Administrative Rules of the State of Montana

(1) Organization of the Department of Revenue.

(a) History. The Department of Revenue (department) was implemented under the Executive Reorganization Act of 1971 by executive order of the Governor on August 9, 1971. 2-15-1301, MCA.

(b) Divisions. The department is organized into a Director's Office and four divisions, each supervised by an administrator:

(i) Alcoholic Beverage Control Division;

(ii) Business and Income Taxes Division;

(iii) Citizen Services and Resource Management Division; and

(iv) Property Assessment Division.

(c) Director. The director is the chief administrative officer of the department. The director is appointed by and serves at the pleasure of the Governor, as set forth in 2-15-1302, MCA. The director is responsible for faithfully executing the laws and programs delegated to the department within the resources and authority assigned to it. The director has authority over all departmental activities and department employees.

(d) Deputy Director. The deputy director is the staff officer responsible for the management, leadership, and oversight of all programs within the Director's Office; and for assisting the director with the general oversight of the department. The deputy director serves as director in the director's absence.

(e) Division Administrator. A division administrator is the staff officer responsible for the management, leadership, and oversight of all programs within a division. The division administrator advises the director and deputy director on matters related to the resource management and administration of programs within the division and is responsible for policy and program development.

(2) Functions of Department Divisions.

(a) Director's Office:

(i) The Executive Office provides guidance and oversight for the department; administrative support for the director, deputy director, and other offices within the Director's Office; and coordinates the department's legislative and other processes.

(ii) The Fiscal Administration Office coordinates the administration of the department's budget; provides budget justification to executive and legislative officials; and provides department-wide planning, project management, and business analysis services.

(iii) The Human Resources and Organizational Development Office provides all human resource services including recruitment; labor relations; disciplinary investigation and action support; policy development; payroll functions; and employee skill enhancement.

(iv) The Information Technology Office develops, supports, and deploys approved software applications and equipment; and supports communication systems linking department operations.

(v) The Legal Services Office manages the overall legal efforts of the department, including advising the director and divisions; legal representation before various administrative agencies and state and federal courts; legislation development; and administrative rulemaking.

(vi) The Office of Dispute Resolution, established pursuant to 15-1-211, MCA, evaluates and facilitates the resolution of taxpayer disputes with the department.

(vii) The Office of Taxpayer Assistance, established pursuant to 15-1-223, MCA, assists in providing taxpayers understandable information related to taxes and department programs and evaluates and seeks to resolve complaints. The office also monitors and measures the effectiveness of department activities.

(viii) The Security Office is responsible for the information and technology security of the department; manages inquiries from other taxing jurisdictions, state agencies, and private citizens; oversees and manages security controls and access to the department's various technology applications and equipment; and serves as the department's liaison with the Internal Revenue Service.

(ix) The Tax Research, Information, and Policy Office prepares fiscal notes; analyzes legislative proposals for impact on state revenues and on the department; analyzes rulemaking proposals for impact on small businesses; and researches and analyzes economic, public finance, tax compliance, and operations data for the department. The office responds to information requests from the public and the media; develops and coordinates the department's internal and external communications; composes, reviews, and edits documents; and trains department staff to ensure effective communication.

(b) Alcoholic Beverage Control Division. The division consists of three bureaus and is responsible for administering the alcoholic beverage code with an emphasis on excellence in customer service and a focus on public safety by ensuring a safe, orderly, and regulated system for the convenient distribution and responsible consumption of alcoholic beverages. The division also collects alcoholic beverage taxes. The Liquor Distribution Bureau oversees the warehousing, inventory, and shipping of distilled spirits and fortified wines to agency liquor stores. The Liquor Licensing Bureau oversees the licensing of on-premises and off-premises businesses, manufacturers, wholesalers, warehouses, importers, and liquor representatives. The Liquor Operations Bureau oversees the day-to-day operations of the division, administers Montana's responsible server training law, and provides information to protect public health and safety.

(c) Business and Income Taxes Division. The division consists of two bureaus and is responsible for ensuring equitable compliance with the nearly forty state-collected Montana taxes assigned to the department. Examples include, but are not limited to, individual income, corporation income, natural resource, withholding, selected sales and excise taxes, and other miscellaneous taxes. The division also appraises industrial and centrally assessed property. The division manages the state's participation in the cooperative federal mineral royalty auditing program and administers abandoned property, escheated estates, and unlocatable mineral trusts. Further, the division administers a set of nonrevenue functions related to utility and tobacco regulation. The division includes the Income and Withholding Tax and the Business Tax and Valuation Bureaus.

(d) Citizen Services and Resource Management Division. The division consists of three bureaus and provides support services internally and to taxpayers to aid in voluntarily complying with tax laws. The Collections Bureau collects delinquent department receivables, debts owed to other state agencies and other local government entities. The Citizen Services, Financial, and Asset Management Bureau responds to citizen inquiries through the call center; designs forms and instructions to aid taxpayer compliance; coordinates small business licensing for multiple agencies; and distributes abandoned property to its rightful owners. The bureau includes the accounting unit that ensures state tax revenues and department expenses are properly accounted for; and distributes revenues to state funds, local governments, and tribal governments. The bureau also supports department operations statewide by managing facilities and conducting safety, disaster preparedness, and continuity of government functions. The Information Management Bureau processes tax information, returns, and payments, and ensures the integrity and security of that data. The bureau also maintains and advances electronic alternatives for submission of data to meet the changing demands of tax compliance.

(e) Property Assessment Division. The division is comprised of a central office located in Helena, four regional areas, and field offices located throughout the state. The division is responsible for the equitable valuation of all taxable real and personal property for property tax purposes and for the administration of property tax laws, including exemptions. The division annually provides the total value of taxable property to local governments for their mill levy calculations and tax billing processes. The division's functions are:

(i) The central office is responsible for the general management of the division and provides administrative and technical support to the field offices. The central office's computer assisted mass appraisal (CAMA) unit provides primary management and support for the mass appraisal and related data systems.

(ii) The field offices are located throughout the state and provide customer service and assistance to the public and local governments, conduct property reviews, collect and analyze property data, conduct quality assurance, and update property and ownership records.

(3) Advisory Committees. Two advisory committees are statutorily attached to the department for administrative purposes only. The Agricultural Land Valuation Advisory Committee, with members appointed by the Governor, was created under the authority of 15-7-201, MCA. The Forest Lands Taxation Advisory Committee, with members appointed by the Governor and legislative leaders, was created under the authority of 15-44-103, MCA. The committees have no rulemaking or adjudicating authority.

(4) Attached Board. The Board of Review, established by 30-16-302, MCA, is attached to the department for administrative purposes only. The board oversees the eStop Business Licenses Program and has separate rulemaking authority under 30-16-104, MCA.

(5) Information and Submissions. General inquiries regarding the department may be addressed to the department's director or the deputy director. Specific inquiries regarding the functions of the divisions may be addressed to the division administrator. All requests for hearings, declaratory rulings, and participation in rulemaking activities may be addressed to the Director's Office.

(6) Personnel Roster. Director and division addresses:

Director and Deputy Director