Montana Administrative Register Notice 42-2-953 No. 14   07/22/2016    
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In the matter of the adoption of New Rule I pertaining to the Montana Ammunition Availability Act - property tax exemption applications







TO: All Concerned Persons


1. On August 18, 2016, at 9 a.m., the Department of Revenue will hold a public hearing in the Third Floor Reception Area Conference Room of the Sam W. Mitchell Building, located at 125 North Roberts, Helena, Montana, to consider the proposed adoption of the above-stated rule. The hearing room is most readily accessed by entering through the east doors of the building facing Sanders Street.


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 no later than 5 p.m. on August 8, 2016, to advise us of the nature of the accommodation you need. Please contact Laurie Logan, 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 lalogan@mt.gov.


3. The rule as proposed to be adopted provides as follows:


NEW RULE I AMMUNITION COMPONENTS MANUFACTURING - PROPERTY TAX EXEMPTION APPLICATIONS (1)  The property owner of record or the property owner's agent must file an application, on a form provided by the department, for a property tax exemption for the manufacture of ammunition components, as defined in 30-20-203, MCA. The exemption applies only to property taxes levied on class eight personal property and to the mills levied on real property for state educational purposes, as described in 30-20-204, MCA. The application filing deadline for each tax year for which the exemption is being sought is:

(a) November 1 for tax year 2016 only; and

(b) March 1 beginning with tax year 2017 and for all tax years thereafter.

(2) Applications postmarked after the dates in (1) will be considered for the following tax year unless the department determines, on a case-by-case basis, that the applicant can demonstrate that unusual or personal circumstances existed in the tax year for which the application is being submitted that prevented timely filing of the application.

(3) The following criteria must be met in order to qualify for the exemption:

(a) the person or business entity must engage in the manufacture of ammunition components, in Montana, as their primary business as defined in 30-20-203, MCA;

(b) the products of the business are and must remain available to commercial and individual consumers in the state;

(c) the business entity must sell its products to in-state commercial and individual consumers for a price no greater than that for out-of-state purchasers, including any products that leave the state regardless of destination or purchaser; and

(d) the business entity must not enter into any agreement or contract that could actually or potentially command or commit all of its production to out-of-state consumers or interfere with or prohibit sales and provision of products to in-state consumers.

(4) The exemption applies only to:

(a) class eight personal property;

(b) improvements used to:

(i) manufacture ammunition components; or

(ii) store products manufactured onsite; and

(c) land owned by the person or business entity of any improvement used to either manufacture or store ammunition components. The property to be exempted is measured from each corner of a structure used for the manufacture or storing of ammunition components to a distance of 500 yards. Property owned by the person or business entity that is not used for the manufacture of ammunition components is not subject to the exemption.

(5) The department will verify eligibility requirements once the application form is received.  The department may request additional information from the applicant during the application review process to verify property use and ownership.

(6) Upon receipt of the application and supporting documents, the department will perform a field evaluation. The department will approve or deny the application and provide the applicant with a decision in writing.


AUTH: 15-1-201, MCA

IMP: 15-6-219, 15-24-1410, 30-20-201, 30-20-202, 30-20-203, 30-20-204, 30-20-205, 30-20-206, MCA


REASON: The department proposes adopting New Rule I to implement a process for property taxpayers to apply for the property tax exemption provided for with the enactment of Senate Bill 122, L. 2015, cited as the "Montana Ammunition Availability Act," which encourages the manufacture of ammunition in Montana by providing manufacturers with an opportunity to receive a property tax exemption for producing ammunition components. The proposed rule sets forth the criteria for qualifying for the exemption, filing deadlines, and how to apply for the exemption. 

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: Laurie Logan, 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 lalogan@mt.gov and must be received no later than September 2, 2016. 

5. Laurie Logan, Department of Revenue, Director's Office, has been designated to preside over and conduct this hearing.


6. 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 that includes the name and e-mail or mailing address of the person to receive notices and specifies that the person wishes to receive notice regarding a particular subject matter or matters. Notices will be sent by e-mail unless a mailing preference is noted in the request. A written request may be mailed or delivered to the person in 4 above or faxed to the office at (406) 444-3696, or may be made by completing a request form at any rules hearing held by the Department of Revenue.


7. An electronic copy of this notice is available on the department's web site at revenue.mt.gov. 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. While the department also strives to keep its web site accessible at all times, in some instances it may be temporarily unavailable due to system maintenance or technical problems.


8. The bill sponsor contact requirements of 2-4-302, MCA, apply and have been fulfilled. The primary sponsor of Senate Bill 122, L. 2015, Matthew Rosendale, was notified by letter on July 6, 2015, and subsequently notified on June 27, 2016.


9. With regard to the requirements of 2-4-111, MCA, the department has determined that the adoption of the above-referenced rule will not significantly and directly impact small businesses. Documentation of the department's determination is available at revenue.mt.gov or upon request from the person in 4.



/s/ Laurie Logan                          /s/ Mike Kadas

Laurie Logan                               Mike Kadas

Rule Reviewer                             Director of Revenue


Certified to the Secretary of State July 11, 2016.




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