing unit as determined in 15-36-323.
(5) The local government severance tax must be deposited in the state special revenue fund in the state treasury and transferred to the county for distribution as provided in subsection (6).
(6) For the purpose of the distribution of the local government severance tax for calendar year 1995 production, the department shall adjust the unit value determined under this section according to the ratio that the local government severance taxes collected during the quarters for which the distribution occurs plus penalties and interest on delinquent local government severance taxes bears to the total liability for local government severance taxes for the quarters for which the distribution occurs. The taxes must be calculated and distributed as follows:
(a) By July 31 of each of the years 1997, 1998, and 1999, the department shall calculate and distribute to each eligible county the amount of local government severance tax for calendar year 1995 production, determined by multiplying the unit value, as adjusted in this subsection (6), by the units of production on which the local government severance tax was owed during calendar year 1995 production.
(b) Any amount by which the total tax liability exceeds or is less than the total distributions determined in subsection (6)(a) must be calculated and distributed in the following manner:
(i) The excess amount or shortage must be divided by the total distribution determined for that period to obtain an excess or shortage percentage.
(ii) The excess percentage must be multiplied by the distribution to each taxing unit, and this amount must be added to the distribution to each respective taxing unit.
(iii) The shortage percentage must be multiplied by the distribution to each taxing unit, and this amount must be subtracted from the distribution to each respective taxing unit.
(7) (a) The county treasurer shall distribute the money received under subsection (6) between the county and school taxing units. The distribution between county and school taxing units is the ratio of the number of mills levied for fiscal year 1990 against 1988 production in each taxing unit for the county and schools, including the county equalization levies that were in effect under 20-9-331 and 20-9-333 as those sections read on July 1, 1989, and the university 6-mill levy imposed under 20-25-423, except that a distribution may not be made to a municipal taxing unit or the state equalization aid levy imposed under 20-9-360. Distribution of money for the county equalization levies and the university levy must be remitted to the state by the county treasurer. The amounts distributed under subsections (7)(b) and (7)(c) are for the exclusive use of county and school taxing units.
(b) The county treasurer shall deposit the money from subsection (7)(a) allocated to county levies to the oil and natural gas accelerated tax fund.
(c) The trustees of a school district may allocate any payment received under subsection (7)(a) to any budget fund of the district or to the miscellaneous programs fund established in 20-9-507. The trustees shall direct the county treasurer to deposit the local government severance tax payments under this section to the funds of the district in accordance with the allocations determined by the trustees.
(8) Local government severance tax payments to a county pursuant to this section are not subject to the limitations of
Title 15, chapter 10, part 4. Payments of local government severance tax pursuant to this section may not be used for county
classification purposes under 7-1-2111 and may not be considered in the determination of bonding limits under 7-7-2101,
7-7-2203, 7-14-2524, and 7-16-2327.
(9) The distribution to taxing units under this section is statutorily appropriated as provided in 17-7-502."
Section 113. 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, through 16-1-406, and
16-1-411, and 16-2-301, all fees, charges, taxes, and revenue collected by or under authority of the department must, in
accordance with the provisions of 15-1-501, be deposited to the credit of the state general fund, except for sales tax and use
tax revenue that must be deposited according to [section 62]."
Section 114. Section 16-1-411, MCA, is amended to read:
"16-1-411. Tax on wine and hard cider. (1) (a) A tax of 27 cents per a 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 a 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 16-1-409.
(3) The tax paid by a table wine distributor in accordance with subsection (2) must, in accordance with the provisions of 15-1-501, be distributed as follows:
(a) 59% to the state general fund;
(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;
(c) 5% is statutorily appropriated, as provided in 17-7-502, to the department for allocation to the counties, based on population, for the purpose established in 16-1-404; and
(d) 5% is statutorily appropriated, as provided in 17-7-502, to the department for allocation to the cities and towns, based on population, for the purpose established in 16-1-405.
(4) The In addition to the sales tax and use tax imposed under [section 2], 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, the following definitions apply:
(a) "Based on population" means:
(i) for counties, the direct proportion that the population of each county bears to the total population of all counties as shown in the latest official federal census, as adjusted by the most recent population estimates published by the U.S. bureau of the census as provided in 16-1-406; and
(ii) for cities, the distribution described in 16-1-406; and.
(b) "Table wine" has the meaning assigned in 16-1-106, but does not include hard cider."
Section 115. Section 16-2-301, MCA, is amended to read:
"16-2-301. Retail selling price on table wine -- tax on certain table wine. (1) (a) The retail selling price at which table wine is sold at an agency liquor store is as determined by the agent.
(b) The retail selling price at which table wine is sold pursuant to subsection (1)(a) may not include the sales tax or use tax imposed under [section 2]. The sales tax or use tax must be collected as provided in [sections 1 through 62] and must be deposited as provided in [section 62].
(2) In addition to the tax on wine assessed under 16-1-411, there is a tax of 1 cent a liter on table wine sold by a table wine distributor to an agent as described in subsection (1). This additional tax must be paid to the department by the distributor in the same manner as the tax under 16-1-411 is paid. The department shall deposit the tax paid under this section in the general fund.
(3) The sales tax and use tax collected under [sections 1 through 62] are not considered to be collected under this section.
(4) For the purposes of this section, "table wine" does not include hard cider."
Section 116. Section 17-7-502, MCA, is amended to read:
"17-7-502. (Temporary) 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; 3-5-901; 5-13-403; 10-3-203; 10-3-310; 10-3-312; 10-3-314; 10-4-301; 15-1-111; 15-23-706; 15-30-195; 15-31-702; 15-36-324; 15-36-325; 15-37-117; 15-38-202; 15-65-121; 15-70-101; [section 63]; 16-1-404; 16-1-406; 16-1-411; 16-11-308; 17-3-106; 17-3-212; 17-3-222; 17-6-101; 17-7-304; 18-11-112; 19-3-319; 19-6-709; 19-9-702; 19-13-604; 19-17-301; 19-18-512; 19-19-305; 19-19-506; 20-8-107; 20-8-111; 20-26-1503; 22-3-1004; 23-5-136; 23-5-306; 23-5-409; 23-5-610; 23-5-612; 23-5-631; 23-7-301; 23-7-402; 37-43-204; 37-51-501; 39-71-503; 39-71-907; 39-71-2321; 42-2-105; 44-12-206; 44-13-102; 50-4-623; 53-6-703; 53-24-206; 67-3-205; 75-1-1101; 75-5-1108; 75-6-214; 75-11-313; 77-1-131; 80-2-103; 80-2-222; 80-4-416; 81-5-111; 82-11-161; 85-20-402; 87-1-513; 90-3-301; 90-4-215; 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. 7, Ch. 567, L. 1991, the inclusion of 19-6-709 terminates upon death of last recipient eligible for supplemental benefit; pursuant to sec. 7(2), Ch. 29, L. 1995, the inclusion of 15-30-195 terminates July 1, 2001; pursuant to sec. 5, Ch. 461, L. 1997, the inclusion of 77-1-131 terminates October 1, 2003; and pursuant to secs. 13, 16(1), Ch. 549, L. 1997, the inclusion of 90-3-301 terminates July 1, 1999.)
17-7-502. (Effective July 1, 2008) 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; 3-5-901; 5-13-403; 10-3-203; 10-3-310; 10-3-312; 10-3-314; 10-4-301; 15-23-706; 15-30-195; 15-31-702; 15-36-324; 15-36-325; 15-37-117; 15-38-202; 15-65-121; 15-70-101; [section 63]; 16-1-404; [16-1-406;] 16-1-411; 16-11-308; 17-3-106; 17-3-212; 17-3-222; 17-5-404; 17-5-804; 17-6-101; 17-7-304; 18-11-112; 19-3-319; 19-6-709; 19-9-702; 19-13-604; 19-17-301; 19-18-512; 19-19-205; 19-19-305; 19-19-506; 20-8-107; 20-9-361; 20-26-1503; 22-3-1004; 23-5-136; 23-5-306; 23-5-409; 23-5-610; 23-5-612; 23-5-631; 23-7-301; 23-7-402; 32-1-537; 37-43-204; 37-51-501; 39-71-503; 39-71-907; 39-71-2321; 42-2-105; 44-12-206; 44-13-102; 50-4-623; 50-5-232; 50-40-206; 53-6-150; 53-6-703; 53-24-206; 60-2-220; 67-3-205; 75-1-1101; 75-5-1108; 75-6-214; 75-5-1108; 75-6-214; 75-11-313; 77-1-505; 80-2-103; 80-2-222; 80-4-416; 81-5-111; 82-11-136; 82-11-161; 85-1-220; 85-20-402; 87-1-513; 90-4-215; 90-6-331; 90-7-220; 90-7-221; 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. 7, Ch. 567, L. 1991, the inclusion of 19-6-709 terminates upon death of last recipient eligible for supplemental benefit; and pursuant to sec. 68(2), Ch. 422, L. 1997, this version becomes effective July 1, 2008.)"
Section 117. Section 19-18-503, MCA, is amended to read:
"19-18-503. Special tax levy for fund required. (1) The purpose of this section is to provide a means by which each
disability and pension fund may be maintained at a level equal to 4% 5% of the taxable valuation of all taxable property
within the limits of the city or town.
(2) Whenever the fund contains less than 4% 5% of the taxable valuation of all taxable property within the limits of the
city or town, the governing body of the city or town shall, at the time of the levy of the annual tax, levy a special tax as
provided in 19-18-504. The special tax must be collected as other taxes are collected and, when so collected, must be paid
into the disability and pension fund.
(3) If a special tax for the disability and pension fund is levied by a third-class city or town using the all-purpose mill levy, the special tax levy must be made in addition to the all-purpose levy."
Section 118. Section 19-18-504, MCA, is amended to read:
"19-18-504. Amount of special tax levy. Whenever the fund contains an amount which that is less than 4% 5% of the
taxable valuation of all taxable property in the city or town, the city council shall levy an annual special tax of not less than
1 mill and not more than 4 5 mills on each dollar of taxable valuation of all taxable property within the city or town."
Section 119. Section 20-7-714, MCA, is amended to read:
"20-7-714. County adult literacy programs -- authorization to levy tax and establish fund. (1) (a) The governing
body of a county may, in its discretion, establish a fund and levy up to 1 mill on each dollar of taxable property in the
county for the support of county literacy programs that give first priority to providing direct instruction to adults. The tax
levy is in addition to all other tax levies and is subject to limitations on property taxes set forth in 15-10-402.
(b) The fund may be used only for the support of adult literacy programs within the county.
(2) (a) If a county levies a property tax for adult literacy programs, the county governing body shall appoint a county adult literacy board to administer the expenditure of funds from the county adult literacy fund established in subsection (1).
(b) The county adult literacy board shall coordinate all adult literacy programs receiving county adult literacy funds. The board may adopt policies concerning program standards and financial accountability for organizations receiving adult literacy funds. The board may require that adult literacy programs match adult literacy funds with federal, state, or private money. The board may, with the concurrence of the appropriate county officials, arrange for county in-kind services to support adult literacy programs.
(c) County adult literacy funding may be expended only on literacy programs for persons who are 16 years of age or older and who are not regularly enrolled, full-time pupils for the purposes of ANB computation."
Section 120. Section 20-9-141, MCA, is amended to read:
"20-9-141. Computation of general fund net levy requirement by county superintendent. (1) The county superintendent shall compute the levy requirement for each district's general fund on the basis of the following procedure:
(a) Determine determine the funding required for the district's final general fund budget less the sum of direct state aid
and the special education allowable cost payment for the district by totaling:
(i) the district's nonisolated school BASE budget requirement to be met by a district levy as provided in 20-9-303; and
(ii) any general fund budget amount adopted by the trustees of the district under the provisions of 20-9-308 and 20-9-353, including any additional funding for a general fund budget that exceeds the maximum general fund budget.
(b) Determine determine the money available for the reduction of the property tax on the district for the general fund by
totaling:
(i) the general fund balance reappropriated, as established under the provisions of 20-9-104;
(ii) amounts received in the last fiscal year for which revenue reporting was required for each of the following:
(A) tuition payments for out-of-district pupils under the provisions of 20-5-321 through 20-5-323, except the amount of tuition received for a pupil who is a child with disabilities in excess of the amount received for a pupil without disabilities, as calculated under 20-5-323(2);
(B) revenue from taxes and fees imposed under 23-2-517, 23-2-803, 61-3-504, 61-3-521, 61-3-527, 61-3-529, 61-3-537, [section 64]; and 67-3-204;
(C) oil and natural gas production taxes;
(D) interest earned by the investment of general fund cash in accordance with the provisions of 20-9-213(4);
(E) revenue from corporation license taxes collected from financial institutions under the provisions of 15-31-702; and
(F) any other revenue received during the school fiscal year that may be used to finance the general fund, excluding any guaranteed tax base aid; and
(iii) pursuant to subsection (4), anticipated revenue from coal gross proceeds under 15-23-703.
(c) Notwithstanding the provisions of subsection (2), subtract the money available to reduce the property tax required to finance the general fund that has been determined in subsection (1)(b) from any general fund budget amount adopted by the trustees of the district, up to the BASE budget amount, to determine the general fund BASE budget levy requirement.
(d) Subtract any amount remaining after the determination in subsection (1)(c) from any additional funding requirement to be met by an over-BASE budget amount, a district levy as provided in 20-9-303, and any additional financing as provided in 20-9-353 to determine any additional general fund levy requirements.
(2) The county superintendent shall calculate the number of mills to be levied on the taxable property in the district to finance the general fund levy requirement for any amount that does not exceed the BASE budget amount for the district by dividing the amount determined in subsection (1)(c) by the sum of:
(a) the amount of guaranteed tax base aid that the district will receive for each mill levied, as certified by the superintendent of public instruction; and
(b) the taxable valuation of the district divided by 1,000.
(3) The net general fund levy requirement determined in subsections (1)(c) and (1)(d) must be reported to the county commissioners on the fourth Monday of August by the county superintendent as the general fund net levy requirement for the district, and a levy must be set by the county commissioners in accordance with 20-9-142.
(4) For each school district, the department of revenue shall calculate and report to the county superintendent the amount of revenue anticipated for the ensuing fiscal year from revenue from coal gross proceeds under 15-23-703."
Section 121. Section 20-9-306, MCA, is amended to read:
"20-9-306. Definitions. As used in this title, unless the context clearly indicates otherwise, the following definitions apply:
(1) "BASE" means base amount for school equity.
(2) "BASE aid" means:
(a) direct state aid for 40% 59% of the basic entitlement and 40% 59% of the total per-ANB entitlement for the general
fund budget of a district; and
(b) guaranteed tax base aid for an eligible district for any amount up to 40% 59% of the basic entitlement, up to 40%
59% of the total per-ANB entitlement budgeted in the general fund budget of a district, and up to 40% 59% of the special
education allowable cost payment.
(3) "BASE budget" means the minimum general fund budget of a district, which includes 80% of the basic entitlement, 80% of the total per-ANB entitlement, and up to 140% of the special education allowable cost payment.
(4) "BASE budget levy" means the district levy in support of the BASE budget of a district, which may be supplemented by guaranteed tax base aid if the district is eligible under the provisions of 20-9-366 through 20-9-369.
(5) "BASE funding program" means the state program for the equitable distribution of the state's share of the cost of Montana's basic system of public elementary schools and high schools, through county equalization aid as provided in 20-9-331 and 20-9-333 and state equalization aid as provided in 20-9-343, in support of the BASE budgets of districts and special education allowable cost payments as provided in 20-9-321.
(6) "Basic entitlement" means:
(a) $200,000 for each high school district;
(b) $18,000 for each elementary school district or K-12 district elementary program without an approved and accredited junior high school or middle school; and
(c) the prorated entitlement for each elementary school district or K-12 district elementary program with an approved and accredited junior high school or middle school, calculated as follows:
(i) $18,000 times the ratio of the ANB for kindergarten through grade 6 to the total ANB of kindergarten through grade 8; plus
(ii) $200,000 times the ratio of the ANB for grades 7 and 8 to the total ANB of kindergarten through grade 8.
(7) "Direct state aid" means 40% 59% of the basic entitlement and 40% 59% of the total per-ANB entitlement for the
general fund budget of a district and funded with state and county equalization aid.
(8) "Maximum general fund budget" means a district's general fund budget amount calculated from the basic entitlement for the district, the total per-ANB entitlement for the district, and up to 153% of special education allowable cost payments.
(9) "Over-BASE budget levy" means the district levy in support of any general fund amount budgeted that is above the BASE budget and below the maximum general fund budget for a district.
(10) "Total per-ANB entitlement" means the district entitlement resulting from the following calculations:
(a) for a high school district or a K-12 district high school program, a maximum rate of $4,773 for the first ANB is decreased at the rate of 50 cents per ANB for each additional ANB of the district up through 800 ANB, with each ANB in excess of 800 receiving the same amount of entitlement as the 800th ANB;
(b) for an elementary school district or a K-12 district elementary program without an approved and accredited junior high school or middle school, a maximum rate of $3,410 for the first ANB is decreased at the rate of 20 cents per ANB for each additional ANB of the district up through 1,000 ANB, with each ANB in excess of 1,000 receiving the same amount of entitlement as the 1,000th ANB; and
(c) for an elementary school district or a K-12 district elementary program with an approved and accredited junior high school or middle school, the sum of:
(i) a maximum rate of $3,410 for the first ANB for kindergarten through grade 6 is decreased at the rate of 20 cents per ANB for each additional ANB up through 1,000 ANB, with each ANB in excess of 1,000 receiving the same amount of entitlement as the 1,000th ANB; and
(ii) a maximum rate of $4,773 for the first ANB for grades 7 and 8 is decreased at the rate of 50 cents per ANB for each additional ANB for grades 7 and 8 up through 800 ANB, with each ANB in excess of 800 receiving the same amount of entitlement as the 800th ANB."
Section 122. Section 20-9-367, MCA, is amended to read:
"20-9-367. Eligibility to receive guaranteed tax base aid or state advance or reimbursement for school facilities.
(1) If the district guaranteed tax base ratio of any elementary or high school district is less than the corresponding statewide
elementary or high school guaranteed tax base ratio, the district may receive guaranteed tax base aid based on the number
of mills levied in the district in support of up to 40% 59% of the basic entitlement, up to 40% 59% of the total per-ANB
entitlement, and up to 40% 59% of the special education allowable cost payment budgeted within the general fund budget.
(2) If the county retirement mill value per elementary ANB or the county retirement mill value per high school ANB is less than the corresponding statewide mill value per elementary ANB or high school ANB, the county may receive guaranteed tax base aid based on the number of mills levied in the county in support of the retirement fund budgets of the respective elementary or high school districts in the county.
(3) For the purposes of 20-9-370 and 20-9-371, if the district mill value per elementary ANB or the district mill value per high school ANB is less than the corresponding statewide mill value per elementary ANB or statewide mill value per high school ANB, the district may receive a state advance or reimbursement for school facilities in support of the debt service fund."
Section 123. Section 20-9-406, MCA, is amended to read:
"20-9-406. Limitations on amount of bond issue. (1) (a) Except as provided in subsection (1)(c), the maximum
amount for which an elementary district or a high school district may become indebted by the issuance of bonds, including
all indebtedness represented by outstanding bonds of previous issues and registered warrants, is 45% 61% of the taxable
value of the property subject to taxation, to be ascertained by the last-completed assessment for state, county, and school
taxes previous to the incurring of the indebtedness, plus, for bonds to be issued during fiscal year 1997, an additional 11%
of the taxable value of class eight property within the district for tax year 1995, for bonds to be issued during fiscal year
1998, an additional 22% of the taxable value of class eight property within the district for tax year 1995, and for bonds to
be issued during fiscal years 1999 through 2008, an additional 33% of the taxable value of class eight property within the
district for tax year 1995, in each case of class eight property, multiplied by 45%.
(b) Except as provided in subsection (1)(c), the maximum amount for which a K-12 school district, as formed pursuant
to 20-6-701, may become indebted by the issuance of bonds, including all indebtedness represented by outstanding bonds
of previous issues and registered warrants, is up to 90% 122% of the taxable value of the property subject to taxation, to be
ascertained by the last-completed assessment for state, county, and school taxes previous to the incurring of the
indebtedness, plus, for bonds to be issued during fiscal year 1997, an additional 11% of the taxable value of class eight
property within the district for tax year 1995, for bonds to be issued during fiscal year 1998, an additional 22% of the
taxable value of class eight property within the district for tax year 1995, and for bonds to be issued during fiscal years
1999 through 2008, an additional 33% of the taxable value of class eight property within the district for tax year 1995, in
each case of class eight property, multiplied by 90%. The total indebtedness of the high school district with an attached
elementary district must be limited to the sum of 45% 61% of the taxable value of the property for elementary school
program purposes and 45% 61% of the taxable value of the property for high school program purposes, adjusted as
provided in this section.
(c) (i) The maximum amount for which an elementary district or a high school district with a district mill value per
elementary ANB or per high school ANB that is less than the corresponding statewide mill value per elementary ANB or
per high school ANB may become indebted by the issuance of bonds, including all indebtedness represented by outstanding
bonds of previous issues and registered warrants, is 45% 61% of the corresponding statewide mill value per ANB times
1,000 times the ANB of the district. For a K-12 district, the maximum amount for which the district may become indebted
is 45% 61% of the sum of the statewide mill value per elementary ANB times 1,000 times the elementary ANB of the
district and the statewide mill value per high school ANB times 1,000 times the high school ANB of the district.
(ii) If mutually agreed upon by the affected districts, for the purpose of calculating its maximum bonded indebtedness under this subsection (1)(c), a district may include the ANB of the district plus the number of students residing within the district for which the district or county pays tuition for attendance at a school in an adjacent district. The receiving district may not use out-of-district ANB for the purpose of calculating its maximum indebtedness if the out-of-district ANB has been included in the ANB of the sending district pursuant to the mutual agreement.
(2) The maximum amounts determined in subsection (1), however, may not pertain to indebtedness imposed by special improvement district obligations or assessments against the school district or to bonds issued for the repayment of tax protests lost by the district. All bonds issued in excess of the amount are void, except as provided in this section.
(3) When the total indebtedness of a school district has reached the limitations prescribed in this section, the school district may pay all reasonable and necessary expenses of the school district on a cash basis in accordance with the financial administration provisions of this chapter.
(4) Whenever bonds are issued for the purpose of refunding bonds, any money to the credit of the debt service fund for the payment of the bonds to be refunded is applied toward the payment of the bonds and the refunding bond issue is decreased accordingly."
Section 124. Section 20-9-407, MCA, is amended to read:
"20-9-407. Industrial facility agreement for bond issue in excess of maximum. (1) In a school district within which
a new major industrial facility which that seeks to qualify for taxation as class five property under 15-6-135 is being
constructed or is about to be constructed, the school district may require, as a precondition of the new major industrial
facility qualifying as class five property, that the owners of the proposed industrial facility enter into an agreement with the
school district concerning the issuing of bonds in excess of the 45% bond debt limitation prescribed in 20-9-406. Under
such an agreement, the school district may, with the approval of the voters, issue bonds which that exceed the limitation
prescribed in this section by a maximum of 45% 61% of the estimated taxable value of the property of the new major
industrial facility subject to taxation when completed. The estimated taxable value of the property of the new major
industrial facility subject to taxation shall must be computed by the department of revenue when requested to do so by a
resolution of the board of trustees of the school district. A copy of the department's statement of estimated taxable value
shall must be printed on each ballot used to vote on a bond issue proposed under this section.
(2) Pursuant to the agreement between the new major industrial facility and the school district and as a precondition to
qualifying as class five property, the new major industrial facility and its owners shall pay, in addition to the taxes imposed
by the school district on property owners generally, so much of the principal and interest on the bonds provided for under
this section as represents payment on an indebtedness in excess of the bond debt limitation prescribed in 20-9-406. After
the completion of the new major industrial facility and when the indebtedness of the school district no longer exceeds the
limitation prescribed in this section, the new major industrial facility shall be is entitled, after all the current indebtedness of
the school district has been paid, to a tax credit over a period of no more than 20 years. The total amount of the credit shall
as a total amount be is equal to the amount which that the facility paid the principal and interest of the school district's
bonds in excess of its general liability as a taxpayer within the district.
(3) A major industrial facility is a facility subject to the taxing power of the school district, whose construction or operation will increase the population of the district, imposing a significant burden upon the resources of the district and requiring construction of new school facilities. A significant burden is an increase in ANB of at least 20% in a single year."
Section 125. Section 20-10-144, MCA, is amended to read:
"20-10-144. Computation of revenue and net tax levy requirements for district transportation fund budget. Before the second Monday of August, the county superintendent shall compute the revenue available to finance the transportation fund budget of each district. The county superintendent shall compute the revenue for each district on the following basis:
(1) The "schedule amount" of the budget expenditures that is derived from the rate schedules in 20-10-141 and 20-10-142 must be determined by adding the following amounts:
(a) the sum of the maximum reimbursable expenditures for all approved school bus routes maintained by the district (to
determine the maximum reimbursable expenditure, multiply the applicable rate per for each bus mile by the total number of
miles to be traveled during the ensuing school fiscal year on each bus route approved by the county transportation
committee and maintained by the district); plus
(b) the total of all individual transportation per diem reimbursement rates for the district as determined from the contracts submitted by the district multiplied by the number of pupil-instruction days scheduled for the ensuing school attendance year; plus
(c) any estimated costs for supervised home study or supervised correspondence study for the ensuing school fiscal year; plus
(d) the amount budgeted in the budget for the contingency amount permitted in 20-10-143, except if the amount exceeds 10% of the total of subsections (1)(a), (1)(b), and (1)(c) or $100, whichever is larger, the contingency amount on the budget must be reduced to the limitation amount and used in this determination of the schedule amount; plus
(e) any estimated costs for transporting a child out of district when the child has mandatory approval to attend school in a district outside the district of residence.
(2) (a) The schedule amount determined in subsection (1) or the total transportation fund budget, whichever is smaller, is divided by 2 and is used to determine the available state and county revenue to be budgeted on the following basis:
(i) one-half is the budgeted state transportation reimbursement, except that the state transportation reimbursement for the transportation of special education pupils under the provisions of 20-7-442 must be 50% of the schedule amount attributed to the transportation of special education pupils; and
(ii) one-half is the budgeted county transportation fund reimbursement and must be financed in the manner provided in 20-10-146.
(b) When the district has a sufficient amount of fund balance for reappropriation and other sources of district revenue, as determined in subsection (3), to reduce the total district obligation for financing to zero, any remaining amount of district revenue and fund balance reappropriated must be used to reduce the county financing obligation in subsection (2)(a)(ii) and, if the county financing obligations are reduced to zero, to reduce the state financial obligation in subsection (2)(a)(i).
(c) The county revenue requirement for a joint district, after the application of any district money under subsection (2)(b), must be prorated to each county incorporated by the joint district in the same proportion as the ANB of the joint district is distributed by pupil residence in each county.
(3) The total of the money available for the reduction of property tax on the district for the transportation fund must be determined by totaling:
(a) anticipated federal money received under the provisions of 20 U.S.C. 7701, et seq., or other anticipated federal money received in lieu of that federal act;
(b) anticipated payments from other districts for providing school bus transportation services for the district;
(c) anticipated payments from a parent or guardian for providing school bus transportation services for a child;
(d) anticipated or reappropriated interest to be earned by the investment of transportation fund cash in accordance with the provisions of 20-9-213(4);
(e) anticipated or reappropriated revenue from property taxes and fees imposed under 23-2-517, 23-2-803, 61-3-504, 61-3-521, 61-3-527, 61-3-529, 61-3-537, and 67-3-204;
(f) anticipated revenue from coal gross proceeds under 15-23-703;
(g) anticipated oil and natural gas production taxes;
(h) anticipated local government severance tax payments for calendar year 1995 production;
(i) anticipated transportation payments for out-of-district pupils under the provisions of 20-5-320 through 20-5-324;
(j) any other revenue anticipated by the trustees to be earned during the ensuing school fiscal year that may be used to
finance the transportation fund; and
(k) anticipated sales tax and use tax revenue distributed under [section 64]; and
(l) any fund balance available for reappropriation as determined by subtracting the amount of the end-of-the-year fund balance earmarked as the transportation fund operating reserve for the ensuing school fiscal year by the trustees from the end-of-the-year fund balance in the transportation fund. The operating reserve may not be more than 20% of the final transportation fund budget for the ensuing school fiscal year and is for the purpose of paying transportation fund warrants issued by the district under the final transportation fund budget.
(4) The district levy requirement for each district's transportation fund must be computed by:
(a) subtracting the schedule amount calculated in subsection (1) from the total preliminary transportation budget amount; and
(b) subtracting the amount of money available to reduce the property tax on the district, as determined in subsection (3), from the amount determined in subsection (4)(a).
(5) The transportation fund levy requirements determined in subsection (4) for each district must be reported to the county commissioners on the fourth Monday of August by the county superintendent as the transportation fund levy requirements for the district, and the levy must be made by the county commissioners in accordance with 20-9-142."
Section 126. Section 20-15-311, MCA, is amended to read:
"20-15-311. Funding sources. The annual operating budget of a community college district shall must be financed
from the following sources:
(1) the estimated revenues revenue to be realized from student tuition and fees, except those related to community
service courses as defined by the board of regents;
(2) a mandatory mill levy on the community college district;
(3) the 1-mill adult education levy authorized under provisions of 20-15-305;
(4) the state general fund appropriation;
(5) an optional voted levy on the community college district that shall must be submitted to the electorate in accordance
with general school election laws;
(6) all other income, revenue, balances, or reserves not restricted by a source outside the community college district to a specific purpose;
(7) income, revenue, balances, or reserves restricted by a source outside the community college district to a specific
purpose. Student fees paid for community service courses as defined by the board of regents shall must be considered
restricted to a specific purpose;
(8) income from a political subdivision that is designated a community college service region under 20-15-241; and
(9) sales tax and use tax revenue distributed under [section 64]."
Section 127. Section 23-2-515, MCA, is amended to read:
"23-2-515. License decals to be displayed. (1) Every Each Montana motorboat, sailboat, or personal watercraft
numbered in accordance with the provisions of 23-2-512 or 23-2-513 shall be is required to display license decals. For this
purpose the county treasurer, upon proof of payment of the fee in lieu of tax as required by 15-16-202 for motorboats 10
feet in length or longer, sailboats 12 feet in length or longer, or personal watercraft, and the sales tax and use tax imposed in
[section 2], shall issue a pair of decals prepared and furnished by the department of justice with all new certificates of
number and renewals thereof of the certificates.
(2) The decals shall must be of a style and design prescribed by the department of justice and shall must be a color
differing from the preceding year. The license decal will must be serially numbered and have the expiration date of
December 31 of the appropriate year printed thereon on the decal.
(3) License decals shall must be displayed only in the following manner: one valid license decal on each side of the
forward half, 3 inches aft of the identifying numbers."
Section 128. Section 23-2-616, MCA, is amended to read:
"23-2-616. Registration and decals -- application and issuance -- use of certain fees. (1) Except for a snowmobile registered under 23-2-621, a snowmobile may not be operated on public lands by any person in Montana unless it has been registered and there is displayed in a conspicuous place on both sides of the cowl a decal as visual proof that the fee in lieu of property tax has been paid on it for the current year and the immediately previous year as required by 15-16-202.
(2) Application for registration must be made to the county treasurer upon forms to be furnished by the department of justice for this purpose, which may be obtained at the county treasurer's office in the county where the owner resides. The application shall contain the following information:
(a) the name and address of the owner;
(b) the certificate of ownership number;
(c) the make of the snowmobile;
(d) the model name of the snowmobile;
(e) the year of manufacture;
(f) a statement evidencing payment of the fee in lieu of property tax as required by 15-16-202 and the sales tax or use tax imposed in [section 2]; and
(g) other information as that the department of justice may require.
(3) The application must be accompanied by a decal fee of $5, a registration fee of 50 cents, and, if the snowmobile has previously been registered, by the registration certificate for the most recent year in which the snowmobile was registered. The treasurer shall sign the application and issue a registration receipt that must contain information considered necessary by the department of justice and a listing of fees paid. The owner shall retain possession of the registration receipt until it is surrendered to the county treasurer for reregistration or to a purchaser or subsequent owner pursuant to a transfer of ownership.
(4) The county treasurer shall forward the signed application to the department of justice and shall issue to the applicant a decal in the style and design prescribed by the department of justice and of a different color than the preceding year, numbered in sequence.
(5) The county treasurer may not accept any application under this section until the applicant has paid the decal and registration fees and the fee in lieu of property tax on the snowmobile for the current year and the immediately previous year as required by 15-16-202.
(6) All money collected from payment of the decal fees and all interest accruing from use of this money must be forwarded to the state treasurer and placed in the state special revenue fund to the credit of the department, with $2.50 designated for use in enforcing the purposes of 23-2-601 through 23-2-644 and $2.50 designated for use in the development, maintenance, and operation of snowmobile facilities. All money collected from payment of the registration fee must be forwarded to the state treasurer and deposited in the general fund.
(7) The county treasurer shall credit all fees in lieu of tax collected on snowmobiles to the county motor vehicle suspense fund provided for in 61-3-509."
Section 129. 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 130. Section 33-7-410, MCA, is amended to read:
"33-7-410. Taxation. (1) A society organized or licensed under this chapter is a charitable and benevolent institution, and all of its funds are exempt from all state, county, district, municipal, and school taxes other than taxes on real estate and office equipment and sales taxes and use taxes as provided in subsection (2).
(2) (a) To the extent that sales are generated from ongoing business operations of the society, the sales of a society organized or licensed under this chapter are subject to the sales tax and use tax pursuant to [sections 1 through 62], to a resort tax imposed under 7-6-1504, and to a resort area tax imposed under 7-6-1508.
(b) Dues paid by members of the society and isolated or occasional sales, as described in [section 19], of the society are exempt from taxation."
Section 131. Section 53-2-322, MCA, is amended to read:
"53-2-322. County to levy taxes, budget, and make expenditures for public assistance activities. (1) The board of
county commissioners in each county shall levy 13.5 18 mills for the county poor fund as provided by law or so much of
that amount as may be necessary. The board may levy up to an additional 12 16 mills if approved by the voters in the
county. A county shall levy a sufficient mills amount to reimburse the state for any administrative or operational costs in
excess of the administrative and operational costs for the previous fiscal year. The department of public health and human
services shall notify the counties of the number of mills required to be levied. Once an additional levy has been approved,
the amount of the approved levy may continue to be levied without voter approval.
(2) The board shall budget and expend so much of the funds in the county poor fund for:
(a) public assistance as necessary to reimburse the department for the county's proportionate share of the administrative costs and of all public assistance costs;
(b) salaries, travel expenses, and indirect costs, as provided in 52-1-110, of protective services employees of the department; and
(c) the county's proportionate share of any other public assistance activity that may be carried on jointly by the state and the county.
(3) The amounts set up in the budget for the reimbursements to the department must be sufficient to make all of these reimbursements in full. The budget must make separate provision for each public assistance activity and for salaries, travel expenses, and indirect costs for protective services activities of the department. Proper accounts must be established for the funds for all the activities.
(4) The department shall submit to the counties, no later than May 10, the most current county participation percentages that are necessary to establish preliminary county budgets. As soon as the county proposed budget provided for in 7-6-2315 has been agreed upon, a copy must be mailed to the department, and at any time before the final adoption of the budget, the department shall make recommendations with regard to changes in any part of the budget relating to the county poor fund as considered necessary in order to enable the county to discharge its obligations under the public assistance laws.
(5) The department shall promptly examine the county proposed budget in order to ascertain if the amounts provided for reimbursements to the department are likely to be sufficient and shall notify the county clerk of its findings. The board shall make changes in the amounts provided for reimbursements, if any are required, in order that the county will be able to make the reimbursements in full.
(6) The board of county commissioners may not make any transfer from the amounts budgeted for reimbursing the department without having first obtained a statement in writing from the department to the effect that the amount to be transferred will not be required during the fiscal year for the purposes for which the amounts were provided in the budget.
(7) The county poor fund, irrespective of the source of any part of the fund, may not be used directly or indirectly for the erection or improvement of any county building so long as the fund is needed for paying the county's proportionate share of public assistance and protective services, as described in 52-1-110, or its proportionate share of any other public assistance activity that may be carried on jointly by the state and the county. Expenditures for improvement of any county buildings used directly for care of the poor, except a county hospital or county nursing home, may be made out of money in the county poor fund, whether the money was produced by the mill levy provided for in subsection (1) or from any additional levy authorized by law. The expenditure may be authorized only when any county building used for the care of the poor must be improved in order to meet legal standards required for the building by the department and when the expenditure has been approved by the department.
(8) Money in the county poor fund may be used as matching funds for the receipt of federal money."
Section 132. Section 53-2-801, MCA, is amended to read:
"53-2-801. Purpose. The purpose of this part is to provide for the department of public health and human services to
assume all responsibilities for public assistance programs and for protective services for children and adults that, as of July
1, 1983, are provided by the counties pursuant to Titles 41 and 53. The assumption may become effective only at the option
and with the express consent of each individual county requesting state assumption. State assumption allows counties to
pay the state the proceeds from the 9-mill levy provided for in 53-2-813 rather than an amount based on the actual cost of
providing public assistance and protective services in the county. Counties that opt for state assumption may provide other
optional services for indigents with money available from funds derived from the difference between the 9-mill levy
provided for in 53-2-813 and the maximum amount of 13.5 mills permitted by 53-2-322."
Section 133. Section 53-2-813, MCA, is amended to read:
"53-2-813. Mill levy for counties transferring public assistance and protective services. (1) For the purpose of this
part, 9 12 mills must be levied annually in those counties opting for state assumption.
(2) For a county electing state assumption, the proceeds of the mill levy established in subsection (1) must be deposited in the state special revenue fund in the state treasury to the credit of the department of public health and human services."
Section 134. Section 61-3-303, MCA, is amended to read:
"61-3-303. Application for registration. (1) Each owner of a motor vehicle operated or driven upon the public highways of this state shall for each motor vehicle owned, except as otherwise provided in this section, file or cause to be filed in the office of the county treasurer in the county where the owner permanently resides at the time of making the application or, if the vehicle is owned by a corporation or used primarily for commercial purposes, in the taxing jurisdiction of the county where the vehicle is permanently assigned an application for registration or reregistration on a form prescribed by the department. The application must contain:
(a) the name and address of the owner, giving the county, school district, and town or city within whose corporate limits the motor vehicle is taxable, if taxable, or within whose corporate limits the owner's residence is located if the motor vehicle is not taxable;
(b) the name and address of the holder of any security interest in the motor vehicle;
(c) a description of the motor vehicle, including make, year model, engine or serial number, manufacturer's model or letter, gross weight, declared weight on all trucks for which the manufacturer's rated capacity is 1 ton or less, and type of body and, if a truck, the manufacturer's rated capacity;
(d) the declared weight on all trailers operating intrastate, except travel trailers or trailers and semitrailers registered as provided in 61-3-711 through 61-3-733; and
(e) other information that the department may require.
(2) A person who files an application for registration or reregistration of a motor vehicle, except of a mobile home or a manufactured home as those terms are defined in 15-1-101(1), shall upon the filing of the application pay to the county treasurer:
(a) the registration fee, as provided in 61-3-311 and 61-3-321 or 61-3-456; and
(b) except as provided in 61-3-456 or unless it has been previously paid:
(i) the motor vehicle taxes or fees in lieu of tax assessed or imposed against the vehicle for the current year of
registration and the immediately previous year; or
(ii) the sales tax on new motor vehicle sales tax against the vehicle vehicles imposed by 61-3-502 for the current year of
registration; and
(iii) the sales tax or use tax imposed by [section 64].
(3) The application may not be accepted by the county treasurer unless the payments required by subsection (2) accompany the application. The department may not assess or impose and the county treasurer may not collect taxes or fees for a period other than:
(a) the current year; and
(b) the immediately previous year if the vehicle was not registered or operated on the highways of the state, regardless of the period of time since the vehicle was previously registered or operated.
(4) The department may make full and complete investigation of the tax status of the vehicle. An applicant for registration or reregistration shall submit proof from the tax or other appropriate records of the proper county at the request of the department."
Section 135. Section 61-3-317, MCA, is amended to read:
"61-3-317. New registration required for transferred vehicle -- sales tax and use tax -- grace period -- penalty --
display of proof of purchase. Except as otherwise provided herein in this section, the new owner of a transferred motor
vehicle shall have has a grace period of 20 calendar days from the date of purchase to make application and pay the taxes or
fees, or both, sales tax or use tax provided by part 5 of this chapter, unless the in addition to any motor vehicle tax or fee in
lieu of tax that has been paid for the year, as if the vehicle were being registered for the first time in that registration year. If
the motor vehicle was not purchased from a duly licensed motor vehicle dealer as provided in this chapter, it is not a
violation of this chapter or any other law for the purchaser to operate the vehicle upon the streets and highways of this state
without a certificate of registration during the 20-day period, provided that at all times during that period, a vehicle
purchase sticker in a form prescribed and furnished by the department, obtained from the county treasurer or a law
enforcement officer as authorized by the department, reciting the date of purchase is clearly displayed in the rear window of
the motor vehicle. Registration and license fees collected under 61-3-321 are not required to be paid when a license plate is
transferred under this section and 61-3-335 and this section. However, the transfer may be subject to the sales tax or use
tax provided by part 5 of this chapter. Failure to make application within the time provided herein in this section subjects
the purchaser to a penalty of $10. The penalty shall must be collected by the county treasurer at the time of registration and
shall be is in addition to the fees otherwise provided by law."
Section 136. Section 61-3-501, MCA, is amended to read:
"61-3-501. When vehicle taxes and fees are due. (1) Motor vehicle taxes, fees in lieu of tax, new car taxes, sales taxes or use taxes, and other applicable fees must be paid on the date of registration or reregistration of the vehicle.
(2) If the anniversary date for reregistration of a vehicle passes while the vehicle is owned and held for sale by a licensed new or used car dealer, motor vehicle taxes or fees in lieu of tax abate on the vehicle properly reported with the county treasurer until the vehicle is sold. After the sale, the purchaser shall pay the pro rata balance of the taxes or fees in lieu of tax due and owing on the vehicle.
(3) In the event that a vehicle's registration period is changed under 61-3-315, all taxes or fees in lieu of tax and other
fees due must be prorated and paid from the last day of the old period until the first day of the new period in which the
vehicle is registered. The taxes or fees in lieu of tax and other fees must be paid from the first day of the new period for a
minimum period of 1 year. When Whenever the change is to a later registration period, taxes and fees must be prorated and
paid based on the same tax year as the original registration period. Thereafter After the change, during the appropriate
anniversary registration period, each vehicle must again be registered or reregistered and all taxes and fees must be paid for
a 12-month period."
Section 137. Section 61-3-502, MCA, is amended to read:
"61-3-502. Sales tax on new motor vehicles -- exemptions. (1) In consideration of the right to use the highways of the state, there is imposed a tax upon all sales of new motor vehicles, excluding vehicles with a gross vehicle weight in excess of 46,000 pounds used exclusively in interstate commerce, trailers, semitrailers, and housetrailers, for which a license is sought and an original application for title is made. The tax must be paid by the purchaser when the purchaser applies for an original Montana license through the county treasurer. For purposes of this section, "new motor vehicle" means a new motor vehicle for which original registration is sought or a motor vehicle previously furnished without charge by a dealer to a school district for use in a state-approved traffic education program, whether or not titled by the dealer or the school district, and for which original registration is sought.
(2) Except as provided in subsections (4) and (5), the The sales tax is:
(a) 1 1/2% 4% of the f.o.b. factory list price or f.o.b. port-of-entry list sales price, as defined in [section 1]. during the
first quarter of the year or for a registration period other than a calendar year or calendar quarter;
(b) 1 1/8% of the list price during the second quarter of the year;
(c) 3/4 of 1% during the third quarter of the year;
(d) 3/8 of 1% during the fourth quarter of the year.
(3) If the manufacturer or importer fails to furnish the f.o.b. factory list price or f.o.b. port-of-entry list price, the
department may use published price lists.
(4) The new car sales tax on vehicles subject to the provisions of 61-3-313 through 61-3-316 is 1 1/2% of the f.o.b.
factory list price or f.o.b. port-of-entry list price regardless of the month in which the new vehicle is purchased.
(5) The sales tax on new motor vehicles registered as part of a fleet under 61-3-318 is 3/4 of 1% of the f.o.b. factory list
price or f.o.b. port-of-entry list price.
(6)(3) The proceeds from this the tax imposed under this section, after the county treasurer has deducted 2% of the
taxes collected to pay for the cost of administration, must be remitted to the state treasurer every 30 days. The state
treasurer shall deposit $1 of the tax on each new motor vehicle in a special revenue account to be used by the department of
commerce in carrying out its duties under Title 61, chapter 4, part 5, with the. The state treasurer shall credit the balance of
the proceeds to be credited as follows:
(a) 37.5% to the highway nonrestricted account of the state special revenue fund. The county treasurer shall retain 5%
of the taxes collected to pay for the cost of administration; and
(b) 62.5% to the account for sales tax and use tax money established in [section 62].
(7)(4) The new vehicle is not subject to any other assessment, fee in lieu of tax, or tax during the calendar year in which
the original application for title is made.
(8)(5) A new motor vehicle may not be registered or licensed unless the application for registration is accompanied by a
statement of origin that is furnished by the dealer selling the vehicle and that shows that the vehicle has not previously been
registered or owned, except as otherwise provided in this section, by any person, firm, corporation, or association other than
a new motor vehicle dealer holding a franchise or distribution agreement from a new car manufacturer, distributor, or
importer.
(9)(6) (a) Motor vehicles operating exclusively for transportation of persons for hire within the limits of incorporated
cities or towns and within 15 miles from the limits are exempt from the provisions of subsection (1).
(b) Motor vehicles brought or driven into Montana by nonresident, migratory, bona fide agricultural workers who are temporarily employed in agricultural work in this state, when those motor vehicles are used exclusively for transportation of agricultural workers, are also exempt from the provisions of subsection (1).
(c) Vehicles lawfully displaying a licensed dealer's plate as provided in 61-4-103 are exempt from the provisions of subsection (1):
(i) when moving to or from a dealer's place of business when unloaded or loaded with dealer's property only; and
(ii) in the case of vehicles having a gross loaded weight of less than 24,000 pounds, while being demonstrated in the course of the dealer's business.
(d) Motor vehicles owned or controlled by a special district, as defined in 18-8-202, are exempt from subsection (1).
(e) A vehicle registered under 61-3-456 is exempt from the provisions of subsection (1)."
Section 138. Section 61-3-506, MCA, is amended to read:
"61-3-506. Rules. (1) The department of revenue shall adopt rules for the payment of sales taxes under the provisions of 61-3-502 and sales taxes and use taxes under the provisions of [sections 1 through 62 and 64]. The department shall specifically provide that new car sales taxes and use taxes be for a 12-month period.
(2) The department of transportation shall adopt rules for the payment of new car taxes under the provisions of 61-3-313 through 61-3-316, 61-3-501, and 61-3-520.
(2)(3) The department of justice may adopt rules:
(a) for the assessment and collection of taxes and fees on light vehicles, including the proration of taxes under 61-3-520;
(b) for the imposition and collection of fees in lieu of tax, including the proration of fees in lieu of tax under 61-3-520, on buses, trucks having a manufacturer's rated capacity of more than 1 ton, and truck tractors, including criteria for determining the vehicle's age and manufacturer's rated capacity; and
(c) The department of justice may adopt rules for the administration of fees for trailers, pole trailers, and semitrailers,
including criteria for determining a trailer's age and weight."
Section 139. Section 61-3-509, MCA, is amended to read:
"61-3-509. Disposition of taxes. (1) Except as provided in [section 64] and subsection (2) of this section, 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 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.
(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."
Section 140. Section 61-3-605, MCA, is amended to read:
"61-3-605. Penalty for nonpayment of sales tax. Any An owner or operator of a motor vehicle who violates any
provision of 61-3-502 or [section 64] is guilty of a misdemeanor and shall be punished by a fine of not more than $300, or
by a sentence of not more than 60 days in the county jail, or both."
Section 141. Section 61-3-701, MCA, is amended to read:
"61-3-701. Foreign vehicles used in gainful occupation to be registered -- reciprocity. (1) Before a foreign licensed
motor vehicle may be operated on the highways of this state for hire, compensation, or profit or before the owner or user of
the vehicle uses the vehicle if the owner or user is engaged in gainful occupation or business enterprise in the state,
including highway work, the owner of the vehicle shall apply to a county treasurer for registration upon an application form
furnished by the department. Upon satisfactory evidence of ownership submitted to the county treasurer and the payment of
motor vehicle taxes sales tax or use tax imposed in 61-3-502 or [section 64], if applicable, or fees in lieu of taxes, if
appropriate, as required by 15-8-201, 15-8-202, 15-24-301, 61-3-504, 61-3-529, or 61-3-537, the treasurer shall accept the
application for registration and shall collect the regular license fee required for the vehicle.
(2) Upon payment of the fees or taxes, the treasurer shall issue to the applicant a copy of the certificate entitled "Owner's Certificate of Registration and Payment Receipt" and forward a duplicate copy of the certificate to the department. The treasurer shall at the same time issue to the applicant the proper license plates or other identification markers, which must at all times be displayed upon the vehicle when operated or driven upon roads and highways of this state during the effective period of the license.
(3) The registration receipt does not constitute evidence of ownership but must may be used only for registration
purposes. A Montana certificate of ownership may not be issued for this type of registration.
(4) This section is not applicable to a vehicle covered by a valid and existing reciprocal agreement or declaration entered into under the provisions of the laws of Montana."
Section 142. Section 61-4-112, MCA, is amended to read:
"61-4-112. New motor vehicles -- transfers by dealers. (1) When a motor vehicle dealer transfers a new motor vehicle to a purchaser or other recipient, the dealer shall:
(a) issue and affix a permit as prescribed in 61-4-111(2)(a) for transfers of used motor vehicles and retain a copy of the permit;
(b) within 4 working days following the date of delivery of the new motor vehicle, forward to the county treasurer of the county where the purchaser or recipient resides:
(i) one copy of the permit issued under subsection (1)(a);
(ii) an application for certificate of title with a notice of security interest, if any, executed by the purchaser or recipient; and
(iii) a statement of origin as prescribed in 61-3-502(8)(5).
(2) Upon receipt from the county treasurer of the documents required under subsection (1), the department shall issue a certificate of ownership and certificate of registration, together with a statement of lien as provided in 61-3-202."
Section 143. Section 76-1-405, MCA, is amended to read:
"76-1-405. Maximum county mill levy -- authorization for levy. The tax levy for planning board purposes shall be is
limited as follows:
(1) A county of the first class, as defined in 7-1-2111, may levy a tax not to exceed 2 3 mills.
(2) A county of the second class may levy a tax not to exceed 3 4 mills.
(3) A county of the third class may levy a tax not to exceed 4 5 mills.
(4) A county of the fourth class may levy a tax not to exceed 5 7 mills.
(5) Counties of the fifth, sixth, and seventh classes may levy a tax not to exceed 6 8 mills."
Section 144. Section 81-7-303, MCA, is amended to read:
"81-7-303. County commissioners permitted to require per capita license fee on sheep. (1) To defray the expense
of protection, the board of county commissioners of any county may require all owners or persons in possession of any
sheep 1 year old or older in the county on the regular assessment date of each year to pay a per capita license fee in an
amount to be determined by the board levy as provided in 15-24-922. All owners or persons in possession of any sheep 1
year old or older coming into the county after the regular assessment date and subject to taxation the per capita levy under
the provisions of 15-24-301 Title 15, chapter 24, part 9, are subject to payment of the license fee.
(2) Upon the order of the board of county commissioners, the license fees fee may be imposed by entering the name of
the licensee upon the property tax assessment record of the county by the department of revenue. The license fees are fee is
payable to and must be collected by the county treasurer. When levied, the fees are fee is a lien upon the property, both real
and personal, of the licensee. If the person against whom the license fee is levied does not own real estate against which the
license fee is or may become a lien, then the license fee is payable immediately upon its levy and the treasurer shall collect
the fee in the manner provided by law for the collection of personal property taxes that are not a lien upon real estate
15-16-119.
(3) When collected, the fees must be placed in the predatory animal control fund, and the fund may be expended on order of the board of county commissioners of the county for predatory animal control only."
Section 145. Section 81-7-603, MCA, is amended to read:
"81-7-603. County commissioners permitted to levy per capita license fee on cattle. (1) To defray the expense of
protection, the board of county commissioners may require all owners or persons in possession of any cattle 9 months old
or older in the county on the regular assessment date of each year to pay a per capita license fee in an amount to be
determined by the board levy as provided in 15-24-922. All owners or persons in possession of cattle 9 months old or older
coming into the county after the regular assessment date and subject to taxation the per capita levy under the provisions of
15-24-301 Title 15, chapter 24, part 9, are subject to payment of the license fee.
(2) Upon the order of the board of county commissioners, the license fee may be imposed by entering the name of the
licensee upon the property tax assessment record of the county by the department of revenue. The license fee is payable to
the county treasurer. When levied, the fee is a lien upon the property, both real and personal, of the licensee. If the person
against whom the license fee is levied does not own real estate against which the license fee is or may become a lien, then
the license fee is payable immediately upon its levy and the treasurer shall collect the fee in the manner provided by law for
the collection of personal property taxes that are not a lien upon real estate 15-16-119.
(3) The fees must be placed in a predatory animal control fund separate from the fund provided for in 81-7-303. The money in the predatory animal control fund may be expended by the board of county commissioners only for the predatory animal control program."
Section 146. Section 90-5-112, MCA, is amended to read:
"90-5-112. Economic development levy. (1) The governing body of a city, county, or town is authorized to levy up to 1 mill upon the taxable value of all the property in the city, county, or town subject to taxation for the purpose of economic development. The governing body may:
(a) submit the question of the mill levy to the qualified voters voting in a city, county, or town election; or
(b) approve the mill levy by a vote of the governing body.
(2) Funds Proceeds derived from this levy may be used for purchasing land for industrial parks, constructing buildings
to house manufacturing and processing operations, conducting preliminary feasibility studies, promoting economic
development opportunities in a particular area, and other activities generally associated with economic development. These
funds The proceeds may not be used to directly assist an industry's operations by loan or grant or to pay the salary or salary
supplements of government employees.
(3) The governing body of the county, city, or town may use the funds proceeds derived from this levy to contract with
local development companies and other associations or organizations capable of implementing the economic development
function.
(4) A tax authorized by a vote of the electorate, as provided in subsection (1)(a), may be levied for a period not to
exceed 6 years and is not subject to the provisions of Title 15, chapter 10, part 4."
NEW SECTION. Section 147. Repealer. Sections 15-6-136, 15-6-151, 15-10-401, 15-10-402, 15-10-406, 15-10-412, 15-16-613, 15-24-920, 15-24-926, 15-24-927, 15-24-931, 15-24-2401, 15-24-2402, 15-24-2403, 15-24-2404, and 15-24-2405, MCA, are repealed.
NEW SECTION. Section 148. Transition. (1) Notwithstanding the provisions of [section 39], each person engaging in business prior to [the applicability date of sections 1 through 62] must have applied for and received, prior to [the applicability date of sections 1 through 62], a valid seller's permit described in [section 39].
(2) Notwithstanding the provisions of [section 8], any person engaging in business prior to [the applicability date of sections 1 through 62] may apply for and receive, prior to [the applicability date of sections 1 through 62], a valid nontaxable transaction certificate described in [section 8].
(3) The department of revenue shall adopt rules to provide procedures for receiving and processing an application for a seller's permit and for providing a seller's permit and a nontaxable transaction certificate prior to [the applicability date of sections 1 through 62].
NEW SECTION. Section 149. Election. Pursuant to Article III, sections 5 and 6, of The Constitution of the State of Montana, this act shall be submitted to the qualified electors of Montana for their approval or disapproval at a statewide election to be held in November 2000.
NEW SECTION. Section 150. Codification instruction. (1) [Sections 1 through 62] are intended to be codified as an integral part of Title 15, and the provisions of Title 15 apply to [sections 1 through 62].
(2) [Section 63] is intended to be codified as an integral part of Title 15, chapter 1, part 5, and the provisions of Title 15, chapter 1, part 5, apply to [section 63].
(3) [Section 64] is intended to be codified as an integral part of Title 61, chapter 3, part 5, and the provisions of Title 61, chapter 3, part 5, apply to [section 64].
(4) [Sections 65 through 69] are intended to be codified as an integral part of Title 15, chapter 30, part 1, and the provisions of Title 15, chapter 30, apply to [sections 65 through 69].
NEW SECTION. Section 151. Saving clause. [This act] does not affect rights and duties that matured, penalties that were incurred, or proceedings that were begun before [the effective date of this act].
NEW SECTION. Section 152. Severability. If a part of [this act] is invalid, all valid parts that are severable from the invalid part remain in effect. If a part of [this act] is invalid in one or more of its applications, the part remains in effect in all valid applications that are severable from the invalid applications.
NEW SECTION. Section 153. Effective date. [This act] is effective on approval by the electorate.
NEW SECTION. Section 154. Applicability. (1) Except as provided in subsection (3), [sections 1 through 62, 64 through 69, 96 through 115, 129, 130, 134 through 142, 144, 145, and 147] apply on and after January 1, 2001, and to tax years beginning after December 31, 2000.
(2) [Sections 63, 70 through 95, 116 through 128, 131 through 133, 143, and 146] apply on and after July 1, 2001, and to fiscal years beginning after June 30, 2001.
(3) (a) Except as provided in subsection (3)(b), purchases of goods and services pursuant to construction contracts that were bid prior to [the date on which the election on this act was held] are exempt from the sales tax and use tax.
(b) Property or services purchased on or after January 1, 2001, pursuant to a construction contract are subject to the sales tax and use tax regardless of when the contract was bid.
NEW SECTION. Section 155. Submission to electorate. This act shall be submitted to the qualified electors of Montana at the general election to be held in November 2000 by printing on the ballot the full title of this act and the following:
[] FOR exempting owner-occupied homes from property tax, reducing business equipment taxes, and imposing a 4% sales tax and use tax.
[] AGAINST exempting owner-occupied homes from property tax, reducing business equipment taxes, and imposing a 4% sales tax and use tax.
- END -
Latest Version of HB 675 (HB0675.01)
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