Montana Administrative Register Notice 42-2-819 No. 1   01/14/2010    
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In the matter of the amendment of ARM 42.19.401 relating to Property Tax Assistance Program






TO:  All Concerned Persons


1.  On February 4, 2010, at 1:30 p.m., a public hearing will be held in the Third Floor Reception Area Conference Room of the Sam W. Mitchell Building, at Helena, Montana, to consider the amendment of the above-stated rule.

Individuals planning to attend the hearing shall enter the building through the east doors of the Sam W. Mitchell Building, 125 North Roberts, Helena, Montana.


2.  The Department of Revenue will make reasonable accommodations for persons with disabilities who wish to participate in this public hearing or need an alternative accessible format of this notice.  If you require an accommodation, contact the Department of Revenue no later than 5:00 p.m., January 25, 2010, to advise us of the nature of the accommodation that you need.  Please contact Cleo Anderson, Department of Revenue, Director's Office, P.O. Box 7701, Helena, Montana 59604-7701; telephone (406) 444-5828; fax (406) 444-3696; or e-mail canderson@mt.gov.


3.  The rule proposed to be amended provides as follows, stricken matter interlined, new matter underlined:


            42.19.401  PROPERTY TAX ASSISTANCE PROGRAM  (1)  through (4) remain the same.

(5)  Income must be reported by the applicant as follows:

(a)  For the 2009 tax year, the applicant is required to report their federal adjusted gross income as reported on their federal income tax return for the preceding calendar year.  An applicant that is not required to file income tax for the preceding calendar year must determine what their federal adjusted gross income would have been had they been required to file.

(b)  For the 2010 and subsequent tax years, the applicant is required to list total household income, which includes otherwise tax exempt income of all types.  That income includes, but is not limited to:

(i)  employment income;

(ii)  gross business income less ordinary operating expenses but before deducting depreciation or depletion allowance;

(iii)  social security;

(iv)  railroad pension;

(v)  teachers' pension;

(vi)  employment pension;

(vii)  veterans' pension;

(viii)  any other pension;

(ix)  alimony;

(x)  disability income;

(xi)  unemployment benefits;

(xii)  welfare payments;

(xiii)  aid to dependent children;

(xiv)  rentals;

(xv)  interest from investments;

(xvi)  stock/bond interest or dividends;

(xvii)  interest from banks;

(xviii)  any other income, but not including social security income paid directly to a nursing home;

(xix)  food stamps;

(xx)  direct utility payments paid by the energy share program; or

(xxi)  capital gains.

(c)  Total household income is not reduced or otherwise modified by losses, depletion, depreciation, or any Montana or federal adjustment to income is the income as reported on the tax return or returns required by Title 15, chapters 30 or 31, MCA, for the year in which the assistance is being claimed excluding losses, depletion, and depreciation and before any federal or state adjustments to income.

(6)  An applicant that is not required to file income tax for the preceding calendar year must determine what their federal adjusted gross income would have been had they been required to file.

(7)  The applications described in (5)(a) and (b) require a copy of the appropriate form to be attached.  


AUTH:  15-1-201, MCA

IMP:  15-6-134, MCA


REASONABLE NECESSITY:  The department is proposing to amend ARM 42.19.401 because the amendment previously adopted on December 25, 2009 incorrectly provided for the inclusion of income that was excluded by the 2009 Legislature when it enacted House Bill 658 (Ch. 483, L. 2009), which amended 15-6-134, MCA.  The legislative amendment to 15-6-134, MCA, changed the income requirement when applying for the property tax assistance program to the federal adjusted income as identified on the preceding year's federal income tax return.  As the rule currently reads some of the items listed in (5)(b) would not be included when calculating a taxpayer's federal adjusted gross income.


4.  Concerned persons may submit their data, views, or arguments, either orally or in writing, at the hearing.  Written data, views, or arguments may also be submitted to: Cleo Anderson, Department of Revenue, Director's Office, P.O. Box 7701, Helena, Montana 59604-7701; telephone (406) 444-5828; fax (406) 444-3696; or e-mail canderson@mt.gov and must be received no later than February 12, 2010.


5.  Cleo Anderson, Department of Revenue, Director's Office, has been designated to preside over and conduct the hearing.


6.  An electronic copy of this Notice of Public Hearing is available through the department's site on the World Wide Web at www.mt.gov/revenue, under "for your reference"; "DOR administrative rules"; and "upcoming events and proposed rule changes."  The department strives to make the electronic copy of this Notice of Public Hearing conform to the official version of the Notice, as printed in the Montana Administrative Register, but advises all concerned persons that in the event of a discrepancy between the official printed text of the Notice and the electronic version of the Notice, only the official printed text will be considered.  In addition, although the department strives to keep its web site accessible at all times, concerned persons should be aware that the web site may be unavailable during some periods, due to system maintenance or technical problems.


7.  The Department of Revenue maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency.  Persons who wish to have their name added to the list shall make a written request, which includes the name and e-mail or mailing address of the person to receive notices and specifies that the person wishes to receive notices regarding particular subject matter or matters.  Notices will be sent by e-mail unless a mailing preference is noted in the request.  Such written request may be mailed or delivered to the person in 4 above or faxed to the office at (406) 444-3696, or may be made by completing a request form at any rules hearing held by the Department of Revenue.


8.  The bill sponsor contact requirements of 2-4-302, MCA, apply and have been fulfilled.  The primary bill sponsor was contacted on December 29, 2009, by regular mail.  For previous rule projects involving the same bill, the primary sponsor was given appropriate notice.



/s/  Cleo Anderson                            /s/  Dan R. Bucks

CLEO ANDERSON                          DAN R. BUCKS

Rule Reviewer                                   Director of Revenue


Certified to Secretary of State January 4, 2010


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