Montana Administrative Register Notice 42-1018 No. 4   02/28/2020    
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In the matter of the amendment of ARM 42.19.1235 pertaining to tax incentive for new or expanding industry










TO: All Concerned Persons


1. The Department of Revenue proposes to amend the above-stated rule.


2. The Department of Revenue will make reasonable accommodations for persons with disabilities who wish to participate in this rulemaking process or need an alternative accessible format of this notice. If you require an accommodation, contact the department no later than 5:00 p.m. on March 6, 2020, to advise us of the nature of the accommodation you need. Please contact Todd Olson, 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 todd.olson@mt.gov.


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



(1) The industrial plant owner An applicant must make application to the governing body of the affected taxing jurisdiction on a form provided by the department. The form shall include, among other information, a specific description of the improvement or modernized process for which specialized tax treatment is requested, the date when construction or installation is to commence or has commenced and the date when it is to be completed. In addition, the plant owner must provide a disclosure of other property tax benefits the property receives or for which application has been made.  The governing body of the affected taxing jurisdiction must approve the application and pass an approving resolution before tax benefits under 15-24-1402, MCA, can be received.

(2) In order to be considered for the current tax year, an application must be filed on the form available from the department on or before January March 1 of the tax year.

(3) The plant owner applicant must notify the department by sending a copy of the approved application described in (1) within 30 days after receiving approval from the affected taxing jurisdiction.

(4) remains the same.

(5) The department shall appraise the industrial plant applicant's property after expansion or modernization.

(6) remains the same.

(7) An industrial plant which applicant's property that qualifies for classification as new industrial property under 15-6-135, MCA, cannot qualify for a tax incentive pursuant to 15-24-1402, MCA, as new or expanding industry property defined in 15-24-1401, MCA.

(8) Additional expansion or modernization of an industrial plant property constructed in tax years subsequent to an expansion approved for tax incentives under 15-24-1402, MCA, does not qualify for an additional tax incentive unless an additional application is filed and an approving resolution passed.

(9) remains the same.


AUTH:  15-1-201, MCA

IMP:  15-6-135, 15-24-1401, 15-24-1402, MCA


REASONABLE NECESSITY:  The department proposes to amend ARM 42.19.1235(2) which is necessary to implement the application filing deadline date change amendments made to 15-24-1402, MCA, under Senate Bill 318, passed by the 2019 Montana Legislature. The department also proposes to amend (1) by removing a sentence pertaining to an industrial plant owner requirement to provide additional property tax benefit information to the department. This amendment is necessary because the sentence refers to an obsolete department business practice of confirming a property's tax benefits treatment in support of (7), and the sentence removal clarifies taxpayer requirements under the rule.

The department also proposes to make internal reference changes in (1), (3), (5), (7), and (8) by replacing the term "industrial plant owner," "industrial plant," or "plant owner" with "applicant," "applicant's property," and "property." The amendments are necessary because the tax incentive authorized under 15-24-1401, MCA, includes more than just industrial taxpayers, as the incentive could be applied to commercial, industrial, or centrally assessed taxpayers' new or expanding industries and providing updated references reflects the evolution of the incentive.


4. Concerned persons may submit their data, views, or arguments concerning the proposed action in writing to Todd Olson, 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 todd.olson@mt.gov and must be received no later than 5:00 p.m., March 30, 2020.


5. If persons who are directly affected by the proposed action wish to express their data, views, or arguments orally or in writing at a public hearing, they must make written request for a hearing and submit this request along with any written comments to the person named in 4 no later than 5:00 p.m., March 30, 2020.


6. If the agency receives requests for a public hearing on the proposed action from either 10 percent or 25, whichever is less, of the persons directly affected by the proposed action; from the appropriate administrative rule review committee of the Legislature; from a governmental subdivision or agency; or from an association having not less than 25 members who will be directly affected, a hearing will be held at a later date. Notice of the hearing will be published in the Montana Administrative Register.  Ten percent of those directly affected has been determined to be ten persons based on the number of taxpayers who were granted and paid taxes on property that was classified as "new and expanding," per 15-24-1401, MCA.


7. The department 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, e-mail, and mailing address of the person to receive notices and specifies for which program the person wishes to receive notices. Notices will be sent by e-mail unless a different mailing preference is noted in the request.  Such written request may be mailed or delivered to the contact person in 4 or may be made by completing a request form at any rules hearing held by the department.


8. An electronic copy of this notice is available through the Secretary of State's web site at sosmt.gov/arm/register.


9. The bill sponsor contact requirements of 2-4-302, MCA, apply and have been fulfilled. The primary bill sponsor was contacted by email on October 7, 2019 and February 18, 2020.


10. 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/ Todd Olson                                              /s/ Gene Walborn                                        

Todd Olson                                                   Gene Walborn

Rule Reviewer                                              Director of Revenue


Certified to the Secretary of State February 18, 2020.

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