BEFORE THE DEPARTMENT OF REVENUE
OF THE STATE OF MONTANA
In the matter of the adoption of New Rule I relating to property tax abatement for gray water systems
TO: All Concerned Persons
1. On April 16, 2012, at 11:00 a.m., a public hearing will be held in the Third Floor Reception Area Conference Room of the Sam W. Mitchell Building, in Helena, Montana, to consider the adoption 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., April 6, 2012, 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) 444-4375; or e-mail firstname.lastname@example.org.
3. The proposed new rule does not replace or modify any section currently found in the Administrative Rules of Montana. The proposed new rule provides as follows:
NEW RULE I APPLICATIONS FOR PROPERTY TAX ABATEMENT FOR GRAY WATER SYSTEMS (1) To be eligible for a gray water system tax abatement, the property must have a gray water system in compliance with 75-5-305, 75-5-325, 75-5-326, and 75-5-327, MCA, and be either:
(a) a newly constructed residential dwelling; or
(b) a newly constructed multiple dwelling project. A multiple dwelling project must be a single or multiunit structure for a minimum of 25 occupants.
(2) Eligible residential or multiple dwelling projects may receive an abatement of nine percent of their taxable market value during the course of construction and for ten years following their date of completion.
(3) The property owner of record, or the property owner's agent, must file an application for property tax abatement on a form available from the local department field office.
(4) To be eligible, an application must be filed with the local department field office no later than one year after the project's completion date.
(5) An application for property under construction received on or before April 15 will be effective for the current and following ten tax years.
(6) An application for a completed project received on or before April 15 will be effective for the current and following nine tax years.
(7) An application for a completed project received after April 15 of the current tax year will not be effective for the current tax year, but will be effective for the following nine tax years.
(8) Certification from the local health board must accompany the application. The certification must:
(a) state that the property is under construction and includes an eligible gray water system, or that the property has been constructed with an eligible gray water system;
(b) identify the property owner;
(c) identify the property by its legal description; and
(d) identify an estimated date of completion.
(9) The one-year period for applying for an abatement for a multiple dwelling project begins:
(a) upon the completion of the residential units; or
(b) after the completion of the first residential unit if construction occurs over a multiyear period.
AUTH: 15-1-201, MCA
IMP: 15-24-3201, 15-24-3202, 15-24-3203, 15-24-3204, 75-5-305, 75-5-325, 75-5-326, 75-5-327, MCA
REASONABLE NECESSITY: The department is proposing to adopt New Rule I to properly implement Senate Bill 265 (Title 15, chapter 24, part 32, MCA), as enacted by the 2011 Legislature, which establishes a tax abatement for gray water systems for newly constructed residences and newly constructed multiple dwelling projects.
The proposed rule is necessary to make the operation requirements and timeline of this law clear and understandable for taxpayers; local governments; those engaged in the construction of gray water systems; and local health boards and their staff.
Further, the proposed rule is necessary to harmonize the granting of the abatements with the annual process of constructing the property tax rolls for local government, so that the abatement process does not complicate or delay the annual certification of values to the counties.
Finally, the proposed rule is necessary to protect the right of taxpayers to appeal an abatement denial on a reasonable timely basis in relation to the date of the certification of values.
Sections (1) and (2) identify which properties are eligible for the nine percent tax abatement during the course of construction and for ten years following their date of completion.
Section (3) informs the property owner that they must file for the abatement on an application form that is available at the local department field office.
Section (4) specifies that the tax abatement is not available unless the property taxpayer files for the abatement within one year after the construction is complete.
Sections (5), (6), and (7) provide deadlines for receiving an application for the tax abatement and provide for how each deadline affects the length of the abatement.
Section (8) lists what information in the form of a certification from the local board of health must accompany the application.
Section (9) specifies when the one-year application period begins for a multiple dwelling project.
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) 444-4375; or e-mail email@example.com and must be received no later than April 20, 2012.
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 is available on the department's web site at www.revenue.mt.gov. Select the "Legal Resources" link in the left hand column, and click on the "Rules" link within to view the options under the "Current Rulemaking Actions – Published Notices" heading. The department strives to make the electronic copy of this notice 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. While the department also strives to keep its web site accessible at all times, in some instances it may be temporarily unavailable 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 notice 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) 444-4375, 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 sponsor of Senate Bill 265, L. 2011, Senator Bradley Maxon Hamlett, was notified by regular mail on December 15, 2011, and subsequently notified by electronic mail on March 2, 2012.
/s/ Cleo Anderson /s/ Dan R. Bucks
CLEO ANDERSON DAN R. BUCKS
Rule Reviewer Director of Revenue
Certified to Secretary of State March 12, 2012