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Montana Administrative Register Notice 42-2-875 No. 2   01/26/2012    
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BEFORE THE DEPARTMENT OF REVENUE

OF THE STATE OF MONTANA

 

In the matter of the amendment of ARM 42.19.401 and 42.19.501 relating to the property tax assistance program and exemption for qualified disabled veterans

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NOTICE OF PUBLIC HEARING ON PROPOSED AMENDMENT

 

TO:  All Concerned Persons

 

1.  On February 21, 2012, at 2:00 p.m., a public hearing will be held in the Third Floor Reception Area Conference Room of the Sam W. Mitchell Building, at Helena, Montana, to consider the amendment of the above-stated rules.

Individuals planning to attend the hearing shall enter the building through the east doors of the Sam W. Mitchell Building, 125 North Roberts, Helena, Montana.

 

2.  The Department of Revenue will make reasonable accommodations for persons with disabilities who wish to participate in this public hearing or need an alternative accessible format of this notice.  If you require an accommodation, contact the Department of Revenue no later than 5:00 p.m., February 13, 2012, to advise us of the nature of the accommodation that you need.  Please contact Cleo Anderson, Department of Revenue, Director's Office, P.O. Box 7701, Helena, Montana 59604-7701; telephone (406) 444-5828; fax (406) 444-4375; or e-mail canderson@mt.gov.

 

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

 

42.19.401  PROPERTY TAX ASSISTANCE PROGRAM  (1)  The property owner of record or the property owner's agent must make annual application through to the local department office, in order to receive the benefit provided for in 15-6-134, MCA.  An application must be filed, on or before April 15 of the year for which the benefit is sought, on a form available from the local department office on or before April 15 of the year for which the benefit is sought.  Applications postmarked after April 15 will not be considered for that year unless:

(a)  the applicant was unable to apply for the current year due to hospitalization, physical illness, infirmity, or mental illness;

(b)  the taxpayer can demonstrate the impediments listed above, while not necessarily continuous, existed at sufficient levels in the period of January 1 to April 15 to prevent timely filing of the reporting form application.  The department may waive this the requirement set out in this section, on a case-by-case basis, and upon receipt of a written statement, plus any documentation explaining circumstances where:

(i)  an applicant who participated in the program in the prior year, would meet meets income requirements in the current year; and

(ii)  confusion due to caused by the infirmity may have arisen; and.

(c)(2)  The department may waive this the requirement set out in (1) on a case-by-case basis, if:

(i)(a)  the applicant qualified for the program in the prior year; and

(ii)(b)  upon receipt of a written statement, plus any documents explaining the circumstances of why the applicant failed to meet the deadline.

(2) through (5) remain the same, but are renumbered (3) through (6).

(6)(7)  If the applicant has applied qualifies for an extension of time to file the applicant's income tax return, the applicant must indicate this on the application and, no later than October 25, provide a copy of their completed individual estimated income tax worksheet (ESW) income tax return for the tax year immediately preceding the year of the application.

(7) through (11) remain the same, but are renumbered (8) through (12).

 

AUTH:  15-1-201, MCA

IMP:  15-6-134, MCA

 

REASONABLE NECESSITY:  The department is proposing to amend ARM 42.19.401 because the current rule requires applicants to submit an individual estimated income tax worksheet if the applicant has qualified for an extension of time to file their tax return.  An applicant's qualification for assistance is based upon their income; therefore their estimated income is not needed.

The department is proposing to amend the rule to remove language requiring the submission of the individual estimated income tax worksheet.  The proposed amendments require the applicant to submit a copy of their income tax return approximately ten days after the extension deadline.  The proposed amendments reduce the paperwork requirements for an applicant who receives an extension, thereby simplifying the process.  Additionally, the proposed amendments add clarity to the reporting language.

Finally, all other applicants for property tax assistance who file a timely income tax return by April 15 are already required to provide a copy of that return with their application per (5) of this rule.  The change proposed here for those persons filing extension income tax returns simply ensures identical treatment of all applicants.

 

42.19.501  PROPERTY TAX EXEMPTION FOR QUALIFIED DISABLED VETERANS  (1)  The property owner of record or the property owner's agent must make application to the local department office, in order to obtain a property tax exemption.  An application must be filed, on or before April 15 of the year for which the exemption is sought, on a form available from the local department office, on or before April 15 of the year for which the exemption is sought.  Applications postmarked after April 15 will not be considered for that tax year unless:

(a)  the applicant was unable to apply for the current year due to hospitalization, physical illness, infirmity, or mental illness;

(b)  the taxpayer can demonstrate the impediments listed above, while not necessarily continuous, existed at sufficient levels in the period of January 1 to April 15 to prevent timely filing of the reporting form application.  The department may waive this the requirement set out in this section, on a case-by-case basis, and upon receipt of a written statement, plus any documentation explaining circumstances where:

(i)  an applicant who participated in the program in the prior year, would meet meets the income requirements in the current year; and

(ii)  confusion due to caused by the infirmity may have arisen; and.

(c)(2)  The department may waive this the requirement set out in (1) on a case-by-case basis, if:

(i)(a)  the applicant qualified for the program in the prior year; and

(ii)(b)  upon receipt of a written statement, plus any documents explaining the circumstances of why the applicant failed to meet the deadline.

(2) remains the same, but is renumbered (3).

(3)(4)  The following documents must accompany the application:

(a)  a letter from the Veterans' Administration which that verifies that the applicant is currently rated 100 percent disabled or is paid at the 100 percent disabled rate.  If the disability is permanent, the letter need be submitted only once;

(b)  copies of the applicant's completed federal income tax return for the preceding calendar year, including all schedules;

(c)  if the applicant has applied qualifies for an extension of time to file the applicant's federal income tax return, the applicant must, no later than October 25, provide a copy of their completed individual estimated income tax worksheet (ESW) income tax return for the tax year immediately preceding the year of the application; and

(d)  if the applicant is not required to file an income tax return, the applicant must provide a copy of their completed income tax return documentation that identifies the applicant's income.  Examples of the required documentation include, but are not limited to:

(i)  social security statements;

(ii)  pension statements; or

(iii)  bank statements.

(4) through (12) remain the same, but are renumbered (5) through (13).

 

AUTH:  15-1-201, MCA

IMP:  15-6-211, MCA

 

REASONABLE NECESSITY:  The department is proposing to amend ARM 42.19.501 because the current rule requires applicants to submit an individual estimated income tax worksheet if the applicant has qualified for an extension of time to file their tax return.  An applicant's qualification for assistance is based upon their income; therefore their estimated income is not needed.

The department is proposing to amend the rule to remove language requiring the submission of the individual estimated income tax worksheet.  The proposed amendments require the applicant to submit a copy of their income tax return approximately ten days after the extension deadline.  The proposed amendments reduce the paperwork requirements for an applicant who receives an extension, thereby simplifying the process.  Additionally, the proposed amendments add clarity to the reporting language.

Finally, all other applicants for property tax assistance who file a timely income tax return by April 15 are already required to provide a copy of that return with their application per (5) of this rule.  The change proposed here for those persons filing extension income tax returns simply ensures identical treatment of all applicants.

 

4.  Concerned persons may submit their data, views, or arguments, either orally or in writing, at the hearing.  Written data, views, or arguments may also be submitted to: Cleo Anderson, Department of Revenue, Director's Office, P.O. Box 7701, Helena, Montana 59604-7701; telephone (406) 444-5828; fax (406) 444-4375; or e-mail canderson@mt.gov and must be received no later than February 24, 2012.

 

5.  Cleo Anderson, Department of Revenue, Director's Office, has been designated to preside over and conduct the hearing.

 

6.  An electronic copy of this notice is available on the department's web site at www.revenue.mt.gov.  Locate "Legal Resources" in the left hand column, select the "Rules" link and view the options under the "Notice of Proposed Rulemaking" heading.  The department strives to make the electronic copy of this 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.

 

7.  The Department of Revenue 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, which includes the name and e-mail or mailing address of the person to receive notices and specifies that the person wishes to receive notices regarding particular subject matter or matters.  Notices will be sent by e-mail unless a mailing preference is noted in the request.  Such written request may be mailed or delivered to the person in 4 above or faxed to the office at (406) 444-4375, or may be made by completing a request form at any rules hearing held by the Department of Revenue.

 

8.  The bill sponsor contact requirements of 2-4-302, MCA, do not apply.

 

 

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

CLEO ANDERSON                         DAN R. BUCKS

Rule Reviewer                                 Director of Revenue

 

Certified to Secretary of State January 17, 2012

 

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