3 0864 1004 3865 7
VOTER INFORMATION PAMPHLET ^i , ,
n f..FOR THE JUNE 8TH SPECIAL ELECTION ^^i^ J:!iK IJ;.;; WTt
/tA rpN legislative referendum 111
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Argument FOR Legislative Referendum 111'
True tax reform for Montanans must provide significant reform of our income
tax system and significant relief of both residential and personal property
taxes. Referendum 1 1 1 provides real tax reform by reducing income and
property taxes, stimulating Montana's economy, and providing jobs.
Montana must move away from its historic reliance on excessive property
taxes, anti-competitive business taxes, and income taxes that continue to
escalate. Montanans who create new businesses and new jobs are penalized
under our current tax system. Referendum 111 is about jobs growth,
expanded business activity, and an equitable tax system for Montana.
Referendum 111 is a less punitive and more progressive income tax proposal
which provides for a single rate (6%) income tax structure with generous
personal exemptions and standard deductions. A significant number of low-
income families will no longer pay Montana income taxes. This simplified
tax system eliminates many of the complexities that everyone presently faces
when preparing their personal tax returns.
Homeowners will gain a $20,000 exemption on their property taxes. A credit
on the Montana income tax return, equal to the property tax paid on the first
$20,000 of market value on an owner-occupied residence, provides an average
property lax savings of $217. In addition, an average of 35 local education
mills will be eliminated, resuhing in a further 10% reduction in property
taxes. Property tax relief for renters is provided through a $150 renter's
credit claimed on the Montana individual income tax return.
A reduction in the anti-competitive tax on equipment from 9% to 4.5% will
allow small Montana businesses to expand and add jobs. The drain of
Montana businesses and Montana jobs to surrounding slates will stop.
Referendum 1 1 1 uses a 4% sales tax to provide much needed tax relief and
reform. Exemptions from the sales tax include: groceries, prescription items,
medical services, wages and salaries, utilities, insurance premiums, interest
and dividends, motor fuels, mineral interest, occasional sales (including
garage sales and fundraisers for charitable groups), advertising services,
transportation, day care services, private school tuition, and construction
services. The cost of administering Referendum 111 is about 2% of the
revenue collected - an extremely efficient and cost effective tax collection
system.
A low-income sales tax credit of $90 per individual is available for each
member of a household when total income is below $1.^.()()(). The $150
renter's credit provides additional low-income relief. These credits are
payable even if the individual pays no Montana income tax.
Referendum III is not a mechanism for new government programs or
spending. The sales tax is capped at 4% and cannot be increased without
another vote of the people. Referendum 1 1 1 provides a long-term solution
to the present imbalance of Montana's fiscal structure and will enable
Montana to fund necessary governmental services.
The PROPONENTS' argument and rebuttal were prepared by State
Senator Bruce Crippen, State Representative Chase Hibbard, and State
Senator Harry Fritz.
Argument AGAINST Legislative Referendum 111
Montanans believe taxes should be based on a person's ability to pay
and that corporations should shoulder their fair share of taxes to pay for the
privilege of using the state's resources to make a profit. In the past 13 years,
the Legislature has turned our tax policy upside-down, with low and middle-
income taxpayers subsidizing huge tax breaks for corporations.
* Montana lost $141,400,000 of stale revenue in the 1992-93
biennium alone (Legislative Fiscal Analyst), from tax loopholes
promoted over the years by big business lobbyists.
* Through the last 12 years, these subsidies cost Montanans over
$500,000.0001 Most Montanans want to close these loopholes instead
of shouldering another burdensome tax.
The proposed sales tax makes a bad situation worse, replacing
$125,000,000 in property taxes with sales taxes paid by Montana consumers.
Although some property tax relief goes to homeowners and some renters,
TWO-THIRDS OF THE BONANZA GOES TO BIG BUSINESSES,
CORPORATIONS AND MAJOR LANDHOLDERS.
Individuals and families would pay for the bulk of these corporate tax
cuts. The sales tax would raise your total state taxes ABOVE the amount you
now pay for all taxes, including the new 6.7% flat income tax.
* Wealthiest families' taxes stay at 5.3% of their total income.
* Middle-income families' tdxes jump from 7.9% to 8.9% of their
total income.
* Poorer Montana families' taxes rise from 7.5% to 8.5% of their
total income.
IS THE SALES TAX ACTUALLY TAX REFORM? NO! It does nothing
to close existing tax loop holes or make taxes more fair.
WILL THE SALES TAX REDUCE TAXES? NO! It amounts to a 55% net
increase in tax collections! $331,700,000 in new taxes! Furthermore, income
and property taxes are deductible from federal taxes. Sales taxes are not.
Under the sales tax, a family of four with an income of $35,000 would see
their total tax burden rise by 23%!
WILL THE SALES TAX STOP TAX INCREASES? NO! A cap on tax
increases lasts until the first day of the next Legislature. When revenue is
needed, sales tax exemptions will be eliminated one by one. The sales tax
would also repeal 1-105, the property tax limitation law, allowing increases
in property taxes.
WILL THE SALES TAX HELP OUR SCHOOLS? NO! It provides no
additional money for schools. It just replaces permissive levies for debt
service, retirement, and transportation.
WILL THE SALES TAX HELP FAMILY FARMS AND RANCHES?
NO! It would increase taxes on ranchers and farmers for all equipment, parts,
and repairs.
WILL TOURISTS PAY A LARGE SHARE OF THE SALES TAX? NO!
Sales taxes from tourists would barely cover the costs of administering the
tax. Tourists would pay about 7% of sales tax revenue, while Montana
consumers and businesses would pay 93%.
WILL THE SALES TAX HELP SOCIAL PROGRAMS? NO! Not a dime
of sales tax money would go to help Montanans with physical or mental
health problems, or to abused children.
The sales tax is opposed by small business owners, family farmers,
labor, and consumers.
Join us June 8. Reject the 4% sales.
The OPPONENTS' argument and rebuttal were prepared by State
Senator Bill Yellowtail, State Representative Bill Strizich, and
Superintendent of Public Instruction Nancy Keenan.
PROPONENTS' rebuttal of argument opposing Legislative Referendum 111
The opponents of Referendum 1 1 1 want you to ignore the facts. They want
you to buy worn-out arguments that have kept you and our children from
good job opportunities right here at home.
THE FACT IS: R-111 reduces overall income taxes for everyone. Total
income taxes for all Montana households would be reduced by about $82
million a year.
THE FACT IS: The sales tax, capped by law at 4%, applies to less than
half your purchases. For every four dollars raised, three will give you income
and property tax relief and the fourth dollar will be used to pay for such
things as education and human services.
THE FACT IS: Over $50 million a year in sales tax revenue will come
from out-of-state travelers and out-of-state businesses.
THE FACT IS: Montana's businesses will not receive "huge" tax breaks.
There are no "loopholes." Businesses will, in fact, pay more taxes under R-
111.
THE FACT IS:
and education.
Tax reform is supported by small business, family farmers
THE MOST IMPORTANT FACT IS: R- 1 1 1 balances Montana's entire tax
system. Property taxes will no longer be driven to levels that punish your
family and destroy jobs. Instead, R- 1 1 1 gives us a broad-based stable tax
system that is fair to all and encourages the creation of new jobs for all of us,
young and old.
Without tax reform, we will continue to export our future, our children,
control of our state, and jobs to other places.
OPPONENTS' rebuttal of argument supporting Legislative Referendum 111
Let's compare the bottom lines.
• While the sales tax plan contains some short-term tax relief in property and
income taxes, in truth, the total tax bill for families would be higher under
this plan. Middle-income Montanans would see the biggest increase.
• The sales tax is not tax reform, but a direct tax shift, cutting property
taxes for big businesses; replacing them with a sales tax on families.
Railroads and airlines would receive a $7,280,000 property tax break, nearly
$5,000,000 for Burlington-Northern alone.
For years, big business lobbyists have claimed, with each additional corporate
tax-break, that a stimulated economy and new jobs would result. After
hundreds of millions of dollars in tax giveaways to big business since 1981,
where are those jobs?
• The only jobs a sales tax would be sure to bring to Montana are the 148
new tax collectors required to administer the sales tax.
• This tax scheme reduces county property tax mills, replacing them with
state-controlled sales taxes. Therefore, it reduces incentives for schools to
control costs. It gives no help to schools or local government, increasing
pressure to raise local property taxes.
9 The sales tax contains many loopholes for special interests. Besides much-
advertised exemptions for groceries and medical services, it also contains less
well-known exemptions for the advertising industry, large mining
companies, banks and the insurance industry.
• Referendum III is regressive tax policy. It is unfair, long-term relief for
corporations at the expense of Montana families.
HOW THE ISSUE WILL APPEAR ON THE JUNE 8TH BALLOT
LEGISLATIVE REFERENDUM NO. Ill
AN ACT REFERRED BY THE LEGISLATURE
AN ACT GENERALLY REVISING TAXATION; ENACTING A 4 PERCENT SALES AND USE TAX; ALLOWING EXEMPTIONS FROM THE SALES TAX AND USE
TAX EXEMPTING CERTAIN PROPERTY FROM TAXATION; REVISING DEBT LIMITS FOR LOCAL GOVERNMENTS AND SCHOOLS; REVISING INDIVIDUAL
INCOME TAXES AND PROPERTY TAXES; ALLOWING CREDITS AGAINST INDIVIDUAL INCOME TAX LIABILITY; PROVIDING FOR DISTRIBUTION OF SALES
TAX AND USE TAX REVENUE; PROVIDING STATE SUPPORT FOR CERTAIN SCHOOL FUNDING; PROVIDING THAT THIS ACT BE SUBMITTED TO THE
QUALIFIED ELECTORS OFTHE STATE AT A SPECIAL ELECTION; AMENDING SECTIONS 7-1-21 1 1, 7-3-1321, 7-6-221 1, 7-6-4121, 7-6-4254, 7-7-107,7-7-108.7-7-2101.
7-7-'>203 7-7-4201 7-7-4'>n2 7-1 3-4103. 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. 15-I-III. I5-6-I33. 15-6-138. 15-6-
141 15-6-144 IS-6-207 l'i-8-20'i. 15-23-703. 15-24-301, 15-30-101. 15-30-103, 15-30-105, 15-30-1 1 1, 15-30-1 12, 15-30-1 17, 15-30-122. 15-30-126. 15-30-131. 15-30-137. 15-30-
142 15-30-177 15-30-323, 15-31-131, 15-32-303. 15-36-112. 15-51-101, 16-1-306, 16-1-411, 16-2-301, 17-3-213, 19-11-503, 19-11-504.20-3-205.20-6-702,20-9-331,20-9-333,
10-9-343 ->0-9-344 ''0-9-346 20-9-347 20-9-35 1 , 20-9-366, 20-9-367. 20-9-368. 20-9-369, 20-9-406. 20-9-407. 20-9-439. 20-9-501, 20-10-104, 20-10-141, 20-10-142, 20-10-144,
20-10-145 20-15-311 33-7-410 61-3-303. 61-3-317. 61-3-502. 61-3-504, 61-3-506, 61-3-509. 61-3-701, AND 61-4-1 12. MCA; REPEALING SECTIONS 15-10-401. 15-10-402.
15-10-406, 15-10-411. 15-10-412. 15.30-121, 15-30-156. 15-30-157, 15-30-159, 15-30-160. AND 20-10-146. MCA; AND PROVIDING AN EFFECTIVE DATE AND
APPLICABILITY DATES.
This proposal, subniilled by the Legislalure for a vole, would reduce income and property taxes and enact a 4% general sales and use tax. Exemptions include: groceries,
prescriplions. medical services, tuition, wages, housing payments, ulililies, daycare, Iransporlation, and financial services; and exemptions for agriculture, mining, manufacturing.
and non-profit organi/alions. It would set a 6% income lax rate and increase personal exemptions and standard deductions. Property tax reductions include: a $20,(XX) homeowner
exemption, business and utility tax reductions, and reduced levies for school funding. Low-income households and renters would receive refundable tax credits. It would repeal
1-105, the property tax freeze.
FISCAL STATEMENT
The proposal would:
Impose a 4% general sales lax
Reduce individual income taxes
Reduce corporation income taxes
Reduce property taxes
Increase slale support of school funding
Increase electrical energy tax revenue
Net available to reduce stale deficit
1994-95 biennium
impact (in millions)
$310
(124)
(3)
(125)
(48)
75
$85
n FOR imposing a 4% sales tax and use tax as part of comprehensive tax reform.
D AGAINST imposing a 4% sales tax and use lax as pari of comprehensive tax reform.
SECRETARY OF STATE'S NOTE: THE FOLLOWING IS THE COMPLETE TEXT OF LEGISLATIVE REFERENDUM 1 1 L THE ACT'S COORDINATING
INSTRUCTIONS, IN SECTION 187. REFERENCE SEVERAL BILLS CONSIDERED BY THE FIFTY -THIRD LEGISLATURE. THE STATUS OF THESE BILLS
IS AS FOLLOWS; HOUSE BILL NO. 3, PASSED; SENATE BILL NO. 32, NOT PASSED; SENATE BILL NO. 168, PASSED; AND HOUSE BILL NO 671
PASSED. IF YOU WOULD LIKE TO REVIEW THESE BILLS, YOUR COUNTY ELECTION ADMINISTRATOR HAS COPIES OF THESE BILLS AVAILABLE.
THE COMPLETE TEXT OF LEGISLATIVE REFERENDUM 111
AN ACT GENERALLY REVISING TAXATION;
ENACTING A 4 PERCENT SALES AND USE
TAX; ALLOWING EXEMPTIONS FROM THE
SALES TAX AND USE TAX; EXEMPTING
CERTAIN PROPERTY FROM TAXATION;
REVISING DEBT LIMITS FOR LOCAL
GOVERNMENTS AND SCHOOLS; REVISING
INDIVIDUAL INCOME TAXES AND PROPERTY
TAXES; ALLOWING CREDITS AGAINST
INDIVIDUAL INCOME TAX LIABILITY;
PROVIDING FOR DISTRIBUTION OF SALES
TAX AND USE TAX REVENUE; PROVIDING
STATE SUPPORT FOR CERTAIN SCHOOL
FUNDING; PROVIDING THAT THIS ACT BE
SUBMITTED TO THE QUALIFIED ELECTORS
OF THE STATE AT A SPECIAL ELECTION;
AMENDING SECTIONS 7-1-2111, 7-3-1321, 7-6-
2211, 7-6-4121, 7-6-4254, 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, 15-
1-111, 15-6-133, 15-6-138, 15-6-141, 15-6-144, 15-
6-207, 15-8-205, 15-23-703, 15-24-301, 15-30-101,
15-30-103, 15-30-105, 15-30-111, 15-30-112, 15-30-
117, 15-30-122, 15-30-126, 15-30-131, 15-30-137,
15-30-142, 15-30-177, 15-30-323, 15-31-131, 15-32-
303, 15-36-112, 15-51-101, 16-1-306, 16-1-411, 16-
2-301, 17-3-213, 19-11-503, 19-11-504, 20-3-205,
20-6-702, 20-9-331, 20-9-333, 20-9-343, 20-9-344,
20-9-346, 20-9-347, 20-9-351, 20-9-366, 20-9-367,
20-9-368. 20-9-369, 20-9-406, 20-9-407, 20-9-439,
20-9-501, 20-10-104, 20-10-141, 20-10-142, 20-10-
144, 20-10-145, 20-15-31 1, 33-7-410, 61-3-303, 61-
3-317, 61-3-502, 61-3-504, 61-3-506, 61-3-509, 61-
3-701, AND 61-4-112, MCA; REPEALING
SECTIONS 15-10-401, 15-10-402, 15-10-406, 15-
10-411, 15-10-412, 15-30-121, 15-30-156, 15-30-
157, 15-30-159, 15-30-160, AND 20-10-146, MCA;
AND PROVIDING AN EFFECTIVE DATE AND
APPLICABILITY DATES.
STATEMENT OF INTENT
In consideration of the legislative action on
the sales tax, it is the intent of the legislature to
provide a comprehensive sales tax reform package
that brings balance to the Montana tax structure and
makes Montana competitive with other states.
In recognition of the uncertainty of the fiscal
impact of a 4% sales tax, it is the intent of the
legislature that all funds in excess of estimates
pursuant to 5-18-107 be used exclusively for
reductions in property and income taxes.
The priority for use of any excess funds will
be:
( 1 ) reduction of mill levies used for school
equalization; and
(2) reduction of income taxes.
A statement of intent is required for this bill
because the department of revenue is granted
authority to adopt rules for the administration and
enforcement of the sales tax and use tax. The rules
are intended to provide for an efficient process for
the collection of the taxes, with minimum expense to
both the taxpayer and the state.
The legislature contemplates that rules
adopted by the department should, at a minimum,
address the following:
(1) the registration and issuance of permits
to persons engaging in the business of retail sales
and services;
(2) the reporting form for the payment of
the taxes, along with the requirements for the
retention by the taxpayers of the necessary records;
(3) the required security and the acceptable
forms of security for those taxpayers required to
give security for payment of the taxes;
(4) the use of the nontaxable transaction
certificate and clarification of any exemption from
the taxes, including nontaxable sales;
(5) the necessary forms and the required
procedures for reporting the taxes;
(6) the definition of terms and
establishment of procedures as appropriate for
efficient administration of the sales tax and use tax;
(7) procedures for the timely and efficient
transfer of revenue to local governments and schools
as replacement revenue for the reduced property tax
base and property tax revenue; and
(8) procedures for payment of the sales tax
and use tax based on bracket amounts rather than
using a rounding method.
BE IT ENACTED BY THE LEGISLATURE OF
THE STATE OF MONTANA:
Section 1. Definitions. For purposes of
[sections 1 through 71], unless the context requires
otherwise, the following definitions apply:
( 1 ) " Arboretums and botanical or zoological
gardens" means establishments that are created for
the exhibition of plants or animals and that are not
operated for profit.
(2) "Construction services" means the
services performed by various trades engaged in the
construction of dwellings, commercial buildings,
farm buildings, and similar structures. The term
includes but is not limited to carpentry, plumbing,
the installation of heating systems and air
conditioning, electrical work, masonry, excavating,
and concrete work. The term does not include
indirect services, such as accounting, architectural
design, engineering, drafting, leasing of construction
equipment, and surveying services.
(3) "Department" means the department of
revenue.
(4) "Engaging in business" means carrying
on or causing to be carried on any activity with the
purpose of direct or indirect benefit.
(5) "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 foods.
(6) "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.
(7) (a) "Manufactured home" means a
structure that:
(i) is not an improvement to real property;
(ii) is transportable in one or more sections;
(iii) when erected on site is 320 square feet
or more;
(iv) is designed to be used as a dwelling
with a permanent foundation when connected to the
required utilities; and
(v) contains plumbing, heating, and
electrical systems.
(b) The term also includes structures that:
(i) do not meet the size requirements of
subsection (7)(a)(iii) but for which the manufacturer
voluntarily filed the certification required by the
secretary of housing and urban development; and
(ii) comply with the standards required
under 42 U.S.C. 5401, et seq.
(8) "Manufacturing" means combining or
processing components or materials, including the
processing for ores in a mill, smelter, refinery, or
reduction facility, to increase their value for sale in
the ordinary course of business. The term does not
include construction.
(9) "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.
(10) "Medicine" or "drug" means and
includes 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.
(11) (a) "Membership organization" means
an organization that operates on a membership basis,
that requires the payment of dues to hold
membership, and that is not operated for profit. The
term includes but is not limited to an organization:
(i) that is engaged in promoting the
business interests of its members, including an
association that is owned by its members and that is
organized to perform a specific business function;
(ii) that is composed of professional persons;
(iii) that is composed of workers organized
for the purpose of improvement of wages and
working conditions;
(iv) that is engaged in civic, social, or
fraternal activities;
(v) that is established to promote the
interests of a national, state, or local political party
or candidate, including a group organized to raise
funds for a political party or candidate; and
(vi) that is operated for worship, religious
training or study, or government or administration of
an organized religion or for promotion of religious
activities.
(b) The term does not include an
organization that provides sporting or recreational
services to its members, such as a country club or a
golf or tennis club.
(12) "Museums and art galleries" means
establishments that are created for the exhibition of
curiosities or works of art and that are not operated
for profit.
(13) "Permit" means a seller's permit as
described in (section 48].
(14) "Person" means;
(a) 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; or
(b) the United States or any agency or
instrumentality of the United States or the state of
Montana or any political subdivision of the state.
(15) "Sale", "selling", or "buying" means the
transfer of property for consideration or the
performance of a service for consideration.
(16) (a) "Sales price", in addition to the
other meanings provided in this subsection (16),
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 55),
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 lo in subsection (16)(c)(i) to a
third person, the third person or lessee shall pay the
sales tax or use lax 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 (he 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.
(17) "Sales tax" and "use tax" mean the
applicable tax imposed by [section 2].
(18) (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.
(19) "Service address" means the location of
telecommunications equipment from which
telecommunications services are originated or at
which telecommunications services are received by
a taxpayer. In the event that the service address is
not a specific location, as in the case of mobile
phones, paging systems, maritime systems, air-to-
ground systems, and similar systems, service address
means the location of a taxpayer's primary use of
telecommunications equipment as determined by a
telephone number, authorization code, or location in
Montana where the taxpayer's telecommunications
services bills are sent.
(20) "Social or family services
organizations" means establishments that provide
social or family services and rehabilitation services
to persons with social or personal problems or to
handicapped or disadvantaged persons and that are
not operated for profit. These services include but
are not limited to counseling services, senior citizen
centers, youth centers, job counseling and training
services, vocational rehabilitation services, and
homes for physically and mentally handicapped
persons.
(21) "Therapeutic and prosthetic devices"
includes but is not limited to prescription eyeglasses,
contact lenses, dentures, hearing aids, wheelchairs,
crutches, or artificial limbs, prescribed, ordered, or
dispensed by a person licensed to perform medical
services.
(22) "Transportation services" means the
transportation of persons or property by air, ground,
or water. The term includes any reasonably
necessary associated services for the transportation
of persons or property.
(23) "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.
Section 2. Imposition and rate of sales tax
and use tax — exceptions. ( 1 ) Except as provided in
subsections (5) and (6), 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 tran.saction 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 thai 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 61-3-504(4).
The sale or use of a vehicle subject to the tax
imposed under 61-3-502 or 61-3-504(4) 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 71] is
exempt from the tax imposed in subsections (1)
through (3).
(6) (a) A sales tax of 2.5% is imposed uf)on
the sales of all new or used mobile homes, as
defined in 15-1-101, and on all manufactured homes,
as defined in [section 1], that are not an
improvement to real property. The tax is imposed on
the purchaser and must be collected by the seller and
paid to the department by the seller. The tax must be
applied to the sales price. The seller holds all taxes
collected in trust for the state.
(b) For the privilege of using a new or used
mobile home or manufactured home in this state,
there is imposed on the person using the property a
use lax equal to 2.5% of the value of a home that
was:
(i) 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;
(ii) 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
(iii) acquired as the result of a transaction
that was not initially subject to the sales tax imposed
by subsection (6)(a) or the use tax imposed by
subsection (6)(b)(i) but which transaction, because of
the buyer's subsequent use of the property, is subject
to the sales tax or use tax.
(c) The provisions of [sections I through
71] apply to this subsection except as specifically
provided in this subsection.
Section 3. Presumption of taxability —
value — rules. ( I ) 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.
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 lax 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 7 1 ] will be absorbed
or refunded.
Section 5. Liability of user for payment of
sales tax or use tax. (1) A person in this state who
buys or uses property or services is liable to the
state for payment of the sales tax or use tax if a tax
is payable on the sales price or value of the property
or services but has not been paid.
(2) The liability imposed by this section is
discharged if the buyer has paid the sales tax or use
tax to the seller for payment to the department.
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 I through 71 [ 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
indep>endent 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;
(xi) any act that benefits from any banking,
financing, debt collection, telecommuracation, or
marketing activities occurring in this state or that
benefits from the location in this state of authorized
installation, servicing, or repair facilities; or
(xii) the acceptance by a for-profit entity of
hazardous waste, as defined in 75-10-403, or
infectious waste, as defined in 75-10-1003, for
treatment, disposal, or incineration.
(3) As used in [sections 1 through 7I[,
"maintaining an office or other place of business"
means:
(a) any person having or maintaining within
this slate, directly or by a subsidiary, an office,
distribution house, sales house, warehou.se, 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.
(4) A person engaging in business in this
state shall, before making any sales, obtain a seller's
permit as provided in [section 48] 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.
(5) 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 lax upon all
properly and services that, to the person's
knowledge, are for use within this state and subject
to taxation under (sections I through 7I|.
(6) All sales lax and use lax required to be
collected and all sales tax and use tax collected by
any person under [sections I through 71] constitute
a debt owed to this state by the person required to
collect the lax.
(7) A person selling property or services to
residents of this state, when the property is delivered
to a location within this stale or when the use of the
service occurs within this slate, 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.
(8) A person engaging in business in this
state shall provide to the department:
(a) the name and address of all the person's
agents operating in this stale; 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.
(9) If any application of this section is held
invalid, the application to other situations or persons
is not affected.
(10) Publishers who contract for newspaper
delivery services shall include the sales tax in the
newspaper subscription price and shall collect and
pay the tax to the department. The contract carrier is
not responsible for collection of the sales lax and
payment to the department.
Section 7. Nontaxable transaction
certificate — requirements. (I) A nontaxable
transaction certificate executed by a buyer or lessee
must be in the possession of the seller or lessor at
the time 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
lime and believes in good faith that the buyer or
lessee will employ the properly or service transferred
in a nontaxable manner, the properly executed
nontaxable transaction certificate is considered
conclusive evidence that the sale is nontaxable.
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 48);
(b) the general character of property or
service sold by the purchaser in the regular course of
business or the category of nonprofit organization of
the purchaser;
(c) the property or service purchased;
(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 prior to [the
applicability date of this section). The rules adopted
by the department should ensure that each eligible
person who has applied in a timely fashion is issued
a nontaxable transaction certificate prior to [the
applicability date of this section).
Section 9. Exemption — government
agencies. All sales by, sales to, or uses by the
United Stales, 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.
Section 10. Exemption — utility services.
( 1 ) The sale of natural gas, water, electricity,
telephone communications services, refuse collection
and disposal, or other utility services is exempt from
the sales tax and use lax.
(2) For purposes of this section, the term
"utility services" does not include .services provided
by a cable television system as that term is defined
in 35-18-102.
Section 1 1 . Exemption — food products.
(1) Except as provided in subsection (2), the sale or
u.se 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.
Section 12. 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 (WIC) as specified in 42 U.S.C.
1786, as amended, is exempt from the sales tax and
use tax.
Section 13. Exemption — nursing homes.
All sales to or uses by a nursing facility subject to
the utilization fee for bed days in nursing facilities
provided for in 15-60-102 are exempt from the sales
tax and use tax.
Section 14. Exemption - prescribed
medicine, drugs, and certain devices — medical
services. (1 ) Medicine, drugs, insulin, contraceptives,
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 lax:
(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 physician, a
mental health professional, or a dentist.
Section 1 5 . Exemption — wages. Except as
provided in [sections I through 71], 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.
Section 16. Exemption — agricultural
products - livestock feeding. (I) (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 (l)(a).
(2) Sales from feeding, pasturing, penning,
or handling or training livestock prior to sale are
exempt from the sales tax.
Section 17. Exemption - gambling and
amusement services. All gambling or amusement
services, including live games, video games,
horseracing, and lotteries, which are licensed
pursuant to Title 23, chapter 4, 5, or 7, are exempt
from the sales tax and use tax.
Section 18. Exemption ~ insurance
premiums. The premiums of an insurance company,
a health service corporation, or a fraternal benefit
society or of an agent of the company, corporation,
or society are exempt from the sales tax.
Section 19. Exemption - dividends,
commissions 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, security, or contract of insurance.
Section 20. Exemption - fuel. 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.
Section 21. 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.
Section 22. 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.
Section 23. Exemption — minerals. (1)
Except as provided in subsection (2), the sale or use
by a miner or by a producer of a mineral or by a
broker acting on behalf of a miner or producer of a
mineral, as defined in 15-38-103, is exempt from the
sales tax and use tax.
(2) Minerals that are used for producing
energy or that are used for conversion into energy
are subject to the sales tax and use tax unless the
energy is produced or converted for resale as a form
of energy.
(3) 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.
Section 24. 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
noiiresident for the nonresident's own nonbusiness
use while temporarily within this state is exempt
from the use tax.
Section 25. Exemption — advertising
services. 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.
For purposes of this section, "advertising services"
includes but is not limited to all advertising by:
( 1 ) newspaper, magazine, or other
publication;
(2) radio or television;
(3) billboard, banner, sign, placard, or the
like;
(4) handbill; or
(5) any other advertising means, media, or
method.
Section 26. Exemption — day-care
services. The sale or use of day-care services is
exempt from the sales tax and use tax.
Section 27. Exemption — feed, fertilizers,
and agricultural services. (1) The sale or use of
feed for livestock, fish raised for human
consumption, poultry, or animals raised for their
hides or pelts; semen, ova, or embryos used in
animal husbandry; seeds; Christmas trees; roots;
bulbs; soil conditioners; fertilizers; insecticides;
insects used to control the population of other
insects; fungicides; weedicides; herbicides; or
irrigation water for the production of agricultural
products in commercial quantities is exempt from
sales tax and use tax.
(2) The sale or use of an agricultural
service is exempt from the sales tax and use tax.
Section 28. Exemption ~ certain
chemicals, reagents, and substances. (I) 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 hydrocarbons at the
extraction site; 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.
Section 29. 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.
Section 30. Exemption — transportation
services. The sale or use of transportation services
is exempt from the sales tax and use tax.
Section 31. Exemption — private school
tuition. Tuition charged for attending a private
educational institution that is exempt from taxation
under section 501(c)(3) of the Internal Revenue
Code is exempt from the sales tax and use lax.
Section 32. Exemption — construction
services. The sale or use of construction services for
the construction, fabrication, or remodeling of
residential or commercial buildings is exempt from
the sales tax and use tax.
Section 33. Exemption — rehabilitation
services. The sale or use of rehabilitation services,
as defined in 39-71-1011(6), to or by a disabled
worker is exempt from the sales tax and use tax.
Section 34. Exemption — sales by social
or family services organizations. The sale of
property and services by a social or family services
organization is exempt from the sales tax and use
tax.
Section 35. Exemption — sales by
museum, art gallery, arboretum, or botanical or
zoological garden. The sale of property and services
by museums and art galleries and by arboretums and
botanical or zoological gardens is exempt from the
sales tax and use tax.
Section 36. Exemption — sales by
membership organization. The sale of property and
services by a membership organization is exempt
from the sales tax and use tax.
Section 37. Nontaxability — certain
nonprofit organizations. ( 1 ) All sales to or uses by
an organization not operated for gain or profit and
which may have property exempt from property
taxation under 15-6-201 are nontaxable.
(2) In the case of a sale, the buyer must
deliver a nontaxable transaction certificate.
Section 38. 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.
Section 39. Nontaxability — sale of service
for resale. (1) The sale of a service for resale is
nontaxable if:
(a) the sale is made to a person who
delivers a nontaxable transaction certificate;
(b) except as provided in subsection (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
(c) the subsequent sale is in the ordinary
course of business and subject to the sales tax.
(2) The requirement in subsection (I)(b) to
separately state the value of the service purchased
for resale does not apply to the sale of telephone
services.
Section 40. 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.
(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.
Section 41. Nontaxability — sale of
tangible personal property for leasing. The sale of
property, other than coin-operated or currency-
operated machines, and mobile homes purchased in
this state 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
property of the type sold; 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.
Section 42. Lease for subsequent lease. ( I )
The lease of property, other than furniture or
appliances, and the rental or lease of property, other
than coin-operated or currency-operated machines,
and mobile homes, is nontaxable if:
(a) the lease is made to a lessee who
delivers a nontaxable transaction certificate; and
(b) the lessee does not use the property in
any manner other than for subsequent lease in the
ordinary course of business.
(2) For the purposes of this section, the
rental or lease by a person of a motion picture or a
motion picture trailer for display on theater premises
is considered a lease for subsequent lease.
Section 43. Nontaxability — sale or lease
of real property and lease of mobile homes. ( I ) (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.
Section 44. 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) iransmittmg 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 or lease of a vehicle with a
gross vehicle weight in excess of 46,000 pounds
used primarily in interstate commerce and registered
under 61-3-721 is nontaxable.
Section 45. Nontaxability — sale of certain
services to out-of-state buyer. (I) 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 have a regular place of work 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.
Section 46. 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.
Section 47. 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 lax due this
state on the same property. The credit may not
exceed the sales tax or use tax due this state.
Section 48. Seller's permit. (I) 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 7 1 ], the department shall issue to
the applicant a separate, numbered seller's permit for
each 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 should
ensure that each person engaging in business in this
slate prior to [the applicability date of this section]
is issued a seller's permit prior to [the applicability
date of this section].
Section 49. Permit application
requirements — place of business — form. ( I ) (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 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 have a
regular 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 I through
71] 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.
Section 50. 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 I through 7 1 ).
(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 I through 71]. The department may require
security In addition to that authorized by (section 59]
in an amount reasonably necessary to ensure
compliance with (sections I through 71] 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 (I) may appeal the decision lo the state
tax appeal board wilhln 30 days following the date
on which the department issued its final decision.
(5) A decision of the state lax appeal board
may be appealed to the district court.
Section 51. Improper use of subject of
purchase obtained with nontaxable transaction
certincate — penalty. ( I ) 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 I through 7 1 ], the u.se is
considered a taxable sale as of the time of first use
by the purchaser and the sales price is the price the
purchaser paid. If the sole nonexempt use is rental
while holding for sale, the purcha.ser 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.
Section 52. 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.
Section 53. Liability for payment of tax —
security for retailer without place of business —
penalty. ( I ) 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 a
place of business in this state is liable for the sales
tax or use tax in accordance with [sections I through
7 1 ] and may be required to furnish adequate security
as provided in [section 59] to ensure collection and
payment of the taxes. When authorized and except
as otherwise provided in [sections I through 7 1 ], 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 a place of
business within this state. The seller's permit
provided for in [section 48] 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 71], the person is subject to a
fine of not more than $100 for each separate
transaction or event.
Section 54. 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 I through 71).
Section SS. Application for permission to
report on accrual basis. (I) 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.
Section 56. 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 I
through 71] 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.
Every person engaged in business in this state or
using property in this state that is subject to tax
under [sections I through 71] 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 7 1 ] 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 (he taxes imposed by [sections 1
through 71] shall keep records, render statements,
make returns, and comply with the provisions of
(sections I through 71] 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 I
through 7 1 ], the department is authorized to examine
or cause to be examined any books, papers, records,
or memorandums relevant to making a determination
of the amount of tax due, whether the books, papers,
records, or memorandums 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 memorandums 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.
Section 57. 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 56] on sales
represented by accounts 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.
Section 58. Vendor allowance. (I) (a)
Beginning April I, 1994, and ending March 31,
1995, a person filing a return under [section 56] may
claim a monthly vendor allowance for each
permitted location in the amount of 4% of the tax
determined to be payable to the state or $100 per
month, whichever is less.
(b) A person filing a quarterly return may
claim 4% of the tax determined to be payable to the
state or $300 per quarter, whichever is less.
(c) The allowance may be deducted on the
return.
(2) (a) Beginning April 1, 1995, and
thereafter, a person filing a return under [section 56]
may claim a monthly vendor allowance for each
permitted location in the amount of 2.5% of the tax
determined to be payable to the state or $100 per
month, whichever is less.
(b) A person filing a quarterly return may
claim 2.5% of the tax determined to be payable to
the state or $300 per quarter, whichever is less.
(c) The allowance may be deducted on the
return.
Section 59. 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 71].
Section 60. 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 56]
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.
Section 61. Penalties and interest for
violation. (1) (a) If a person, without purposely or
knowingly violating any requirement imposed by
[sections 1 through 71], 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 in no event may the penalty for failure to file a
return by its due date 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 I through 71], 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 %
per month or fraction of a month for the entire
period 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 71] 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.
Section 62. Authority to collect delinquent
taxes. (1) (a) The department shall collect taxes that
are delinquent as determined under [sections I
through 71].
(b) If a tax imposed by [sections 1 through
7 1 ] 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 stale, except wages subject to the
provisions of 25-13-614 and retirement beneflls.
(3) As provided in 15-1-705, the taxpayer
has the right to a review on 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.
Section 63. 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 30 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.
Section 64. 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 71], 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 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.
Section 65. Refunds — interest
limitations. ( 1 ) A claim for a refund or credit as a
result of overpayment of taxes collected under
[sections 1 through 71] must be filed within 5 years
of the date 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 63].
(b) Except as provided in subsection (2)(c),
interest must be paid from the date the return was
due or the date of overpayment, whichever is later.
Interest does not accrue during any perioid 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 a claim was filed; or
(ii) tlie amount of overpayment and interest
does not exceed $1.
Section 66. Administration — rules. The
department shall:
( 1 ) administer and enforce the provisions of
[sections 1 through 71];
(2) cause to be prepared and distributed
forms and information that may be necessary to
administer the provisions of [sections 1 through 71];
and
(3) adopt rules that may be necessary or
appropriate to administer and enforce the provisions
of [sections 1 through 71].
Section 67. 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 7 1 ] fails to comply with any of
the provisions of (sections 1 through 7 1 ] 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 71].
(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.
Section 68. Taxpayer quitting business —
liability of successor. (1) (a) All taxes payable
under [sections 1 through 71] are due and payable
immediately whenever a taxpayer quits business or
sells out, 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 or sells out, 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 (l)(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 as provided in subsection (4)(a)(ii), 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.
Section 69. Tax as debt (I) The tax
imposed by [sections 1 through 71] 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) 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 7 1 ] and who fails to
pay the tax is liable to the slate for the amounts
imposed by [sections 1 through 71] and the penalty
and interest due on the amounts.
Section 70. 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 7 1 ] 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 71], 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 71], 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.
Section 7 1 . Sales tax and use tax account.
( 1 ) There is within the state special revenue fund a
sales tax and use tax account.
(2) All money collected under (sections 1
through 7 1 ] must be paid by the department into the
sales tax and use lax account.
(3) There must be retained in the sales tax
and use tax account the amounts necessary under
(sections 1 through 7 1 ] to repay overpayments, pay
any erroneous receipts illegally assessed or collected
or that are excessive in amount, and pay any other
refunds otherwise required.
Section 72. Disposition of sales tax and
use tax revenue. ( 1 ) Sales tax and use tax revenue
deposited in the sales tax and u.se tax account
established in (section 71] must be distributed
according to the provisions of subsection (2) and is
allocated as follows:
(a) the amount determined under 15-1-
111(5) through (7) and (13) and (section 125] to
provide property tax replacement revenue for each
taxing jurisdiction;
(b) the amount appropriated to the
department of revenue in (House Bill No. 2] for the
purpose of administering (this act]; and
(c) the amount of sales lax and use tax
revenue remaining after the allocations in
subsections (l)(a) and (l)(b) is allocated in the same
manner as income tax revenue is allocated under 15-
1-501(2).
(2) (a) Except as provided in subsection
( 1 )(c), distribution of sales tax and use tax revenue
must be made according to the provisions of the
statute governing allocation of the tax in effect on
the last day of the tax period in which the activity,
enterprise, or product being taxed was engaged in,
took place, was assembled, or was produced.
(b) All taxes collected pursuant to audit or
collected after the date the tax is payable must be
distributed according to the statute governing
allocation of the tax in effect on the date the taxes
are collected.
(c) For the fiscal year ending June 30,
1994, only $57 million, plus vendor allowances and
administrative costs, may be distributed from the
sales tax and use tax account, and for the fiscal year
ending June 30, 1995, only $250 million, plus
vendor allowances and administrative costs, may be
distributed from the sales tax and use lax account.
Any amount in excess of those amounts for each
fiscal year must remain in the account to be used by
the 54ih legislature for the reduction of mill levies
used for school equalization and the reduction of
income taxes.
Section 73. Renters' property tax credit -
- deFinitions. As used in (sections 73 through 80],
the following definitions apply:
( 1 ) "Claimant" means an individual natural
person who is eligible under (section 74] to file a
claim.
(2) "Claim period" means the tax year for
individuals required to file Montana individual
income tax returns and the calendar year for
individuals not required to file returns.
(3) "Gross rent" means the total rent in cash
or its equivalent actually paid during the claim
period by the renter or lessee for the right of
occupancy of the homestead pursuant to an arm's-
length transaction with the landlord.
(4) "Homestead" means a single-family
dwelling or unit of a multiple-unit dwelling that is
subject to ad valorem taxes in Montana and as much
of (he surrounding land, but not in excess of 1 acre,
as is reasonably necessary for its use as a dwelling.
(5) "Household" means an association of
individuals who live in the same dwelling and who
share its furnishings, facilities, accommodations, and
expenses. The term does not include bona fide
lessees, tenants, or roomers and boarders on contract.
(6) "Rent equivalent" means a rental
payment paid by a governmental agency to a lessor
or landlord.
Section 74. Renters' property tax credit -
- eligibility. (I) In order to be eligible to make a
claim under (sections 73 through 80], an individual:
(a) must have resided in Montana for at
least 9 months of the period for which the claim is
made; and
(b) except as provided in (section 78[, must
have occupied one or more dwellings in Montana as
a renter or lessee for at least 6 months of the claim
period.
(2) An individual is not disqualified as a
claimant because of a change of residence during the
claim period, provided thai Ihe claimant occupies
one or more dwellings in Montana as a renter or
lessee for al least 6 months during Ihe claim period.
Section 75. Renters' property tax credit -
- Tiling date. ( I ) Except as provided in subsection
(2), a claim must be submitted al the same time that
the claimant's individual income tax return is due.
For a claimant not required to file a lax return, the
claim must be submitted on or before April 15 of
the year following Ihe year for which relief is
sought.
(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 73 through 80] dies before
filing Ihe claim, Ihe personal representative of the
estate of the decedent may file the claim.
Section 76. Renters' property tax credit -
- form of relief. (1) The credit under [sections 73
through 80] is a credit against the claimant's
Montana individual income tax liability for the claim
period.
(2) (a) If Ihe amount of credit exceeds the
claimant's lax liability under this chapter by $1 or
more, the amount of the excess must be refunded to
the claimant. If the excess is less than $1, the
department may not make a refund.
(b) The credit may be claimed even though
Ihe claimant does not have income taxable under this
chapter.
Section 77. Renters' property tax credit.
(I) The amount of the tax credit granted under the
provisions of (sections 73 through 80] is the amount
of gross rent paid during Ihe claim period or $150,
whichever is less.
(2) In the case of a claimant who owned
and rented Ihe homestead during the claim period,
the credit is prorated by dividing the amount of lime
the homestead was rented by the claimant by the
number of months in the period for which a claim is
made and then multiplying the quotient by the
amount of credit allowed to the claimant under
subsection ( I ).
(3) (a) For tax year 1994, the amount of
credit allowed under this section is equal to Ihe
amount allowed under subsection (1), prorated by
Ihe number of months during the claim period that
the sales tax and use tax were in effect.
(b) Except as provided in subsection (2), for
tax years beginning after December 31, 1994, the
amount of credit allowed under this section is equal
to the full amount allowed under subsection ( I ).
Section 78. Renters' property tax credit -
- limitations. (I) Only one claimant per household
is entitled to a credit in a claim period.
(2) A claim may not be allowed for any
portion of rent, lease, or rent equivalent paid that is
derived from a public rent or tax subsidy program.
(3) A claim may not be allowed on rented
lands or rented dwellings that were not subject to ad
valorem taxes in Montana during the claim period.
(4) A claimant who receives a residential
property tax credit for the elderly under 15-30-171
through 15-30-179 is not entitled to receive the
renters' property tax credit under [sections 73
through 80] for the same tax year.
Section 79. Renters' property tax credit -
- proof of claim. A receipt showing gross rent paid
for the claim period must be filed with each claim.
In addition, each claimant shall, at the request of the
department, supply all additional information
necessary to support the claim.
Section 80. Renters' property tax credit -
- denial of claim — penalty — interest. If a false or
fraudulent claim has been paid, the amount paid may
be recovered as any other debt owed the state. An
additional 10% may be added to the amount due as
a penalty. The unpaid debt bears interest, at the rate
of 1 % a month or fraction of a month, from the date
of the original payment of the claim until paid.
Section 81. Homeowners' tax credit —
definitions. As used in (sections 81 through 88], the
following definitions apply:
(I) "Claimant" means an individual natural
person who is eligible under (section 82] to file a
claim.
(2) "Claim period" means the tax year for
individuals required to file Montana individual
income tax returns and the calendar year for
individuals not required to file returns.
(3) "Homestead" means a single-family
residence owned on the last day of the claim period
by a Montana resident or being purchased under a
contract for deed by a Montana resident. The
residence may not have been leased or rented by the
owner or purchaser for more than 3 months.
(4) "Household" means an association of
individuals who live in Ihe same dwelling and who
share its furnishings, facilities, accommodations, and
expenses. "Rie term does not include bona fide
lessees, tenants, or roomers and boarders on contract.
Section 82. Homeowners' tax credit —
eligibility. In order to be eligible to make a claim
under (sections 81 through 88], an individual:
(1) must have resided in Montana for at
least 6 months of the period for which the claim is
made; and
(2) must have occupied the homestead as
the owner or contractor for deed for at least 6
months of the claim period.
Section 83. Homeowners' tax credit —
filing date. (1) Except as provided in subsection (2),
a claim 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, the claim
must be submitted on or before April 15 of the year
following the year 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 81 through 88] dies before
filing the claim, the personal representative of the
estate of the decedent may file the claim.
Section 84. Homeowners' tax credit —
form of relief. (I) The credit under (sections 81
through 88] is a credit against the claimant's
Montana individual income tax liability for the claim
period.
(2) (a) If the amount of credit exceeds the
claimant's tax liability under this chapter by $1 or
more, the amount of the excess must be refunded to
the claimant. If the excess is less than $1, the
department may not make a refund.
(b) The credit may be claimed even though
the claimant does not have income taxable under this
chapter.
Section 85. Homeowners' tax credit. (1)
The amount of the tax credit granted under the
provisions of (sections 81 through 88] is the amount
that results from multiplying the lesser of the market
value of the homestead or $20,000 by the tax rate
applicable to property described in 15-6-134(l)(b),
and by multiplying the resulting product by the total
mill levy applied to the homestead, as shown on the
November tax statement for the claim period.
(2) For tax year 1994, the amount of credit
allowed under this section is equal to the amount
allowed under subsection (1), prorated by the
number of months during the claim period that the
sales tax and use tax were in effect.
(3) For tax years beginning after December
31, 1994, the amount of credit allowed under this
section is equal to the full amount under subsection
(I).
Section 86. Homeowners' tax credit —
limitations. ( 1 ) Only one claimant per household is
entitled to a credit in a claim period.
(2) A claim is not allowed for a homestead
that is not subject to ad valorem taxes in Montana
during the claim period.
(3) A claimant who receives a residential
property tax credit for the elderly under 15-30-171
10
through 15-30-179 is not entitled to receive the
homeowners' tax credit under [sections 81 through
88] for the same tax year.
Section 87. Homeowners' credit — proof
of claim. A copy of the November tax statement for
the claim period must be filed with each claim. In
addition, each claimant shall, at the request of the
department, supply all additional information
necessary to support the claim.
Section 88. Homeowners' tax credit —
denial of claim — penalty — interest. If a false or
fraudulent claim has been paid, the amount paid may
be recovered as any other debt owed the state. An
additional 10% may be added to the amount due as
a penalty. The unpaid debt bears interest, at the rate
of 1% a month or fraction of a month, from the date
of the original payment of the claim until paid.
Section 89. Credit for sales tax and use
tax — definitions. As used in [sections 89 through
93], the following definitions apply:
(1) "Claimant" means an individual natural
person who is eligible under [section 90] to file a
claim.
(2) "Gross household income" means all
monetary benefits of any kind received by each
individual member of the household, without regard
to losses of any kind and without regard to whether
the benefits are taxable income under state or federal
income tax laws. Gross household income includes
but is not limited to the following:
(a) 100% of the gains on all sales;
(b) alimony, 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 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) "Household" means an association of
individuals who live in the same dwelling and who
share its furnishings, facilities, accommodations, and
expenses. The term does not include bona fide
lessees, tenants, or roomers and boarders on contract.
Section 90. 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 (5), 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 an inmate of a public institution for
more than 6 months during the tax year for which
the tax credit is claimed;
(b) is not physically present in Montana for
at least 6 months during the tax year for which the
tax credit is claimed; or
(c) has gross household income in excess of
$13,000.
(3) A credit is allowed in the amount of
$90 per exemption for each exemption claimed
under 15-30-1 12(2) and (5).
(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 tax year 1994, 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 lax years beginning after December
31, 1994, the amount of credit allowed under this
section is equal to the full amount determined under
subsection (3).
Section 91. Credit for sales tax and use
tax — Tiling date — extension. ( I ) 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 cau.se 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 89 through 93] dies before
filing the claim, the personal representative of the
estate of the decedent may file the claim.
Section 92. 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 examination 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.
Section 93. 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 90 or 91 ], receives a credit for
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 % per 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 [sections 91 or 92], future
claims for credits may be denied by the department.
Section 94. Section 33-7-410, MCA, is
amended to read:
"33-7-410. Taxation. iJi 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 lax and
use tax pursuant to jseclions I through 711. to a
resort tax imposed under 7-6-4464. and to a resort
area tax imposed under 7-6-4468.
(b) Dues paid by members of the society
and isolated or occasional sales, as described in
[section 211. of the society are exempt from
taxation. "
Section 95. 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 that percentage of the true and full
valuation of the property in the counties upon which
the tax levy is made, except for vehicles subject to
taxation under 61-3-504(2), as follows:
(a) first class-all counties having a taxable
valuation of $50 million or over;
(b) second class— all counties having a
taxable valuation of more than $30 million and less
than $50 million;
(c) third class--all counties having a taxable
valuation of more than $20 million and less than $30
million;
(d) fourth class— all counties having a
taxable valuation of more than $15 million and less
than $20 million;
(e) fifth class-all counties having a taxable
valuation of more than $10 million and less than $15
million;
(0 sixth class-all counties having a taxable
valuation of more than $5 million and less than $10
million;
(g) seventh class-all counties having a
taxable valuation of less than $5 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 rated capacity of
more than three-quarters of a ton but less than or
equal to I ton;
(c) the amount of interim production and
new production taxes levied, as provided in 15-23-
607, divided by the appropriate tax rates described
in l5-23-607(2)(a) or (2)(b) and multiplied by 60%;
(d) the amount of value represented by new
production exempted from tax as provided in 15-23-
612 multiplied by 60%, plus the value of any other
production occurring after December 31, 1988,
multiplied by 60%; and
(e) 6% 7.3% of the taxable value of the
county on January I of each tax year beginning after
December 31, 1993 ."
Section 96. Section 7-3-1321, MCA, is
amended to read:
"7-3-1321. Authorization to incur
indebtedness ~ limitation. (I) The consolidated
municipality may borrow money or i.ssue 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 3S% 34% of the taxable value
of the taxable property therein, as ascertained by the
last assessment for state and county taxes prior to
incurring such indebtedness. All warrants, bonds, or
obligations in excess of such amount given by or on
behalf of the municipality shall be void."
Section 97. Section 7-6-2211, MCA, is
amended to read:
"7-6-2211. Authorization to conduct
county business on a cash basis. (I) In case 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 such restrictions and regulations as 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) Nothing in this section restricts the right
of the board to make the necessary tax levies for
interest and sinking fund purposes, and nothing in
this section affects the right of any creditor of the
county to pursue any remedy now given bif» the
creditor by law to obtain payment of his a claim
made by the creditor ."
Section 98. Section 7-6-4121, MCA, is
amended to read:
"7-6-4121. Authorization to conduct
municipal business on a cash basis. ( 1 ) In case the
total indebtedness of a city or town has reached +^?%
20.5% 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
revenues, under such restrictions and regulations as
the city or town council 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 such payment, and may hold the same 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 mentioned above, 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 therein provided
for and shall be authorized to pay all valid claims
against funds raised by tax especially authorized by
law for the purpose of paying such claims."
Section 99. Section 7-6-4254, MCA, is
amended to read:
"7-6-4254. Limitation on amount of
emergency budgets and appropriations. ( I ) The
total of all emergency budgets and appropriations
made therein in any one year and to be paid from
any city fund may not exceed 38% 46.5% of the
total amount which could be produced for such cily
fund by a maximum levy authorized by law to be
made for such fund, as shown by the last completed
assessment roll of the county.
(2) The term "taxable property", as used
herein, means the percentage of the value at which
such property is assessed and which percentage is
used for the purposes of computing taxes and does
not mean the assessed value of such property as (he
same appears on the assessment roll."
Section 100. 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 cily-county consolidated
local government may issue bonds for any purpose
which, with all outstanding indebtedness, may
exceed 39% 47.5% of the taxable value of the
property therein subject lo taxation as ascertained by
the last assessment for slate and county taxes.
(2) The issuing of bonds for the purpose of
funding or refunding outstanding warrants or bonds
is not the incurring of a new or additional
indebtedness but is merely the changing of the
evidence of outstanding indebtedness."
Section 101. Section 7-7-108, MCA, is
amended to read:
"7-7-108. Authorization for additional
indebtedness for water or sewer systems. ( I ) 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 and
control such water supply and water system and
devote the revenues therefrom 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 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 limit referred to in 7-7-107
of the taxable value of the property therein subject
to taxation as ascertained by the last assessment for
state and county taxes."
Section 102. Section 7-7-2101, MCA, is
amended to read:
"7-7-2101. Limitation on amount of
county indebtedness. (1) No county may become
indebted in any manner or for any purpose to an
amount, including existing indebtedness, in the
aggregate exceeding 33% 28% of the total of the
taxable value of the property therein subject to
taxation, plus the amount of interim production and
new production taxes levied divided by the
appropriate tax rates described in 15-23-607(2)(a) or
(2)(b) and multiplied by 60%, plus the amount of
value represented by new production exempted from
tax as provided in 15-23-612 multiplied by 60%,
plus the value of any other production occurring
after December 31, 1988, multiplied by 60%, as
ascertained by the last assessment for state and
county taxes previous to the incurring of the
indebtedness.
(2) No county may incur indebtedness or
liability for any single purpose to an amount
exceeding $500,000 without the approval of a
majority of the electors thereof voting at an election
to be provided by law, except as provided in 7-21-
3413 and 7-21-3414.
(3) Nothing in this section shall apply to
the acquisition of conservation easements as set forth
in Title 76, chapter 6."
Section 103. 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), no county may issue
general obligation bonds for any purpose which,
with all outstanding bonds and warrants except
county high school bonds and emergency bonds, will
exceed 11.25% 13.5% of the total of the taxable
value of the property therein, plus the amount of
interim production and new production taxes levied
divided by the appropriate tax rates described in 15-
23-607(2)(a) or (2)(b) and multiplied by 60%, plus
the amount of value represented by new production
exempted from tax as provided in 15-23-612
multiplied by 60%, plus the value of any other
production occurring after December 31, 1988,
multiplied by 60%, to be ascertained by the last
assessment for slate and county taxes prior to the
proposed issuance of bonds.
(2) In addition to the bonds allowed by
subsection (1), a county may issue bonds which,
with all outstanding bonds and warrants, will not
exceed 27.75% 34% of the total of the taxable value
of the property in the county subject to taxation, plus
the amount of interim production and new
production taxes levied divided by the appropriate
tax rates described in 15-23-607{2){a) or (2)(b) and
multiplied by 60%, plus the amount of value
represented by new production exempted from tax as
provided in 15-23-612 multiplied by 60%, when
necessary to do so, plus the value of any other
production occurring after December 31, 1988,
multiplied by 60% for the purpose of acquiring land
for a site for county high school buildings and for
erecting or acquiring buildings thereon and
furnishing and equipping the same for county high
school purposes.
(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 which
will not exceed 12.5% 15% of the taxable value of
the propertyin the county subject lo taxation.
(4) The limitation in subsection ( I ) 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 104. Section 7-7^201, MCA, is
amended to read:
"7-7-4201. Limitation on amount of
bonded indebtedness. (I) Except as otherwise
provided, no city or town may issue bonds or incur
other indebtedness for any purpose in an amount
which with all outstanding and unpaid indebtedness
will exceed 38% 34% of the taxable value of the
property therein subject to taxation, to be ascertained
by the last assessment for state juid county taxes.
(2) The issuing of bonds for the purpose of
funding or refunding outstanding warrants or bonds
is not the incurring of a new or additional
indebtedness but is merely the changing of the
evidence of outstanding indebtedness.
(3) The limitation in subsection ( I ) does not
apply to bonds issued for the repayment of tax
protests lost by the city or town."
Section 105. Section 7-7^202, MCA, is
amended to read:
"7-7-4202. Special provisions relating to
water and sewer systems. (I) 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 which owns and controls the
water supply and water system and devotes the
revenues therefrom 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 such
purposes, including all indebtedness theretofore
contracted which is unpaid or outstanding, may not
in the aggregate exceed 55% over and above the
38%T debt limit referred to in 7-7-4201, of the
taxable value of the property therein subject to
taxation as ascertained by the last assessment for
stale and county taxes."
Section 106. 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 not at any time exceed +?%
20.5% of the total taxable value of the property of
the city or town subject lo taxation as ascertained by
the last assessment for stale and county taxes."
Section 107. SecUon 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 not exceed 38% 34% of the taxable value
of taxable property therein as ascertained by the last
assessment for state and county taxes previous to the
issuance of such bonds."
12
Section 108. 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 hereafter and in 7-7-2203 and 7-7-2204, a
county may not issue bonds which, with all
outstanding bonds and warrants except county high
school bonds and emergency bonds, will exceed
11.25% 13.5% of the total of the taxable value of
the property therein, plus the amount of interim
production and new production taxes levied divided
by the appropriate tax rates described in 15-23-
607(2)(a) or (2)(b) and multiplied by 60%, plus the
amount of value represented by new production
exempted from tax as provided in 15-23-612
multiplied by 60%, plus the value of any other
production occurring after December 31, 1988,
multiplied by 60%. The taxable property and the
amount of interim production and new production
taxes levied must be ascertained by the last
assessment for state and county taxes prior to the
issuance of the bonds.
(2) A county may issue bonds which, with
all outstanding bonds and warrants except county
high school bonds, will exceed 1 1.25% 13.5% but
will not exceed 22.5% 27.5% of the total of the
taxable value of such property, plus the amount of
interim production and new production taxes levied
divided by the appropriate tax rates described in 15-
23-607(2)(a) or (2)(b) and multiplied by 60%, plus
the amount of value represented by new production
exempted from tax as provided in 15-23-612, plus
the value of any other production occurring after
December 31, 1988, multiplied by 60% when
necessary for the purpose of replacing, rebuilding, or
repairing county buildings, bridges, or highways
which have been destroyed or damaged by an act of
God, disaster, catastrophe, or accident.
(3) The value of the bonds issued and all
other outstanding indebtedness of the county, except
county high school bonds, shall not exceed 22.5%
27.5% of the total of the taxable value of the
property within the county, plus the amount of
interim production and new production taxes levied
divided by the appropriate tax rates described in 15-
23-607(2)(a) or (2)(b) and multiplied by 60%, plus
the amount of value represented by new production
exempted from tax as provided in 15-23-612, plus
the value of any other production occurring after
December 31, 1988, multiplied by 60%, as
ascertained by the last preceding general
assessment."
Section 109. 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% 27.5% of
the total of the taxable value of the property therein,
plus the amount of interim production and new
production taxes levied divided by the appropriate
tax rates described in l5-23-607(2)(a) or (2)(b) and
multiplied by 60%, plus the amount of value
represented by new production exempted from tax as
provided in 15-23-612 multiplied by 60%, plus the
value of any other production occurring after
December 31, 1988, multiplied by 60%, 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 whereby the bondholders agree to accept
less than the full amount of the bonds and the
accrued unpaid interest thereon in satisfaction
thereof;
(b) enter into such 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 shall be embodied in full
in the resolution providing for the issue of the
bonds."
Section 110. 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-exi.sting
indebtedness, may not at any time exceed 38% 34%
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
may 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 majority vote cast in its favor."
Section 111. 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, has the power and duty
to contract an indebtedness in behalf of a county,
upon the credit thereof, for the purposes of 7-16-
2321(1) and (2).
(2) (a) The total amount of indebtedness
authorized to be contracted in any form, including
the then-existing indebtedness, must not at any time
exceed +3% 16% of the total of the taxable value of
the taxable property in the county, plus the amount
of interim production and new production taxes
levied divided by the appropriate tax rates described
in 15-23-607(2)(a) or (2)(b) and multiplied by 60%,
plus the amount of value represented by new
production exempted from tax as provided in 15-23-
612, plus the value of any other production
occurring after December 31, 1988, multiplied by
60%, ascertained by the last assessment for state and
county taxes previous to the incurring of the
indebtedness.
(b) No money may be borrowed on bonds
issued for the purchase of lands and improving same
for any such purpose until the proposition has been
submitted to the vote of those qualified under the
provisions of the state constitution to vote at such
election in the county affected thereby and a
majority vote is cast in favor thereof."
Section 112. 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 thereof, 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 pools, athletic fields, skating
rinks, playgrounds, museums, a golf course, a site
and building for a civic center, a youth center, or
combination thereof; and
(c) for furnishing and equipping the same.
(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% 20% of the taxable value of the
taxable property of the city or town as ascertained
by the last assessment for state and county taxes
previous to the incurring of such indebtedness. No
money may be borrowed on bonds issued for the
purchase of lands and improving the same for any
such purp>ose 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
thereof."
Section 113. 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,
it shall be the duty of the board, for the purpose of
raising money to meet the payments under the terms
and conditions of said contract and other necessary
and proper expenses in and about the same and for
the approval or disapproval thereof:
(a) to ascertain, within 30 days after
submission of the petition, the existing indebtedness
of the county in the aggregate; and
(b) to submit, within 60 days after
ascertaining the .same, to the electors of such county
the proposition to approve or disapprove the contract
and the issuance of bonds neces.sary to carry out the
same.
(2) The amount of the bonds authorized by
this section may not exceed 22.5% 27.5% of the
taxable value of the taxable property therein,
inclusive of the existing indebtedness thereof, to be
ascertained by the last assessment for slate and
county taxes previous to the issuance of said bonds
and incurring of said indebtedness."
Section 114. Section 7-31-107, MCA, is
amended to read:
"7-31-107. Authorization for municipality
to issue bonds ~ election required. ( 1 ) If said
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 said contract and
Other necessary and proper expenses in and about
the same and for the approval or disapproval thereof:
(a) shall ascertain, within 30 days after
submission of the petition, the aggregate
indebtedness of such city or town; and
(b) shall submit, within 60 days after
ascertaining the same, to the electors of such city or
town the proposition to approve or disapprove said
contract and the issuance of bonds necessary to carry
out the same.
(2) The amount of the bonds authorized by
this section may not exceed 16.5% 20% of the
taxable value of the taxable property therein,
inclusive of the existing indebtedness thereof, to be
ascertained in the manner provided in this part."
Section 115. Section 7-34-2131, MCA, is
amended to read:
"7-34-2131. Hospital district bonds and
notes authorized. ( I ) (a) A hospital district may
borrow money by the issuance of its bonds to
provide funds for payment of part or all of the co.st
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 and outstanding at any time may not exceed
22.5% 27.5% of the taxable value of the property
therein as ascertained by the last assessment for state
and county taxes previous to the issuance of such
bonds.
(c) Such bonds shall 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 (I),
and all other revenue of the district. The annual
amount of principal and interest payable on notes in
13
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 be construed to
preclude the provisions of Title 50, chapter 6, part I,
allowing the state to apply for and accept federal
funds."
Section 116. Section 19-11-503, MCA, is
amended to read;
"19-11-503. 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% 4.9% of the taxable valuation of all taxable
property within the limits of the city or town.
(2) Whenever the fund contains less than
4* 4.9% 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 19-11-504. 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 117. Section 19-11-504, MCA, is
amended to read:
"19-11-504. Amount of special tax levy.
Whenever the fund contains an amount which is less
than 4% 4.9%< 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 I mill and
not more than 4 mills on each dollar of taxable
valuation of all taxable property within the city or
town."
Section 118. Section 20-9-406, MCA, is
amended to read:
"20-9-406. Limitations on amount of
bond issue. {I)(a) The Except as provided in
subsection ( l)(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 4 5% 55%
of the taxable value of the property subject to
taxation as ascertained by the ' last completed
as.sessment for state, county, and school taxes
previous to the incurring of the indebtedness;
including:
(i) th e taxabl e valu e of coal gro s s proceeds
as d e termined for county bond i ng purpos e s in 15 23
703(2):
(ii) th e taxabl e valu e of oi l and gas n e t
proc ee d s as det e rmin ed for county bonding purpo se s
i n 15 23 607(3); and
(iii) th e amount of th e valu e of any other o i l
and ga s production occ u rring aft e r D e c e mb e r 31,
1 9 88 . multiplied by 60% ' , including the taxable value
of oil and gas net proceeds as determined for county
bonding purposes in 15-23-607(3) .
(b) The Except as provided in subsection
(l)(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%
of the taxable value of the property subject to
taxation as ascertained by the last-completed
assessment for state, county, and school taxes
previous to the incurring of the indebtedness. The
total indebtedness of the high school district with an
attached elementary district as r e pr e s e nt e d by th e
issuanc e of bonds must be limited to the sum of
4$% 55% of the taxable value of the property for
elementary school program purposes and 4$% 55%
of the taxable value of the property for high school
program purposes.
(c) The maximum amount for which an
elementary district or a high school district that
qualifies for guaranteed tax base aid under the
provisions of 20-9-367 may become indebted by the
issuance of bonds, including all indebtedness
represented by outstanding bonds of previous issues
and registered warrants, is 55% 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 55% 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.
(2) The maximum amounts determined in
subsection (I), 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 119. 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 seeks to qualify for taxation as class
five property under 1 5-6- 1 35 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% debt
limitation prescribed in 20-9-406. Under such an
agreement, the school district may, with the approval
of the voters, issue bonds which exceed the
limitation prescribed in this section by a maximum
of 4#% the debt limitation prescribed in 20-9-406 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 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 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
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
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 credit shall as
a total amount be equal to the amount which 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 120. Section 15-1-1 1 1, MCA, is
amended to read:
"15-1-111. Reimbursement to local
governments and schools — duties of department
and county treasurer — statutory appropriation.
( 1 ) (a) On or b e for e May I, 1990, th e d e partm e nt of
r e v e nu e s hall r e mit to th e county tr e a s urer of e ach
county 30% of th e r e imburs e ment amount sp e cifi e d
in s ub se ction (l)(b), a s comput e d by th e d e partm e nt.
Th e d e partm e nt shall ba s e th e r e imbur se m e nt on th e
r e duction in p e rsonal prop e rty tax r e v e nu es du e to
th e r e duction in p e rsonal prop e rty tax rat es for cla ss
e ight property, as provid e d for in 15 6 1 3 8 . and any
r e duction in tax e s ba se d upon r e calculation of th e
e ff e ctiv e tax rat e for prop e rty in 15 6 145. The
r e imburs e ment — basis — mu s t a ls o — i nclud e — l os s of
p e rsonal — property — ta« — r e venu e — d«e- — te — the
r e clas si ficat i on of new indu s tr i al prop e rty from cla ss
fiv e to cla s s ei ght with the r e duc e d tax rat e . Th e
det e rmination of th e r e imbursem e nt basis must b e
mad e in th e year in which the r e classification is
(b) Th e r e imbur se m e nt r e v e nu e must b e
bas e d on the county' s taxabl e valu e and mill l e vi es
for tax y e ar 1 9 8 9. Prior to November I of each year,
the department of revenue shall determine for each
county the number of mills levied for the current tax
year in each taxing jurisdiction levying mills against
personal property.
(2) Prior to S e pt e mb e r — h — I9m-. — the
d e partm e nt' s ag e nt in the county s hall supply th e
following informat i on to th e (a) The department for
shall determine the amount of'laxable value lost
within each taxing jurisdiction within the county;
(a) th e numb e r of mills — l e vied — in th e
jurisdict i on for taxabl e y e ar 19 8 9;
(b) th e — numb e r of mills — l e vi e d — in — the
jurisdiction for taxabl e y e ar 1990;
(c) th e total taxabl e valuation for taxabl e
y e ar s 19 8 9 and 1990, r e port e d se parat e ly for e ach
y e ar, of all p e r s onal prop e rty not se cured by r e al
prop e rty; and
(d) th e total taxabl e valuation for taxabl e
y e ars 19 8 9 and 1990, r e port e d se para te ly for e ach
y e ar, — of a l l — p e r s onal — prop e rty — se cur e d — by — real
prop e rty, because of the reduction in personal
property tax rates for property included in class
eight, class nine, and class ten, as those classes
existed in 1989. The determination must be ba.sed on
1989 taxable values for class eight, class nine, and
class ten property as reported to the department by
each taxing jurisdiction that existed in 1989, less the
taxable value for the same property in 1989 as
determined by the 1991 tax rate for property
included in 15-6-138.
14
(b) The department shall calculate the
taxable value lost in a taxing jurisdiction as a result
of a reduction in the taxable value rate in 15-6-145
that results from a reduction in taxable value of
property under 15-6-138.
(c) The amount of reimbursement is
calculated by multiplying the current year mill levy
for each taxing jurisdiction limes the total amount of
taxable value lost as determined in subsections (2)(a)
and (2)(b).
(3) After rec e ipt of th e information from ito
ag e nt, th e d e partm e nt shall calculat e th e amount of
r e venu e lo s t to e ach taxing juri s diction, u si ng curr e nt
y e ar mill levi e s, du e to th e annual r e duct i on in
p e r s onal prop e rty tax rat e s s e t forth in 15 6 13 8 , and
a ny re duct i on in tax es bas e d upon r e calculation of
th e e ffectiv e tax rat e for prop e rty in 15 6 M5. The
department shall total the amounts for all taxing
Jurisdictions within the county.
(4) For taxable year 1990 and for e ach y e ar
th e r e aft e r, th e The department shall remit to the
county treasurer 50% of the base amount of revenue
reimbursable, determined pursuant to subsection f3^
as follow s :
(a) i2}^ on or before November 30 , 1990 ,
and on or b e fore each Nov e mb e r 30 ther e aft e r, th e
departm e nt shall r e mit 50% of th e bas e amount of
th e r e v e nu e r e imbursabl e to th e county; and
(b) the remaining 50% on or before May
31 . 1991, and on or b e for e e ach May 31 thereaft e r,
th e d e partm e nt shall r e mit 50% of th e ba se amount
of th e r e venu e r e imbursable to the county .
(5) Upon r e c e ipt of th e r e imbur se m e nt from
th e d e partm e nt, th e county tr e asur e r shall di s tribut e
th e r e imbursem e nt to e ach taxing juri s diction in th e
r e lativ e proportion s r e quir e d by the levies for stat e ,
county, school district, and municipal purpo ses i n
th e s am e mann e r as current year mill l e vi es on
p e r s onal pro[>erty tax e s ar e distribut e d.
(6) For the purpo s e s of this s e ction, "taxing
juri s diction" m e an s local governm e nt s and includ es
s chool d is tricts, each municipality with tax incr e m e nt
financing, and th e s tat e of Montana.
(5) Prior to December 31. 1993. for each
county, the department shall determine the following
information for each taxing jurisdiction that was in
existence in tax year 1993:
(a) the number of mills levied in each
taxing jurisdiction for tax year 1993; and
(b) the total taxable valuation for tax year
1993 of all pro[>ertv included in class eight.
(6) (a) (i) Based on the information
determined under subsection (5). the department
shall calculate the revenue loss for each taxing
jurisdiction because of the change in the tax rate
provided for in 15-6-138 and the reduction in
commercial properly market value provided for in
15-6-134.
(ii) For purposes of this section, revenue loss
for each taxing jurisdiction is:
(A) the taxable value of all class eight
property computed at the statutory tax rate in effect
for tax year 1993 less the taxable value of all class
eight property computed at the tax rate provided for
in 15-6-138;
(B) multiplied by the number of mills
levied in the taxing jurisdiction for tax year 1993.
(b) The total revenue loss within each
county is the sum of the revenue loss computed for
each taxing jurisdiction in the county.
(7) (a) Prior to May 1. 1994. the
department shall remit to each county treasurer 30%
of the total reimbursement due under this section to
compensate taxing jurisdictions for loss of revenue
associated with class eight personal property not
secured by real property. The county treasurer shall
distribute the total reimbursement to each taxing
jurisdiction as calculated by the department.
(b) The amount of reimbursement due from
the state to each county for tax years 1994. 1995.
and 1996 is the total revenue loss calculated under
subsections (5) and (6). The county treasurer shall
distribute the total revenue loss to each taxing
jurisdiclion as calculated by the department.
(c) The amount of total reimbursement for
each county for tax year 1997 and for each tax year
thereafter is determined by using the formula R = A
X (B/C) X (D/E) X (F/G). where:
(i) "R" is the amount of reimbursement to
be received by the county for Ihe current lax year;
(ii) "A" is the total statewide amount
available for reimbursement and is determined by
totaling the amount of reimbursement, "R", for all
counties for the immediately preceding lax year. For
lax year 1997. the total statewide amount available
for reimbursement is the total revenue loss
calculated in subsection (6) for all counties in lax
year 1996.
(iii) "B" is the statewide lolal of all sales
taxes and use taxes collected in the lax year
immediately preceding the current tax year;
(iv) "C" is Ihe statewide total of all sales
taxes and use taxes collected in the lax year prior to
Ihe tax year immediately preceding Ihe current lax
year;
(v) "D" is Ihe total taxable value of all
commercial property in class four and all property in
class eight within the county during the lax year
immediately preceding Ihe current lax year;
(vi) "E" is the total taxable value of all
commercial property in class four and all property in
class eight in the slate during the tax year
immediately preceding the current lax year;
(vii) "F" is Ihe average counlywide millage
and is determined by dividing Ihe amount of revenue
collected in property taxes within all jurisdictions in
Ihe county in Ihe immediately preceding lax year by
Ihe total taxable value of all property in the county
in the immediately preceding lax year; and
(viii) "G" is Ihe average statewide millage
and is determined by dividing Ihe amount of revenue
collected in properly taxes within all jurisdictions in
Ihe state in Ihe immediately preceding lax year by
the total taxable value of all property in the stale in
the immediately preceding tax year.
(8) Funds appropriated from the sales lax
and use tax accouni for reimbursements calculated
under subsections (5) through (7) for lax year 1994
and subsequent tax years must be remitted lo the
county treasurer as follows:
(a) on or before November 30. 1994. and
on or before each November 30 thereafter, the
department shall remit 50% of the amount of the
revenue reimbursable lo the county; and
(b) on or before May 31, 1995, and on or
before each May 31 thereafter, the department shall
remil 50% of Ihe amount of the revenue
reimbursable to Ihe county.
(9) (a) Upon receipt of the reimbursement
provided for in subsections (1) through (4). Ihe
county treasurer shall distribute the reimbursement lo
each taxing jurisdiction as calculated by the
department.
(b) For tax year 1997 and subsequent tax
years, upon receipt of the reimbursements from the
department, the county treasurer of each county shall
distribute Ihe reimbursement lo each taxing
jurisdiclion in the relative proportion determined
under the total calculations provided by the
department for tax year 1996.
(10) For the purposes of this section, "taxing
jurisdiction" means the stale of Montana; local
governments, including counties and incorporated
cities and towns, school districts, and lax increment
financing districts; and miscellaneous taxing
jurisdictions levying mills against property being
reimbursed under this section.
(11) (a) For distributions made pursuant lo
subsection (9). the creation and dissolution of taxing
jurisdictions are treated as follows:
(i) A taxing jurisdiction that existed in lax
year 1989 and that no longer exists is not entitled lo
reimbursement.
(ii) Taxing jurisdictions that are combined
into a single taxing jurisdiclion are entitled lo
reimbursement based on the combined proportion of
those jurisdictions in lax year 1989.
(iii) A taxing jurisdiction that existed in lax
year 1989 and that is now split into two or more
taxing jurisdictions is enlilled to reimbursement
based on the proportion of 1989 taxable value within
each new laxing jurisdiclion. The department shall
determine Ihe proportion of 1989 taxable value
located in each laxing jurisdiclion.
(iv) A laxing jurisdiclion that did not exist
in tax year 1989 is not enlilled lo reimbursement
under subsection (9) unless ihe jurisdiclion was
crealed as described in subseclion (I l)(a)(iii).
(b) For distributions made pursuant lo
subsections (5) through (7). the creation and
dissolution of laxing jurisdictions al'ler lax year 1993
are treated as follows:
(i) Taxing jurisdictions that existed in lax
year 1993 that no longer exist in subsequent lax
years and that are not combined with another laxing
jurisdiction are no longer enlilled lo reinibursemenl.
The reimbursemenl for a laxing jurisdiclion that no
longer exisls musl be proraled across all remaining
jurisdiclions in the relative proportions thai would
have existed in lax year 1993 had Ihe jurisdiction
not been in existence in that year.
(ii) Taxing jurisdiclions that are combined
into a single taxing jurisdiclion are entitled lo
reimbursement based on the combined proportion of
those jurisdiclions in lax year 1993.
(iii) Taxing jurisdictions crealed as a result
of splitting an existing jurisdiclion are enlilled lo a
share of ihe original reimbursemenl based on the
relative proportion of all property in class eight and
commercial property in class four within each of the
newly crealed jurisdiclions in the lax year that the
new jurisdictions are crealed.
(iv) Taxing jurisdiclions that did not exist in
lax year 1993 are not entitled to reimbursement
under subseclion (9) unless crealed as described in
subseclion (I l)(b)(iii).
ffl (l2) The amounts necessary for the
administration of this section , except subsections (5)
through (7), are statutorily appropriated, as provided
in 17-7-502, from the general fund lo reimburse
school districts and local governments for reductions
in tax rates on personal properly.
(13) (a) In addition lo the calculation and
distribution provided for in subsections (2). (3), and
(6) through (8), each fiscal year, the department
shall distribute from the sales and use lax accouni to
each municipality, as defined in 7-15-4283(6), the
amount, if any, as provided in subsection (13)(b),
that is required to reimburse Ihe municipality the
revenue lost by the lax increment financing district,
crealed pursuant lo 7-15-4282 on or before July 1.
1993. as a result of the slate reducing the mill levy
for the elementary school and high school districts'
debt service, transportation, and retirement funds.
(b) (i) Based on school fiscal year 1994. the
department shall determine the number of mills
levied by each school district in the tax increment
financing district for the retirement fund and
determine Ihe reduction of transportation and debt
service mills that would have occurred if [sections
143 and 148] had been in effect for that year.
(ii) For school fiscal year 1995 and each
succeeding year, the reimbursemenl must be equal to
the number of mills determined in subseclion
(3)(b)(i) limes the incremental taxable value of the
tax increment financing district. The department
shall distribute the amounts lo Ihe municipalities in
two equal installments on November 30 and May 31
of the fiscal year. "
Section 121. Section 15-6-133, MCA, is
15
amended to read:
"15-6-133. Class three property
description — taxable percentage. (1) Class three
properly includes:
(a) agricultural land as defined in 15-7-202;
(b) nonproductive patented mining claims
outside the limits of an incorporated city or town
held by an owner for the ultimate purpose of
developing the mineral interests on the property. For
the purposes of this subsection ( 1 )(b), the following
provisions apply:
(i) The claim may not include any property
that is used for residential purposes, recreational
purposes as described in 70-16-301, or commercial
purposes as defined in 15- 1 -101 or any property the
surface of which is being used for other than mining
purposes or has a separate and independent value for
such other purposes.
(ii) Improvements to the property that would
not disqualify the parcel are taxed as otherwise
provided in this title, including that portion of the
land upon which such improvements are located and
that is reasonably required for the use of the
improvements.
(iii) Nonproductive patented mining claim
property must be valued as if the land were devoted
to agricultural grazing use.
(2) Class three property is taxed at the
taxabl e p e rc e ntag e rat e "P" 30% of its productive
capacity.
(3) Unti l July — h — W86; — the — taxabl e
p e rc e ntag e rat e "P" for cla s s thr ee prop e rty i s 30%.
( 4 ) Pr i or to July I. 19 8 6, th e d e partm e nt of
r e v e nu e s hal l d e t e rm i n e th e taxabl e p e rc e ntag e rat e
^^ — appl i cabl e — te — class — three — prop e rty — for th e
revaluat i on cycl e b e ginning January — h — 1 9 8 6, a s
follows:
(a) Th e — dir e ctor of th e — d e partm e nt of
r e v e nu e s hall c e rt i fy to th e gov e rnor b e for e Ju l y 1,
19 8 6, th e p e rc e ntag e by wh i ch th e appra i s e d valu e
of all prop e rty i n th e s tat e cla s s i fi e d und e r cla ss
thr e e as of January I, 19 8 6. ha s i ncr e a se d du e to th e
r e valuation conduct e d und e r 15 7 111. This figur e i s
th e "c e rtifi e d stat e wid e p e rc e ntag e incr e a se ".
(b) The taxable valu e of prop e rly in cla s s
thr ee i s d e t e rmin e d as a function of th e c e rtifi e d
stat e wid e p e rc e ntage i ncr e a se in accordanc e with th e
tabl e shown b e low.
(c) Th is tabl e lim i t s th e s tat e wid e i ncr e as e
in taxab le va l uation re s u l ting from r e apprai s al to 0%.
Jfl — calculating — the — p e rc e ntag e — i ncreas e , — the
d e partment — may — not — con s id e r — agricultural — use
chang es during cal e ndar y e ar 19 8 5.
(d) Th e — taxabl e — p e rc e ntag e — must — be
calculat e d by int e rpolation to coinc i d e with th e
n e arest who le numb e r c e rt i fi e d s tat e wid e p e rc e ntag e
incr e as e from th e follow i ng tabl e :
C e rtifi e d Stat e w i d e Cla ss Thr ee Taxable
P e rc e ntag e Incr e a se P e rc e ntag e "P"
e 30.00
W-
-4?.27
39-
2&m
30-
-3^^
4©-
-UAi
se-
-^fteo
(5) Aft e r July I , 19 8 6. no adju s tm e nt may
b e mad e by th e d e p a rtm e n t t o the taxabl e perc e ntag e
rate — '^^ — unt i l a r e valuation has b ee n mad e as
provid e d in 15 7 111. "
Section 122. Section 15-6-138, MCA, is
amended to read:
"15-6-138. Class eight property
description — taxable percentage. (I) Class eight
property includes:
(a) all agricultural implements and
equipment;
(b) all mining machinery, fixtures,
equipment, lools that are not exempt under 15-6-
201(l)(r), and supplies except those included in class
five;
(c) all manufacturing machinery, fixtures,
equipment, tools thai are not exempt under 15-6-
201(l)(r), and supplies except those included in class
five;
(d) all trailers, including those prorated
under 15-24-102, except tho,se subject to taxation
under 61-3-504(2);
(e) all goods and equipment intended for
rent or lease, except goods and equipment
specifically included and taxed in another class;
(0 buses and trucks having a rated capacity
of more than 1 ton, including those prorated under
15-24-102;
(g) truck toppers weighing more than 300
pounds;
(h) furniture, fixtures, and equipment,
except that specifically included in another class,
used in commercial establishments as defined in this
section;
(i) x-ray and medical and dental equipment;
(j) citizens' band radios and mobile
telephones;
(k) radio and television broadcasting and
transmitting equipment;
(1) cable television systems;
(m) coal and ore haulers;
(n) theater projectors and sound equipment;
and
(o) all other property not included in any
other class in this part, except that property 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 9%
4.5% of its market value."
Section 123. Section 15-6-141, MCA, is
amended to read:
"15-6-141. Class nine property
description ~ taxable percentage. (I) Class nine
property includesr
(a) c e ntrally — assess e d — e l e ctric — pow e r
compani e s' allocation s , including, if congr e ss pas se s
l e g i s l ation that allows th e stat e to tax prop e rty
own e d by an ag e ncy cr e at e d by congr ess to tran s mit
Of — distr i bute — e l e ctrical — e n e rgy, — allocations — ef
prop e rti es con s tructed, own e d, or op e rat e d by a
public ag e ncy cr e at e d by th e congr e s s to transmit or
di s tribut e el e ctric e n e rgy produc e d at privat e ly
own e d g e n e rating faciliti es (not including rural
e lectric coop e ratives);
(b) allocation s for c e ntrally a ssesse d natural
gas compani es having a major distribution s y s t e m in
thi s s tat e ; and
(e) property owned, possessed, or controlled
by a person and subject to central assessment, as
provided in 15-23-101, c e ntrally ass e ss e d compani e s'
allocation s except:
(4)(a) electric power and natural gas
companies' property , including property of pipeline
companies that transport natural gas, that is included
in class thirteen ;
fi»)(b) property owned by cooperative rural
electric and cooperative rural telephone associations
and classified in class five;
(4h)(c) property owned by organizations
providing telephone communications to rural areas
and classified in class seven;
fH4(d) railroad transportation property
included in class twelve; and
fv4(e) airline transportation property
included in class twelve.
(2) Class nine property is taxed at 12% of
market value."
Section 124. Class thirteen property ~
description — taxable percentage. ( 1 ) Class thirteen
property includes:
(a) operating property owned, possessed, or
controlled by electric power companies that is
subject to central assessment, as provided in 15-23-
101, including, if congress passes legislation that
allows the state to tax property owned by an agency
created by congress to transmit or distribute
electrical energy, allocations of properties
constructed, owned, or operated by a public agency
created by congress to transmit or distribute electric
energy produced at privately owned generating
facilities, not including rural electric cooperatives;
(b) property, including property owned by
rural electric cooperatives, placed in service after
June 8, 1993, for the purpose of generating,
manufacturing, or producing electricity or electrical
energy, except for pollution control facilities
included in class five;
(c) property owned, possessed, or controlled
by natural gas distribution companies that is subject
to central assessment, as provided in 15-23-101,
which companies have a major distribution system in
this state; and
(d) property owned, possessed, or controlled
by natural gas pipeline companies that is subject to
central assessment, as provided in 15-23-101.
(2) Class thirteen property is taxed at 4.5%
of market value.
Section 125. Reimbursement to local
govemmeats and schools — centrally assessed
utility property — duties of department and
county treasurer. (I) Prior to October 30, 1994, for
each county, the department shall determine the
following information for each taxing jurisdiction in
existence in tax year 1994:
(a) the number of mills levied in each
taxing jurisdiction for tax year 1994; and
(b) the total taxable valuation for tax year
1994 of all property included in class thirteen.
(2) (a) Based on the information determined
under subsection ( I ), the department shall calculate
the revenue loss for each taxing jurisdiction due to
the difference in tax year 1994 taxable valuation
rates between class thirteen property and the tax rate
specified in 15-6-141 for class nine property. For
purposes of this section, revenue loss for each taxing
jurisdiction is determined as:
(i) the absolute difference between actual
taxable valuation of class thirteen property in tax
year 1994 and what that taxable valuation would
have been had the class nine taxable valuation rate
been applicable to class thirteen property;
(ii) multiplied by the number of mills levied
in the taxing jurisdiction for tax year 1994.
(b) The total revenue loss within each
county is the sum of the revenue loss computed for
each taxing jurisdiction in the county.
(3) The amount of reimbursement due from
the state to each county for tax years 1994, 1995,
and 1996 is the total revenue loss calculated under
subsection (2). The county treasurer shall distribute
to each taxing jurisdiction the total revenue loss as
calculated by the department.
(4) The amount of total reimbursement for
each county for tax year 1997 and for each tax year
thereafter is determined in the same manner as under
the procedures provided in 15-1-1 1 l(7)(c) through
(11).
Section 126. Section 15-6-144, MCA, is
amended to read:
"15-6-144. Class eleven property —
description — taxable percentage. ( 1 ) Class eleven
property includes all improvements on land that is
eligible for valuation, assessment, and taxation as
agricultural land under 15-7-202(2). Class eleven
property includes I acre of real property beneath the
agricultural improvements. The 1 acre shall be
16
valued at market value.
(2) Class eleven property is taxed at 80% of
the taxable percentage applicable to class four
property."
Section 127. Section 15-6-207, MCA, is
amended to read:
"15-6-207. Agricultural exemptions. (1)
The following agricultural products are exempt from
taxation:
(a) all unprocessed agricultural products on
the farm or in storage and owned by the producer;
(b) all producer-held grain in storage;
(c) all unprocessed agricultural products,
except livestock;
(d) except as provided in subsection (l)(e),
livestock which have not attained the age of 24
months as of March 1 ;
(e) swine which have not attained the age
of 6 months as of January 1 ;
(0 poultry and the unprocessed products of
poultry; and
(g) bees and the unprocessed product of
bee s; and
(h) cats, dogs, and other household pets not
raised for profit .
(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 such 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 128. Section 15-8-205, MCA, is
amended to read:
" 15-8-205. Initial assessment of class four
trailer and mobile home property - when. The
county assessor shall assess all class four trailer and
mobile home property described in 15-6-134 or
included under 15-6-144 immediately upon arrival in
the county if the taxes have not been previously paid
for that year in another county in Montana."
Section 129. Section 15-23-703, MCA, is
amended to read:
" 15-23-703. Taxation of gross proceeds —
taxable value for bonding and guaranteed tax
base aid to schools. (1) The county assessor shall
compute from the reported gross proceeds from coal
a tax roll that he the assessor shall transmit to the
county treasurer on or before September 15 each
year. The county assessor may not levy or assess
any mills against the reported gross proceeds of coal
but shall levy a tax of 5% against the value of the
reported gross proceeds as provided in 15-23-
701(l)(d). The county treasurer shall proceed to give
full notice to each coal producer of the taxes due
and to collect the taxes as provided in 15-16-101.
(2) For bonding, county classification, and
all nontax purposes, the taxable value of the gross
proceeds of coal is 45% of the contract sales price
as defined in 15-35-102(5).
(3) Except as provided in subsection (6),
the county treasurer shall calculate and distribute to
the state, county, and eligible school districts in the
county the amount of the coal gross proceeds tax,
determined by multiplying the unit value calculated
in 15-23-705 times the tons of coal extracted,
treated, and sold on which the coal gross proceeds
tax was owed during the preceding calendar year.
(4) Except as provided in subsections (5),
(6), and (8), the county treasurer shall credit the
amount determined under subsection (3) and the
amounts received under 15-23-706:
(a) to the state and to the counties that
levied mills in fiscal year 1990 against 1988
production in the relative proportions required by the
levies for state and county purposes in the same
manner as property taxes were distributed in fiscal
year 1990 in the taxing jurisdiction; and
(b) to school districts in the county that
either levied mills in school fiscal year 1990 against
1988 production or used nontax revenue, such as
Public Law 81-874 money, in lieu of levying mills
against production, in the same manner that property
taxes collected or property taxes that would have
been collected would have been distributed in the
1990 school fiscal year in the school district.
(5) (a) If the total tax liability in a taxing
jurisdiction exceeds the amount determined in
subsection (3), the county treasurer shall,
immediately following the distribution from taxes
paid on May 31 of each year, send the excess
revenue, excluding any protested coal gross proceeds
tax revenues, to the department for redistribution as
provided in 15-23-706.
(b) If the total tax liability in a taxing
jurisdiction is less than the amount determined in
subsection (3), the taxing jurisdiction is entitled to a
redistribution as provided by 15-23-706.
(6) The board of county commissioners of
a county may direct the county treasurer to
reallocate the distribution of coal gross proceeds
taxes that would have gone to a taxing unit, as
provided in subsection (4)(a), to another taxing unit
or taxing units, other than an elementary school or
high school, within the county under the following
conditions:
(a) The Except as provided in subsection
(6)(c), the county treasurer shall first allocate the
coal gross proceeds taxes to the taxing units within
the county in the same proportion that all other
property tax proceeds were distributed in the county
in fiscal year 1990.
(b) tf Subject to the requirements of
subsection (6)(c). if the allocation in subsection
(6)(a) exceeds the total budget for a taxing unit, the
commissioners may direct the county treasurer to
allocate the excess to £my taxing unit within the
county.
(c) For fiscal year 1995 and each
succeeding year, the county treasurer shall remit to
the state treasurer the amount of money allributable
to the mills levied in fiscal year 1990 for the county
retirement fund provided for in 20-9-501 and for the
county transportation fund, which was provided for
in 20-10-146. as that section read on June 30, 1993.
The state treasurer shall credit the money received to
the state special revenue fund for stale equalization
aid to the public schools as provided in 20-9-343.
(7) The board of trustees of an elementary
or high school district may reallocate the coal gross
proceeds taxes distributed to the district by the
county treasurer under the following conditions:
(a) The district shall first allocate the coal
gross proceeds taxes to the budgeted funds of the
district in the same proportion that all other property
tax proceeds were distributed in the district in fiscal
year 1990.
(b) If the allocation under subsection (7)(a)
exceeds the total budget for a fund, the trustees may
allocate the excess to any budgeted fund of the
school district.
(8) The county treasurer shall credit all
taxes collected under this part from coal mines that
began production after December 31, 1988, in the
relative proportions required by the levies for state,
county, and school district purposes in the same
manner as property taxes were distributed in the
previous fiscal year."
Section 130. Section 15-24-301. MCA, is
amended to read:
"15-24-301. Personal property brought
into the state — assessment ~ exceptions — custom
combine equipment. (1) Except as provided in
subsections (2) through (5), property in the following
cases is subject to taxation and assessment for all
taxes levied that year in the county in which it is
located:
(a) any personal property (including
livestock) brought, driven, or coming into this state
at any time during the year that is used in the state
for hire, compensation, or profit;
(b) property whose owner or user is
engaged in gainful occupation or business enterprise
in the state; or
(c) property which comes to rest and
becomes a part of the general property of the state.
(2) The taxes on this property are levied in
the same manner and to the same extent, except as
otherwise provided, as though the property had been
in the county on the regular assessment date,
provided that the property has not been regularly
assessed for the year in some other county of the
state.
(3) Nothing in this section shall be
construed to levy a tax against a merchant or dealer
within this state on goods, wares, or merchandise
brought into the county to replenish the stock of the
merchant or dealer.
(4) Any motor vehicle not subject to a fee
in lieu of tax brought, driven, or coming into this
state by any nonresident person temporarily
employed in Montana and used exclusively for
transportation of such person is subject to taxation
and assessment for taxes as follows:
(a) The motor vehicle is taxed by the
county in which it is located.
(b) One-fourth of the annual tax liability of
the motor vehicle must be paid for each quarter or
portion of a quarter of the year that the motor
vehicle is located in Montana.
(c) The quarterly taxes are due the first day
of the quarter.
(5) Agricultural harvesting machinery
classifi e d und e r class eight, licensed in other s tal es ,
another state and operated on the lands of p e rsons a
person other than the owner of the machinery under
contract s a contract for hire shall b e ]s subject to a
fee in lieu of taxation of $35 per machine for the
calendar year in which the fee is collected. The
machin es s hall b e machinery is subject to property
taxation under clas s e ight Title 15. chapter 6. only if
th e y ar e it is sold in Montana."
Section 131. Section 15-36-112, MCA, is
amended to read:
"15-36-112. Disposition of oil and gas
state and local government severance taxes —
calculation of unit value for local government
severance tax. (1) Each year the department of
revenue shall determine the amount of tax collected
under this chapter from within each taxing unit.
(2) For purposes of the distribution of local
government severance taxes collected under this
chapter, the department shall determine the unit
value of oil and gas for each taxing unit as follows:
(a) The unit value for petroleum and other
mineral or crude oil for each taxing unit is the
quotient obtained by dividing the net proceeds taxes
calculated on petroleum or mineral or crude oil
produced in that taxing unit in calendar year 1988
by the number of barrels of petroleum or other
mineral or crude oil produced in that taxing unit
during 1988, excluding new and interim production.
(b) The unit value for natural gas is the
quotient obtained by dividing the net proceeds taxes
calculated on natural gas produced 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 new and interim production.
(3) The state and local government
severance taxes collected under this chapter are
allocated as follows:
(a) The local government severance tax is
statutorily appropriated, as provided in 17-7-502, for
allocation to the county for distribution as provided
in subsection (4);
(b) The state severance tax is allocated to
the state general fund.
(4) (a) For the purpose of distribution of the
17
local government severance tax, 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 to be
distributed plus accumulated interest earned by the
state and penalties and interest on delinquent local
government severance taxes bears to the total
liability for local government severance taxes for the
quaners to be distributed. The taxes must be
calculated and distributed as follows:
(i) By November 30 of each year, the
de lartment shall calculate and distribute to each
eligible county the amount of local government
severance tax, determined by multiplying unit value
as adjusted in this subsection (4)(a) times the units
of production on which the local government
severance tax was owed during the calendar quarters
ending March 31 and June 30 of the preceding
calendar year.
(ii) By May 31 of each year, the department
shall calculate and distribute to each eligible county
the amount of local government severance tax,
determined by multiplying unit value as adjusted in
this subsection (4)(a) times the units of production
on which the local government severance tax was
owed during the 2 calendar quarters immediately
following those quarters referred to in subsection
(4)(a)(i).
(b) Any amount by which the total tax
liability exceeds or is less than the total distributions
determined in subsections (4)(a)(i) and (4)(a)(ii)
mi St be calculated and distributed in the following
m; nner:
(i) The excess amount or shortage must be
div.ded by the total distribution determined for that
perod 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.
(5) Except as provided in subsection (6),
the county treasurer shall distribute the money
received under subsection (4) to the taxing units that
levied mills in fiscal year 1990 against calendar year
1988 production in the same manner that all other
property tax proceeds were distributed during fiscal
year 1990 in the taxing unit, except that no
distribution may be made to a municipal taxing unit.
(6) The board of county commissioners of
a county may direct the county treasurer to
reallocate the distribution of local government
severance tax money that would have gone to a
taxing unit, as provided in subsection (5), to another
taxing unit or taxing units, other than an elementary
school or high school, within the county under the
following conditions;
(a) The Except as provided in subsection
(6)(c), the county treasurer shall first allocate the
flocal government severance} taxes to the taxing
units wilhin the county in the same proportion that
all other property tax proceeds were distributed in
the county in fiscal year 1990.
(b) If Subject to the requirements of
subsection (6)(c), if the allocation in subsection
(6)(a) exceeds the total budget for a taxing unit, the
commissioners may direct the county treasurer to
allocate the excess to any taxing unit within the
county.
(c) For fiscal year 1995 and each
ucceeding year, the county treasurer shall remit to
he state treasurer the amount of money attributable
3 the mills levied in fiscal year 1990 for the county
itirement fund provided for in 20-9-501 and for the
ounty transportation fund, which was provided for
n 20-10-146, as that section read on June 30, 1993.
Tie state treasurer shall credit the money received to
the state special revenue fund for state equalization
aid to the public schools as provided in 20-9-343.
(7) The board of trustees of an elementary
or high school district may reallocate the flocal
government severance] taxes distributed to the
district by the county treasurer under the following
conditions:
(a) The district shall first allocate the flocal
government severance] taxes to the budgeted funds
of the district in the same proportion that all other
property tax proceeds were distributed in the district
in fiscal year 1990.
(b) If the allocation under subsection (7)(a)
exceeds the total budget for a fund, the trustees may
allocate the excess to any budgeted fund of the
school district."
Section 132. Section 20-9-331, MCA, is
amended to read:
"20-9-331. Basic county tax and other
revenues for county equalization of the
elementary district foundation program. ( 1 ) The
county commissioners of each county shall levy an
annual basic tax of 33 mills on the dollar of the
taxable value of all taxable property within the
county, except for property subject to a tax or fee
under 23-2-517, 23-2-803, 61-3-504(2), 61-3-521,
61-3-537, and 67-3-204, for the purposes of local
and state foundation program support. The revenue
collected from this levy must be apportioned to the
support of the elementary foundation programs of
the school districts in the county and to the state
special revenue fund, state equalization aid account,
in the following manner:
(a) In order to determine the amount of
revenue raised by this levy which is retained by the
county, the sum of the estimated revenue identified
in subsection (2) must be subtracted from the total
of the foundation programs of all elementary
districts of the county.
(b) If the basic levy and other revenue
prescribed by this section produce more revenue
than is required to repay a state advance for county
equalization, the county treasurer shall remit the
surplus funds to the state treasurer for deposit to the
state special revenue fund, state equalization aid
account, immediately upon occurrence of a surplus
balance and each subsequent month thereafter, with
any final remittance due no later than June 20 of the
fiscal year for which the levy has been set.
(2) The revenue realized from the county's
portion of the levy prescribed by this section and the
revenue from the following sources must be used for
the equalization of the elementary foundation
program of the county as prescribed in 20-9-335,
and a separate accounting must be kept of the
revenue by the county treasurer in accordance with
20-9-212(1);
(a) the portion of the federal Taylor
Grazing Act funds distributed to a county and
designated for the common school fund under the
provisions of 17-3-222;
(b) the portion of the federal flood control
act funds distributed to a county and designated for
expenditure for the benefit of the county common
schools under the provisions of 17-3-232;
(c) all money paid into the county treasury
as a result of fines for violations of law, except
money paid to a justice's court, and the use of which
is not otherwise specified by law;
(d) any money remaining at the end of the
immediately preceding school fiscal year in the
county treasurer's accounts for the various sources
of revenue established or referred to in this section;
(e) any federal or state money distributed to
the county as payment in lieu of property taxation,
including federal forest reserve funds allocated under
the provisions of 17-3-213;
(0 gross proceeds taxes from coal under
15-23-703;
(g) net proceeds taxes for new production,
as defined in 15-23-601, and local government
severance taxes on any other production occurring
after December 31, 1988; and
(h) anticipated revenue from property taxes
and fees imposed under 23-2-517, 23-2-803, 61-3-
504(2), 61-3-521, 61-3-537, and 67-3-204 ; and
(i) sales tax and use tax revenue ."
Section 133. Section 20-9-333, MCA. is
amended to read:
"20-9-333. Basic special levy and other
revenues for county equalization of high school
dLstrict foundation program. (1) The county
commissioners of each county shall levy an annual
basic special tax for high schools of 22 mills on the
dollar of the taxable value of all taxable property
within the county, except for property subject to a
tax or fee under 23-2-517, 23-2-803, 61-3-504(2),
61-3-521, 61-3-537, and 67-3-204, for the purposes
of local and state foundation program support. The
revenue collected from this levy must be apportioned
to the support of the foundation programs of high
school districts in the county and to the state special
revenue fund, state equalization aid account, in the
following manner:
(a) In order to determine the amount of
revenue raised by this levy which is retained by the
county, the sum of the estimated revenue identified
in subsection (2) must be subtracted from the sum of
the county's high school tuition obligation and the
total of the foundation programs of all high school
districts of the county.
(b) If the basic levy and other revenue
prescribed by this section produce more revenue
than is required to repay a state advance for county
equalization, the county treasurer shall remit the
surplus funds to the state treasurer for deposit to the
state special revenue fund, state equalization aid
account, immediately upon occurrence of a surplus
balance and each subsequent month thereafter, with
any final remittance due no later than June 20 of the
fiscal year for which the levy has been set.
(2) The revenue realized from the county's
portion of the levy prescribed in this section and the
revenue from the following sources must be used for
the equalization of the high school foundation
program of the county as prescribed in 20-9-335,
and a separate accounting must be kept of the
revenue by the county treasurer in accordance with
20-9-212(1):
(a) any money remaining at the end of the
immediately preceding school fiscal year in the
county treasurer's accounts for the various sources
of revenue established in this section;
(b) any federal or state money distributed to
the county as payment in lieu of property taxation,
including federal forest reserve funds allocated under
the provisions of 17-3-213;
(c) gross proceeds taxes from coal under
15-23-703;
(d) net proceeds taxes for new production,
as defined in 15-23-601, and local government
severance taxes on any other production occurring
after December 31, 1988; and
(e) anticipated revenue from property taxes
and fees imposed under 23-2-517, 23-2-803, 61-3-
504(2), 61-3-521, 61-3-537, and 67-3-204 ; and
(f) sales lax and use tax revenue ."
Section 134. Section 20-9-343, MCA, is
amended to read;
"20-9-343. (Temporary) Definition of and
revenue for state equalization aid. ( 1 ) As used in
this title, the term "slate equalization aid" means the
money deposited in the state special revenue fund as
required in this section plus any legislative
appropriation of money from other sources for:
(a) distribution to the public schools for the
payment of guaranteed tax base aid and for
equalization of the foundation program;
(b) the Montana educational
telecommunications network as provided in 20-32-
18
101; and
(c) filing fees for school district audits as
required by 2-7-514(2).
(2) The superintendent of public instruction
may spend funds appropriated for state equalization
aid, as required by subsections (l)(a) and (l)(b),
throughout the biennium.
(3) The following must be paid into the
state special revenue fund for state equalization aid
to public schools of the state:
(a) money received from the collection of
income taxes under chapter 30 of Title 15, as
provided by 15-1-501;
(b) except as provided in 15-31-702, money
received from the collection of corporation license
and income taxes under chapter 31 of Title 15, as
provided by 15-1-501;
(c) money allocated to state equalization
from the collection of the severance tax on coal;
(d) money received from the treasurer of
the United States as the state's shares of oil, gas,
and other mineral royalties under the federal Mineral
Lands Leasing Act, as amended;
(e) interest and income money described in
20-9-341 and 20-9-342;
(f) money received from the state
equalization aid levy under 20-9-360;
(g) income from the lottery, as provided in
23-7-402;
(h) the surplus revenues collected by the
counties for foundation program support according
to 20-9-331 and 20-9-333;
(i) investment income earned by investing
money in the state equalization aid account in the
state special revenue fund; and
(j) 15% of the income and earnings of all
coal severance tax funds as provided in 17-5-704.
(4) The superintendent of public instruction
shall request the board of investments to invest the
money in the state equalization aid account to
maximize investment earnings to the account.
(5) Any surplus revenue in the state
equalization aid account in the second year of a
biennium may be used to reduce any appropriation
required for the next succeeding biennium.
(Terminates June 30, 1993-sec. 5, Ch. 729, L.
1991.)
20-9-343. (Effective July 1, 1993)
Definition of and revenue for state equalization
aid. (1 ) As used in this title, the term "state
equalization aid" means the money deposited in the
state special revenue fund as required in this section
plus any legislative appropriation of money from
other sources for distribution to the public schools
for the purposes of payment of guaranteed tax base
aid and^ equalization of the foundation program , and
payment of retirement fund obligations, payment of
debt service, and for the Montana educational
telecommunications network as provided in 20-32-
101.
(2) The superintendent of public instruction
may spend funds appropriated for state equalization
aid as required for the purposes of guaranteed tax
base aid, the foundation program, retirement fund
obligations, debt service, and the Montana
educational telecommunications network, throughout
the biennium.
(3) The following must be paid into the
state special revenue fund for state equalization aid
to public schools of the state:
(a) money received from the collection of
income taxes under chapter 30 of Title 15, as
provided by 15-1-501;
(b) except as provided in 15-31-702, money
received from the collection of corporation license
and income taxes under chapter 31 of Title 15, as
provided by 15-1-501;
(c) money allocated to state equalization
from the collection of the severance tax on coal;
(d) money received from the treasurer of
the United States as the state's shares of oil, gas,
and other mineral royalties under the federal Mineral
Lands Leasing Act, as amended;
(e) interest and income money described in
20-9-341 and 20-9-342;
(f) money received from the state
equalization aid levy under 20-9-360;
(g) income from the lottery, as provided in
23-7-402;
(h) the surplus revenues collected by the
counties for foundation program support according
to 20-9-331 and 20-9-333;
(i) investment income earned by investing
money in the state equalization aid account in the
state special revenue fund; and
(j) 15% of the income and earnings of all
coal severance tax funds as provided in 17-5-704^
and
(k) money received from the collection of
sales taxes and use taxes and distributed under
[section 721 .
(4) The superintendent of public instruction
shall request the board of investments to invest the
money in the state equalization aid account to
maximize investment earnings to the account.
(5) Any surplus revenue in the state
equalization aid account in the second year of a
biennium may be used to reduce any appropriation
required for the next succeeding biennium."
Section 135. Section 20-9-344, MCA, is
amended to read:
"20-9-344. Purpose of state equalization
aid and duties of board of public education for
distribution. (I) The money available for state
equalization aid must be distributed and apportioned
to provide:
(a) an annual minimum operating revenue
for the elementary and high schools in each county^
revenue for the retirement fund , e xclusive of and
r e v e nu es revenue required for debt service and
exclusive of revenue required for the payment of any
costs and expense incurred in connection with any
adult education program, recreation program, school
food services program, new buildings and grounds,
and transportation; and
(b) the Montana educational
telecommunications network as provided in 20-32-
101.
(2) The board of public education shall
administer and distribute the state equalization aid
and state advances for county equalization in the
manner and with the powers and duties provided by
law. To this end, the board of public education shall:
(a) adopt policies for regulating the
distribution of state equalization aid and state
advances for county equalization in accordance with
the provisions of law;
(b) have the power to require reports from
the county superintendents, budget boards, county
treasurers, and trustees as it considers necessary; and
(c) order the superintendent of public
instruction to distribute the state equalization aid on
the basis of each district's annual entitlement to the
aid as established by the superintendent of public
instruction. In ordering the distribution of state
equalization aid, the board of public education may
not increase or decrease the state equalization aid
distribution to any district on account of any
difference that may occur during the school fiscal
year between budgeted and actual receipts from any
other source of school revenue.
(3) The board of public education may
order the superintendent of public instruction to
withhold distribution of state equalization aid or
order the county superintendent of schools to
withhold county equalization money from a district
when the district fails to:
(a) submit reports or budgets as required by
law or rules adopted by the board of public
education; or
(b) maintain accredited status.
(4) Prior to any proposed order by the
board of public education to withhold distribution of
state equalization aid or county equalization money,
the district is entitled to a contested case hearing
before the board of public education, as provided
under the Montana Administrative Procedure Act.
(5) If a district or county receives more
state equalization aid than it is entitled to, the county
treasurer shall return the overpayment to the state
upon the request of the superintendent of public
instruction in the manner prescribed by the
superintendent of public instruction.
(6) Except as provided in 20-9-347(3), the
foundation program payment and guaranteed tax
base aid payment must be distributed according to
the following schedule:
(a) from August to May of the school fiscal
year, 8% of the foundation program payment to each
district;
(b) in November of the school fiscal year,
one-half of the guaranteed tax base aid payment and
one-half of the state retirement obligation payment
to each district or county;
(c) in May of the school fiscal year, the
remainder of the guaranteed tax base aid payment
and one-half of the state retirement obligation
payment to each district or county; and
(d) in June of:
(i) the 1993 school fiscal year, one-half of
the remaining foundation program payment of each
district and on July 15, 1993, the remaining school
fiscal year 1993 foundation program payment of
each district; and
(ii) the school fiscal year, the remaining
foundation program payment to each district.
(7) The distribution of foundation program
payments and guaranteed tax base aid provided for
in subsection (6) must occur by the last working day
of each month."
Section 136. Section 20-9-346, MCA, is
amended to read:
"20-9-346. Duties of the superintendent
of public insttoiction for state equalization aid
distribution. The superintendent of public
instruction shall administer the distribution of the
state equalization aid by:
(1) establishing the annual entitlement of
each district and county to state equalization aid in
support of the retirement fund and foundation
program , based on the data reported in the retirement
and general fund budgets for each district that have
been duly adopted for the current school fiscal year
and verified by the superintendent of public
instruction and by applying the verified data under
the provisions of the state equalization aid allocation
procedure prescribed in 20-9-347;
(2) distributing by state warrant or
electronic transfer the state equalization aid and state
advances for county equalization, for each district or
county entitled to the aid, to the county treasurer of
the respective county or county where the district is
located, in accordance with the distribution ordered
by the board of public education;
(3) keeping a record of the full and
complete data concerning money available for state
equalization aid, state advances for county
equalization, and the entitlements for state
equalization aid of the districts of the state;
(4) reporting to the board of public
education the estimated amount that will be available
for state equalization aid; and
(5) reporting to the legislature as provided
in 5-1 1-210:
(a) the figures and data available
concerning distributions of state equaliz.ition aid
during the preceding 2 school fiscal years;
(b) the amount of state equalization aid then
available;
(c) the apportionment made of the available
19
money but not yet distributed;
(d) the latest estimate of accnials of money
available for state equalization aid; and
(e) the amount of state advances and
repayment for county equalization."
Section 137. Section 20-9-347, MCA, is
amended to read:
"20-9-347. Formula for state equalization
aid apportionment in support of foundation
program and retirement ~ exceptions. ( 1 ) The
superintendent of public instruction shall apportion
the slate equalization aid available for support of the
foundation program, individually for the elementary
districts of a county or the high school districts of a
county, in accordance with 20-9-346 and on the
basis of the following procedure:
(a) Determine the percentage that the total
funds available to all counties in the state in support
of the foundation program (including the state
money available for state equalization aid in support
of the foundation program) is of the total amount of
the foundation programs of all counties.
(b) Determine the percentage that the total
funds available in each county in support of the
foundation programs in the county (excluding state
money available for state equalization aid in support
of the foundation program) is of the total amount of
the foundation programs of all districts of the
county.
(c) Counties in which the percentage
determined in subsection (l)(b) exceeds the
percentage determined in subsection (l)(a) are not
entitled to an apportionment of the state equalization
aid in support of the foundation program.
(d) After elimination of the counties
referred to in subsection (l)(c), determine the
percentage that the total money available to all
remaining counties in support of the foundation
program (including the state money available for
state equalization aid in support of the foundation
program) is of the total amount of the foundation
programs of all remaining counties.
(e) Each district of each remaining county
is entitled to an apportionment of the state
equalization aid in support of the foundation
program equal to the difference between the
percentage determined in subsection (l)(d) and the
percentage determined for the county in subsection
( 1 )(b) multiplied by the foundation program amount
for the district.
(2) The superintendent of public instruction
shall also apportion state equalization aid to each
district in sup[>on of the district's retirement fund
obligations. The superintendent of public instruction
shall adopt rules to ensure that for school fiscal year
1995 and succeeding years, each district receives
retirement equalization aid equal to the full amount
required by the elementary districts and high school
districts in the county.
f£M3) The superintendent of public
instruction shall:
(a) supply the county treasurer and the
county superintendent with a report of the
apportionments of state equalization aid in support
of the foundation program of each district of the
county, and the state equalization aid in support of
the foundation program must be apportioned to the
districts in accordance with the report;
(b) in the manner described in 20-9-344,
provide for a state advance to each county in an
amount that is no less than the amount anticipated to
be raised for the basic county tax fund as provided
in 20-9-331 and for the basic special tax fund as
provided in 20-9-333;
(c) adopt rules to implement the provisions
of subsection (3)^ (3)(b) .
(^4) (a) The superintendent of public
instruction is authorized to adjust the schedule
prescribed in 20-9-344 for distribution of the
foundation program and guaranteed tax base aid
payments if the distribution will cause a district to
register warrants under the provisions of 20-9-
212(9).
(b) To qualify for an adjustment in the
payment schedule, a district shall demonstrate to the
superintendent of public instruction, in the manner
required by the office, that the payment schedule
prescribed in 20-9-344 will result in insufflcient
money available in all funds of the district to make
payment of the district's warrants. The county
treasurer shall confirm the anticipated deficit.
Nothing in this section may be construed to
authorize the superintendent of public instruction to
exceed a district's annual payment for state and
county equalization aid."
Section 138. Section 20-9-351, MCA, is
amended to read:
"20-9-351. Funding of deficiency in state
equalization aid. If the money available for state
equalization aid is not the result of a reduction in
spending under 17-7-140 and is not sufficient to
provide the foundation program schedule support
determined in 20-9-348^ and the guaranteed tax base
aid required under 20-9-366 through 20-9-369 , and
the retirement fund support required under 20-9-347 .
the superintendent of public instruction shall request
the budget director to submit a request for a
supplemental appropriation in the second year of the
biennium that is sufficient to complete the funding
of guaranteed tax base aid , retirement, and the
foundation programs of the elementary or secondary
schools, or both, for the current biennium."
Section 139. Section 20-9-366, MCA, is
amended to read:
"20-9-366. Deflnitions. As used in 20-9-
366 through 20-9-369, the following definitions
apply:
( 1 ) "County — r e tir e ment — hmH — valu e — per
e l e m e ntary ANB" or "county r e tir e m e nt mill valu e
p e r high Gchool ANB" m e ans th e sum of th e taxabl e
valuation in th e pr e viou s y e ar of all prop e rty in th e
county divid e d by 1, (XX), with th e quoti e nt divid e d
by th e total county e l e m e ntary ANB count or the
total — county high — s chool — ANB count us e d to
calculat e th e e l e m e ntary school districts' and high
s chool di s trict s ' curr e nt y e ar foundation program
amounts.
(QM\) "District mill value per ANB" means
the taxable valuation in the previous year of all
property in the district divided by 1,000, with the
quotient divided by the ANB count of the district
used to calculate the district's current year
foundation program amount.
f^2) "Permissive amount" means that
portion of a district's general fund budget in excess
of the foundation program amount for the district, as
provided in 20-9-316 through 20-9-321, but not
exceeding 35% of the district's foundation program
amount, and which excess is authorized under the
provisions of 20-9-145 and 20-9-353.
f4)(3) "Statewide mill value per elementary
ANB" or "statewide mill value per high school
ANB", for permissive and r e tir e m e nt debt service
guaranteed tax base purposes, means the sum of the
taxable valuation in the previous year of all property
in the state, multiplied by 121% and divided by
1,000, with the quotient divided by the total state
elementary ANB count or the total state high school
ANB amount used to calculate the elementary school
districts' and high school districts' current year
foundation program amounts."
Section 140. Section 20-9-367, MCA, is
amended to read:
"20-9-367. Eligibility to receive
guaranteed tax base aid. fB If the district mill
value per ANB of any elementary or high school
district is less than the corresponding statewide
district mill value per elementary ANB or high
school ANB, the district may receive guaranteed tax
base aid based on the number of mills levied in the
district in support of its permissive amount of the
general fund budget and its debt service fund .
(2) If th e county r e tir e m e nt mill valu e p e r
e l e m e ntary ANB or county r e tir e m e nt mill valu e p e r
high s chool ANB i s l es s than th e corr e sponding
s tat e w i d e county mill valu e p e r e l e m e ntary ANB or
high — s chool — ANB, — the — county — may — r e c e iv e
guaranteed tax ba se aid bas e d on th e numb e r of
mill s — l e v ie d — ifl — the — county — in — s upport of th e
r e t i r e m e nt fund budgets of th e r e sp e ctiv e e l e m e ntary
or high school district s in the county. "
Section 141. Section 20-9-368, MCA, is
amended to read:
"20-9-368. Amount of guaranteed tax
base aid — reversion. ( 1 ) Th e amount of guaranteed
tax bas e aid p e r ANB that a county may r e c e iv e in
s upport of th e r e tir e ment fund budg e ts of the
e l e m e ntary s chool districts in th e county i s th e
diff e r e nc e — b e tw ee n — the — county — mM — valu e — per
e l e m e ntary ANB and th e s tat e wid e county mill va l u e
p e r e l e m e ntary ANB, multipli e d by th e number of
mills l e vi e d in s upport of th e r e t i r e m e nt fund
budg e ts for the e l e m e ntary district s in th e county.
(2) Th e amount of guarant ee d tax ba se a i d
p e r ANB that a county may r e c e iv e in s upport of th e
r e tir e m e nt fund budg e ts of the high s chool di s trict s
in th e county is th e diff e r e nc e b e twe e n th e county
mill valu e p e r high school ANB and th e s tat e wid e
county mill valu e p e r high school ANB. multipl ie d
by th e numb e r of mills l e vied in s upport of th e
r e tir e m e nt fund budg e t s for th e high school districts
in th e county.
4^(1) The amount of guaranteed tax base
aid per ANB that a district may receive in support of
its permissive amount of the general fund budget is
the difference between the district mill value per
ANB and the corresponding statewide district mill
value per ANB, multiplied by the number of mills
levied in support of the district's permissive amount
of the general fund budget.
(2) The amount of guaranteed tax base aid
per ANB that a district may receive in support of its
debt service fund budget is the difference between
the district mill value per ANB and the
corresponding statewide mill value per ANB,
multiplied by the number of mills levied in support
of the district's debt service fund budget.
f4K3) Guaranteed tax base aid provided to
any county or district under this section is earmarked
to finance the fund or portion of the fund for which
it is provided. If the actual expenditures from the
fund or portion of the fund for which guaranteed tax
base aid is earmarked are less than the amount
budgeted, the guaranteed tax base aid reverts in
proportion to the amount budgeted but not expended.
If a county or district receives more guaranteed tax
base aid than it is entitled to, the excess must be
returned to the state as required by 20-9-344."
Section 142. Section 20-9-369, MCA, is
amended to read:
"20-9-369. Duties of superintendent of
public instruction and department of revenue. ( I )
The superintendent of public instruction shall
administer the distribution of guaranteed tax base aid
by:
(a) providing each school district and
county superintendent, by March 1 of each year,
with the preliminary statewide and county district
mill values per ANB and, by May 1 of each year,
with the final statewide; and district , and county mill
values per ANB, for use in calculating the
guaranteed tax base aid available for the ensuing
school fiscal year;
(b) requiring each county and district that
qualifies and applies for guaranteed tax base aid to
report to the county superintendent all budget and
accounting information required to administer the
guaranteed tax base aid;
(c) keeping a record of the complete data
concerning appropriations available for guaranteed
20
tax base aid and the entitlements for such aid of the
counti e s and districts that qualify;
(d) distributing the guaranteed tax base aid
entitlement to each qualified county or district from
the appropriations for that purpose.
(2) The superintendent shall adopt rules
necessary to implement 20-9-366 through 20-9-369.
(3) The department of revenue shall provide
the superintendent of public instruction by December
I of each year a final determination of the taxable
value of property within each school district and
county of the state reported to the department of
revenue based on information delivered to the
county clerk and recorder as required in 15-10-305."
Section 143. Section 20-9-439, MCA, is
amended to read:
"20-9-439. Computation of net levy
requirement — procedure when levy inadequate.
(1) The county superintendent shall compute the
levy requirement for each school district's debt
service ftind on the basis of the following procedure;
(a) d e termin e E)etermine the total money
available in the debt service fund for the reduction
of the property tax on the district by totaling;
(i) the end-of-the-year fund balance in the
debt service fund, less any limited operating reserve
as provided in 20-9-438;
(ii) anticipated interest to be earned by the
investment of debt service cash in accordance with
the provisions of 20-9-2 1 3(4) or by the investment
of bond proceeds under the provisions of 20-9-435;
and
(iii) any other money , including money from
federal sources, anticipated by the trustees to be
available in the debt service fund during the ensuing
school fiscal year from such sources as legally
authorized money transfers into the debt service fund
or from rental income , excluding any guaranteed tax
base aid.T
(b) the Subtract the total amount available
to reduce the property tax, determined in subsection
(l)(a), must b e subtract e d ^om the final budget
e xp e nditur e amount for the' debt service fiind as
established in 20-9-438^^
(c) Determine the number of mills to be
levied on the taxable property in the district to
finance the net debt service fund levy requirement
by dividing the remainder determined in subsection
(l)(b) by the sum of;
(i) 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
(ii) the taxable valuation of the district
divided by 1,000.
(2) the The net debt service fund levy
requirement determined in subsection (l)(b) (l)(c)
must be reported to the county commissioners on the
second Monday of August by the county
superintendent as the net debt service fund levy
requirement for the district, and a levy must be made
by the county commissioners in accordance with 20-
9-142.
(34(3) If the board of county commissioners
fails in any school fiscal year to make a levy for any
issue or series of bonds of a school district sufficient
to raise the money necessary for payment of interest
and principal becoming due during the next ensuing
school fiscal year, in any amounts established under
the provisions of this section, the holder of any bond
of the issue or series or any taxpayer of the district
may apply to the district court of the county in
which the school district is located for a writ of
mandate to compel the board of county
commissioners of the county to make a sufficient
levy for such purposes. If, upon the hearing of the
application, it appears to the satisfaction of the court
that the board of county commissioners of the
county has failed to make a levy or has made a levy
that is insufficient to raise the amount required to be
raised as established in the manner provided in this
section, the court shall determine (he amount of the
deficiency and shall issue a writ of mandate directed
to and requiring the board of county commissioners,
at the next meeting for the purpose of fixing tax
levies for county purposes, to fix and make a levy
against all taxable property in the school district that
is sufficient to raise the amount of the deficiency.
The levy is in addition to any levy required to be
made at that time for the ensuing school fiscal year.
Any costs that may be allowed or awarded the
petitioner in the proceeding must be paid by the
members of the board of county commissioners and
may not be a charge against the school district or the
county."
Section 144. Section 20-9-501. MCA, is
amended to read;
"20-9-501. Retirement fund. (1) The
trustees of a district employing personnel who are
members of the teachers' retirement system or the
public employees' retirement system or who are
covered by unemployment insurance or who are
covered by any federal social security system
requiring employer contributions shall establish a
retirement fund for the purposes of budgeting and
paying the employer's contributions to the systems.
The district's contribution for each employee who is
a member of the teachers' retirement system must be
calculated in accordance with Title 19, chapter 4,
part 6. The district's contribution for each employee
who is a member of the public employees'
retirement system must be calculated in accordance
with 19-3-801. The district's contributions for each
employee covered by any federal social security
system must be paid in accordance with federal law
and regulation. The district's contribution for each
employee who is covered by unemployment
insurance must be paid in accordance with Title 39,
chapter 51, part 11.
(2) The trustees of a district required to
make a contribution to a system referred to in
subsection (1) shall include in the retirement fund of
the preliminary budget the estimated amount of the
employer's contribution. After the final retirement
fund budget has been adopted, the trustees shall pay
the employer contributions to the systems in
accordance with the financial administration
provisions of this title.
(3) When the final retirement fund budget
has been adopted, the county superintendent shall
establish the l e vy requir e m e nt amount of the stale
obligation by;
(a) determining the sum of the money
available to reduce the r e tir e ment — fi»nd — levy
r e quir e m e nt amount of the state obligation by
adding;
(i) any anticipat e d mon e y that may b e
r e aliz e d in the r e tir e m e nt fund during th e e n s uing
s chool fiscal y e ar, inc l uding antic i pat e d r e v e nu e
from prop e rty tax es and f ee s impo se d und e r 23 2
517,23 2 8 03,61 3 504(2), 61 3 521,61 3 537, and
67 3 204;
(ii) net proceed s tax e s and local gov e rnm e nt
s e v e ranc e tax es on any oth e r oil and gas production
occurring aft e r D e c e mb e r 31, 19 88 ;
(iii) coal gro s s proceeds taxe s und e r 15 23
703.
fr^i) any fiind balance available for
reappropriation as determined by subtracting the
amount of the end-of-the-year fund balance
earmarked as the retirement fund operating reserve
for the ensuing school fiscal year by the trustees
from the end-of-the-year fund balance in the
retirement fund. The retirement fund operating
reserve may not be more than 35% of the final
retirement fund budget for the ensuing school fiscal
year and must be used for the purpose of paying
retirement fund warrants issued by the district under
the final retirement fund budget^^-aiid
MCii) any other revenue anticipated that
may be realized in the retirement fund during the
ensuing school fiscal year , e xcluding any guaranteed
tax ba se a i d.^
(b) notwith s tand i ng — the — prov isi on s — of
s ub se ct i on ( 8 ), subtracting the money available for
reduction of the l e vy r e quir e m e nt stale obligation , as
determined in subsection (3)(a), from the budgeted
amount for expenditures in the final retirement fund
budget.
(4) The county superintendent shall;
(a) total the — net — r e tir e ment — fund — levy
r e quirements the amount of ihe stale obliealion
separately for all elementary school districts,
including any joint district located in the county, all
high school districts, and all community college
districts of the county, including any prorated joint
district or special education cooperative agreement
levy requirements; and
(b) report e ach levy r e quir e m e nt the amount
of the state obligation to the county commission e r s
superintendent of public instruction in the same
manner as provided in 20-9-134 on th e se cond
Monday of Augu s t as the respective county levy
requirements for elementary district; and high school
district; retirement funds and report lo Ihe board of
regents in the same manner as provided in 20-9- 1 34
the amount of the slate obligation for community
college district retirement funds.
(5) The superintendent of public instruction
shall pay the state obligation amounts determined in
subsection (4) to each county according to the
distribution schedule provided in 20-9-344.
(5) The county comm issi on e r s s hall fix and
s e t th e county l e vy in accordanc e w i th 20 9 1 4 2.
(6) Th e net r e tir e m e nt fi»d levy
r e quir e m e nt for a joint e l e m e ntary di s trict or a joint
h i gh s chool district must b e prorated lo each county
in which a part of th e di s trict i s locat e d in the s am e
proportion as th e di s trict ANB of th e jo i nt district i s
di s tribut e d by pupil r es id e nc e in e ach county. Th e
county sup e rint e nd e nts of th e counti es aff e ct e d s hall
jointly d e t e rmine th e net r e tir e m e nt fund levy
r e quir e ment for each county as provid e d in 20 9
(7) Th e net — ret i r e m e nt fund levy
r e quir e m e nt for districts that ar e m e mb e rs of s p e c i al
e ducation coop e rativ e agr ee m e nts mu s t b e prorat e d
to e ach county in which th e di s trict i s locat e d in th e
s am e proportion as th e s p e cia l e ducation coop e rativ e
budg e t i s prorat e d to th e m e mb e r s chool district s .
The county s uperint e ndent s of th e countie s aff e ct e d
s hall jointly d e t e rmin e the n e t retir e m e nt fund l e vy
r e quir e m e nt for each county in th e sam e mann e r as
provid e d in 20 9 151 and th e county commi ssi on e r s
s hall fix and l e vy th e n e t r e t i r e m e nt fund l e vy for
e ach county in th e s am e mann e r as provid e d in 20
9-i42T
( 8 ) TTi e — county — sup e rint e nd e nt — shaW
calculat e th e numb e r of mi l ls to b e l e vi e d on th e
taxabl e — prop e rty — in — th e county — to financ e — the
r e tir e m e nt fund n e t l e vy r e qu i r e m e nt by divid i ng th e
amount d e t e rmined in s ub se ction ( 4 )(a) by th e s um
efj
(a) th e amount of guaranteed tax bas e aid
that th e county will r e c e iv e for e ach mill l e vi e d, as
c e rtifi e d by th e s up e rint e nd e nt of pub li c in s truction;
(b) th e taxabl e valuation of th e district
divid e d by 1,000. "
Section 145. Section 20-6-702, MCA, is
amended to read;
"20-6-702. Funding for K-12 school
districts. (1) Notwithstanding the provisions of
subsections (2) through (6) {5}, a K-12 school
district formed under the provisions of 20-6-701 is
subject to the provisions of law for high school
districts.
(2) The number of elected trustees of the
K-12 school district must be based on the
classification of the attached elementary district
21
under the provisions of 20-3-341 and 20-3-351.
(3) Calculations for the following must be
made separately for the elementary school program
and the high school program of a K-12 school
district:
(a) the calculation of ANB for purposes of
determining the foundation program schedule
payments must be in accordance with the provisions
of 20-9-311;
(b) the basic county tax and revenues for
the elementary foundation program amount for the
district must be determined in accordance with the
provisions of 20-9-331, and the basic special tax and
revenues for the high school foundation program
amount for the district must be determined in
accordance with 20-9-333; and
(c) the guaranteed tax base aid for the
permissive levy amount for a K-12 school district
must be calculated separately, using the mill value
per elementary ANB and the mill value per high
school ANB as defined in 20-9-366. The permissive
amount to be levied for the K-12 school district
must be prorated based on the ratio of the
foundation program amounts for elementary school
programs to the foundation program amounts for
high school programs.
( 1 ) Th e r e tir e m e nt obligation and e ligibility
for r e tir e m e nt guarant ee d tax bas e a i d for a K 12
s chool di s trict must b e calculat e d and fund e d a s a
high school dir . lrict r e tir e m e nt obligation und e r th e
provisions of 20 9 501.
f5)(4) For the purposes of budgeting for a
K-12 school district, the trustees shall adopt a single
fund for any of the budgeted or nonbudgeted funds
described in 20-9-201 for the costs of operating all
grades and programs of the district.
f6^(5) Tuition for attendance in the K-12
school district must be determined separately for
high school pupils and for elementary pupils under
the provisions of chapter 5, part 3, except that the
actual expenditures used for calculations in 20-5-305
and 20-5-312 must be based on an amount prorated
between the elementary and high school programs in
the appropriate funds of each district in the year
prior to the attachment of the districts."
Section 146. Section 20-10-141, MCA, is
amended to read;
"20-10-141. Schedule of maximum
reimbursement by mileage rates. ( 1 ) The following
mileage rates for school transportation constitute the
maximum reimbursement to districts for school
transportation from state and county sourc es of
transportation revenue under the provisions of 20- 1 0-
145 and 20 10 1 4 6 . Th e s e Except as provided in 20-
10-143. the rates may not limit the amount that a
district may budget in its transportation fund budget
in order to provide for the estimated and necessary
cost of school transportation during the ensuing
school fiscal year. All bus miles traveled on routes
approved by the county transportation committee are
reimbursable. Nonbus mileage is reimbursable for a
vehicle driven by a bus driver to and from an
■ overnight location of a school bus when the location
is more than 10 miles from the school. A district
may approve additional bus or nonbus miles within
its own district or approved service area but may not
claim reimbursement for the mileage. Any vehicle,
the operation of which is reimbursed for bus mileage
under the rate provisions of this schedule, must be a
school bus, as defined by this title, driven by a
qualified driver on a bus route approved by the
county transportation committee and the
superintendent of public instruction.
(2) The rate per bus mile traveled must be
determined in accordance with the following
schedule when the number of eligible transportees
that board a school bus on an approved route is not
less than one-half of its rated capacity:
(a) 85 cents per bus mile for a school bus
with a rated capacity of not less than 12 but not
more than 45 children; and
(b) when the rated capacity is more than 45
children, an additional 2.13 cents per bus mile for
each additional child in the rated capacity in excess
of 45 must be added to a base rate of 85 cents per
bus mile.
(3) Reimbursement for nonbus mileage
provided for in subsection ( 1 ) may not exceed 50%
of the maximum reimbursement rate determined
under subsection (2).
(4) When the number of eligible
transportees boarding a school bus on an approved
route is less than one-half of its rated capacity, the
rate per bus mile traveled must be computed as
follows:
(a) determine the number of eligible
transportees that board the school bus on the route;
(b) multiply the number determined in
subsection (4)(a) by two and round off to the nearest
whole number; and
(c) use the adjusted rated capacity
determined in subsection (4)(b) as the rated capacity
of the bus to determine the rate per bus mile
traveled from the rate schedule in subsection (2).
(5) The rated capacity is the number of
riding positions of a school bus as determined under
the policy adopted by the board of public education."
Section 147. Section 20-10-142, MCA, is
amended to read;
"20-10-142. Schedule of maximum
reimbursement for individual transportation. The
following rates for individual transportation
constitute the maximum reimbursement to districts
for individual transportation from state and county
s ourc es — ef transportation revenue under the
provisions of 20-10-145 and 20 10 116 . These rates
also shaH constitute the limitation of the budgeted
amounts for individual transportation for the ensuing
school fiscal year. The schedules provided in this
section shaH may not be altered by any authority
other than the legislature of the state of Montana.
When the trustees contract with the parent or
guardian of any eligible transportee to provide
individual transportation for each day of school
attendance, they shall reimburse the parent or
guardian on the basis of the following schedule:
( 1 ) When a parent or guardian transports an
eligible transportee or transportees from the
residence of the parent or guardian to a school or to
schools located within 3 miles of one another, the
total reimbursement per day of attendance shaH must
be determined by multiplying the distance in miles
between the residence and the school, or the most
distant school if more than one, by 2, subtracting 6
miles from the product so obtained, and multiplying
the difference by 21.25 cents provided that:
(a) if two or more eligible transportees are
transported by a parent or guardian to two or more
schools located within 3 miles of one another and if
such schools are operated by different school
districts, the total amount of the reimbursement s hall
must be divided equally between the districts;
(b) if two or more eligible transportees are
transported by a parent or guardian to two or more
schools located more than 3 miles from one another,
the parent or guardian shaH must be separately
reimbursed for transporting the eligible transportee
or transportees to each school;
(c) if a parent transports two or more
eligible transportees to a school and a bus stop
which school and bus stop are located within 3 miles
of one another, the total reimbursement shaH must
be determined under the provisions of this
subsection and shall must be divided equally
between the district operating the school and the
district operating the bus;
(d) if a parent transporting two or more
eligible transportees to a school or bus stop must,
because of varying arrival and departure times, make
more than one round-trip journey to the bus stop or
school, the total reimbursement allowed by this
section s hall must be limited to one round trip per
day for each scheduled arrival or departure time;
(e) notwithstanding subsection (l)(a), (l)(b),
( I )(c), or ( 1 )(d), ne a reimbursement may not be less
than 25 cents a day.
(2) When the parent or guardian transports
an eligible transportee or transportees from the
residence to a bus stop of a bus route approved by
the trustees for the transportation of the transportee
or transportees, the total reimbursement per day of
attendance shaH must be determined by multiplying
the distance in miles between the residence and the
bus stop by 2, subtracting 3 miles from the product
so obtained, and multiplying the difference by 22.5
cents provided that:
(a) if the eligible transportees transported
attend schools in different districts but ride on one
bus, the districts shall divide the total reimbursement
equally; and
(b) if the parent or guardian is required to
transport the eligible transportees to more than one
bus, the parent or guardian shaH must be separately
reimbursed for transportation to each bus.
(3) Where, due to excessive distances,
impassable roads, or other special circumstances of
isolation the rates prescribed in subsection ( I ) or (2)
would be an inadequate reimbursement for the
transportation costs or would result in a physical
hardship for the eligible transportee, his the
transportee 's parent or guardian may request an
increase in the reimbursement rate. S*ieh-a A request
for increased rates due to isolation s hall must be
made by the parent or guardian on the contract for
individual transportation for the ensuing school fiscal
year by indicating the special facts and
circumstances which exist to justify the increase.
Before any increased rate due to isolation ean may
be paid to the requesting parent or guardian, s uch
the rate must be approved by the county
transportation committee and the superintendent of
public instruction after the trustees have indicated
their approval or disapproval. Regardless of the
action of the trustees and when approval is given by
the county transportation committee and the
superintendent of public instruction, the trustees shall
pay sueh the increased rate due to isolation. The
increased rate shaH must be V/2 times the rate
prescribed in subsection ( I ) above.
(4) When the isolated conditions of the
household where an eligible transportee resides
require such the eligible transportee to live away
from the household in order to attend school, he
s hall b e the transportee is eligible for the room and
board reimbursement. Approval to receive the room
and board reimbursement shaH must be obtained in
the same manner prescribed in subsection (3) above.
The per diem rate for room and board s hall b e is
$5.31 for one eligible transportee and $3.19 for each
additional eligible transportee of the same household.
(5) When the individual transportation
provision is to be satisfied by supervised home study
or supervised correspondence study, the
reimbursement rate shaH must be the cost of such
study, provided that the course of instruction is
approved by the trustees and supervised by the
district."
Section 148. Section 20-10-144, MCA, is
amended to read:
"20-10-144. Computation of revenues and
net tax levy requirements for district
transportation fund budget. Before the fourth
Monday of July and in accordance with 20-9-123,
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
preliminary budget expenditures that is derived from
22
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 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 such
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 on the preliminary
budget for the contingency amount permitted in 20-
10-143, except if the amount exceeds 10% of the
total of subsections (l)(a), (l)(b), and (l)(c) , the
transportation fund budget limitation provided for in
20-10-143. or $100, whichever is larg e r largest, the
contingency amount on the preliminary budget must
be reduced to the limitation amount and used in this
determination of the schedule amount.
(2) (a) The schedule amount determined in
subsection ( 1 ) or the total preliminary 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 th e following
(i) one half — is — the — budg e t e d — state
transportat i on r e imbur se ment, exc e pt that th e s tat e
transportation r e imburs e ment for th e tran s portation
of s p e cial e ducation pupils under th e provi s ions of
20 7 442 must b e 50% of th e s ch e dul e amount
attributed to th e tran s portation of sp e cial e ducation
pupil s ; and
(ii) on e half — is — the — budg e t e d — county
transportation fund r e imburs e m e nt and must b e
financed in th e mann e r provid e d in 20 10 146.
(bK3) When the district has a sufficient
amount of cash for reappropriation and other sources
of district revenue, as determined in subsection (3)
(4) , to reduce the total district obligation for
financing to zero, any remaining amount of district
revenue and cash reappropriated must be used to
reduce th e county financing obligation in s ub se ction
(2)(a)(ii) and, if th e county financing obligation s ar e
r e duced — te — z e ro, — to reduc e — the — state — financial
obligation in s ub se ction (2)(a)(i).
(c) Th e county r e v e nu e requir e m e nt for a
joint di s trict, aft e r the application of any di s trict
mon e y und e r sub s ection (2)(b), mu s t b e prorat e d to
e ach county incorporat e d by the joint district in th e
s am e proportion as th e ANB of th e joint di s trict i s
di s tribut e d by pup i l r es id e nc e in e ach county the
state financial obligation in 20-10-145 .
(S4(4) 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 Title I of Public Law 8 1 -874
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 his 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(2), 61-3-521, 61-3-537, and
67-3-204;
(0 anticipated revenue from coal gross
proceeds under 15-23-703;
(g) anticipated net proceeds taxes for new
production, as defined in 15-23-601, and local
government severance taxes on any other production
occurring after December 31, 1988;
(h) sales tax and use tax revenue distributed
under [section 721;
(h^(i) 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
ii)(\) 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.
(4X5) 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) ([4), from the amount
determined in subsection (4)(a) (5)(a) .
(5X6) The transportation fund levy
requirements determined in subsection (4) {5) for
each district must be reported to the county
commissioners on the second 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 149. Section 20-10-145, MCA, is
amended to read:
"20-10-145. State transportation
reimbursement. (1) A district providing school bus
transportation or individual transportation in
accordance with this title, board of public education
transportation policy, and superintendent of public
instruction transportation rules must receive a state
reimbursement of its transportation expenditures
under the transportation reimbursement rate
provisions of 20-10-141 and 20-10-142. The state
transportation reimbursement is on e half 100% of
the reimbursement amounts established in 20-10-141
and 20-10-142 or on e half 100% of the district's
transportation fund budget, whichever is smaller, and
must be computed on the basis of the number of
days the transportation services were actually
rendered, not to exceed 180 pupil-instruction days.
In determining the amount of the state transportation
reimbursement, an amount claimed by a district may
not be considered for reimbursement unless the
amount has been paid in the regular manner
provided for the payment of other financial
obligations of the district.
(2) Requests for the state transportation
reimbursement must be made by each district
semiannually during the school fiscal year on the
claim forms and procedure promulgated by the
superintendent of public instruction. The claims for
state transportation reimbursements must be routed
by the district to the county superintendent, who
after reviewing the claims shall send them to the
superintendent of public instruction. The
superintendent of public instruction shall establish
the validity and accuracy of the claims for the state
transportation reimbursements by determining
compliance with this title, board of public education
transportation policy, and the transportation rules of
the superintendent of public instruction. After
making any necessary adjustments to the claims, the
superintendent of public instruction shall order a
disbursement from the state money appropriated by
the legislature of the state of Montana for the state
transportation reimbursement. The payment of all the
district's claims within one county must be made to
the county treasurer of the county, and the county
superintendent shall apportion the payment in
accordance with the apportionment order supplied by
the superintendent of public instruction."
Section 150. Section 17-3-213, MCA, is
amended to read:
"17-3-213. Allocation to general road
fund and countywide school levies. ( 1 ) The forest
reserve funds so apportioned to each county must be
apportioned by the county treasurer in each county
as follows:
(a) to the general road fund, 66 2/3% of the
total amount received;
(b) to the following countywide school
levies, 33 1/3% of the total sum received:
(i) county equalization for elementary
schools provided for in 20-9-331; and
(ii) county equalization for high schools
provided for in 20-9-333i
(iii) th e county tran s portation fund provid e d
for in 20 10 H6; and
(iv) th e e l e m e ntary and h i gh s chool di s trict
retir e m e nt fund obl i gation s provid e d for in 20 9 501 .
(2) The apportionment of money to the
funds provided for under subsection (l)(b) must be
made by the county superintendent based on the
proportion that the mill levy of each fund bears to
the total number of mills for all the funds. Wh e n e v e r
the — total — amount — of — money — availabl e — for
apportionm e nt und e r th is se ct i on i s gr e at e r than th e
total r e quir e m e nt s of a l e vy, th e e xc ess mon e y and
any int e r es t incom e mu s t be r e tained in a s e parat e
r ese rv e fund, lo be r e apportion e d in th e e n s u i ng
s chool — fi s cal year to th e l e vies d es ignat e d in
subs e ction (l)(b).
(3) In counties in which special road
districts have been created according to law, the
board of county commissioners shall distribute a
proportionate share of the 66 2/3% of the total
amount received for the general road fund to the
special road districts within the county based upon
the percentage that the total area of the road district
bears to the total area of the entire county."
Section 151. Section 20-3-205, MCA, is
amended to read:
" 20-3-205. Powers and duties. The county
superintendent has general supervision of the schools
of the county within the limitations prescribed by
this title and shall perform the following duties or
acts:
(1) determine, establish, and reestablish
trustee nominating districts in accordance with the
provisions of 20-3-352, 20-3-353, and 20-3-354;
(2) administer and file the oaths of
members of the boards of trustees of the districts in
his county in accordance with the provisions of 20-
3-307;
(3) register the teacher or specialist
certificates or emergency authorization of
employment of any person employed in the county
as a teacher, specialist, principal, or district
superintendent in accordance with the provisions of
20-4-202;
(4) act on each tuition application submitted
to him in accordance with the provisions of 20-5-
301, 20-5-302, 20-5-304, and 20-5-31 1 and transmit
the tuition information required by 20-5-312;
(5) file a copy of the audit report for a
district in accordance with the provisions of 20-9-
203;
(6) classify districts in accordance with the
23
provisions of 20-6-201 and 20-6-301;
(7) keep a transcript and reconcile the
district boundaries of the county in accordance with
the provisions of 20-6-103;
(8) fulflll all responsibilities assigned to
him under the provisions of this title regulating the
organization, alteration, or abandonment of districts;
(9) act on any unification proposition and,
if approved, establish additional trustee nominating
districts in accordance with 20-6-312 and 20-6-313;
(10) estimate the average number belonging
(ANB) of an opening school in accordance with the
provisions of 20-6-502, 20-6-503, 20-6-504, or 20-6-
506;
(11) process and, when required, act on
school isolation applications in accordance with the
provisions of 209-302;
( 1 2) complete the budgets, compute the
budgeted revenues and tax levies, file final budgets
and budget amendments, and fulfill other
responsibilities assigned to him under the provisions
of this title regulating school budgeting systems;
(13) submit an annual financial report to the
superintendent of public instruction in accordance
with the provisions of 20-9-211;
(14) monthly, unless otherwise provided by
law, order the county treasurer to apportion state
money, county school money, and any other school
money subject to apportionment in accordance with
the provisions of 20-9-212, 20-9-334, 20-9-347, or
20- 1 0- 1 45 . or 20 10 1-16 ;
(15) act on any request to transfer average
number belonging (ANB) in accordance with the
provisions of 20-9-313(3);
( 1 6) calculate the estimated budgeted general
fund sources of revenue in accordance with the
provisions of 20-9-348 and the other general fund
revenue provisions of the general fund part of this
title;
(17) compute the revenues and the district
and county levy requirements for each fund included
in each district's final budget and report the
computations to the board of county commissioners
in accordance with the provisions of the general
fund, transportation, bonds, and other school funds
parts of this title;
(18) file and forward bus driver
certifications, transportation contracts, and state
transportation reimbursement claims in accordance
with the provisions of 20-10-103, 20-10-143, or 20-
10-145;
(19) for districts that do not employ a
district superintendent or principal, recommend
library book and textbook selections in accordance
with the provisions of 20-7-204 or 20-7-602;
(20) notify the superintendent of public
instruction of a textbook dealer's activities when
required under the provisions of 20-7-605 and
otherwise comply with the textbook dealer
provisions of this title;
(21) act on district requests to allocate
federal money for indigent children for school food
services in accordance with the provisions of 20-10-
205;
(22) perform any other duty prescribed from
time to time by this title, any other act of the
legislature, the policies of the board of public
education, the policies of the board of regents
relating to community college districts, or the rules
of the superintendent of public instruction;
(23) administer the oath of office to trustees
without the receipt of pay for administering the oath;
(24) keep a record of his official acts,
preserve all reports submitted to him under the
provisions of this title, preserve all books and
instructional equipment or supplies, keep all
documents applicable to the administration of the
office, and surrender all records, books, supplies,
and equipment to his successor,
(25) within 90 days after the close of the
school fiscal year, publish an annual report in the
county newspaper stating the following financial
information for the school fiscal year just ended for
each district of the county:
(a) the total of the cash balances of all
funds maintained by the district at the beginning of
the year;
(b) the total receipts that were realized in
each fund maintained by the district;
(c) the total expenditures that were made
from each fund maintained by the district; and
(d) the total of the cash balances of all
funds maintained by the district at the end of the
school fiscal year; and
(26) hold meetings for the members of the
trustees from time to time at which matters for the
good of the districts must be discussed."
Section 152. Section 20-10-104, MCA, is
amended to read:
"20-10-104. Penalty for violating law or
rules. (1) Every district, its trustees and employees,
and every person under a transportation contract
with a district shall be subject to the policies
prescribed by the board of public education and the
rules prescribed by the superintendent of public
instruction. When a district knowingly violates a
transportation law or board of public education
transportation policy, such district shall forfeit any
reimbursement otherwise payable under 20-10-145
and 20 10 116 for bus miles actually traveled during
that fiscal year in violation of such law or policies.
The county superintendent shall suspend all such
reimbursements payable to the district until the
district corrects the violation. When the district
corrects the violation, the county superintendent shall
resume paying reimbursements to the district, but the
amount forfeited may not be paid to the district.
(2) When a person operating a bus under
contract with a district knowingly fails to comply
with the transportation law or the board of public
education transportation policies, the district may not
pay him for any bus miles traveled during the
contract year in violation of such law or policies.
Upon discovering such a violation, the trustees of
the district shall give written notice to the person
that unless the violation is corrected within 10 days
of the giving of notice, the contract will be canceled.
The trustees of a district shall order the operation of
a bus operated under contract suspended when the
bus is being operated in violation of transportation
law or policies and the trustees find that such
violation jeopardizes the safety of pupils."
Section 153. Section 20-15-311, MCA, is
amended to read:
"20-15-311. Funding sources. The annual
operating budget of a community college district
shall be financed from the following sources:
(1) the estimated revenues 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 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 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 721 ."
Section 154. Section 61-3-303. MCA, is
amended to read:
"61-3-303. Application for registration.
(1) Every owner of a motor vehicle operated or
driven upon the public highways of this state shall
for each motor vehicle owned, except as herein
otherwise expressly provided, file or cause to be
filed in the office of the county treasurer where the
owner makes his the owner's permanent residence 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 upon a blank form to be prepared and
furnished by the department. The application shall
contain:
(a) name and address of owner, giving
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) name and address of the holder of any
security interest in the motor vehicle;
(c) description of motor vehicle, including
make, year model, engine or serial number,
manufacturer's model or letter, gross weight, type of
body, and if truck, the rated capacity; and
(d) 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 as 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; and
(b) unl e ss it has b ee n pr e viou s ly paid
whichever tax of the following is applicable :
(i) the personal property taxes assessed
against the vehicle for the current year of
registration and the immediately previous year^
unless the taxes have been previously paid ; er
(ii) the new motor vehicle sales tax against
the vehicle for the current year of registration ; or
(iii) the sales tax or use tax imposed by 61-
3-504(4) .
(3) The application may not be accepted by
the county treasurer unless the payments required by
subsection (2) accompany the application. The
department or its agent may not assess 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 or its agent may make
full and complete investigation of the tax status of
the vehicle. Any applicant for registration or
reregistration must submit proof from the tax or
other appropriate records of the proper county at the
request of the department or its agent."
Section 155. Section 61-3-317, MCA, is
amended to read:
"61-3-317. New registration required for
transferred vehicle - sales tax and use lax — grace
period — penalty — display of proof of purchase.
Except as otherwise provided herein, the new owner
of a transferred motor vehicle shall hav e has a grace
period of 20 calendar days from the date of purchase
to make application and pay the taxes or f ee s, or
both, sales tax or use tax provided by part 5 of this
24
chapter, unl e ss th e in addition to any property 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;
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
subjects the purchaser to a penalty of $10. The
penalty shaH must be collected by the county
treasurer at the time of registration and shall be in
addition to the fees otherwise provided by law."
Section 156. Section 61-3-502, MCA, is
amended to read:
" 61-3-502. (Temporary) 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, vehicles registered as part of a
fleet as defined in 61-3-318(2). 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 h e app l i es
applying for his an original Montana license through
the county treasurer.
(2) Except as provid e d in subs e ctions (1)
and (5), th e The sales tax is;
(a) H4% 4% of the sales price as defined in
[section II f o.b. factory list price or f o.b. port of
e ntry list pric e , during the first quart e r of th e y e ar or
for a r e gistration p e riod oth e r than a cal e ndar y e ar or
cal e ndar quart e r;
(b) 1 1/ 8 % of th e list pric e during the
s e cond quart e r of th e y e ar;
(c) 3/1 of 1 % during th e third quart e r of th e
(d) 3/ 8 of 1% during th e fourth quart e r of
th e y e ar .
(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.
('I) The n e w car sal e s tax on — v e hicl es
subj e ct to th e provisions of 61 3 313 through 61 3
316 is U4% of th e fo.b. factory list pric e or fo.b.
port of e ntry li s t pric e r e gardl e ss of th e month in
which th e n e w v e hicl e is purchas e d.
(5) The s al e s tax on n e w motor vehicl es
r e gist e r e d a s part of a fl e et und e r 61 3 31 8 i s 3/'1 of
1% of th e fo.b. factory li s t pric e or fo.b. port of
e ntry list pric e .
(6)(4) Except as provided in 61-3-551, the
proceeds from this the tax imposed under
subsections (1) and (2) must be remitted to the state
treasurer every 30 days for credit as follows:
(a) 37.5% to the state highway account of
the state special revenue fun d: and
(b) 62.5% to the sales tax and use tax
account established in [section 711 .
GM5) 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.
(^6) (a) The applicant for original
registration of any new and unused motor vehicle, or
a new motor vehicle furnished without charge by a
dealer to a school district for use as a traffic
education motor vehicle by a school district
operating a state-approved traffic education program
within the state, whether or not previously licensed
or titled to the school district (except a mobile home
as defined in 15-1-101(1)), acquired by original
contract after January 1 of any year, is required,
whenever the vehicle has not been otherwise
assessed, to pay the motor vehicle sales tax provided
by this section irrespective of whether the vehicle
was in the state of Montana on January 1 of the
year.
(b) No motor vehicle may be registered or
licensed under the provisions of this subsection
unless the application for registration is accompanied
by a statement of origin to be furnished by the
dealer selling the vehicle, showing that the vehicle
has not previously been registered or owned, except
as otherwise provided herein, by any person, firm,
corporation, or association that is not a new motor
vehicle dealer holding a franchise or distribution
agreement from a new car manufacturer, distributor,
or importer.
(9M1) (a), Motor vehicles operating
exclusively for transportation of persons for hire
within the limits of incorporated cities or towns and
within 15 miles from such limits are exempt from
subsection (1).
(b) Motor vehicles brought or driven into
Montana by a nonresident, migratory, bona fide
agricultural worker temporarily employed in
agricultural work in this state where those motor
vehicles are used exclusively for transportation of
agricultural workers are also exempt from subsection
(1).
(c) Vehicles lawfully displaying a licensed
dealer's plate as provided in 61-4-103 are exempt
from subsection (1) when moving to or from a
dealer's place of business when unloaded or loaded
with dealer's property only, and 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.
61-3-502. (Effective on receipt of taxes or
fees for September 1993) 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,(X)0 pounds used exclusively in
interstate commerce, vehicles registered as part of a
fleet as defined in 61-3-318(2), 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 he appli e s
applying for his an original Montana license through
the county treasurer.
(2) Except as provid e d in s ubs e ction s (-1)
and (5), th e The sales tax is?
(a) — Wi% 4% of the sales price as defined in
[section 11 fo.b. factory li s t pric e or fo.b. port of
e ntry li s t pric e , during th e fir s t quart e r of th e year or
for a registration p e riod oth e r than a cal e ndar y e ar or
cal e ndar quart e r;
(b) 1 1/ 8 % of th e list pric e during th e
se cond quart e r of the y e ar;
(c) 3/ 4 of 1 % during th e third quart e r of th e
(d) 3/ 8 of 1% during th e fourth quart e r of
the y e ar .
(3) If the manufacturer or importer fails to
furnish the fo.b. factory list price or fo.b. port-of-
entry list price, the department may use published
price lists.
( 4 ) Th e n e w car sal e s tax on v e hicl e s
s ubj e ct to th e provisions of 61 3 313 through 61 3
316 i s \Vi% of th e fo.b. factory list pric e or fo.b.
port of e ntry list pric e r e gardl e ss of th e month in
which th e n e w v e h i cl e i s purchas e d.
(5) Th e sal e s tax on n e w motor vehicl e s
r e gi s t e r e d as part of a fl e et und e r 61 3 31 8 i s 3/4 of
1% of th e fo.b. factory list pric e or fo.b. port of -
e ntry li s t pric e .
(6)(4) The proceeds froi . this the lax
imposed under subsections (I) aiul (2) must be
remitted to the state treasurer eviry 30 days for
credit as follows:
(a) 37.5% to the state highway account of
the state special revenue fun d; and
(b) 62.5% to the sales lax and use tax
account established in [section 71) .
f^5) 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.
f8)(6) (a) The applicant for original
registration of any new and unused motor vehicle, or
a new motor vehicle furnished without charge by a.
dealer to a school district for use as a traffic
education motor vehicle by a school district
operating a state-approved traffic education program
within the state, whether or not previously licensed
or titled to the school district (except a mobile home
as defined in 15-1-101(1)), acquired by original
contract after January 1 of any year, is required,
whenever the vehicle has not been otherwise
assessed, to pay the motor vehicle sales tax provided
by this section irrespective of whether the vehicle
was in the state of Montana on January 1 of the
year.
(b) No motor vehicle may be registered or
licensed under the provisions of this subsection
unless the application for registration is accompanied
by a statement of origin to be furnished by the
dealer selling the vehicle, showing that the vehicle
has not previously been registered or owned, except
as otherwise provided herein, by any person, firm,
corporation, or association that is not a new motor
vehicle dealer holding a franchise or distribution
agreement from a new car manufacturer, distributor,
or importer.
(^7) (a) Motor vehicles operating
exclusively for transportation of persons for hire
within the limits of incorporated cities or towns and
within 15 miles from such limits are exempt from
subsection (1).
(b) Motor vehicles brought or driven into
Montana by a nonresident, migratory, bona fide
agricultural worker temporarily employed in
agricultural work in this state where those motor
vehicles are used exclusively for transportation of
agricultural workers are also exempt from subsection
(1).
(c) Vehicles lawfully displaying a licensed
dealer's plate as provided in 61-4-103 are exempt
from subsection (1) when moving to or from a
dealer's place of business when unloaded or loaded
with dealer's property only, and 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."
Section 157. Section 61-3-504, MCA, is
amended to read:
" 61-3-504. Computation of property tax ^ '
sales tax and use lax on used vehicles . (1) The
amount of property taxes on a motor vehicle, other
than an automobile, truck having a rated capacity of
1 ton or less, motorcycle, quadricycle, motor home,
travel trailer, camper, or mobile home, is computed
and determined by the county treasurer on the basis
of the levy of the year preceding the current year of
application for registration or reregistration.
(2) The amount of property lax on an
automobile or truck having a rated capacity of 1 ton
or less, except for vehicles owned by disabled
veterans qualifying for special license plates under
61-3-332(10)(c), and on a motorcycle or quadricycle
is 2% of the value determined under 61-3-503.
25
(3) The amount of property tax on fleet
vehicles subject to the provisions of 61-3-318 is 1%
of the value determined under 61-3-503.
(4) (a) A sales tax of 4% is imposed on the
sale, measured by the sales price, as defined in
Iseclion 1). of all motor vehicles, except vehicles
with a gross vehicle weight in excess of 46.000
pounds used exclusively in interstate commerce, not
subject to the new car sales lax 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
t)ounds used exclusively in interstate commerce, that
are:
(i) manufactured by the person using the
motor vehicle in this slate;
(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 stale;
(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 imixised
by subsection (4)(a) or the use tax imposed by
subsection (4)(b) but which transaction, because of
the buyer's subsequent use of the proi:)erty. is subject
to the sales tax or use tax.
(5) For the purpose of imposing the use tax
imposed by subsection (4)(b), the motor vehicle
must be valued according to the provisions for
assessment contained in 61-3-503.
(44(6) For all taxable motor vehicles, the
amount of tax is entered on the application form in
a space provided th e r e for ."
Section 158. Section 61-3-506, MCA, is
amended to read:
"61-3-506. (Temporary) Rules. The
department of revenue shall adopt rules for the
payment of property taxes and 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. The
department of revenue may adopt rules for the
proration of taxes for the implementation and
administration of 61-3-313 through 61-3-316, 61-3-
501, and 61-3-520. but shall specifically provide that
new car taxes shall be for a 12-month period.
(Terminates December 31. 1993 -sec. 11. Ch. 525,
L. 1989.)
61-3-506. (Effective January 1, 1994)
Rules. The department of revenue shall adopt rules
for the payment of property taxes , sales taxes under
the provisions of 61-3-502. and sales taxes and use
taxes under the provisions of [sections I through 7 1 1
and 61-3-504, and 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
-and 61-3-501. The department of revenue may adopt
rules for the proration of taxes for the
implementation and administration of 61-3-313
through 6 1 -3-3 1 6 and 61 -3-501 , but shall specifically
provide that new car taxes or sales taxes and use
taxes shall be for a 12-month period."
Section 159. Section 61-3-509, MCA, is
amended to read:
"61-3-509. Disposition oftaxes.(l) Except
as provided in subs e ction subsections (2) and (3) and
[section 1611 . the county treasurer shall, after
deducting the district court fee, credit all taxes on
motor vehicles and fees in lieu of tax on motor
homes, travel trailers, and campers collected under
61-3-504 (1) through (3). 61-3-521, and 61-3-537 to
a motor vehicle suspense fund, and at some time
between March 1 and March 10 of each year and
every 60 days thereafter, 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 an automobile or truck having a rated
capacity of 1 ton or less. 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 the
county treasurer distributes the motor vehicle
suspense fund. The state treasurer shall credit
amounts received under this subsection to the
general fund to be used for purposes of state funding
of the district court expenses as provided in 3-5-901.
Any amount forwarded to the state treasurer under
this subsection that is not used for district court
expenses must be refunded to the counties in the
proportion that the amount collected from each
county bears to the total amount collected.
(3) In addition to the amount provided in
subsection (2), the county treasurer shall deduct 10%
of the amount of the 2% tax collected on an
automobile or truck having a rated capacity of 1 ton
or less. The county treasurer shall credit the amount
deducted to a separate suspense account and shall
forward the amount in the account to the state
treasurer at the time the county treasurer distributes
the motor vehicle suspense fund. The slate treasurer
shall credit amounts received under this subsection
to the school equalization aid account. "
Section 160. Section 61-3-701, MCA, is
amended to read:
"61-3-701. Foreign vehicles used in
gainful occupation to be registered — reciprocity.
(1) Before any foreign licensed motor vehicle may
be operated on the highways of this state for hire,
compensation, or profit or before the owner and/or
user thereof uses the vehicle if such owner and/or
user is engaged in gainful occupation or business
enterprise in the state, including highway work, the
owner of the vehicle shall make application 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 property taxes and use
taxes , if appropriate, as required by 15-8-201, 15-8-
202, 15-24-301, 61-3-504, or 61-3-537, the treasurer
shall accept the application for registration and shall
collect the regular license fee required for the
vehicle.
(2) The treasurer shall thereupon 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
shall at all times be displayed upon the vehicle when
operated or driven upon roads and highways of this
state during the period of the life of the license.
(3) The registration receipt shall not
constitute evidence of ownership but shall be used
only for registration purposes. No Montana
certificate of ownership shall be issued for this type
of registration.
(4) This section is not applicable to any
vehicle covered by a valid and existing reciprocal
agreement or declaration entered into under the
provisions of the laws of Montana."
Section 161. Distribution of sales tax or
use tax collected by county treasurer. The county
treasurer shall:
( I ) immediately upon collection, credit 50%
of the sales lax and use tax collected pursuant to 61-
3-303(2)(b)(iii) to the motor vehicle suspense fund
described in 61-3-509; and
(2) on or before the 25th day of every
month, remit the remaining 50% to the state
treasurer for deposit in the sales tax and use tax
account established in [section 71].
Section 162. Section 61-4-112, MCA, is
amended to read:
"61-4-112. New motor vehicles —
transfers by dealers. (I) When a motor vehicle
dealer transfers a new motor vehicle to a purchaser
or other recipient, the dealer shall:
(a) issue and affix a sticker as prescribed in
61-4-111(1 )(a) for transfers of used motor vehicles
and retain a copy of the sticker;
(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 sticker issued under
subsection (l)(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(«4(b )(6)(b) .
(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 163. Section 15-30-101, MCA, is
amended to read:
" 15-30-101. Definitions. For the purpose of
this chapter, unless otherwise required by the
context, the following definitions apply:
(1) "Base year structure" means the
following elements of the income tax structure:
(a) th e tax brack e ts e stablish e d i n 15 30
103. but unadjusted by s ub se ction (2) of 15 30 103.
in e ff e ct on June 30 of th e taxabl e y e ar;
(b) the exemptions contained in 15-30-1 12t
but unadju s t e d by 15 30 1 12(6). in e ff e ct on Jun e 30
of th e taxabl e y e ar ;
(€)(b) the maximum standard deduction
provided in 15-30-122 , but unadjust e d by subs e ction
(2) of 15 30 122, in e ff e ct on Jun e 30 of th e taxabl e
(2) "Consum e r pric e — ind e x" — means — the
consum e r pric e ind e x. Unit e d Stat es city av e rag e , for
all it e ms, using th e 1967 bas e of 100 as publ i sh e d
by — the bureau of labor s tati s tics of th e — U^
d e partm e nt of labor.
(^2) "Department" means the department
of revenue.
f4)(3) "Dividend" means any distribution
made by a corporation out of its earnings or profits
to its shareholders or members, whether in cash or
in other property or in stock of the corporation, other
than stock dividends as herein defined. "Stock
dividends" means new stock issued, for surplus or
profits capitalized, to shareholders in proportion to
their previous holdings.
fS)(4) "Fiduciary" means a guardian,
trustee, executor, administrator, receiver, conservator,
or any person, whether individual or corporate,
acting in any fiduciary capacity for any person, trust,
or estate.
(6K5) "Foreign country" or "foreign
government" means any jurisdiction other than the
one embraced within the United States, its territories
and possessions.
(7^6) "Gross income" means the taxpayer's
gross income for federal income tax purposes as
defined in section 61 of the Internal Revenue Code
of 1954 or as that section may be labeled or
amended, excluding unemployment compensation
included in federal gross income under the
provisions of section 85 of the Internal Revenue
Code of 1954 as amended.
( 8 ) "Inflation — factor" — means — a — numb e r
26
d e t e rmin e d for e ach taxabl e y e ar by dividing th e
con s um e r pric e index for Jun e of th e taxab le year by
th e consum e r pric e ind e x for June, 19 8 0.
ffi(7) "Information agents" includes all
individuals, corporations, associations, and
partnerships, in whatever capacity acting, including
lessees or mortgagors of real or personal property,
fiduciaries, brokers, real estate brokers, employers,
and all officers and employees of the state or of any
municipal corporation or political subdivision of the
state, having the control, receipt, custody, disposal,
or payment of interest, rent, salaries, wages,
premiums, annuities, compensations, remunerations,
emoluments, or other fixed or determinable annual
or periodical gains, profits, and income with respect
to which any person or fiduciary is taxable under
this chapter.
(40X8) "Knowingly" is as defined in 45-2-
101.
ft-}-)(9) "Net income" means the adjusted
gross income of a taxpayer less the deductions
allowed by this chapter.
f42 K10) "Paid", for the purposes of the
deductions and credits under this chapter, means
paid or accrued or paid or incurred, and the terms
"paid or incurred" and "paid or accrued" shaH must
be constnied according to the method of accounting
upon the basis of which the taxable income is
computed under this chapter.
(44 K11) "Pension and annuity income"
means:
(a) systematic payments of a definitely
determinable amount from a qualified pension plan,
as that term is used in section 401 of the Internal
Revenue Code, or systematic payments received as
the result of contributions made to a qualified
pension plan that are paid to the recipient or
recipient's beneficiary upon the cessation of
employment;
(b) payments received as the result of past
service and cessation of employment in the
uniformed services of the United States;
(c) lump-sum distributions from pension or
profitsharing plans to the extent that the distributions
are included in federal adjusted gross income;
(d) distributions from individual retirement,
deferred compensation, and self-employed retirement
plans recognized under sections 401 through 408 of
the Internal Revenue Code to the extent that the
distributions are not considered to be premature
distributions for federal income tax purposes; or
(e) amounts after cessation of regular
employment received from fully matured, privately
purchased annuity contracts.
fJ-4)Q2i "Purposely" is as defined in 45-2-
101.
(44 K13) "Received", for the purpose of
computation of taxable income under this chapter,
means received or accrued and the term "received or
accrued" shaU must be construed according to the
method of accounting upon the basis of which the
taxable income is computed under this chapter.
ft4 K14) "Resident" applies only to natural
persons and includes, for the purpose of determining
liability to the tax imposed by this chapter with
reference to the income of any taxable year, any
person domiciled in the state of Montana and any
other person who maintains a permanent place of
abode within the state even though temporarily
absent from the state and has not established a
residence elsewhere.
fW)£15) "Taxable income" means the
adjusted gross income of a taxpayer less the
deductions and exemptions provided for in this
chapter.
f W(16) "Taxable year" means the
taxpayer's taxable year for federal income tax
purposes.
f44 K17) "Taxpayer" includes any person or
fiduciary, resident or nonresident, subject to a tax
imposed by this chapter and does not include
corporations."
Section 164. Section 15-30-103, MCA, is
amended to read:
"15-30-103. Rate of tax. fH There shaH-be
is levied, collected, and paid for each taxable year
commencing on or after December 3 1 , +968 1993 .
upon the taxable income of every taxpayer
individual subject to this tax, after making allowance
for exemptions and deductions as — h e r ei naft e r
provid e d , a tax at the rate of 6% of the individual's
taxable income on th e following brack e ts of taxabl e
incom e as adjust e d und e r subs e ction (2) at th e
following rat es :
(a) on th e fir s t $1,000 of taxabl e incom e or
any part th e r e of, 2%;
(b) on th e n e xt $ 1 ,000 of taxable incom e or
any part th e r e of, 3%;
(c) on th e n e xt $2,000 of taxabl e incom e or
any part th e r e of, 4%;
(d) on the n e xt $2,000 of taxabl e incom e or
any part th e r e of, 5%;
( e ) on th e n e xt $2,000 of taxabl e income or
any part th e r e of, 6%;
(f) on th e n e xt $2,000 of taxabl e i ncom e or
any part th e r e of, 7%;
(g) on th e n e xt $4,000 of taxabl e incom e or
any part th e r e of, 8 %;
(h) on th e n e xt $6,000 of taxabl e incom e or
any part ther e of, 9%;
(i) on th e next $15,000 of taxabl e incom e
or any part th e r e of, 10%;
(j) on any taxabl e incom e i n e xce ss of
$35,000 or any part th e r e of 11%.
(2) By Nov e mb e r — 1 — of e ach y e ar, th e
d e partm e nt — shaH — multiply — the — brack e t — amount
contain e d in subs e ction (1) by th e inflation factor for
that taxabl e y e ar and round th e cumulativ e brack e ts
to th e n e ar e st $100. Th e resulting adjust e d brack e ts
ar e e ff e ctiv e for that taxabl e y e ar and shall b e us e d
as th e basis for imposition .of th e tax in sub se ction
(1) of thi s se ction ."
Section 165. Section 15-30-105, MCA, is
amended to read:
"15-30-105. Tax on nonresident —
alternative tax based on gross sales. ( 1 ) A like tax
is imposed upon every person not resident of this
state, which tax shaH must be levied, collected, and
paid annually at the rates rate specified in 15-30-103
with respect to hi s e ntir e net the person's taxable
income. Aft e r calculating th e tax impos e d, th e tax
du e and payabl e mu s t b e d e t e rmin e d bas e d upon th e
ratio of incom e e arn e d in Montana to total incom e .
Int e r es t incom e from in s tallm e nt sal e s of real or
tangibl e comm e rcial or busin es s prop e rty locat e d in
Montana i s con s id e r e d incom e e arn e d in Montana.
(2) Pursuant to the provisions of Article III,
section 2, of the Multistate Tax Compact, every
nonresident taxpayer required to file a return and
whose only activity in Montana consists of making
sales and who does not own or rent real estate or
tangible personal property within Montana and
whose annual gross volume of sales made in
Montana during the taxable year does not exceed
$100,000 may elect to pay an income tax of 1/2 of
1% of the dollar volume of gross sales made in
Montana during the taxable year. Such The tax shall
be is in lieu of the tax imposed under 15-30-103.
The gross volume of sales made in Montana during
the taxable year shall must be determined according
to the provisions of Article IV, sections 16 and 17,
of the Multistate Tax Compact."
Section 166. Section 15-30-111, MCA, is
amended to read:
"15-30-111. Adjusted gross income. (I)
Adjusted gross income shall b e js the taxpayer's
federal income tax adjusted gross income as defined
in section 62 of the Internal Revenue Code of 1954
or as that section may be labeled or amended and in
addition s hall i nclud e includes the following:
(a) interest received on obligations of
another state or territory or county, municipality,
district, or other political subdivision thereof;
(b) refund s r e c e iv e d of f e d e ral incom e tax,
to th e e xt e nt the d e duction of such tax r e sult e d in a
r e duct i on of Montana i ncome tax l iab ili ty;
(e)(b) that portion of a shareholder's
income under subchapter S. of Chapter 1 of the
Internal Revenue Code of 1954, that has been
reduced by any federal taxes paid by the subchapter
S. corporation on the income; and
W(c) depreciation or amortization taken on
a title plant as defined in 33-25-105(15).
(2) Notwithstanding the provisions of the
federal Internal Revenue Code of 1954, as labeled or
amended, adjusted gross income does not include the
following which are exempt from taxation under this
chapter:
(a) all interest income from obligations of
the United States government, the state of Montana,
county, municipality, district, or other political
subdivision thereof;
(b) interest income earned by a taxpayer
age 65 or older in a taxable year up to and including
$800 for a taxpayer filing a separate return and
$1,600 for each joint return;
(c) (i) except as provided in subsection
(2)(c)(ii), the first $3,600 of all pension and annuity
income received as defined in 15-30-101;
(ii) for pension and annuity income
described under subsection (2)(c)(i), as follows:
(A) each taxpayer filing singly, head of
household, or married filing separately shall reduce
the total amount of the exclusion provided in
(2)(c)(i) by $2 for every $1 of federal adjusted gross
income in excess of $30,000 as shown on the
taxpayer's return;
(B) in the case of married taxpayers filing
jointly, if both taxpayers are receiving pension or
annuity income or if only one taxpayer is receiving
pension or annuity income, the exclusion claimed as
provided in subsection (2)(c)(i) must be reduced by
$2 for every $1 of federal adjusted gross income in
excess of $30,000 as shown on their joint return;
(d) all Montana income tax refunds or tax
refund credits;
(e) gain required to be recognized by a
liquidating corporation under 15-31-1 13(l)(a)(ii);
(0 all tips covered by section 3402(k) of
the Internal Revenue Code of 1954, as amended and
applicable on January 1, 1983, received by persons
for services rendered by them to patrons of premises
licensed to provide food, beverage, or lodging;
(g) all benefits received under the workers'
compensation laws;
(h) all health insurance premiums paid by
an employer for an employee if attributed as income
to the employee under federal law; and
(i) all money received because of a
settlement agreement or judgment in a lawsuit
brought against a manufacturer or distributor of
"agent orange" for damages resulting from exposure
to "agent orange".
(3) A shareholder of a DISC that is exempt
from the corporation license tax under 15-31-
102(l)(l) shall include in his the shareholder's-.
adjusted gross income the earnings and profits of the
DISC in the same manner as provided by federal
law (section 995, Internal Revenue Code) for all
periods for which the DISC election is effective.
(4) A taxpayer who, in determining federal
adjusted gross income, has reduced his the
taxpayer's business deductions by an amount for
wages and salaries for which a federal tax credit was
elected under section 44B of the Internal Revenue
Code of 1954 or as that section may be labeled or
amended is allowed to deduct the amount of the
wages and salaries paid regardless of the credit
taken. The deduction must be made in the year the
wages and salaries were used to compute the credit.
27
In the cose of a partnership or small business
corporation, the deduction must be made to
determine the amount of income or loss of the
partnership or small business corporation.
(5) Married taxpayers filing a joint federal
return who must include part of their social security
benefits or part of their tier I railroad retirement
benefits in federal adjusted gross income may split
the federal base used in calculation of federal
taxable social security benefits or federal taxable tier
I railroad retirement benefits when they file separate
Montana income tax returns. The federal base must
be split equally on the Montana return.
(6) A taxpayer receiving retirement
disability benefits who has not attained age 65 by
the end of the taxable year and who has retired as
permanently and totally disabled may exclude from
adjusted gross income up to $100 per week received
as wages or payments in lieu of wages for a period
during which the employee is absent from work due
to the disability. If the adjusted gross income before
this exclusion and before application of the two-
earner married couple deduction exceeds $15,000,
the excess reduces the exclusion by an equal
amount. This limitation affects the amount of
exclusion, but not the taxpayer's eligibility for the
exclusion. If eligible, married individuals shall apply
the exclusion separately, but the limitation for
income exceeding $15,000 is determined with
respect to the spouses on their combined adjusted
gross income. For the purpose of this subsection,
permanently and totally disabled means unable to
engage in any substantial gainful activity by reason
of any medically determined physical or mental
impairment lasting or exf)ected to last at least 12
months. (Subsection (2)(f) terminates on occurrence
of contingency— sec. 3, Ch. 634, L. 1983.)"
Section 167. Section 15-30-112, MCA, is
amended to read:
"15-30-112. Exemptions. (1) Exc e pt as
provid e d in s ub se ction (6), in In the case of an
individual, the exemptions provided by subs e ctions
(2) through (5) this section shall b e are allowed as
deductions in computing taxable income.
(2) (a) An exemption of $800 $3,500 shaH
be js allowed for taxable years beginning after
December 3 1 , Wf^ 1993 , for the taxpayer.
(b) An additional exemption of $800 $3,500
s hall b e is allowed for taxable years beginning after
December 31, 49?8 1993 , for the spouse of the
taxpayer if a separate return is made by the taxpayer
and if the spouse, for the calendar year in which the
taxable year of the taxpayer begins, has no gross
income and is not the dependent of another taxpayer.
(3) (a) An additional exemption of $ 8 00
$3,500 shaH — be js allowed for taxable years
beginning after December 31, ^97% 1993 , for the
taxpayer if he the taxpayer has attained the age of
65 before the close of his the taxpayer's taxable
year.
(b) An additional exemption of $800 $3.500
shall b e ]s allowed for taxable years beginning after
December 31, Wf% 1993 , for the spouse of the
taxpayer if a separate return is made by the taxpayer
■ and if the spouse has attained the age of 65 before
the close of such taxable year and, for the calendar
year in which the taxable year of the taxpayer
begins, has no gross income and is not the
dependent of another taxpayer.
(4) (a) An additional exemption of $ 8 00
$3,500 shaH — be is allowed for taxable years
beginning after December 31, WW 1993 . for the
taxpayer if he the taxpayer is blind at the close of
his the taxpayer's taxable year.
(b) An additional exemption of $800 $3.500
s ha l l b e is allowed for taxable years beginning after
December 31, Wm 1993 , for the spouse of the
taxpayer if a separate return is made by the taxpayer
and if the spouse is blind and, for the calendar year
in which the taxable year of the taxpayer begins, has
no gross income and is not the dependent of another
taxpayer. For the purposes of this subsection (4)(b),
the determination of whether the spouse is blind
shaH must be made as of the close of the taxable
year of the taxpayer, except that if the spouse dies
during such taxable year, such determination s hall
must be made as of the time of such death.
(c) For purposes of this subsection (4), an
individual is blind only if his the individual's central
visual acuity does not exceed 20/200 in the belter
eye with correcting lenses or if his the individual's
visual acuity is greater than 20/200 but is
accompanied by a limitation in the fields of vision
such that the widest diameter of the visual field
subtends an angle no greater than 20 degrees.
(5) (a) An exemption of $800 $3.500 shaW
be is allowed for taxable years beginning after
December 3 1 , 1 97 8 1993 , for each dependent:
(i) whose gross income for the calendar
year in which the taxable year of the taxpayer begins
is less than $800 $3.500 ; or
(ii) who is a child of the taxpayer and who:
(A) has not attained the age of 19 years at
the close of the calendar year in which the taxable
year of the taxpayer begins; or
(B) is a student.
(b) No exemption shall b e is allowed under
this subsection £5^ for any dependent who has made
a joint return with his the dependent's spouse for the
taxable year beginning in the calendar year in which
the taxable year of the taxpayer begins.
(c) For purposes of subsection (5)(a)(ii), the
term "child" means an individual who is a son,
stepson, daughter, or stepdaughter of the taxpayer.
(d) For purposes of subsection (5)(a)(ii)(B),
the term "student" means an individual who, during
each of 5 calendar months during the calendar year
in which the taxable year of the taxpayer begins:
(i) is a full-time student at an educational
institution; or
(ii) is pursuing a full-time course of
institutional on-farm training under the supervision
of an accredited agent of an educational institution
or of a state or political subdivision of a state. For
purposes of this subsection (5)(d)(ii). the term
"educational institution" means only an educational
institution which normally maintains a regular
faculty and curriculum and normally has a regularly
organized body of students in attendance at the place
where its educational activities are carried on.
(6) Th e d e partm e nt, by Nov e mb e r 1 of e ach
year, shall multiply all th e e x e mptions provid e d in
this s e ction by th e infiation factor for that taxabl e
year and round th e product to the n e are s t $10. Th e
r e sulting adjust e d e x e mption s ar e e ff e ctiv e for that
taxabl e y e ar and sha l l b e us e d in calculating th e tax
impos e d in 15 30 103. "
Section 168. Section 15-30-117, MCA, is
amended to read:
"15-30-117. Net operating loss —
computation. ( 1 ) A Montana net operating loss for
a loss incurred in tax years beginning after
December 31, 1993, must be determined in
accordance with section 1 72 of the Internal Revenue
Code of 1954 or as that section may be labeled or
amended and in accordance with the following:
(a) The net operating loss deduction for
Montana purposes is increased by th e following:
(i) that portion of th e f e d e ral incom e lax
and motor v e hicl e tax allowed a s a d e duction und e r
15 30 121 or 15 30 131 wh i ch i s attributabl e to
incom e from a Montana trad e or busin e ss; and
(ii) Montana wages and salaries allowed as
a business deduction under 15-30-1 1 1(4).
(b) The net operating loss deduction for
Montana purposes is decreased by the following:
(t) interest received on obligations of
another state or territory or of a county,
municipality, district, or political subdivision thereof
allowed as nonbusiness income under 15-30-
llldKaH
(i i ) f e d e ral incom e tax r e fund s required to b e
r e ported und e r 15 30 111 and 15 30 131 as Montana
bu s in ess incom e ;
(i i i) s tate incom e tax; and
( i v) any — oth e r — nonbu s in e s s — d e duct i on s
allow e d und e r 15 30 1 21 in e xce s s of nonbusin e ss
incom e.
(2) Notwithstanding the provisions of
section 172 of the Internal Revenue Code of 1954 or
as that section may be labeled or amended, a net
operating loss does not includcr
(a) income defined as exempt from state
taxation under 15-30-1 1 l(2)=-eF
(b) a z e ro brack e t d e duction provid e d for
und e r s e ction 63 of the Internal R e v e nu e Code of
1951 or as that se ction may b e lab e l e d or am e nded ."
Section 169. Section 15-30-122, MCA, is
amended to read:
"15-30-122. Standard deduction. (1) A
standard deduction e qual to 20% of adjusted gross
income shall b e is allowed if e l e ct e d by th e taxpay e r
on hi s on the taxpayer's return. The standard
d e duction s h a ll b o in li e u of all deductions allow e d
und e r 15 30 121. Th e maximum
(2) (a) Except as provided in subsections
(2)(b) through (2)(d), the standard deduction s hall b e
$1,500 is $6,000. , as a dju s t e d und e r the provision s
of s ubs e ction (2), e xc e pt that in the ca se of
(b) For a single joint return of husband and
wife , the standard deduction is $10,000. or i n th e
cas e of
(c) For a single individual who qualifies to
file as a head of household on his the individual's
federal income tax return, the maximum standard
deduction shall b e $3,000 is $8.000. . as adju s t e d
und e r th e prov i sions of subs e ction (2).
(d) The standard deduction shall not b e
allow e d to e ith e r th e hu s band or th e wif e if the tax
of on e of th e spou ses i s d e t e rmin e d without r e gard
to th e s tandard d e duction for married taxpayers
filing separately is 50% of the standard deduction
provided in subsection (2)(b) for a joint return .
(3) For purposes of this section, the
determination of whether an individual is married
s hall must be made as of the last day of the taxable
year; provided, however, if one of the spouses dies
during the taxable year, the determination shall must
be made as of the date of death.
(2) By — Nov e mb e r — 1 — of e ach y e ar, th e
d e partm e nt shall multiply th e maximum standard
d e duction for s ingl e r e turn s by th e inflation factor
for that taxabl e y e ar and round th e product to th e
n e ar e st $10. Th e standard d e duction for joint r e turns
and qualifi e d h e ad of hou se hold r e turn s s hall b e
twic e th e amount for s ingl e r e turns. Th e r es ulting
adju s t e d d e ductions ar e e ff e ctiv e for that taxabl e
y e ar and shall b e us e d in calculating th e tax impo se d
in 15 30 103. "
Section 170. Section 15-30-126, MCA, is
amended to read:
" 15-30-126. Small business coiTJoration —
deduction for donation of computer equipment to
schools. A small business corporation, as defined in
15-31-201, is allowed a deduction equal to the fair
market value, not to exceed 30% of the small
business corporation's net income, of a computer or
other sophisticated technological equipment or
apparatus intended for use with the computer
donated to an elementary, secondary, or accredited
postsecondary school located in Montana if:
( 1 ) the contribution is made no later than 5
years after the manufacture of the donated property
is substantially completed;
(2) the property is not transferred by the
donee in exchange for money, other property, or
services; and
(3) the electing small business corporation
receives a written statement from the donee in which
the donee agrees to accept the property and
28
representing that the use and disposition of the
property will be in accordance with the provisions of
subsection (2) ; and
(1) th e d e duction allow e d in this oe ction is
in li e u of the deduction allow e d und e r 15 30 121 for
charitable contributions ."
, Section 171. Section 15-30-131, MCA, is
amended to read:
"15-30-131. Nonresident and t e mporary
part-year resident taxpayers — adjusted gross
income. Ui In the case of a nonresident or part-year
resident taxpayer other than a resid e nt of this stat e,
adjusted gross income includes the entire amount of
adjusted gross income as provided for in 15 30 1 1 1
from sources within this slate but does not include
income from annuities, interest on bank deposits,
interest on bonds, notes or other interest-bearing
obligations, or dividends on stock of corporations,
except to the extent to which the income from
annuities, interest on bank deposits, interest on
bonds, notes or other interest-bearing obligations, or
dividends on stock of corporations is a part of
income from any business, trade, profession, or
occupation carried on in this state. Interest income
from installment sales of real or tangible commercial
or business property located in Montana must be
included in adjusted gross income. Adjusted gross
income from sources within and outside of this state
must be allocated and apportioned under rules
adopted by the department in accordance with the
Multistate Tax Compact.
(2) For purposes of this section,
"installment sales" means sales in which the buyer
agrees to pay the seller in one or more deferred
installments.
(3) The deducnons allowed in computing
net income are restricted to a prorated standard
deduction, as adjusted, allowed under 15-30-122 and
prorated exemptions, as adjusted, allowed under 15-
30-112. The standard deduction and the claimable
exemptions must be prorated according to the ratio
that the taxpayer's Montana adjusted gross income
bears to the taxpayer's federal adjusted gross
income ."
Section 172. Section 15-30-137, MCA, is
amended to read:
"15-30-137. Determination of tax of
estates and trusts. The amount of tax must be
determined from taxable income of an estate or trust
in the same manner as the tax on taxable income of
individuals, by applying the rates rate contained in
15-30-103. Credits allowed individuals under Title
15. chapter 30, also apply to estates and trusts when
applicable."
Section 173. Section 15-30-142, MCA, is
amended to read:
" 15-30-142. Returns and payment of tax -
- penalty and interest — refunds — credits. ( 1 ) A
return must be filed as provided in subsections (2Ka)
through (2)(d) on forms and according to rules
prescribed by the department.
(2) A return must be filed by:
(a) Ev e ry every single individual and e v e ry
marri e d individual not filing a joint return with his
or h e r spous e and having a gross income for the
taxable year of more than $1,000, the combined
amount of the standard deduction for a single
individual plus the amount for each exemption
claimable by the individual as provided in 15-30-
1 12: as adju s t e d under th e provi s ion s of subs e ction
(7), and
(b) every individual filing as a head of
household having gross income for the taxable year
of more than the combined amount of the standard
deduction for a head of household plus the amount
for each exemption claimable by the individual as
provided in 15-30-112;
(c) married individuals not filing separate
returns and having a combined gross income for the
taxable year of more than $2^000, the combined
amount of the standard deduction for married
individuals not filing separately plus the amount for
each exemption claimable by the individuals as
provided in 15-30-112:
(d) as adju s ted und e r th e prov is ion s of
s ubs e ction (7), s hall b e liable for a r e turn to b e fil e d
on s uch form s and according to s uch rul e s a s th e
departm e nt may pr es crib e married individuals filing
separately with combined gross income exceeding
one-half of the combined amount of the standard
deduction for married individuals not filing
separately plus the amount for each exemption
claimable by the individual as provided in 15-30-
1 12 . Th e gro ss incom e amount s r e f e rr e d to in th e
prec e ding s e nt e nc e shall b e incr e as e d by $ 8 00, a s
adjust e d und e r th e provisions of 15 30 112(6), for
each additional p e r s onal e x e mption allowanc e th e
taxpay e r is e ntitl e d to claim for hims e lf and his
spouse und e r 15 30 112(3) and ('1).
(3) A nonresident shall b e is required to file
a return if his the nonresident's gross income for the
taxable year derived from sources within Montana
exceeds the total amount of the prorated exemption
deduction and prorated standard deduction h e i s
entitl e d to claim for him se lf and hi s claimable by the
nonresident and the nonresident's spouse under the
provisions of 15-30-1 12(2), (3), and (4).
(34(4) In accordance with instructions set
forth by the department, every taxpayer who is
married^ and who is living with hu s band or wif e the
taxpayer's spouse, and who is required to file a
return may, at his or h e r the taxpayer's option, file
a joint return with husband or wife the spouse even
though one of the spouses has neither gross income
nor deductions. If a joint return is made, the tax
shaH must be computed on the aggregate taxable
income and the liability with respect to the tax shaH
be is joint and several. If a joint return has been
filed for a taxable year, the spouses may not file
separate returns after the time for filing the return of
either has expired unless the department so consents.
(^(5) If any s uch a taxpayer is unable to
make his own a return that is required to be made
by the taxpayer , the return shaH must be made by a
duly authorized agent or by a guardian or other
person charged with the care of the person or
property of such taxpayer.
(4-K6) All taxpayers, including but not
limited to those subject to the provisions of 15-30-
202 and 15-30-241, shall compute the amount of
income tax payable and shall, at the time of filing
the return required by this chapter, pay to the
department any balance of income tax remaining
unpaid after crediting the amount withheld as
provided by 15-30-202 and/or any payment made by
reason of an estimated tax return provided for in 15-
30-241; provided, however, the tax so computed is
greater by $1 than the amount withheld and/or paid
by estimated return as provided in this chapter. If the
amount of tax withheld and/or payment of estimated
tax exceeds by more than $1 the amount of income
tax as computed, the taxpayer s hall b e ]s entitled to
a refund of the excess.
(§4(7) As soon as practicable after the
return is filed, the department shall examine and
verify the tax.
(4)(8) If the amount of tax as verified is
greater than the amount theretofore paid, the excess
shaH must be paid by the taxpayer to the department
within 60 days after notice of the amount of the tax
as computed, with interest added at the rate of 9%
per annum or fraction thereof on the additional tax.
In such case there s hall b e js no penalty because of
sueh the understatement, provided the deficiency is
paid within 60 days after the first notice of the
amount is mailed to the taxpayer.
(^(9) By November 1 of each year, the
department shall multiply determine the minimum
amount of gross income necessitating the filing of a
return by th e inflation factor for the taxable year.
These adjusted amounts are effective for that taxable
year, and persons having gross incomes less than
these adjusted amounts are not required to file a
return.
(8 4(10) Individual income tax forms
distributed by the department for each taxable year
must contain instructions and tables based on the
adjusted base year structure for that taxable year.
(II) For the purposes of this section:
(a) "exemption" means the exemptions
provided by 15-30-112;
(b) "standard deduction" means the
deductions provided by 15-30-122. "
Section 174. Section 15-30-177, MCA, is
amended to read:
"15-30-177. Residential property tax
credit for elderly — limitations. (1) Only one
claimant per household in a claim period under the
provisions of 15-30-171 through 15-30-179 is
entitled to relief.
(2) Except as provided in subsection (3), no
claim for relief may be allowed for any portion of
property taxes paid or rent-equivalent taxes paid that
is derived from a public rent or tax subsidy program.
(3) Except for dwellings rented from a
county or municipal housing authority, no claim for
relief may be allowed on rented lands or rented
dwellings that are not subject to ad valorem taxation
in Montana during the claim period.
(4) A claimant who receives the renters'
property tax credit under [sections 73 through 801 or
who receives a homeowners' tax credit under
[sections 81 through 881 is not entitled to receive the
residential property tax credit for the elderiy under
15-30-171 through 15-30-179 for the same tax year. "
Section 175, Section 15-30-323, MCA, is
amended to read:
"15-30-323. Penalty for deHciency. (1) If
the payment required by 15-30-142(64(8) is not
made within 60 days or if the understatement is due
to negligence on the part of the taxpayer but without
fraud, there shaH must be added to the amount of the
deficiency 5% th e r e of of the deficiency ; provided,
however, that no deficiency penalty shaU may be
less than $2. Interest will be computed at the rate of
9% per annum or fraction thereof on the additional
assessment. Except as otherwise expressly provided
in this subsection, the interest shaU must in all cases
be computed from the date the return and tax were
originally due as distinguished from the due date as
it may have been extended to the date of payment.
(2) If the time for filing a return is
extended, the taxpayer shall pay in addition interest
thereen on the tax due at the rate of 9% per annum
from the time when the return was originally
required to be filed to the time of payment."
Section 176. Section 15-31-131, MCA, is
amended to read:
"15-31-131. Credit for dependent care
assistance. (I) There is a credit against the taxes
otherwise due under this chapter allowable to an
employer for amounts paid or incurred during the
taxable year by the employer for dependent care
assistance actually provided to or on behalf of an
employee if the assistance is furnished by a
registered or licensed day-care provider and pursuant
to a program that meets the requirements of section
89(k) and 129(d)(2) through (6) of the Internal
Revenue Code.
(2) (a) The amount of the credit allowed
under subsection (1) is 20% of the amount paid or
incurred by the employer during the taxable year,
but the citdit may not exceed $1,250 of day-care
assistance actually provided to or on behalf of the
employee.
(b) For the purposes of this subsection,
marital status must be determined under the rules of
section 21(e)(3) and (4) of the Internal Revenue
Code.
(c) In the case of an onsite facility, the
29
amount upon which the credit allowed under
subsection (1) is based, with respect to any
dependent, must be based upon utiUzation and the
value of the services provided.
(3) An amount paid or incurred during the
taxable year of an employer in providing dependent
care assistance to or on behalf of any employee does
not qualify for the credit allowed under subsection
(I) if the amount was paid or incurred to an
individual described in section 129(c)(1) or (2) of
the Internal Revenue Code.
(4) An amount paid or incurred by an
employer to provide dependent care assistance to or
on behalf of an employee does not qualify for the
credit allowed under subsection ( 1 ):
(a) to the extent the amount is paid or
incurred pursuant to a salary reduction plan; or
(b) if the amount is paid or incurred for
services not performed within this slate.
(5) If the credit allowed under subsection
(1) is claimed, the amount of any deduction allowed
or allowable under this chapter for the amount that
qualifies for the credit (or upon which the credit is
based) must be reduced by the dollar amount of the
credit allowed. TTie election to claim a credit
allowed under this section must be made at the time
of filing the tax return.
(6) The amount upon which the credit
allowed under subsection (1) is based may not be
included in the gross income of the employee to
whom the dependent care assistance is provided.
However, the amount excluded from the income of
an employee under this section may not exceed the
limitations provided in section 129(b) of the Internal
Revenue Code. For purposes of Title in. chapter 30,
part 2, with respect to an employee to whom
dependent care assistance is provided, "wages" does
not include any amount excluded under this
subsection. Amount s e xclud e d und e r thi s sub.section
do not q uali fy a s e x penses fo r w hi ch a d e duction i s
allow e d to th e e mploy ee und e r I.S 30 1 21.
(7) Any tax credit otherwise allowable
under this section that is not used by the taxpayer in
a particular year may be carried forward and olt'set
against the taxpayer's tax liability for the next
succeeding tax year. Any credit remaining unused in
the next succeeding tax year may be carried forward
and used in the second succeeding tax year, and
likewise through the fifth year succeeding the tax
year in which the credit was first allowed or
allowable. A credit may not be carried forward
beyond the fifth succeeding tax year.
(8) If the taxpayer is an S corporation, as
defined in section 1361 of the Internal Revenue
Code, and the taxpayer elects to take tax credit
relief, the election may be made on behalf of the
corporation's shareholders. A shareholder's credit
must be computed using the shareholder's pro rata
share of the corporation's costs that qualify for the
credit. In all other respects, the effect of the tax
credit applies to the corporation as otherwise
provided by law.
(9) For purposes of the credit allowed under
sub.section (I):
(a) The definitions and special rules
contained in section 129(e) of the Internal Revenue
Code apply to the extent applicable.
(b) "Employer" means an employer carrying
on a business, trade, occupation, or profession in this
state.
(c) "Internal Revenue Code" pienns the
federal Internal Revenue Code as amended and in
effect on January I, 1989."
Section 177. Section 15-32.^03, MCA, is
amended to read:
"15-32-303. Deduction for purchase of
Montana produced organic fertilizer. In addition
to all other deductions from — adju s t e d — gros s
individua l incom e allowed in comput i ng taxabl e
incom e und e r Titl e 1 5, chapt e r 30, or from gross
corporate income allowed in computing net income
under Title 15, chapter 31, part I, a taxpayer may
deduct hts expenditures made by the taxpayer for
organic fertilizer produced in Montana and used in
Montana if the expenditure was not otherwise
deducted in computing taxable income."
Section 178. Section 15-51-101, MCA, is
amended to read:
"15-51-101. Rate of tax ~ electrical
energy producers, (jj In Except as provided in
subsections (2) and (3), in addition to the licen.se tax
new — provid e d — by — law, each person or other
organization new engaged in the generation,
manufacture, or production of electricity and
electrical energy in the state of Montana , e ith e r
through wat e rpow e r or by any oth e r m e an s , for
barter, sale, or exchange (and h e r e inafter r e f e rr e d to
as th e "produc e r") shall on or before the 30th day
after each calendar quarter, quarterly periods ending
March 31, June 30, September 30, and December
31, render a statement to the department of revenue
showing the gross amount, except for actual and
necessary plant use, required to produce the energy
of electricity and electrical energy produced,
manufactured, or generated during the preceding
calendar quarter without any deduction and shall pay
a license tax thereon in the sum of $.0002 $.00252
per kilowatt hour on all sueh electricity and
electrical energy generated, manufactured, or
produced, measured at the place of production and
as shown on the statement required in the manner
and within the time hereinafter provided.
(2) The license tax required to be paid by
a qualified facility, as that term is defined in the
Federal Power Act, as amended by the Public
Utilities Regulatory Policies Act of 1978, that
exceeds $.0002 per kilowatt hour must be
reimbursed to the qualified facility by the wholesale
purchaser making purchases of a qualified facility's
electricity or electrical energy if the wholesale
purchases are made pursuant to a contract in effect
on June 30, 1993. The wholesale purchaser shall
reimburse the qualified facility on or before the date
that the qualified facility is required to pay the tax
imposed under subseclion ( 1 ).
(3) Notwithstanding the provisions of
subsections ( 1 ) and (2). the tax rate on all electricity
and electrical energy generated, manufactured, or
produced from a facility or from an additional
generating unit of a facility placed in service after
June 8, 1993, and prior to January I, 1997, is as
follows:
(a) $.0002 per kilowatt hour commencing
on the first day of commercial operation of the
facility or of an additional generating unit of a
facility through the end of the calendar quarter
ending 5 years after the first day of commercial
operation;
(b) $.0008 per kilowatt hour for the next 5
years;
(c) $.0016 per kilowatt hour for the next 5
years; and
(d) $.00252 per kilowatt hour thereafter. "
Section 179. Section 16-1-306, MCA, is
amended to read:
"16-1-306. Revenue to be paid to state
treasurer. Except as provided in [section 711, 16-1-
404, 16-1-405. 16-1-408. 16-1-410. and 16-1-411^
and 16-2-301 . all fees, charges, taxes, and revenues
collected by or under authority of the department
shall must be deposited with the state treasurer. He
The stale treasurer shall deposit the funds to the
credit of the stale general fund , except tor sales tax
and use lax revenue that must be deposited
according to {section 711 ."
Section 180. .Section 16-1-411, MCA, is
amended to read:
"16-1-411. (Temporary) Tax on wine. (1)
A lax of 27 cents per liter is hereby levied and
imposed on table wine imported by any table wine
distributor or the department.
(2) (a) The tax on table wine imported by
a table wine distributor shall be paid by the table
wine distributor by the 15lh day of the month
following sale of the table wine from the table wine
distributor's warehouse. Failure to file a table wine
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.
(b) The tax on table wine imported by the
department shall be collected at the time of sale.
(3) The tax paid by a table wine distributor
in accordance with, subsection (2)(a) and the tax
collected by the department in accordance with
subsection (2)(b) shall be distributed as follows:
(a) 16 cents to the state general fund; and
(b) of the remaining 1 1 cents:
(i) 8.34 cents to the state special revenue
fund to the credit of the department of corrections
and human services for the treatment, rehabilitation,
and prevention of alcoholism;
(ii) 1 1/3 cents 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
(iii) I 1/3 cents 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 sales taxes and use
taxes imposed under [section 2], the taxes computed
and paid in accordance with 16-1-423, 16-2-301, and
this section shall be the only taxes imposed by the
stale or any of its subdivisiojis. including cities and
towns.
(5) The proceeds of the surtax imposed by
16-1-423 must be deposited in the state general fund.
16-1-411. (Effective on receipt of taxes or
fees for September 1993) Tax on wine. (1) A tax
of 27 cents per liter is hereby levied and imposed on
table wine imported by any table wine distributor or
the department.
(2) (a) The lax on table wine imported by
a table wine distributor shall be paid by the table
wine distributor by the 15lh day of the month
following sale of the table wine from the table wine
distributor's warehouse. Failure to file a table wine
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.
(b) The tax on table wine imported by the
department shall be collected at the lime of sale.
(3) The tax paid by a table wine distributor
in accordance with subsection (2)(a) and the tax
collected by the department in accordance with
subsection (2)(b) shall be distributed as follows:
(a) 16 cents to the state general fund; and
(b) of the remaining 1 1 cents:
(i) 8.34 cents to the stale special revenue
fund to the credit of the department of corrections
and human services for the treatment, rehabilitation,
and prevention of alcoholism;
(ii) I 1/3 cents 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
(iii) I 1/3 cents 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 shall be the only
lax imposed by the state or any of its subdivisions,
including cities and towns."
Section 181. Section 16-2-301, MCA, is
amended to read:
"16-2-301. Retail selling price on table
wine — tax on certain table wine. ( 1 ) ia) The retail
selling price at which table wine is sold either by the
30
department, through a state employee-operated store,
or by a commission agent who was appointed before
April 30, 1987, including subsequent renewals of
such appointment, and who elects to order table
wine from the department is computed by adding to
the statewide weighted average cost of table wine
the tax and state markup as designated by the
department.
(b) The retail selling price at which table
wine is sold pursuant to subsection (l)(a) may not
include the sales tax or use tax imposed under
[section 2). The sales lax or use tax must be
collected as provided in [sections 1 through 71] and
must be deposited as provided in [seclion 711.
(2) ia| The retail selling price at which
table wine is sold by a commission agent appointed
by the department after May 1, 1987, is as
determined by the agent.
(b) The retail selling price at which table
wine is sold pursuant to subsection (2)(a) may not
include the sales tax or use tax imposed under
[section 21. The sales tax or use tax must be
collected as provided in [sections 1 through 711 and
must be deposited as provided in [section 711.
(3) 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 (2). 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 fimd.
(4) The sales tax and use tax collected
under [sections 1 through 711 are not considered to
be collected under this seclion. "
Section 182. Transition. (1)
Notwithstanding the provisions of 15-30-111, the
adjusted gross income of an individual includes
refunds of federal income tax received for tax years
prior to December 31, 1993, to the extent that the
deduction of the tax resulted in a reduction of
Montana income tax liability.
(2) Notwithstanding the provisions of 15-
30-122, all itemized deductions allowed pursuant to
26 U.S.C. 161 and 211 that may be carried forward,
including but not limited to the contributions
carryover, investment interest expense carryover,
home mortgage interest amortization, bond premium
amortization, and deduction for income in respect of
a decedent, may be continued to be carried forward
for a period not to exceed 5 years.
(3) (a) Notwithstanding the provisions of
[section 48], each person engaging in business prior
to [the applicability date of sections 1 through 7 1 ]
must have applied for and received, prior to [the
applicability date of sections 1 through 71], a valid
seller's permit described in [section 48].
(b) Notwithstanding the provisions of
[section 8], any person engaging in business prior to
[the applicability date of sections 1 through 7 1 ] may
apply for and receive, prior to [the applicability date
of sections 1 through 71], a valid nontaxable
transaction certificate described in [section 8].
(c) 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 71].
Section 1 83. Sales tax and use tax rates —
restrictions. A sales tax rate or use tax rate imposed
in [section 2] may be increased only if the increase
is approved by the electorate.
Section 184. Special 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 June
8, 1993.
Section 185. Repealer. Sections 15-10-401,
15-10-402. 15-10-406, 15-10-411, 15-10-412, 15-30-
121, 15-30-156, 15-30-157, 15-30-159, 15-30-160,
and 20-10-146, MCA, are repealed.
Section 1 86. Codification instruction. ( 1 )
(Sections 1 through 71, 182, and 183] are intended
to be codified as an integral part of Title 15, and the
provisions of Title 15 apply to [sections 1 through
71, 182, and 183].
(2) [Sections 73 through 88 and 89 through
93) are intended to be codified as an integral part of
Title 15, chapter 30, and the provisions of Title 15,
chapter 30, apply to (sections 73 through 88 and 89
through 93].
(3) [Section 72] 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 72].
(4) (Section 161] is intended to be codified
as an integral part of Title 61, and the provisions of
Title 61 apply to (section 161].
(5) [Section 124] is intended to be codified
as an integral part of Title 15, chapter 6, part 1, and
the provisions of Title 15, chapter 6, part 1, apply to
[section 124].
(6) [Section 125] is intended to be codified
as an integral part of Title 15, chapter 1, part 1, and
the provisions of Title 15, chapter 1, part 1, apply to
(section 125].
Section 1 87. Coordination instruction. ( 1 )
If House Bill No. 3 is passed and approved without
an appropriation to fund the special election held
pursuant to [section 184], then [this act] is void.
(2) If (this act] is approved at the special
election held pursuant to (section 1 84( and if Senate
Bill No. 32 is passed and approved and it amends
20-9-344, 20-9-366, 20-9-367, 20-9-368, 20-9-406,
and 20-9-439, then Senate Bill No. 32 is void on
June 30, 1994.
(3) If Senate Bill No. 168 is passed and
approved, then (sections 121 and 126 of this act] are
void.
(4) If House Bill No. 671 is passed and
approved, then:
(a) [sections 163 through 177] are effective
on January 1, 1994, and apply to tax years beginning
after December 31, 1993; and
(b) House Bill No. 671 terminates
December 31, 1993, and applies only to the tax year
beginning in 1993.
Section 188. 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.
Section 189. 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].
Section 190. Effective date. (This act] is
effective on approval by the electorate.
Section 191. Applicability. (1) (a) Except
as provided in subsection (l)(b), [sections 1 through
93 and 154 through 162] apply on and after April 1,
1994.
(b) Purchases of goods and services
pursuant to construction contracts that were bid prior
to June 8, 1993, are exempt from the sales tax and
use tax. However, property or services purchased on
or after April 1, 1995, pursuant to a construction
contract are subject to the sales tax and use tax
regardless of when the contract was bid.
(2) (Sections 94 through 134, 163 through
181, and 1851 apply on and after January 1, 1994,
and to tax years beginning after December 3 1 , 1993.
(3) (Sections 135 through 152] apply on
and after July 1, 1994.
(4) Except as provided in subsection (5),
distribution of taxes must be made according to the
provisions of the statute governing allocation of the
tax in effect on the last day of the tax peric 1 in
which the activity, enterprise, or product being taxed
was engaged in, took place, was assembled, or was
produced.
(5) All taxes collected pursuant to audit or
collected after the date the tax is payable must be
distributed according to the statute governing
allocation of the tax in effect on the date the taxes
are collected.
Seclion 192. Submission to electorate. The
question of whether this act will become effective
.shall be submitted to the qualified electors of
Montana at the election called pursuant to section
184 by printing on the ballot the full title ol this act
and the following:
|] FOR imposing a 4% sales tax and use tax
as part of comprehensive tax reform.
[] AGAINST imposing a 4% sales tax and
use tax as part of comprehensive tax reform.
31
What is the Voter Information Pamphlet?
The Voter Information Pamphlet (VIP) is a publication printed by
the Secretary of State to provide Montana voters information about
ballot issues that will be appearing on the statewide ballot. The
Secretary of State distributes the pamphlets to the county election
administrators who mail a VIP to each household with a registered
voter.
What's in the VIP?
The VIP shows how the ballot measure will appear on the ballot.
This includes:
1 . the ballot number,
2. the method of placement on the ballot,
3. the title of the measure,
4. the Attorney General's explanatory statement,
5. the fiscal statement,
6. the statements of implication (the FOR and AGAINST
statements), and
7. the arguments advocating adoption and rejection
written by the appointed committees.
Finally, it includes the full text of the measure so you can read and
decide for yourself how you will vote on June 8, 1993.
Who writes the information that goes in the VIP?
Attorney General - The Attorney General writes an explanatory
statement for the measure. This statement, not to exceed 100
words, is a true and impartial explanation of the purpose of the
measure in easy to understand language. The fiscal statement,
also prepared by the Attorney General, is an explanation of the
impact the measure would have on the State's revenues,
expenditures, or fiscal liability. The Attorney General also writes
the statements of implication.
Pro and Con Arguments - The members of the committee that write
the arguments and rebuttals for each measure are appointed in a
procedure set out by state law. The Speaker of the House and
President of the Senate appointed one pro and con committee
member. These two appointees then chose a third. Arguments
are limited to 500 words and rebuttals to 250 words.
What if I can't vote on election day?
You can vote by absentee ballot if you cannot get to the polls
because you; 1) expect to be absent from your precinct or county
on election day, 2) are physically incapacitated, 3) suffer from
chronic illness or general ill health, or 4) have a health emergency
between 5 p.m. on June 4 and noon on election day.
If you qualify for an absentee ballot, contact your county election
administrator to request an absentee ballot application. Absentee
ballot applications will be accepted up to noon the day before the
election.
How CAN I FIND OUT IF I'M REGISTERED?
If you failed to vote in the 1992 Presidential Election, you are no
longer registered and need to re-register. If you are not sure if or
where you are registered, you should contact your county election
administrator. The registration deadline for the special election is
May 10, 1993.
Additional copies of the Voter Information Pamphlet are available upon request from your County Election Administrator or Mike
Cooney, Secretary of State. This document printed on recycled paper.
425,000 copies of this public document were published at an estimated cost of $0.08 per copy, for a total of $32,500.00. Distribution costs paid for by county governments.
VOTER INFORMATION PAMPHLET
FOR THE JUNE 8TH SPECIAL ELECTION
COUNTY ELECTION ADMINISTRATOR
County Courthouse
DO NOT FORWARD
Bulk Rate
U.S. POSTAGE
PAID
HELENA, MT
Permit No. 199
CHAMBERS FAMILY
2011 MISSOULA
HELENA MT 59601
32
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