(1) Machine owner quarterly reporting requirements are as follows:
(a) For each machine not utilizing an approved automated accounting and reporting system, the machine owner or his designated representative must file with the department a quarterly tax report signed by the machine owner or his designated representative. The forms prescribed and supplied by the department require readings from the mechanical and electronic meters as required by the act. The report will be used by the department to verify payment of all taxes and the winning percentage of the machine as required by the act. The following requirements apply:
(i) The report must be delivered to the Gambling Control Division, 2550 Prospect Ave., P.O. Box 201424, Helena, MT 59620-1424, or bear a United States postal service postmark not later than midnight of the 15th of the month following the quarters ending March 31, June 30, September 30, and December 31.
(ii) The mechanical and electronic meter readings must be taken at the same time and recorded for the report within seven days of the close of the operator's last day of business in the reporting quarter. The readings must be supported by the original printed accounting ticket.
(iii) The report is due on each machine after it has been permitted.
(b) For each machine utilizing an approved automated accounting and reporting system, the machine owner or his designated representative shall transmit files to the department with the following information:
(i) for tier I systems, all electronic meter readings and all events set out in ARM 23.16.2105 for each day the machine is in operation, and the last set of meter readings received before the end of the quarter (meter readings received no more than seven days before the end of the quarter) will be used as quarter end readings for purpose of calculating a tax advisory to be sent to machine owners;
(ii) for tier II systems, all electronic meter readings for each week or two week period for which the machine is approved to report, and within 14 days prior to the end of the quarter but not later than seven days after the last day of each quarter, all electronic and mechanical meter readings, along with an indication that it is the last reading to be reported in the quarter; and
(iii) for tier II systems, before- and after-service electronic and mechanical meter readings must be submitted in a format prescribed by the department, if meters are reset or malfunction.
(c) For machines utilizing an approved automated accounting and reporting system, after the final set of meter readings for the quarter is received, the department will electronically transmit a machine income and tax advisory by machine and location to the machine owner. Upon receipt of the machine income and tax advisory, the owner must contact the department within seven days in order to dispute the machine income and tax advisory.
(d) The machine owner will have until midnight of the 15th day of the month following the quarters ending March 31, June 30, September 30, and December 31 to confirm and pay any tax due by electronic check or credit/debit card.
(2) If a machine owner shares machine ownership, or a machine's revenues with another person or business entity, the machine owner or his designated representative must provide upon the same quarterly tax form prescribed by the department in (1), information for each machine as follows:
(a) full identification including name, address, and social security number (or federal identification number) of all persons or business entities involved in the above-mentioned business relationship;
(b) percentages of participation in machine income by each person or business entity involved in the above-mentioned business relationship; and
(c) specific machine income (total collections less amounts paid to players without adjustment for expenses) paid to and/or received by each person or business entity involved in the above-mentioned business relationship.
(3) Form 6 is a quarterly video gambling machine tax report; Form 6 is incorporated by reference and is available from the Gambling Control Division, 2550 Prospect Ave., P.O. Box 201424, Helena, MT 59620-1424, or on the department's web site www.dojmt.gov/gaming.
(4) For the purposes of this rule the term theft includes the physical break-in or entry into the video gambling machine, or manipulation of the machine by external means, resulting in the accumulation of credits available for redemption without the insertion of money. If the gross income reported for a machine has been reduced to reflect a loss resulting from a theft from the machine, the machine owner or his designated representative shall submit the following information together with the quarterly report:
(a) documentation from a law enforcement agency verifying that the theft was reported;
(b) a letter or other document signed by the machine owner's business insurance agent indicating the amount paid or to be paid, if any, by the insurer to cover the loss resulting from the theft; and
(c) the last cash-access accounting ticket generated before the theft occurred and the first cash-access accounting ticket generated after the theft occurred. The tickets will be used by the department to calculate the maximum amount that may be deducted for a loss resulting from a theft.
(d) In all cases the theft loss must be supported by records required in ARM 23.16.1827.
(5) If the machine owner or his designated representative fails to file the quarterly tax report or remit the required gross machine income tax when due, the following penalties will be assessed:
(a) 0 - 30 days late = 10% of tax due;
(b) 31 - 60 days late = 25% of tax due;
(c) 61 - 90 days late = 50% of tax due;
(d) 91 days or more = 100% of tax due.
(6) The imposition of these penalties does not preclude the department from taking further action against the machine owner responsible for preparing the report, including, but not limited to, temporary cease and desist orders under 23-5-136, MCA.