BEFORE THE DEPARTMENT OF REVENUE
OF THE STATE OF MONTANA
In the matter of the amendment of ARM 42.21.158, 42.21.162, and 42.21.165 and the repeal of ARM 42.21.124 pertaining to personal property reporting requirements, personal property taxation dates, livestock reporting, and livestock per capita fee payments
NOTICE OF PUBLIC HEARING ON PROPOSED AMENDMENT AND REPEAL
TO: All Concerned Persons
1. On November 5, 2015, at 10:30 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 and repeal of the above-stated rules. The conference room is most readily accessed by entering through the east doors of the building facing Sanders Street.
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, advise the department of the nature of the accommodation needed, no later than 5 p.m. on October 26, 2015. 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 firstname.lastname@example.org.
3. The rules proposed to be amended provide as follows, new matter underlined, deleted matter interlined:
42.21.158 PERSONAL PROPERTY REPORTING REQUIREMENTS (1) remains the same.
(2) For the purposes of this rule, the statewide aggregate
taxable market value of a taxpayer's personal property includes all property owned, claimed, possessed, controlled, or managed by an individual or business entity, either directly or indirectly through an affiliated entity or family member, unless that property is specifically exempted by law.
(3) through (5) remain the same.
Starting in tax year 2014, the The department will apply the exemption and the applicable tax rates identified in (a) through (d) to an individual's or business entity's class eight property by adding together the statewide market value of class eight property owned by the individual or business entity to determine the aggregate market value. If the aggregate market value of class eight property is:
(a) through (8) remain the same.
B eginning in Tax Year 2014, personal Personal property owners whose aggregate class eight market value is $100,000 or less, as defined in (2), will have no further reporting obligation, except:
(a) and (b) remain the same.
(10) New businesses
that start up in tax year 2014, and after, are not required to submit a personal property statement/reporting form if the entity's business equipment is valued at $100,000 or less, unless requested by the department in accordance with (9).
(11) and (12) remain the same.
AUTH: 15-1-201, 15-9-101, MCA
IMP: 15-1-121, 15-1-303, 15-6-138, 15-6-201,15-6-202, 15-6-203, 15-6-206, 15-6-213, 15-6-215, 15-6-217, 15-6-218, 15-6-219, 15-6-220, 15-6-225, 15-6-228, 15-8-104, 15-8-301, 15-8-303, 15-8-309, 15-9-101,
15-24-902, 15-24-903, 15-24-904, 15-24-905, 15-24-3001, MCA
REASON: The department proposes amending ARM 42.21.158 to strike the word "taxable" from (2) to eliminate potential confusion with the end of the same section which states that some property may be tax exempt.
The department also proposes amending (6), (9), and (10), to remove outdated references to the year 2014 that are no longer needed in the rule.
The department further proposes striking four implementing statutes from the rule that no longer apply to the rule because they relate to livestock reporting, which is now a separate reporting process covered by separate administrative rules.
42.21.162 PERSONAL PROPERTY TAXATION DATES (1) and (2) remain the same.
(3) If the property has taxable situs in Montana on January 1 and the taxpayer is being assessed for the first time for the property, the application for exemption is due upon the later of March 1 or 30 days after
the assessment notice has been sent by the department acquisition of the property.
(4) through (7) remain the same.
AUTH: 15-1-201, 15-8-301, MCA
IMP: 15-6-201, 15-6-202,
15-6-211, 15-6-229, 15-6-230, 15-8-201, 15-8-301, 15-16-613, 15-24-301, 15-24-303, 15-24-3001, MCA
REASON: The department proposes amending ARM 42.21.162 as a matter of housekeeping to strike outdated language in (3) and replace it with language that reflects the current process. The due date for exemption applications is based on the date a property is acquired, not on an assessment date. The proposed amendment will make this section of the rule consistent with the remainder of the rule and also with the language in the department's other exemption related rules.
The department further proposes striking an implementing statute from the rule that was repealed with the enactment of Senate Bill 157, L. 2015, and adding 15-8-301, MCA, as both an authorization and an implementing statute that further supports this rule.
42.21.165 LIVESTOCK REPORTING
REQUIREMENTS AND PER CAPITA FEE PAYMENT (1) A person who raises or owns livestock in the state of Montana subject to the per capita fees under 15-24-921, MCA, and the requirement of a written statement under 15-24-903, MCA,
(1) A livestock owner or the livestock owner's agent must submit
a completed livestock reporting form.
(2) The completed a livestock reporting form, electronically or in writing, must be submitted to the department no later than March 1 annually. The department will inform the livestock owner of their obligation to complete and submit a livestock reporting form and advise the livestock owner that they are subject to penalty under the provisions of 15-8-309 and 15-24-904, MCA, for failure to submit the reporting form in a timely manner.
(2) The reporting form required in (1) must list the livestock type and count, by county, where livestock are located on February 1. For all poultry and bees, swine 3 months of age or older, and all other livestock 9 months of age or older, the livestock owner/producer shall report the number of animals within each of the following established categories:
(a) horses, mules, and asses (ponies, donkeys, burros);
(c) domestic bison;
(g) poultry (chickens, turkeys, geese, ducks, and other domestic birds raised as food or to produce feathers);
(h) bee hives or boards;
(i) alternative livestock (privately owned caribou, mule deer, whitetail deer, elk, moose, antelope, mountain sheep, mountain goats indigenous to Montana);
(j) ostriches, emus, and rheas; and
(k) llamas and alpacas.
(3) If a livestock owner fails to complete and submit a livestock reporting form during the time frame set forth in (2) the department may assess a $25 penalty under 15-8-309 and 15-24-904, MCA.
(3) Livestock owners that bring livestock into the state after February 1 of the current year are required to complete and submit a livestock reporting form to the department. The department will use the information provided by the livestock owner to mail them a reporting form in the following year.
(4) If a livestock owner who reported in the previous year(s) fails to submit a completed livestock reporting form by the March 1 deadline, the department
will shall use the owner's reported livestock counts from the previous year(s) to estimate the livestock numbers based upon the best information available type and count for the current year. The For livestock owners with livestock located on property owned by someone else that have not self-reported by the March 1 deadline, the department may utilize previously reported shall estimate the livestock numbers, brand inspections, or other available information as a basis for its estimation owner's livestock type and count based on the livestock numbers provided by the landowner.
(5) Statements submitted after the deadline in (2) may be assessed a penalty unless:
(a) the livestock owner provides evidence of their inability to comply due to hospitalization, physical illness, infirmity, or mental illness; and
(b) evidence that this/these conditions(s), while not necessarily continuous, existed at sufficient levels in the period of January 1 to March 1 to prevent timely filing of the reporting form.
(5) Effective in 2016, per capita livestock fee payments are due to the department by May 31 of the reporting year.
(6) The Montana Department of Livestock (DOL) has access to the department's livestock reporting and billing/payment data for compliance purposes. If the DOL determines that a livestock owner has not been reporting their livestock counts to the department as required, the DOL will provide the department with estimated livestock type and counts and the department will use this information to bill the livestock owner for the per capita livestock fees.
AUTH: 15-1-201, MCA
15-8-309, 15-24-903, 15-24-904 15-24-905, 15-24-921, 15-24-922, 15-24-925, 87-4-406, MCA
REASON: The department proposes amending ARM 42.21.165 based on the enactment of Senate Bill (SB) 62, L. 2015, which revised the livestock reporting and per capita fee payment process. The department also proposes removing outdated language from the rule and incorporating language from a related livestock rule into this one.
SB 62 revised the per capita fee payment due date from November 30 to May 31 each year, and the department proposes adding this new due date to the rule accordingly. The new legislation further removed the requirement that the Department of Livestock (DOL) provide monthly brand inspection reports to the department for reporting and billing compliance efforts. The department proposes adding language to the rule to explain the process that the DOL and the department will now use to ensure compliance with the reporting requirements.
The department also proposes adding helpful language to the rule based on 15-24-905, MCA, which requires owners of livestock brought into the state after February 1 of the current year to file a reporting form with the department. The new language is proposed as a method to explain what the department uses the reported information for. The department also proposes adding 15-24-905, MCA, to the rule as an implementing statute.
The department further proposes striking the penalty and exception language from the rule as a matter of housekeeping because the penalty provided for in 15-8-309, MCA, covers personal property and livestock is no longer considered personal property in 15-6-138, MCA.
Much of the remaining language proposed to be added to the rule was previously located in ARM 42.21.124, the per capita livestock reporting procedure rule. That rule is proposed to be repealed in this same notice in order to relocate the relevant information together with this livestock reporting rule to place the livestock information together. For example, the livestock category list previously in ARM 42.21.124 will become new (2) of this rule. The department proposes refining that category list, including updating the term "domestic ungulate" to "alternative livestock," as now defined in 87-4-406, MCA. The department also proposes adding 87-4-406, MCA, to the rule as an implementing citation in support of this language.
The department also proposes revising the rule title to properly reflect the new rule content as amended. The department further proposes striking two implementing statutes that no longer apply to the rule and adding three statutes that apply to the rule as amended to include the language from ARM 42.21.124.
4. The department proposes to repeal the following rule:
42.21.124 PER CAPITA LIVESTOCK TAX REPORTING PROCEDURE
AUTH: 15-1-201, MCA
IMP: 15-6-207, 15-24-921, 15-24-922, 15-24-925, MCA
REASON: The department proposes repealing ARM 42.21.124, which covers the livestock tax reporting procedure, and consolidating the content together with ARM 42.21.165, which covers livestock reporting requirements, to house all of the livestock information together in a single rule for efficiency.
5. 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 email@example.com and must be received no later than November 17, 2015.
6. Laurie Logan, Department of Revenue, Director's Office, has been designated to preside over and conduct this hearing.
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 that 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 a 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 5 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. An electronic copy of this notice is available on the department's web site at revenue.mt.gov/rules. 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 bill sponsor contact requirements of 2-4-302, MCA, apply and have been fulfilled. The primary sponsors of Senate Bill 157 and Senate Bill 62, Senator Bruce Tutvedt and Senator Taylor Brown, respectively, were contacted by letters on both July 6, 2015 and September 18, 2015.
10. With regard to the requirements of 2-4-111, MCA, the department has determined that the amendment and repeal of the above-referenced rules will not significantly and directly impact small businesses. Documentation of the department's determination is available at revenue.mt.gov/rules or upon request from the person in 5.
/s/ Laurie Logan /s/ Mike Kadas
Laurie Logan Mike Kadas
Rule Reviewer Director of Revenue
Certified to the Secretary of State October 5, 2015