SENATE BILL NO. 260
INTRODUCED BY B. GLASER, D. TOEWS, D. FUCHS, L. GRINDE, J. HARP, B. KEENAN, W. MCNUTT, S. ROSE, M. SPRAGUE, K. MILLER
AN ACT REDUCING THE TAXES ON LIGHT VEHICLES AND FLEET VEHICLES; PROVIDING THAT THE TAX RATE DECREASES AS THE STATEWIDE VALUE OF LIGHT AND FLEET VEHICLES INCREASES; PROVIDING THAT THE AMOUNT OF MONEY DISTRIBUTED TO THE DISTRICT COURT FUND FROM LIGHT VEHICLE TAXES REMAIN UNCHANGED; CHANGING THE DISTRIBUTION FORMULA FOR MOTOR VEHICLE TAX COLLECTIONS; INCREASING THE PERMISSIBLE TAX RATE ALLOWED UNDER THE LOCAL OPTION VEHICLE TAX; REQUIRING A VOTE FOR IMPOSITION OF THE LOCAL OPTION VEHICLE TAX; PROVIDING FOR THE TRANSFER OF FUNDS FROM THE STATE GENERAL FUND TO THE STATE SPECIAL REVENUE ACCOUNTS FOR PURPOSES OF THE 6-MILL UNIVERSITY LEVY AND THE 9-MILL COUNTY PUBLIC ASSISTANCE LEVY; AMENDING SECTIONS 20-9-141, 61-3-504, 61-3-509, AND 61-3-537, MCA; AND PROVIDING AN APPLICABILITY DATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. 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 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 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, 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;
(G) reimbursements for unrealized motor vehicle tax revenue, as provided in 61-3-509(1); 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 2. Section 61-3-504, MCA, is amended to read:
"61-3-504. Computation of tax. (1) The amount of taxes on a light vehicle, except for vehicles registered under
61-3-456 or owned by disabled veterans qualifying for special license plates under 61-3-332(10)(c) or 61-3-426(2), is 2%
the percentage determined under subsection (3) of the value determined under 61-3-503.
(2) The amount of tax on fleet vehicles subject to the provisions of 61-3-318 is 1% one-half of the percentage
determined under subsection (3) of the value determined under 61-3-503.
(3) For tax years beginning after December 31, 2000, the taxable percentage for the computation of taxes under this section is determined prior to the start of a tax year by multiplying the statewide total taxable value of motor vehicles subject to taxation under this section for the first half of the prior calendar year by the prior year tax rate and then dividing the product by the statewide total taxable value of motor vehicles subject to taxation under this section for the first half of the current calendar year. For the tax year beginning after December 31, 1999, the rate is 1.4%. To determine the rate for tax year 2001, the tax rate for the first half of calendar year 1999 is considered to be 1.4%."
Section 3. Section 61-3-509, MCA, is amended to read:
"61-3-509. Disposition of taxes. (1) Except as provided in subsection (2), the county treasurer shall, after deducting the district court fee, credit all taxes on motor vehicles and fees in lieu of tax on motorcycles, quadricycles, motor homes, travel trailers, campers, trailers, pole trailers, semitrailers, buses, trucks having a manufacturer's rated capacity of more than 1 ton, and truck tractors, collected under 61-3-504, 61-3-521, 61-3-527, 61-3-529, and 61-3-537, to a motor vehicle suspense fund. At some time between March 1 and March 10 of each year and every 60 days after that date, the county treasurer shall distribute the money in the motor vehicle suspense fund. Except for taxes collected under 61-3-504, the county treasurer shall distribute the money in the fund in the relative proportions required by the levies for state, county, school district, and municipal purposes in the same manner as personal property taxes are distributed. For money in the fund collected under 61-3-504, the county treasurer shall disregard the statewide mills levied for the university system and the mills levied for state equalization aid under 20-9-360 in determining distribution proportions of the money and may not distribute money from 61-3-504 to the state for either levy. If the distribution of money collected under 61-3-504 to a school district general fund results in a lower revenue than the district received in fiscal year 1999 and the district has, for all years after fiscal year 1999, received less revenue than fiscal year 1999, then the district general fund is entitled to state reimbursement for the amount of the difference between the fiscal year 1999 revenue and the current year distributions of collections under 61-3-504.
(2) The county treasurer shall deduct as a district court fee 7% 10% of the amount of the 2% tax collected on light
vehicles under 61-3-504(1). 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 4. Section 61-3-537, MCA, is amended to read:
"61-3-537. (Temporary) Local option vehicle tax. (1) A county may impose a local vehicle tax on vehicles subject to
a tax under 61-3-504 at a rate of up to 0.5% 0.7% of the value determined under 61-3-503, in addition to the tax imposed
under 61-3-504.
(2) A local vehicle tax is payable at the same time and in the same manner as the tax imposed under 61-3-504. The first priority of the local vehicle tax is for district court funding, and the tax is distributed as follows:
(a) 50% to the county; and
(b) the remaining 50% to the county and the incorporated cities and towns within the county, apportioned on the basis of population. The distribution to a city or town is determined by multiplying the amount of money available by the ratio of the population of the city or town to the total county population. The distribution to the county is determined by multiplying the amount of money available by the ratio of the population of unincorporated areas within the county to the total county population.
(3) The governing body of a county may impose, revise, or revoke a local vehicle tax by adopting a resolution before
July 1, after conducting a public hearing on the proposed resolution. The if the imposition, revision, or revocation of the tax
is approved by the electorate of the county. The imposition, revision, or revocation of the tax is effective on January 1
following its approval by the electorate. The county governing body by resolution may provide for the distribution of the
local vehicle tax. (Terminates June 30, 2005--sec. 2, 3, Ch. 217, L. 1995.)
61-3-537. (Effective July 1, 2005) Local option vehicle tax. (1) A county may impose a local vehicle tax on vehicles
subject to a tax under 61-3-504 at a rate of up to 0.5% 0.7% of the value determined under 61-3-503, in addition to the tax
imposed under 61-3-504.
(2) A local vehicle tax is payable at the same time and in the same manner as the tax imposed under 61-3-504 and is distributed in the same manner, based on the registration address of the owner of the motor vehicle.
(3) The governing body of a county may impose, revise, or revoke a local vehicle tax by adopting a resolution before
July 1, after conducting a public hearing on the proposed resolution if the imposition, revision, or revocation of the tax is
approved by the electorate of the county. The imposition, revision, or revocation of the tax is effective on January 1
following its approval by the electorate."
Section 5. Fund transfers. (1) There is transferred from the general fund to the state special revenue fund referred to in [section 1 of Senate Bill No. 79] $604,305 for fiscal year 2000 and $1,268,732 for fiscal year 2001.
(2) There is transferred from the general fund to the state special revenue fund referred to in 53-2-813(2) to the credit of the department of public health and human services, $87,471 for fiscal year 2000 and $183,644 for fiscal year 2001.
Section 6. Applicability. [This act] applies to registration periods beginning after December 31, 1999, and to fleet registrations after December 31, 1999.
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Latest Version of SB 260 (SB0260.ENR)
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