BEFORE THE DEPARTMENT OF REVENUE

OF THE STATE OF MONTANA

 

In the matter of the amendment of ARM 42.4.1202, 42.21.158, and 42.21.162 and the repeal of ARM 42.4.1601, 42.4.1602, 42.4.1603, 42.4.1604, 42.4.1605, 42.4.1606, 42.4.1607, 42.4.1608, 42.4.1609, 42.4.1610, 42.4.1611, and 42.4.1612 pertaining to the electrical generation and transmission facility exemptions and new or expanded industry credit for corporate income taxes

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NOTICE OF PROPOSED AMENDMENT AND REPEAL   NO PUBLIC HEARING CONTEMPLATED

 

TO: All Concerned Persons

 

1. The Department of Revenue proposes to amend and repeal the above-stated rules.

 

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 5:00 p.m., December 17, 2021 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. GENERAL STATEMENT OF REASONABLE NECESSITY The 67th Montana Legislature enacted Senate Bill 35 (SB 35) which, among other things, repealed the electrical generation and transmission facility exemption provided in 15-24-3001, MCA, and the tax computation rollback provided in 15-24-3002, MCA, both of which expired in 2016. Similarly, Senate Bill 45 (SB 45) repealed the new or expanded industry credit for corporate income taxes which the 2019-2020 Revenue Interim Committee determined should be discontinued due to underutilization since its creation in 1975.

Based on the passage of SB 35 and SB 45, the department finds it necessary to propose the amendment and repeal of the above-stated rules to reflect the passage of the legislation. All amendments remove singular statutory references from each rule's implementing authority. The repealed rules reflect SB 45's repeal of the rules' primary authorizing statute: 15-31-127, MCA.

 

4. The rules as proposed to be amended provide as follows, new matter underlined, deleted matter interlined:

 

42.4.1202 APPLICATION OF CREDITS AGAINST CORPORATE INCOME TAX LIABILITY (1) through (4) remain the same.

 

AUTH: 15-31-501, MCA

IMP: 15-30-2320, 15-30-2326, 15-30-2380, 15-31-125, 15-31-130, 15-31-131, 15-31-132, 15-31-134, 15-31-150, 15-31-151, 15-31-161, 15-31-171, 15-32-115, 15-32-402, 15-32-503, 15-32-602, 15-32-701, 15-32-703, 15-50-207, 17-6-316, MCA

 

42.21.158 PERSONAL PROPERTY REPORTING REQUIREMENTS

(1) through (13) remain the same.

 

AUTH: 15-1-201, 15-9-101, MCA

IMP: 15-1-121, 15-1-123, 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, 15-24-3001, MCA

 

42.21.162 PERSONAL PROPERTY TAXATION DATES (1) through (7) remain the same.

 

AUTH: 15-1-201, 15-8-301, MCA

IMP: 15-6-201, 15-6-202, 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

 

5. The department proposes to repeal the following rules:

 

42.4.1601 DEFINITIONS 

 

AUTH: 15-31-127, 15-31-501, MCA

IMP: 15-8-111, 15-31-125, MCA

 

42.4.1602 CREDIT FOR NEW OR EXPANDING CORPORATIONS

 

AUTH: 15-31-127, 15-31-501, MCA

IMP: 15-31-124, MCA

 

42.4.1603 PERIOD OF ELIGIBILITY 

 

AUTH: 15-31-127, 15-31-501, MCA

IMP: 15-31-124, 15-31-125, MCA

 

42.4.1604 MANUFACTURING

 

AUTH: 15-31-127, 15-31-501, MCA

IMP: 15-6-225, 15-31-124, MCA

 

42.4.1605 NEW CORPORATION 

 

AUTH: 15-31-127, 15-31-501, MCA

IMP: 15-31-124, MCA

 

42.4.1606 EXPANDING CORPORATION 

 

AUTH: 15-31-127, 15-31-501, MCA

IMP: 15-31-124, MCA

 

42.4.1607 COMPLIANCE WITH CERTAIN STATUTES REQUIRED 

 

AUTH: 15-31-127, 15-31-501, MCA

IMP: 15-31-125, MCA

 

42.4.1608 SUBMISSION OF EMPLOYEE LISTS 

 

AUTH: 15-31-127, 15-31-501, MCA

IMP: 15-31-125, MCA

 

42.4.1609 DETERMINATION OF NEW JOBS 

 

AUTH: 15-31-127, 15-31-501, MCA

IMP: 15-31-125, MCA

 

42.4.1610 DETERMINATION OF WAGES 

 

AUTH: 15-31-127, 15-31-501, MCA

IMP: 15-31-125, MCA

 

42.4.1611 AVAILABILITY OF TAX CREDIT

 

AUTH: 15-31-127, 15-31-501, MCA

IMP: 15-31-125, MCA

 

42.4.1612 WHEN CREDIT MAY BE CLAIMED 

 

AUTH: 15-31-127, 15-31-501, MCA

IMP: 15-31-125, MCA

 

6. Concerned persons may submit their data, views, or arguments concerning the proposed actions 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 January 13, 2022.

 

7. 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 #6 no later than 5:00 p.m., January 13, 2022.

 

8. 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.  The number of requests necessary for the department to conduct a public hearing is 25 because the number of persons affected by the proposed action is estimated to be zero since the SB 35 tax credit expired in 2016, the department received no claims for the SB 45 tax credits in recent years, and there was no opposition to the legislation.

 

9. 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 6 above or may be made by completing a request form at any rules hearing held by the department.

 

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

 

11. The bill sponsor contact requirements of 2-4-302, MCA, apply and have been fulfilled. The primary bill sponsors of SB 35 and SB 45, Senators Hoven and Blasdel, respectively, were contacted by email on November 22, 2021.

 

12. 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.

 

 

/s/ Todd Olson                                              /s/ Brendan Beatty                                      

Todd Olson                                                   Brendan Beatty

Rule Reviewer                                              Director of Revenue

 

Certified to the Secretary of State November 30, 2021.