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Montana Administrative Register Notice 42-2-906 No. 1   01/16/2014    
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BEFORE THE DEPARTMENT OF REVENUE

OF THE STATE OF MONTANA

 

In the matter of the adoption of New Rule I pertaining to property records and the amendment of ARM 42.19.1401, 42.19.1403, 42.19.1404, 42.19.1407, 42.19.1410, and 42.19.1412, and repeal of ARM 42.19.1405 and 42.19.1406 pertaining to local government tax increment financing districts

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NOTICE OF PUBLIC HEARING ON PROPOSED ADOPTION, AMENDMENT, AND REPEAL

 

TO: All Concerned Persons

 

1. On February 6, 2014, at 1:30 p.m., the Department of Revenue will hold a public hearing in the Third Floor Reception Area Conference Room of the Sam W. Mitchell Building, located at 125 North Roberts, Helena, Montana, to consider the proposed adoption, amendment, and repeal of the above-stated rules. The conference room is most readily accessed by entering through the east doors of the building.

 

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, please advise the department of the nature of the accommodation needed, no later than 5 p.m. on January 27, 2014. Please contact Laurie Logan, Department of Revenue, Director's Office, PO Box 7701, Helena, Montana 59604-7701; telephone (406) 444-7905; fax (406) 444-3696; or lalogan@mt.gov.

 

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 OFFICIAL RECORD FOR REAL AND PERSONAL PROPERTY (1) The real property record and personal property record located in the Computer Assisted Mass Appraisal System (CAMAS) is the department's official record.

(2) The current year of the appraisal cycle and the latest version of the property record in CAMAS is the most current data.

(3) Historical or hard copies of property record cards, field notes, or residential or commercial data collection documents are not considered part of the official record unless recorded as such in the current year of the appraisal cycle and on the most recent electronic version of the property record.

 

AUTH: 15-1-201, 15-7-306, MCA

IMP: 15-7-304, MCA

 

REASONABLE NECESSITY: The department proposes to adopt New Rule I in response to a recommendation by the Legislative Audit Division following the department's conversion to its new Computer Assisted Mass Appraisal System (CAMAS) in 2008.

The previous computer system required the department to maintain hard copies of all valuation information. However, CAMAS allows the department to maintain all property valuation information electronically.

With CAMAS to capture and store all relevant data, the department no longer updates the hard copy records and instead records all updates only on the electronic record maintained for each parcel. As such, the electronic record in the department's CAMAS contains the most current valuation information for the purposes of property tax assessments, tax collection, and funding of all taxing jurisdictions, and is regarded by the department as the official record.

While the department may also retain existing property record cards, field notes, or other printed materials for informational or historical purposes, those physical records may become outdated over time and not necessarily represent the most current characteristics of the property as found in the official electronic version.

 

4. The rules proposed to be amended provide as follows, stricken matter interlined, new matter underlined:

 

42.19.1401 DEFINITIONS The following definitions apply to this subchapter:

(1) remains the same.

(2) "Targeted economic development district (TEDD)" means a district created pursuant to 7-15-4279, MCA, that contains a provision for tax increment financing as provided for in 7-15-4282, MCA.

(2)(3) "Tax increment financing district (TIFD)" means the area within the external boundaries of an urban renewal district (URD) area, industrial district, technology district, or aerospace transportation and technology district or a targeted economic development district (TEDD) that:

(a) has been legally created pursuant to the provisions of Title 7, chapter 15, parts 42 and 43 7-15-4282, MCA; and

(b) contains a provision for the use of tax increment financing.

(4) "Urban renewal district (URD)" means a district created pursuant to 7-15-4202 through 7-15-4218 and 7-15-4280 through 7-15-4284, MCA, that contains a provision for tax increment financing as provided for in 7-15-4282, MCA.

(3) remains the same but is renumbered (5).

 

AUTH: 15-1-201, MCA

IMP: 7-15-4202, 7-15-4203, 7-15-4204, 7-15-4205, 7-15-4206, 7-15-4207, 7-15-4208, 7-15-4209, 7-15-4210, 7-15-4211, 7-15-4212, 7-15-4213, 7-15-4214, 7-15-4215, 7-15-4216, 7-15-4217, 7-15-4218, 7-15-4279, 7-15-4280, 7-15-4281, 7-15-4282, 7-15-4283, 7-15-4284, MCA

 

REASONABLE NECESSITY: The department proposes to amend ARM 42.19.1401 to define terms used in rules within this subchapter that are being amended to implement Senate Bill 239, L. 2013, which generally revised tax increment financing districts. The department further proposes to update the implementing statutes for the rule accordingly.

 

42.19.1403 NEW URBAN RENEWAL DISTRICTS (URD) TAX INCREMENT FINANCING DISTRICTS – INFORMATION REQUIRED TO ENABLE THE DEPARTMENT TO CERTIFY BASE TAXABLE VALUE (1) The department will certify the base taxable value of a newly created urban renewal TIFD URD if the department determines that the following information exists and has been provided to the department:

(a) remains the same.

(b) a copy of the resolution of necessity required by 7-15-4210, MCA, adopting the statement of blight. The resolution must have an effective date prior to the date on which the TIFD URD is created;

(c) a map representing the TIFD's URD's boundary including a legal description of the TIFD URD;

(d) through (i) remain the same.

(j) the name of the TIFD URD; and

(k) a list of the geocodes for all real property, the assessor codes for all personal property, and a description of all centrally assessed property located within the TIFD URD at the time of its creation.

(2) The local government that has created the TIFD URD will provide the information described in (1) to the department when it notifies the department that the TIFD URD has been created.

(3) The department will not certify the base taxable value of a newly created URD if the district crosses any school district boundary.

 

AUTH: 15-1-201, MCA

IMP: 7-15-4202, 7-15-4210, 7-15-4215, 7-15-4216, 7-15-4282, 7-15-4284, MCA

 

REASONABLE NECESSITY: The department proposes to amend ARM 42.19.1403 to implement Senate Bill 239, L. 2013, which generally revised tax increment financing districts. The proposed amendments improve efficiency and accuracy in the administration of urban renewal districts and add clarity to the rule with the addition of new (3). The department further proposes to revise the title of the rule to remove the term tax increment finance district and to add in the acronym URD.

 

42.19.1404 INDUSTRIAL TAX INCREMENT FINANCING NEW TARGETED ECONOMIC DEVELOPMENT DISTRICTS (TEDD) – INFORMATION REQUIRED TO ENABLE THE DEPARTMENT TO CERTIFY BASE TAXABLE VALUE (1) The department will certify the base taxable value of a newly created industrial TIFD TEDD if the department determines that the following information exists and has been provided to the department:

(a) a copy of the local government's finding that the property within the TIFD TEDD consists of a continuous area with an accurately described boundary;

(b) a copy of the ordinance zoning the area within the TIFD for light or heavy industrial use local government's finding that the area within the TEDD is large enough to host a diversified base of multiple independent tenants;

(c) evidence a copy of the local government's finding that the zoning within the TIFD TEDD is in accordance with the local government's growth policy as defined in 76-1-103, MCA;

(d) a copy of the local government's growth policy;

(d)(e) a copy of the local government's finding that the property within the TIFD TEDD is not included within an existing urban renewal tax increment financing district;

(e)(f) a copy of the local government's finding, adopted prior to the creation of the TEDD, that the area within the TIFD TEDD is deficient in infrastructure necessary to encourage and retain value-adding industry improvement for industrial development, including any documentation upon which the finding of deficiency is based;

(f) a copy of the local government's growth policy;

(g) copies of all documentation upon which the local government's finding of deficiency was based;

(h) a copy of the local government's comprehensive development plan that:

(i) was adopted prior to the creation of the TEDD;

(ii) identifies the use and purpose for which the TEDD was created;

(iii) ensures that the area within the TEDD is large enough to host a diversified base of multiple tenants and was not designed to serve the need of a single tenant; and

(iv) is in conformance with the local government's growth policy; 

(g)(i) a copy of the notice of public hearing required under 7-15-4299, MCA;

(h)(j) a certified copy of the ordinance approving the industrial district TEDD and the tax increment financing provision pursuant to 7-15-4284, MCA;

(i)(k) a map representing the TIFD's TEDD's boundary including a legal description of the TIFD TEDD;

(j)(l) the name of the TIFD TEDD; and

(k)(m) a list of the geocodes for all real property, the assessor codes for all personal property, and a description of all centrally assessed property located within the TIFD TEDD at the time of its creation.

(2) The local government that has created the TIFD TEDD will provide the information described in (1) to the department when it notifies the department that the TIFD TEDD has been created.

(3) The department will not certify the base taxable value of a newly created TEDD if the district crosses any school district boundary.

 

AUTH: 15-1-201, MCA

IMP: 7-15-4282, 7-15-4284, 7-15-4299, 76-1-103, MCA

 

REASONABLE NECESSITY: The department proposes to amend ARM 42.19.1404 to implement Senate Bill 239, L. 2013, which generally revised tax increment financing districts. The proposed amendments improve efficiency and accuracy in the administration of the targeted economic development districts, add clarity to the rule with the addition of new (3), and add an implementing citation that corresponds with an amendment to (1)(c). The department further proposes to revise the title of the rule to refer to the term "targeted economic development district" and to include the acronym TEDD.

 

42.19.1407 DETERMINATION OF BASE YEAR TAXABLE VALUE OF A NEWLY CREATED TIFD TAX INCREMENT FINANCING DISTRICT (TIFD) (1) The base year taxable value for the tax increment financing district (TIFD) TIFD will be determined as follows:

(a) If the notice or supporting documentation, or both, required by ARM 42.19.1403 through 42.19.1406 and 42.19.1404 is received by the department on or before February 1 of the calendar year following the creation of a valid TIFD, the department will determine the base year taxable value of the district as of January 1 of the calendar year in which the valid TIFD was created.

(b) If the notice or supporting documentation, or both, required by ARM 42.19.1403 through 42.19.1406 and 42.19.1404 is received after February 1 of the calendar year following the creation of a valid TIFD, the department will calculate the base year taxable value of the district as of January 1 of the year in which the documentation was received. In these instances, the base year will be reported to the affected taxing jurisdictions by the first Monday in August of the calendar year following receipt of the notification.

(c) remains the same.

 

AUTH: 15-1-201, MCA

IMP: 7-15-4284, 7-15-4285, 15-10-420, MCA

 

REASONABLE NECESSITY: The department proposes to amend ARM 42.19.1407 to remove references to ARM 42.19.1405 and 42.19.1406, which are being repealed based on the passage of Senate Bill 239, L. 2013. The department further proposes to revise the rule title and content to include the acronym TIFD for consistency with the use of acronyms in other rules in the same chapter.

 

42.19.1410 INFORMATION REQUIRED BY THE DEPARTMENT TO CERTIFY BASE YEAR TAXABLE VALUES OF AN AMENDED OR CHANGED TAX INCREMENT FINANCE FINANCING DISTRICT (TIFD) (1) The department will certify the base year taxable values of an amended or changed TIFD if the department determines, as it relates to property that is added to a TIFD, that the following information exists:

(a) if the amended district is an urban renewal TIFD a URD, the evidence required by ARM 42.19.1403; and

(b) if the amended district is an industrial TIFD a TEDD, the evidence required by ARM 42.19.1404;.

(c) if the amended district is a technology TIFD, the evidence required by ARM 42.19.1405; and

(d) if the amended district is an aerospace technology and transportation TIFD, the evidence required by ARM 42.19.1406.

 

AUTH: 15-1-201, MCA

IMP: 7-15-4282, 7-15-4284, 7-15-4285, 15-10-420, MCA

 

REASONABLE NECESSITY: The department proposes to amend ARM 42.19.1410 to implement Senate Bill 239, L. 2013, which generally revised tax increment financing districts. The proposed amendments eliminate references to the terms aerospace technology and transportation accordingly and adds the commonly referenced acronym TIFD to the rule title.

 

42.19.1412 REPORTING OF ISSUANCE OF BONDS OR RETIREMENT OF BONDS (1) To allow the department to determine the value of the newly taxable property as required under 15-10-420, MCA, a local governing body that authorizes urban renewal URD bonds, industrial infrastructure development bonds, aerospace transportation and technology infrastructure development bonds, technology infrastructure development TEDD bonds, or refunding bonds shall, no later than February 1 of each year, provide the department with a copy of each resolution or ordinance required under 7-15-4301, MCA.

(2) A local governing body that retires any bonds secured by tax increment, shall, no later than February 1 of each year, notify the department of the retirement.

(3) The documentation required by this rule shall be mailed to the Department of Revenue Legal Services Office at P.O. PO Box 7701, Helena, MT 59604-7701, with a copy to the Property Assessment Division at P.O. PO Box 8018, Helena, MT 59604-8018.

 

AUTH: 15-1-201, MCA

IMP: 7-15-4282, 7-15-4284, 7-15-4286, 7-15-4290, 7-15-4301, 15-10-420, MCA

 

REASONABLE NECESSITY: The department proposes to amend ARM 42.19.1412 to implement Senate Bill 239, L. 2013, which generally revised tax increment financing districts. The proposed amendments eliminate references to the terms aerospace transportation and technology infrastructure accordingly, incorporate the use of acronyms into the rule content, and update punctuation.

 

5. The department proposes to repeal the following rules:

 

42.19.1405 NEW TECHNOLOGY TAX INCREMENT FINANCING DISTRICTS – INFORMATION REQUIRED TO ENABLE THE DEPARTMENT TO CERTIFY BASE TAXABLE VALUE which can be found on page 42-1988 of the Administrative Rules of Montana.

 

AUTH: 15-1-201, MCA

IMP: 7-15-4216, 7-15-4282, 7-15-4284, 7-15-4295, MCA

 

REASONABLE NECESSITY: The department proposes to repeal ARM 42.19.1405 because new technology tax increment financing districts were eliminated from statute with the passage of Senate Bill 239, L. 2013, which generally revised tax increment financing districts.

 

42.19.1406 NEW AEROSPACE TRANSPORTATION AND TECHNOLOGY TAX INCREMENT FINANCING DISTRICTS – INFORMATION REQUIRED TO ENABLE THE DEPARTMENT TO CERTIFY BASE TAXABLE VALUE which can be found on page 42-1989 of the Administrative Rules of Montana.

 

AUTH: 15-1-201, MCA

IMP: 7-15-4216, 7-15-4282, 7-15-4284, 7-15-4296, MCA

 

REASONABLE NECESSITY: The department proposes to repeal ARM 42.19.1406 because new aerospace transportation and technology tax increment financing districts were eliminated from the statute with the passage of Senate Bill 239, L. 2013, which generally revised tax increment financing districts.

 

6. 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: Laurie Logan, Department of Revenue, Director's Office, PO Box 7701, Helena, Montana 59604-7701; telephone (406) 444-7905; fax (406) 444-3696; or e-mail lalogan@mt.gov and must be received no later than February 13, 2014.

 

7. Laurie Logan, Department of Revenue, Director's Office, has been designated to preside over and conduct the hearing.

 

8. An electronic copy of this notice is available on the department's web site at revenue.mt.gov. Select the "Resources" tab at the top of the homepage and then locate the "Proposal Notices - Hearing Information" section below. 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.

 

9. 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. A written request may be mailed or delivered to the person in number 6 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.

 

10. The bill sponsor contact requirements of 2-4-302, MCA, apply and have been fulfilled. The primary sponsor of Senate Bill 239, L. 2013, Senator Edward Buttrey, was notified by regular mail on June 21, 2013, and subsequently notified by regular mail on December 4, 2013.

 

11. With regard to the requirements of 2-4-111, MCA, the department has determined that the proposed new, amended, and repealed rules contained in this notice will not significantly and directly impact small businesses.

 

 

/s/ Laurie Logan                               /s/ Alan Peura acting for

LAURIE LOGAN                              MIKE KADAS

Rule Reviewer                                 Director of Revenue

 

Certified to the Secretary of State January 6, 2014

 
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