Montana Administrative Register Notice 42-2-849 No. 22   11/26/2010    
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In the matter of the adoption of New Rules I (42.14.1001), II (42.14.1002), III (42.14.1003), IV (42.14.1101), V (42.14.1102), VI (42.14.1103), VII (42.14.1104), VIII (42.14.1105), XI (42.14.1106), X (42.14.1201), and XI (42.14.1202) relating to rental vehicle sales and use tax











TO:  All Concerned Persons


1.  On September 23, 2010, the department published MAR Notice No. 42-2-849 regarding the proposed adoption of the above-stated rules at page 2200 of the 2010 Montana Administrative Register, issue no. 18.


2.  A public hearing was held on October 26, 2010, to consider the proposed adoption.  No one appeared at the hearing to testify.


3.  No comments were received at or subsequent to the hearing but the department adopts New Rules I (42.14.1001), II (42.14.1002), III (42.14.1003), V (42.14.1102), VII (42.14.1104), VIII (42.14.1105), IX (42.14.1106), X (42.14.1201), and XI (42.14.1202) with the following changes:


NEW RULE I (42.14.1001)  DEFINITIONS  The following definitions apply to this subchapter:

(1)  "Sales price" as defined in 15-68-102 15-68-101, MCA, includes base rental charges received in money or otherwise, including all receipts, cash, credit, and property or services of any kind or nature.

(2) and (3) remain as proposed.


AUTH: 15-68-801, MCA

IMP:  15-68-101, MCA


NEW RULE II (42.14.1002)  REGISTRATION AND PERMIT  (1) remains as proposed.

(2)  A seller who has multiple locations in Montana may file one application, listing each location, separately each location.

(3)  through (7) remain as proposed.


AUTH: 15-68-801, MCA

IMP: 15-68-401, 15-68-402, MCA



(1) and (2) remain as proposed.

(3)  If the seller operates at any time within each of the four, three-month quarters of January through March; April through June; July through September; and October through December, they cannot apply for a seasonal seller's permit.


AUTH: 15-68-401, 15-68-801, MCA

IMP: 15-68-401, MCA



(1) through (4) remain as proposed.

(5)  A seller who is required to file Form RVT or RVT-C may electronically file and pay electronically their quarterly return through the department's web site at https:/tap.dor.mt.gov.  When filing electronically the return and payment is considered filed on the confirmation date provided upon submitting the return.


AUTH: 15-68-502, 15-68-801, MCA

IMP:  15-1-208, 15-68-502, 15-68-513, MCA



(1) and (2) remain as proposed.


AUTH:  15-68-801, MCA

IMP:  5-68-502, 15-68-520, MCA


NEW RULE VIII (42.14.1105)  RECORDS REQUIRED - AUDIT  (1) and (2) remain as proposed.

(3)  The seller must notify the user of the four 4 percent rental vehicle sales and use tax.

(4) and (5) remain as proposed.


AUTH:  15-68-801, MCA

IMP:  15-68-502, 15-68-513, MCA


NEW RULE IX (42.14.1106)  PENALTIES AND INTEREST  (1) remains as proposed.


AUTH:  15-68-801, MCA

IMP:  15-1-206, 15-68-514, MCA


NEW RULE X (42.14.1201)  RENTAL VEHICLES SALES SUBJECT TO THE TAX  (1)  A user is required to pay the rental vehicle sales and use tax on the sales price for a rental vehicle used in Montana.  This includes, but is not limited to:

(a)  automobiles, including vans, sport utility vehicles, or trucks have a capacity of one ton or less;

(b)  motorcyles motorcycles;

(c)  motor-driven cycles, which include motorcycles or scooters with a motor that produces five horsepower or less;

(d)  quadricycles, including a four-wheeled motor vehicle designed for on-road or off-road use, that has a motor that produces 50 horsepower or less;

(e)  motorboats, including a canoe, kayak, personal watercraft, rubber raft or pontoon, propelled by any motor or engine of any description;

(f)  sailboats, including any vessel that uses a sail and wind as its primary source of propulsion;

(g)  off-highway vehicles, including motorcycles, quadricycles, dune buggies, amphibious vehicles, deriving power from any source other than muscle or wind;

(h)  a truck, trailer, or semi-trailer that has a gross vehicle weight of less than 22,000 pounds, used to transport personal property, such as a flat bed trailer used to transport machinery.


AUTH:  15-68-801, MCA

IMP:  15-68-101, 15-68-102, 15-68-501, MCA


NEW RULE XI (42.14.1202)  EXEMPT RENTAL VEHICLE CHARGES  (1)  A user is not required to pay the rental vehicle sales and use tax on the rental of farm vehicles, machinery, equipment, travel trailers, motor homes, airplanes, snowmobiles, golf carts, and or sail boards.

(2)  remains as proposed.

(3)  The federal government is not required to pay the rental vehicle sales and use tax if the rental charge is billed directly to the federal government and paid directly by the federal government.  A charge that is individually billed and paid by the user who later is reimbursed by the federal government is not exempt from the rental vehicle sales and use tax.

(4) through (6) remain as proposed.


AUTH:  15-68-801, MCA

IMP:   15-68-101, 15-68-102, MCA


4.  Therefore the department adopts New Rules I (42.14.1001), II (42.14.1002), III (42.14.1003), V (42.14.1102), VII (42.14.1104), VIII (42.14.1105), IX (42.14.1106), X (42.14.1201), and XI (42.14.1202) as shown above and adopts New Rules IV (42.14.1101), and VI (42.14.1103) as proposed.


5.  An electronic copy of this adoption notice is available through the department's site on the World Wide Web at www.mt.gov/revenue, under "for your reference"; "DOR administrative rules"; and "upcoming events and proposed rule changes."  The department strives to make the electronic copy of this adoption 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.  In addition, although the department strives to keep its web site accessible at all times, concerned persons should be aware that the web site may be unavailable during some periods, due to system maintenance or technical problems.



/s/ Cleo Anderson                                         /s/ Dan R. Bucks

CLEO ANDERSON                                      DAN R. BUCKS

Rule Reviewer                                               Director of Revenue


Certified to Secretary of State November 15, 2010


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