(a) military reservations;

(b) licensed wholesalers whose sales are subject to the provisions of ARM 42.31.108.

(2) The method of marking may either be by roll stamps or by hand-applied decals. The system of marking must be uniform and consistent. The marking system must facilitate a visible review to ensure that cigarettes are stamped as required by 16-11-113, MCA. The evidence of the tax insignia must clearly indicate that there is one Montana tax insignia per package.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

(1) Each wholesaler, on or before the 15th day of each month, shall provide a report to the department listing all sales into Montana for the preceding month's activities on forms provided and/or approved by the department.

(2) Sales of stamped exempt cigarettes made to an authorized tribal cigarette retailer on an Indian reservation shall be reported on forms provided and approved by the department.

(a) The tribal government may provide the department with a list showing the names of authorized retailers and their portion of the quota. The tribal government must notify the department of any change in the requested allocations.

(b) If the tribal government does not provide direction on allocation among Indian retailers, the department will approve sales of allocated untaxed cigarettes until the respective Indian reservation quota is depleted. The allocation to retailers will be on a first-to-ship basis unless particular circumstances indicate another basis.

(3) A wholesaler must contact the department prior to all untaxed sales on a reservation. The department will issue permission to ship the cigarettes, track quota allocations, and notify the wholesalers when the quota has been reached. Once the quota for any particular retailer/reservation has been reached, sales to that retailer/reservation will include tax.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

(1) The requirements of 16-11-120 , MCA, for names and home addresses of owners on applications for cigarette licenses will be met in the case of a corporation when the corporation furnishes the names and home addresses of the corporation's principal executive officers (president, vice-president, secretary, and treasurer) and members of the board of directors.

(2) The license requirements under the Youth Access to Tobacco Products Control Act for retail sales is an extension of this license.

This rule has been repealed.

(2) Refund claims by a cigarette manufacturer or wholesaler must contain a notarized affidavit attesting the cigarette tax refund claimed is for state of Montana cigarette tax insignia, which are affixed to the unsaleable cigarettes and the cigarettes have been destroyed or will not be sold at any time.

(3) Refund claims must be accompanied by a copy of the manufacturer or other vendor credit memo or invoice issued to the Montana wholesaler. In lieu of the credit memo or invoice, the manufacturer or wholesaler may submit a printout showing each customer name, customer credit invoice number, number of Montana stamped cigarettes, tax amount and the date the cigarettes were returned for credit.

(4) Refunds will be allowed for stale or damaged merchandise during the first 180 days after a change in the tax rate at the previous rate of tax unless it can be verified conclusively that the new tax has been paid on the specific product for which such refund is claimed.

(5) Cigarette tax distributions are made to an Indian tribe pursuant to an agreement between the Indian tribe and the department. The agreement provides for the collection of a tribal cigarette tax on the Indian reservation and a distribution, less administrative expense, if applicable, to the Indian tribe based on the negotiated quota agreement.

(6) Cigarette tax credits or refunds for indicia used in sales made on an Indian reservation are made to wholesalers pursuant to the established quota for a particular Indian reservation. The wholesaler can request a credit or a cash refund by filing forms supplied by the department. Upon receipt, the department will process the refund within ten working days.

(7) Only a preauthorized credit or refund for untaxed (quota) sales on an Indian reservation will be allowed to a wholesaler.

(1) "Interstate commerce" means the transportation of tobacco products intended for delivery to a person licensed by the department to receive unstamped or untaxed tobacco products in Montana or intended for delivery into another state.

(2) "Montana Department of Justice current tobacco product directory" means the tobacco manufacturer and brand directory as required by 16-11-504, MCA.

(3) "Reporting entity" means any Montana cigarette wholesaler or licensed Montana retailer acting as a tobacco wholesaler who brings tobacco products into Montana for sale to consumers.

(4) "Retailer acting as a tobacco wholesaler" means a licensed retailer who purchases other tobacco products from a manufacturer, distributor, or importer who has not prepaid the tax on tobacco products.

(5) "Statutory discount" means the amount the wholesaler or retailer is allowed to defray their administrative expenses.

(6) "Tobacco products" include, but are not limited to:

(a) cigarettes;

(b) cigars;

(c) smoking, chewing, and snuff tobaccos; and

(d) moist snuff.

(7) "Wholesale price" means the comparable arm's length price for which a manufacturer sells a tobacco product to a wholesaler or any other person before any discount or other reduction.

(2) All wholesalers or retailers shall remit the tax on forms provided and/or approved by the department, together with copies of the itemized invoices procured from the manufacturers or from the wholesalers of all tobacco products or on a computerized printout preapproved by the department.

(3) All such remittance shall be made to the department by the 15th of each month covering purchases of tobacco products made during the previous month.

(4) Failure to provide all the required information in this rule may result in a late filing and late pay penalty added to the tax due in accordance with ARM 42.2.504.

This rule has been repealed.

(a) the product is sold in packs containing 20 or 25 sticks;

(b) the product is available for sale in cartons of ten packs;

(c) the product is sold in soft packs, hard packs, flip-top boxes, clam shells, or other cigarette-type boxes;

(d) the product is of a length and diameter found in commercially-manufactured cigarettes;

(e) the product has a cellulose acetate or other integrated filter;

(f) the product weighs less than three pounds per thousand sticks;

(g) the product is marketed or advertised to consumers as a cigarette or cigarette substitute; or

(h) other evidence that the product fits within the definition of cigarette in 16-11-102, MCA.

(2) Tobacco products that are determined to be cigarettes must meet the requirements of 16-11-307, MCA.

(3) A cigar is a roll of tobacco that is wrapped in 100% natural leaf tobacco or:

(a) is wrapped in any substance that contains 75% or more tobacco which did not in the reconstitution process lose its tobacco character (taste, aroma, identifiable chemical components) and is of a color consistent with that of the natural leaf tobaccos traditionally used as a wrapper for American cigars; and

(b) does not meet the criteria stated in (1).

(2) Upon receipt of a manufacturer's request for determination, the department shall determine if a product is a cigarette within the meaning of 16-11-102, MCA, using the criteria in ARM 42.31.206 and the characteristics of the tobacco product, its packaging and labeling, and the totality of the circumstances.

(3) If the department receives information that a tobacco product may qualify as a cigarette under 16-11-102, MCA, from a source other than the manufacturer, the department may conduct a review and issue a determination in accordance with (4) through (6).

(4) Along with a request for determination, or upon request by the department, the manufacturer shall submit the following:

(a) product samples of at least 20 sticks of each style within each brand family for which a determination is requested;

(b) the weight per thousand sticks of the product;

(c) all advertisements and labels that mention or depict the product and point of sale merchandising material for the product; and

(d) the package and any larger container such as a carton, or detailed graphics for any unprinted or proposed packaging.

(5) The manufacturer may submit any other relevant evidence for the department to consider when making the determination.

(6) The department shall notify the tobacco product manufacturer of its determination in writing within ten days after the department makes the determination.

(7) ARM 42.31.206 and 42.31.207 are not effective until July 1, 2007.

(2) In a contested case before the department, the burden of proof shall be on the manufacturer to establish by clear and convincing evidence that the product is not a cigarette as defined in 16-11-102, MCA.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

(2) Credits will be granted for tobacco products shipped from Montana and destined for retail sale and consumption outside Montana on which the tax has been paid. Evidence of the original sales slips or invoices will be required for proof of sales to out-of-state retailers.

This rule has been repealed.

(2) Upon receipt of a written and verified complaint from a person, an investigation will be conducted of the wholesaler's and retailer's entire records for the applicable period. If the department finds sufficient cause and believes prosecution of the alleged violation will aid in collection of cigarette and tobacco products taxes or assist in the regulating and enforcement of the tobacco Master Settlement Agreement, the department will proceed pursuant to 16-10-403 , MCA, and ARM 42.2.613 through 42.2.621.

(a) name and address of each retailer;

(b) date the tobacco products were sold;

(c) date the tobacco products were delivered;

(d) item or items sold or furnished; and

(e) retailer cost per item.

(2) Commercial records or invoices may be used if they contain the information listed in (1)(a) through (e).

(3) Tobacco product retailers, including a retailer acting as a tobacco wholesaler, shall keep and maintain records at their place of business of all tobacco products furnished or sold to consumers. The records must contain the following information:

(a) name and address of each wholesaler;

(b) date the tobacco products were purchased; and

(c) balance of product inventory.

(4) The department may inspect all records in accordance with the provisions of ARM 42.2.305.

(2) Prices established in bankruptcy, liquidation, clearance sales, sales of damaged or imperfect cigarettes, or sales under the order of any court shall not be used as a basis for competitive pricing.

(3) The department, a trade association, or an industry group may make a cost survey to establish cost to retailer or a cost to wholesaler. Such a survey may be used to determine a "competitive price" as referenced in 16-10-203 and 16-10-303 , MCA.

(2) It shall also be a violation of Title 16, MCA, for a retailer to attempt to obtain any rebate, gift, or concession in conjunction with cigarette purchases that will lower the cost.

(a) the department is notified of the promotion at least two weeks in advance of the beginning date of the promotion; and

(b) the premiums are packaged along with each carton or package of cigarettes, or specifically identified as associated with the sale of a particular cigarette or carton of cigarettes. For example, a promotional display may designate a free item will be provided with each purchase of a carton of a specific brand of cigarettes. The item may be physically a part of the promotional display;

(i) manufacturer's representatives may attach premiums at the retail locations;

(ii) there is a written contract between the manufacturer and the wholesaler, subjobber or independent jobber directing the attachment of premiums.

(2) Contractual arrangements and payment for premium attachment services must be documented in a manner consistent with standard business practices and may not be netted against invoices for cigarettes.

(1) When tax increases occur, the department may conduct audits on cigarette inventories located at the wholesaler's and/or retailer's premises in order to comply with the tax increase.

(2) There is only one basic cost for each brand or style of cigarettes. The minimum price computation for Montana taxed cigarettes is:

Basic cost of cigarettes as

defined in 16-10-103, MCA ..................................................................... xxxxx

         (ADD) Federal tax ............................................................................. xxxxx

         (ADD) State tax ................................................................................. xxxxx

Basic cost of cigarettes plus taxes .......................................................... xxxxx

Multiply the basic cost of cigarettes

plus taxes by wholesale cost of doing

business and by cartage.

         (ADD) Wholesale cost of doing business

                      or as established by department

                      approved cost survey .......................................................... xxxxx

Cartage...current statutory rate

                      or as established by department

                      approved cost survey .......................................................... xxxxx

                      The minimum wholesale price/

                      cost to retailer ...................................................................... xxxxx

                      Multiply the minimum wholesale

                      price by the retail cost of

                      doing business.

         (ADD) Retail cost of doing business

                      current statutory rate

                      or as established by department

                      approved cost survey .......................................................... xxxxx

The minimum retail price/cost to consumer ............................................ xxxxx

(3) The minimum price computation for Montana untaxed cigarettes is:

Basic cost of cigarettes as

defined in 16-10-103, MCA ..................................................................... xxxxx

         (ADD) Federal tax ............................................................................. xxxxx

Basic cost of cigarettes plus tax ............................................................... xxxxx

Multiply the basic cost of cigarettes

by wholesale cost of doing

business and by cartage.

         (ADD) Wholesale cost of doing business

                     ...current statutory rate or as

                     established by department

                     approved survey ...................................................................  xxxxx

         Cartage............current statutory rate

                     The minimum wholesale price/

                     cost to tax exempt retailer....................................................  xxxxx

                     Multiply the minimum wholesale

                     cost by the retail cost of

                     doing business.

         (ADD) Retail cost of doing business

                     current statutory rate or as

                     established by department

                     approved cost survey ...........................................................  xxxxx

The minimum tax-exempt retail price/cost

to tax exempt consumer ............................................................................  xxxxx

(1) "Cash discount" means a reduction in the invoice or purchase price attributable to payment within a prescribed time period.

(2) "Montana Cigarette Sales Act" means the laws codified in Title 16, chapter 10, MCA.

(3) For the purposes of enforcing tobacco products sales and use by minors, "tobacco" means a substance intended for human consumption that contains tobacco. The term includes, but is not limited to, cigarettes, cigars, snuff, smoking tobacco, and smokeless tobacco.

(a) Documents that support the petition must reflect actual cost data for a period ending not more than 90 days prior to the submission of the cost survey petition.

(2) The state of Montana is considered one market. Any wholesaler or retailer may adjust their prices to meet those of competitors if a lower price is approved through this cost survey process. Absent an approved lower cost survey, the minimum price contained in current law is controlling.

(2) The cost data to be submitted shall contain the petitioner's proposed cost of cigarettes sold followed by a listing of all direct costs incurred and indirect costs incurred.

(3) When submitting the actual cost data, as required by (2), the petitioner must provide supporting documentation including the petitioner's cigarette cost of doing business as proportionate to petitioner's total cost of doing business.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

(a) only hauls, transports, or ships tobacco products to and from locations outside of Montana; or

(b) only hauls, transports, or ships tobacco products to and from Montana licensed tobacco products entities.

This rule has been repealed.

(2) The anniversary dates for preexisting licenses administered under Title 30, chapter 16, MCA, shall be the date originally issued by the department.

(3) The license cannot be transferred.

(4) The department will issue the applicable license as required under 16-11-120 or 16-11-303 , MCA, together on one form.

(2) The tobacco product must be for sale to the general public in accordance with Title 16, chapters 10 and 11, MCA.

(2) In the case where the retailer contracts with a licensed vending machine operator to place a vending machine containing tobacco products in the establishment, the retailer must obtain a retail license to sell tobacco products.

(3) The following message must be printed on each decal: "MONTANA LAW PROHIBITS THE SALE OF TOBACCO PRODUCTS TO PERSONS UNDER 18 YEARS OF AGE."

This rule has been repealed.

This rule has been repealed.

(2) The tobacco education fees mandated under 16-11-308, MCA, will be enforced and collected by the Department of Public Health and Human Services.

(1) A provider is required to complete form 9-1-1, Emergency Telephone (9-1-1) Service Fee Return, which is provided by the department, on or before the last day of the month following the end of each calendar quarter.

(2) The following information is required to be reported on form 9-1-1:

(a) the ending date of the calendar quarter for which the return is being filed;

(b) the name and address of the provider of telephone exchange access services or service provider of wireless telephone services;

(c) the type of service provider, whether it is a prepaid wireless provider, wireline service provider, internet/VOIP service provider, wireless service provider, or other service provider;

(d) the total number of access lines for each month of the calendar quarter;

(e) the number of exempt access lines for each month of the calendar quarter;

(f) the number of taxable lines for each month of the calendar quarter;

(g) the amount of fee computed by multiplying the total number of taxable access lines times the amount stated in 10-4-201, MCA;

(h) the amount of credits for uncollectible accounts, incorrect billings, and any other appropriate adjustments;

(i) the amount of uncollectible accounts recaptured during the quarter that were previously deducted as uncollectible accounts in a previous quarter under (2)(g); and

(j) the amount of fee remitted with the return.

(3) If the total amount of the fee is less than $50 in each of the quarters during the preceding calendar year, the service provider may file an annual return in lieu of filing quarterly returns, provided the annual return is filed along with full payment by the last day of the month after the close of the calendar year.

This rule has been repealed.

This rule has been repealed.

(a) Federal agencies and tax exempt instrumentalities of the federal government;

(b) Indian tribes for access lines on the tribe's reservation;

(c) An enrolled member of an Indian tribe for access lines on the reservation who does not receive the 911 service and who annually files a signed statement with the provider that he is an enrolled member of an Indian tribe living on a reservation and does not receive the 911 service. The provider will maintain the statements as part of its business record for five years.

(2) Official station testing lines owned by the provider are exempt.

(3) All other subscribers not listed above are required to pay the fee.

(1) "Average revenue" is defined as $50 per subscriber.

(2) "Intrastate monthly revenue" is defined as the prepaid service provider's revenue derived from services provided by a provider to subscribers with a Montana area code.

(3) "Prepaid service provider" means a service provider that requires prepayment of its wireless telecommunications service.

(4) "Prepaid subscriber" means a subscriber that is required to prepay for wireless telecommunications services provided by prepaid service providers.

(5) "Service provider" means an entity that offers services to subscribers in Montana to allow two or more persons in different locations to communicate orally, without regard to the technology or medium the entity uses to provide the telecommunications service, and access to telecommunications relay service. The term includes providers of telecommunications service, including but not limited to providers of internet protocol-enabled voice communications service and wireless services.

(2) All prepaid service providers are required to collect the 9-1-1 emergency telephone service fee from subscribers in the following manner.

(a) A prepaid service provider will impose the 9-1-1 emergency telephone service fees established in 10-4-201, MCA on the subscriber using one of the following options:

(i) on a monthly basis, the prepaid service provider will collect the amount of the fees established in 10-4-201, MCA from each active prepaid subscriber whose account balance is equal to or greater than the fees established in 10-4-201, MCA; or

(ii) the prepaid service provider will divide the total intrastate monthly revenue by the average revenue for each prepaid subscriber of the wireless industry to determine the number of active access lines. The number of access lines is then applied to the fees established in 10-4-201, MCA to arrive at the amount of fees paid by the subscriber.

(2) The prepaid service provider that calculates the 9-1-1 fee based upon the average revenue for each prepaid subscriber shall quarterly remit the fee upon the activation of an active prepaid account and upon each replenishment of additional minutes purchased by the prepaid customer during that quarter.

This rule has been repealed.

(2) All records may be inspected by the department in accordance with the provisions of ARM 42.2.305.

(3) Telecommunications service providers must substantiate taxable and nontaxable revenue items from their taxable customers. If substantiation of taxable and nontaxable items is not provided, the imposition of the retail telecommunications excise tax will apply to the total revenue.

(4) Wholesale exemption certificates or wholesale contracts must support exempt wholesale revenues. The wholesale exemption certificates are available on the department's internet site or by contacting the department at P.O. Box 5805, Helena, Montana 59604-5805.

This rule has been repealed.

(2) A telecommunications service provider has the right to request a hearing on a tax liability as provided in 15-1-211 , MCA, and ARM 42.2.613 through 42.2.621, effective December 17, 1999. Copies of appeal form CVR-01 may be obtained by contacting the Department of Revenue, P.O. Box 5805, Helena, Montana 59604-5805.

(3) If the tax 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, MCA.

(4) The tax must be collected by the telecommunications service provider, and records shall be maintained evidencing proof of the taxes collected.

(5) Enrolled tribal members residing on their reservations are exempt from the tax.

(1) For purposes of the telecommunications excise tax, a telecommunications service provider will make an application for permission to report the tax on an accrual basis in writing on a form prescribed by the department.

(2) The department will respond to all applications in writing within 60 days of receipt. The response will indicate reasonable justification of any approval or denial to report on an accrual basis.

(3) The department will accept electronic remittance of returns as defined on the form described in (1) .

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

(2) All records may be inspected by the department in accordance with the provisions of ARM 42.2.305.

(2) The department shall estimate the fee amount and notify the facility of the assessment setting forth the amount of the delinquent fee, penalty, and interest due. The department shall inform the facility that if payment is not made, a warrant for distraint may be filed in accordance with 15-1-216 , MCA.

(1) Each hospital in the state shall pay to the department a utilization fee as specified in the schedules shown in 15-66-102, MCA.

(1) If a locality adopts a local-option marijuana excise tax pursuant to 16-12-309 through 16-12-317, MCA, the taxes are imposed on the purchaser, as defined in 15-64-101(5), MCA, and must be collected by an affected dispensary at the time of sale. For the purpose of this rule, an "affected dispensary" means a dispensary located within the jurisdiction of a locality with a local-option marijuana excise tax.  

(2) A locality is required to notify the department of the adoption of a local-option marijuana excise tax at least 90 days prior to its effective date. 

(a) A locality shall provide the department with a copy of the ballot initiative placed before the electorate which should, at a minimum, include the following:

(i) the applicable tax rate;

(ii) the marijuana products subject to the tax; and

(iii) the effective date for the tax.

(b) When fulfilling the notice requirement in (2)(a), a locality may transmit the ballot initiative information to the department by mail, generally accepted delivery service, or by email correspondence. The contact information for the department's Miscellaneous Tax Unit, which processes local-option marijuana excise tax payments and remittance, can be found at the department's website at mtrevenue.gov.

(3) If the locality complies with the requirement in (2), then an affected dispensary's reporting and payment requirement begins with the filing date associated with the end of the calendar quarter in which the tax became effective. As an example, if a locality's local-option marijuana excise tax is effective November 1, 2022, and the locality notified the department at least 90 days prior, then an affected dispensary's first reporting and payment obligation date is December 31, 2022.

(4) If a locality fails to comply with the requirement in (2), then an affected dispensary's reporting and payment requirement begins with the filing date associated with the end of the subsequent calendar quarter in which the tax became effective. As an example, if a locality's local-option marijuana excise tax is effective November 1, 2022, but the locality did not notify the department at least 90 days prior, then an affected dispensary's first reporting and payment obligation is March 30, 2023.

(5) How, or whether, a locality fulfills the notice requirement in (2) does not change an affected dispensary's obligation to collect a local-option marijuana excise tax from all purchasers as of the effective date of the tax.

(6) When filing a quarterly report pursuant to 15-64-102(4), MCA, and submitting payment of quarterly taxes pursuant to 15-64-102(5), MCA, an affected dispensary must also specify the local-option marijuana excise tax rate the dispensary applied to its sales during the subject calendar quarter together with the total dollar amount of local-option taxes that were collected.

(7) The department will remit the local-option marijuana excise tax payments received to the county treasurer in accordance with the following schedule. If the date for remittance falls upon a Saturday, Sunday, or legal holiday, the department will remit the taxes on the next business day.

(a) on or before June 15 of each year for the calendar quarter ending March 31 of the current year;

(b) on or before September 15 of each year for the calendar quarter ending June 30 of the current year;

(c) on or before December 15 of each year for the calendar quarter ending September 30 of the current year; and

(d) on or before March 15 of each year for the calendar quarter ending December 31 of the previous year.

(8) A local-option marijuana excise tax and related interest and penalties are a personal debt of the person required to file a return from the time that the liability arises, regardless of when the time for payment of the liability occurs.

(9) For the purpose of determining liability for the filing of statements and the payment of taxes, penalties, and interest:

(a) the officer of a corporation whose responsibility it is to truthfully account for and pay to the state the local-option marijuana excise tax provided in 16-12-309 through -16-12-317, MCA, and this rule, who fails to pay the tax is liable to the state for the taxes and the penalty and interest due on the amounts;

(b) each officer of the corporation, to the extent that the officer has access to the requisite records, is individually liable along with the corporation for filing statements and for unpaid taxes, penalties, and interest upon a determination that the officer:

(i) possessed the responsibility to file reports and pay taxes on behalf of the corporation; and

(ii) possessed the responsibility on behalf of the corporation for directing the filing of statements or the payment of other corporate obligations and exercised that responsibility, resulting in the corporation's failure to file statements or pay taxes due required by statute and this rule;

(c) each partner of a partnership is jointly and severally liable, along with the partnership, for any statements, taxes, penalties, and interest due while a partner;

(d) each member of a limited liability company that is treated as a partnership or as a corporation for income tax purposes is jointly and severally liable, along with the limited liability company, for any statements, taxes, penalties, and interest due while a member;

(e) the member of a single-member limited liability company that is disregarded for income tax purposes is jointly and severally liable, along with the limited liability company, for any statements, taxes, penalties, and interest due while a member; and

(f) each manager of a manager-managed limited liability company is jointly and severally liable, along with the limited liability company, for any statements, taxes, penalties, and interest due while a manager.

(10) In determining which corporate officer is liable, the department may consider any other available information and is not limited to this rule to establish individual liability.

(11) In the case of a bankruptcy, the liability of the individual remains unaffected by the discharge of penalty and interest against the corporation. The individual remains liable for any statements and the amount of taxes, penalties, and interest unpaid by the entity.

(12) The periods of limitations and procedures relating to deficiency assessments, estimating taxes, refunds, and collection of delinquent local-option marijuana excise taxes are the same as those provided in 15-64-104 through 15-64-106, and 15-64-110, MCA.

(13) An affected dispensary which does not file a timely report or does not pay all local-option marijuana excise taxes when due, as required by statute and this rule, is subject to the penalty and interest provisions contained in 15-1-216, MCA.

(14) In addition to any other remedy, the department may collect delinquent local-option marijuana excise taxes in accordance with the procedures set forth in ARM 42.2.520. An affected dispensary has the right to a review of the tax liability prior to any offset by the department.

(15) If all or any part of the local-option marijuana excise taxes imposed by 16-12-309 through 16-12-317, MCA, are not paid when due, the department may issue a warrant for distraint as provided in Title 15, chapter 1, part 7, MCA. 

(1) A "public contractor" is anyone who submits a proposal to or enters into a contract with a governmental agency or department for the construction or reconstruction of any public work, the cost of such construction or reconstruction being greater than $5,000.   The term "public contractor" includes subcontractors.

(2) "Public construction work," includes any work requiring the installation, addition, placement, replacement, or removal of any equipment, parts, structures, or materials of any kind whatsoever.   This rule applies to all contracts exceeding $5,000 whether or not such contracts require performance of service, maintenance, repair, or any other type of work in addition to, or as part of, the work as stated above.

This rule has been transferred.

This rule has been transferred.

(1) Public works contracts performed during the calendar year showing the 1% tax credit withheld during the current tax year must be filed with the department as required by 15-50-301, MCA.   For purposes of this filing, the department will accept the following:

(a) Schedule C, attached to the individual income tax return, as required by 15-30-142, MCA;

(b) Schedule C attached to the corporation license tax return, as required by 15-31-111, MCA; and

(c) personal property refund request form PC-4 and, if necessary, an additional schedule form PC-3, as required by 15-50-207, MCA.

(2) Failure to provide these schedules will result in a fine as stated in 15-50-301, MCA.

This rule has been transferred.

This rule has been transferred.

This rule has been transferred.

This rule has been transferred.

(a) name of the governmental agency, department within that agency, or awarding contractor awarding the contract;

(b) contract number, location and general description of construction to be performed, and the date the contract or subcontract, whichever the case may be, was awarded;

(c) name and address of the contractor or subcontractor awarded the contract;

(d) total value in money, credits, or other valuable consideration specified in the contract, that is to be   paid for the completion of the contract;

(e) date when the construction is to be completed; and

(f) date when the increments of the contract costs are to be paid the contractor or subcontractor, the amounts of such payments, and the percentage of the increment withheld from each payment to insure satisfactory completion of the job.

(2) The above information must be transmitted to the department within ten days from the date that the contract is awarded.

(a) governmental agency that awarded the contract and   is making payment;

(b) contract number, location and general description of construction to be performed, and the date contract was awarded;

(c) name and address of the contractor to whose account the 1% payment is to be credited;

(d) total sum due the contractor, including amounts to be withheld until completion of the contract;

(e) total sum due the contractor less any amount to be withheld until completion of the contract by including the 1% withholding;

(f) net amount paid the contractor at time of reporting; and

(g) amount transmitted to the department at time of reporting.

(2) The withholding agent or agency must in all cases issue a receipt to the contractor for all monies withheld under Title 15, chapter 50, MCA.

(a) name of the governmental agency or prime contractor awarding the contract;

(b) contract number, location and general description of construction to be performed;

(c) name and address of the contractor or subcontractor awarded the contract;

(d) total value in money, credits, or other valuable consideration specified in the contract, that is to be paid for the completion of the contract;

(e) date when the construction is to be completed; and

(f) date when the increments of the contract costs are to be paid the contractor or subcontractor, the amount of such payments, and the percentage of the increment withheld from each payment to insure satisfactory completion of the job.

(2) The above information must be transmitted to the department within ten days from the date that the contract is awarded.

(1) If 1% of the gross receipts is not withheld by the contracting governmental agency or awarding contractor, the contractor must make payment of such amounts to the department within 30 days after the date on which the contractor receives each increment of payment for work performed by the contractor.   Payment by the contractor must be accompanied by a completed gross receipts withholding report (form PC-2) .

(2) In the case where the state of Montana, counties, cities, or any agencies and awarding contractors thereof, fail to withhold the gross receipts fees, the contractor must pay 1% of the gross receipts received by the contractor.

(3) In all cases where the federal government or any agency is the sole governmental agency awarding the contract, payment   must be made by the contractor to the department in an amount equal to 1% of the gross receipts received by the contractor as payment for work performed by the contractor.   The payment of such amount to the department is the duty of the contractor without any specific request or notice, relative to a particular payment, that such payment must be made to the department.

(2) Any contractor subletting a contract is also required to withhold 1% of the amount due his subcontractor but will not transmit such amount to the department.   He will complete the gross receipts withholding report (form PC-2) checking the box marked "Subcontractor Allocation."   The amount withheld (amount shown on line 8 on form PC-2) will then be credited to the subcontractor and deducted from the original 1% which was withheld from the prime contractor.   For failure to file the allocation report within the required 30-day period, provided for in ARM 42.31.2132, a penalty of 10% of the tax withheld from the subcontractor shall be due from the prime contractor.

(2) These refunds will only be allowed after all necessary reports are filed and copies of paid personal property tax and motor vehicle fee receipts are submitted to the department.

(3) All overpayment refunds and personal property tax and motor vehicle fee refund requests are due July 1 of the calendar year following the year the tax liability or overpayment occurred.   For any given year in which a tax liability or overpayment occurred, refund requests will be accepted annually up to five years after the original July 1 due date for that year.

(2) In the event the public contractor's gross receipts tax is paid by a joint venture or a partnership, the members thereof shall be entitled to the credit for the tax as their respective interests appear.

(2) In the event the public contractor's gross receipts tax is paid by a joint venture or a partnership, the members thereof shall be entitled to the credit for the tax as their respective interests appear.