Montana Administrative Register Notice 42-2-912 No. 15   08/07/2014    
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In the matter of the amendment of ARM 42.4.302 pertaining to the Montana elderly homeowner/renter tax credit calculation







TO: All Concerned Persons


1. On September 16, 2014, at 9 a.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 amendment of the above-stated rule. 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 August 25, 2014. Please contact Laurie Logan, Department of Revenue, Director's Office, P.O. Box 7701, Helena, Montana 59604-7701; telephone (406) 444-7905; fax (406) 444-3696; or e-mail lalogan@mt.gov.


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


42.4.302 COMPUTATION OF ELDERLY HOMEOWNER/RENTER TAX CREDIT (1) through (6) remain the same.

(7) If a claimant lives in a healthcare facility, long-term care facility, or a residential care facility as defined in 50-5-101, MCA, but does not provide an adequate breakdown between "rent" and "amenities" paid, the rent allowed will be limited to $20 a day. For claims for periods beginning after December 31, 2014, the rent allowed will be limited to $30 a day.


AUTH15-30-2620, MCA

IMP15-30-2340, 50-5-101, MCA


REASONABLE NECESSITY: The department proposes amending ARM 42.4.302(7) to specify that the daily calculation applies to residents of care facilities and not to traditional rental arrangements. The department further proposes amending the rule to increase the allowable rent from $20 to $30 per day for claims for periods beginning after December 31, 2014.

Originally set in 1993, the purchasing power of the $20 rent limit for long-term care has declined significantly over the past 20 years. If the rent limit had been adjusted each year to keep pace with rising prices in the overall economy due to inflation, the rent limit would have been $29.25 per day, or $10,676 per year, in calendar year 2013. Based on projections of inflation for calendar years 2014 and 2015, the rent limit would need to be $30.10 per day in 2015 to have a similar amount of purchasing power as the $20 per day limit had in 1993. Therefore, the department has determined it is reasonably necessary to amend the rule to increase the daily allowable claim limit.


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: Laurie Logan, Department of Revenue, Director's Office, P.O. 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 September 23, 2014.


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


6. 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 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.


7. An electronic copy of this notice is available on the department's web site at revenue.mt.govSelect the Administrative Rules link under the Other Resources section located in the body of the homepage, and open the Proposal Notices section within. 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.


8. The bill sponsor contact requirements of 2-4-302, MCA, do not apply.


9. With regard to the requirements of 2-4-111, MCA, the department has determined that the amendment of the above-referenced rule will not significantly and directly impact small businesses.


/s/ Laurie Logan                               /s/ Alan Peura, Deputy Director, acting for

LAURIE LOGAN                              MIKE KADAS

Rule Reviewer                                 Director of Revenue


Certified to the Secretary of State July 28, 2014.


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