Bill Summary – FastDemocracy

67th Legislature                                                                                                   SB 205.1
                                                  SENATE BILL NO. 205
                                              INTRODUCED BY B. HOVEN
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   A BILL FOR AN ACT ENTITLED: “AN ACT REVISING THE NAME OF THE "STATE TAX APPEAL BOARD";
   CHANGING THE NAME OF THE STATE TAX APPEAL BOARD TO THE MONTANA TAX APPEAL BOARD;
   AND AMENDING SECTIONS 2-6-1007, 2-15-1015, 5-5-227, 5-5-228, 10-4-212, 15-1-101, 15-1-212, 15-1-213,
   15-1-222, 15-1-303, 15-1-402, 15-2-101, 15-2-102, 15-2-103, 15-2-104, 15-2-106, 15-2-201, 15-2-301, 15-2-
   302, 15-2-303, 15-2-304, 15-2-305, 15-2-306, 15-6-135, 15-6-158, 15-6-231, 15-7-102, 15-7-139, 15-8-112, 15-
   8-113, 15-8-115, 15-8-202, 15-15-101, 15-15-103, 15-15-104, 15-15-201, 15-16-603, 15-23-102, 15-30-2607,
   15-30-2608, 15-30-3113, 15-68-405, 15-68-805, 15-70-111, 16-11-149, 53-19-319, AND 61-11-510, MCA.”
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   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
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              Section 1. Section 2-6-1007, MCA, is amended to read:
              "2-6-1007.   Special fees allowable for certain information. (1) In addition to the fee allowed under
   2-6-1006, the department of revenue may charge an additional fee as reimbursement for the cost of developing
   and maintaining the property valuation and assessment system database from which the information is
   requested. The fee must be charged to persons, federal agencies, state agencies, and other entities requesting
   the database or any part of the database from any department property valuation and assessment system. The
   fee may not be charged to the governor's office of budget and program planning, the state Montana tax appeal
   board, or any legislative body or its members or staff.
              (2)   The department of revenue may not charge a fee for information provided from any department
   property valuation and assessment system database to a local taxing jurisdiction for use in taxation and other
   governmental functions or to an individual taxpayer concerning the taxpayer's property.
              (3)   All fees received by the department of revenue under 2-6-1006 and this section must be deposited
   in the property value improvement fund as provided in 15-1-521.
              (4)   In accordance with the fees allowed under 2-6-1006, the Montana historical society may charge
   fees as approved by its board of trustees for copies of materials contained in its collections, based on
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   documentable curatorial duties as set forth in 22-3-101."
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              Section 2. Section 2-15-1015, MCA, is amended to read:
              "2-15-1015.    State Montana tax appeal board. There is a state Montana tax appeal board as
   provided in Title 15, chapter 2."
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              Section 3. Section 5-5-227, MCA, is amended to read:
              "5-5-227.   Revenue interim committee -- powers and duties -- revenue estimating and use of
   estimates. (1) The revenue interim committee has administrative rule review, draft legislation review, program
   evaluation, and monitoring functions for the state Montana tax appeal board established in 2-15-1015 and for
   the department of revenue and the entities attached to the department for administrative purposes, except the
   division of the department that administers the Montana Alcoholic Beverage Code.
              (2)   (a) The committee must have prepared by December 1 for introduction during each regular
   session of the legislature in which a revenue bill is under consideration an estimate of the amount of revenue
   projected to be available for legislative appropriation.
              (b)   The committee may prepare for introduction during a special session of the legislature in which a
   revenue bill or an appropriation bill is under consideration an estimate of the amount of projected revenue. The
   revenue estimate is considered a subject specified in the call of a special session under 5-3-101.
              (3)   The committee's estimate, as introduced in the legislature, constitutes the legislature's current
   revenue estimate until amended or until final adoption of the estimate by both houses. It is intended that the
   legislature's estimates and the assumptions underlying the estimates will be used by all agencies with
   responsibilities for estimating revenue or costs, including the preparation of fiscal notes.
              (4)   The legislative services division shall provide staff assistance to the committee. The committee
   may request the assistance of the staffs of the office of the legislative fiscal analyst, the legislative auditor, the
   department of revenue, and any other agency that has information regarding any of the tax or revenue bases of
   the state.
              (5)   The committee shall review tax credits [scheduled to expire] as provided in 15-30-2303."
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              Section 4. Section 5-5-228, MCA, is amended to read:
              "5-5-228.    State administration and veterans' affairs interim committee. (1) The state
   administration and veterans' affairs interim committee has administrative rule review, draft legislation review,
   program evaluation, and monitoring functions for the public employee retirement plans and for the following
   executive branch agencies and, unless otherwise assigned by law, the entities attached to the agencies for
   administrative purposes:
              (a)   department of administration, except:
              (i)   the state compensation insurance fund provided for in 39-71-2313, including the board of directors
   of the state compensation insurance fund established in 2-15-1019;
              (ii) the state Montana tax appeal board established in 2-15-1015;
              (iii) the division of banking and financial institutions; and
              (iv) the office of state public defender;
              (b)   department of military affairs; and
              (c)   office of the secretary of state.
              (2)   The committee shall:
              (a)   consider the actuarial and fiscal soundness of the state's public employee retirement systems,
   based on reports from the teachers' retirement board, the public employees' retirement board, and the board of
   investments, and study and evaluate the equity and benefit structure of the state's public employee retirement
   systems;
              (b)   establish principles of sound fiscal and public policy as guidelines;
              (c)   as necessary, develop legislation to keep the retirement systems consistent with sound policy
   principles; and
              (d)   publish, for legislators' use, information on the public employee retirement systems that the
   committee considers will be valuable to legislators when considering retirement legislation.
              (3)   The committee may:
              (a)   specify the date by which retirement board proposals affecting a retirement system must be
   submitted to the committee for the review pursuant to subsection (1); and
              (b)   request personnel from state agencies, including boards, political subdivisions, and the state
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   public employee retirement systems, to furnish any information and render any assistance that the committee
   may request."
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              Section 5. Section 10-4-212, MCA, is amended to read:
              "10-4-212.    Provider considered a taxpayer under provisions for fee. Unless the context requires
   otherwise, the provisions of Title 15 referring to the audit and examination of reports and returns, determination
   of deficiency assessments, claims for refunds, penalties, interest, jeopardy assessments, warrants,
   conferences, appeals to the department of revenue, appeals to the state Montana tax appeal board, and
   procedures relating thereto apply to this part as if the fee were a tax imposed upon or measured by net income.
   The provisions apply to the subscriber liable for the fee and to the provider required to collect the fee. Any
   amount collected and required to be remitted to the department of revenue is considered a tax upon the
   provider required to collect it, and that provider is considered a taxpayer."
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              Section 6. Section 15-1-101, MCA, is amended to read:
              "15-1-101.    Definitions. (1) Except as otherwise specifically provided, when terms mentioned in this
   section are used in connection with taxation, they are defined in the following manner:
              (a)   The term "agricultural" refers to:
              (i)   the production of food, feed, and fiber commodities, livestock and poultry, bees, biological control
   insects, fruits and vegetables, and sod, ornamental, nursery, and horticultural crops that are raised, grown, or
   produced for commercial purposes; and
              (ii) the raising of domestic animals and wildlife in domestication or a captive environment.
              (b)   The term "assessed value" means the value of property as defined in 15-8-111.
              (c) The term "average wholesale value" means the value to a dealer prior to reconditioning and the
   profit margin shown in national appraisal guides and manuals or the valuation schedules of the department.
              (d)   (i) The term "commercial", when used to describe property, means property used or owned by a
   business, a trade, or a corporation as defined in 35-2-114 or used for the production of income, including
   industrial property defined in subsection (1)(j), and excluding property described in subsection (1)(d)(ii).
              (ii) The following types of property are not commercial:
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              (A)    agricultural lands;
              (B)    timberlands and forest lands;
              (C)    single-family residences and ancillary improvements and improvements necessary to the function
   of a bona fide farm, ranch, or stock operation;
              (D) mobile homes and manufactured homes used exclusively as a residence except when held by a
   distributor or dealer as stock in trade; and
              (E)    all property described in 15-6-135.
              (e)   The term "comparable property" means property that:
              (i)   has similar use, function, and utility;
              (ii) is influenced by the same set of economic trends and physical, governmental, and social factors;
   and
              (iii) has the potential of a similar highest and best use.
              (f) The term "credit" means solvent debts, secured or unsecured, owing to a person.
              (g)   (i) "Department", except as provided in subsection (1)(g)(ii), means the department of revenue
   provided for in 2-15-1301.
              (ii) In chapters 70 and 71, department means the department of transportation provided for in 2-15-
   2501.
              (h)   The terms "gas" and "natural gas" are synonymous and mean gas as defined in 82-1-111(2). The
   terms include all natural gases and all other fluid hydrocarbons, including methane gas or any other natural gas
   found in any coal formation.
              (i)   The term "improvements" includes all buildings, structures, fences, and improvements situated
   upon, erected upon, or affixed to land. When the department determines that the permanency of location of a
   mobile home, manufactured home, or housetrailer has been established, the mobile home, manufactured
   home, or housetrailer is presumed to be an improvement to real property. A mobile home, manufactured home,
   or housetrailer may be determined to be permanently located only when it is attached to a foundation that
   cannot feasibly be relocated and only when the wheels are removed.
              (j)   "Industrial property" for purposes of this section includes all land used for industrial purposes,
   improvements, and buildings used to house the industrial process and all storage facilities. Under this section,
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   industrial property does not include personal property classified and taxed under 15-6-135 or 15-6-138.
              (k) The term "leasehold improvements" means improvements to mobile homes and mobile homes
   located on land owned by another person. This property is assessed under the appropriate classification, and
   the taxes are due and payable in two payments as provided in 15-24-202. Delinquent taxes on leasehold
   improvements are a lien only on the leasehold improvements.
              (l)   The term "livestock" means cattle, sheep, swine, goats, horses, mules, asses, llamas, alpacas,
   bison, ostriches, rheas, emus, and domestic ungulates.
              (m)    (i) The term "manufactured home" means a residential dwelling built in a factory in accordance
   with the United States department of housing and urban development code and the federal Manufactured
   Home Construction and Safety Standards.
              (ii) A manufactured home does not include a mobile home, as defined in subsection (1)(o), or a mobile
   home or housetrailer constructed before the federal Manufactured Home Construction and Safety Standards
   went into effect on June 15, 1976.
              (n)   The term "market value" means the value of property as provided in 15-8-111.
              (o)   The term "mobile home" means forms of housing known as "trailers", "housetrailers", or "trailer
   coaches" exceeding 8 feet in width or 45 feet in length, designed to be moved from one place to another by an
   independent power connected to them, or any trailer, housetrailer, or trailer coach up to 8 feet in width or 45
   feet in length used as a principal residence.
              (p)   The term "personal property" includes everything that is the subject of ownership but that is not
   included within the meaning of the terms "real estate" and "improvements" and "intangible personal property" as
   that term is defined in 15-6-218.
              (q)   The term "poultry" includes all chickens, turkeys, geese, ducks, and other birds raised in
   domestication to produce food or feathers.
              (r)   The term "property" includes money, credits, bonds, stocks, franchises, and all other matters and
   things, real, personal, and mixed, capable of private ownership. This definition may not be construed to
   authorize the taxation of the stocks of a company or corporation when the property of the company or
   corporation represented by the stocks is within the state and has been taxed.
              (s) The term "real estate" includes:
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              (i)   the possession of, claim to, ownership of, or right to the possession of land;
              (ii) all mines, minerals, and quarries in and under the land subject to the provisions of 15-23-501 and
   Title 15, chapter 23, part 8;
              (iii) all timber belonging to individuals or corporations growing or being on the lands of the United
   States; and
              (iv) all rights and privileges appertaining to mines, minerals, quarries, and timber.
              (t)   "Recreational" means hunting, fishing, swimming, boating, waterskiing, camping, biking, hiking,
   and winter sports, including but not limited to skiing, skating, and snowmobiling.
              (u)   "Research and development firm" means an entity incorporated under the laws of this state or a
   foreign corporation authorized to do business in this state whose principal purpose is to engage in theoretical
   analysis, exploration, and experimentation and the extension of investigative findings and theories of a scientific
   and technical nature into practical application for experimental and demonstration purposes, including the
   experimental production and testing of models, devices, equipment, materials, and processes.
              (v)   The term "stock in trade" means any mobile home, manufactured home, or housetrailer that is
   listed by the dealer as inventory and that is offered for sale, is unoccupied, and is not located on a permanent
   foundation. Inventory does not have to be located at the business location of a dealer or a distributor.
              (w)    The term "taxable value" means the market value multiplied by the classification tax rate as
   provided for in Title 15, chapter 6, part 1.
              (x) The term "taxes" in relation to