Bill Summary – FastDemocracy

****
68th Legislature 2023                                                                                           HB 830.1
                                                  HOUSE BILL NO. 830
                    INTRODUCED BY G. NIKOLAKAKOS, L. JONES, M. HOPKINS, J. KARLEN
  3
  A BILL FOR AN ACT ENTITLED: “AN ACT PROVIDING FOR AN ALTERNATIVE PAYMENT SCHEDULE FOR
  PROPERTY TAXES; PROVIDING THAT OWNERS OF PRIMARY RESIDENCES MAY ENTER INTO AN
  AGREEMENT TO PAY PROPERTY TAXES IN SEVEN EQUAL PAYMENTS; PROVIDING APPLICATION
  DEADLINES; PROVIDING A DEFINITION; PROVIDING AN APPROPRIATION; AMENDING SECTIONS 15-
  16-102 AND 15-16-103, MCA; AND PROVIDING AN APPLICABILITY DATE.”
  9
  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
 11
          NEW SECTION. Section 1.          Alternative payment schedule for primary residences. (1) At the
  request of the owner of a primary residence, a county treasurer shall enter into a written agreement with the
  owner for the payment of current property taxes on an alternative payment schedule of seven payments as
  provided in 15-16-102(2)(b) and this section.
          (2)      To pay property taxes on the alternative payment schedule, the owner of a primary residence
  shall apply on forms provided by the county treasurer. The application must include a sworn statement, under
  penalty of false swearing provided for in 45-7-202, that the property is a primary residence.
          (3)      Application must be made by September 30 for enrollment in the current year. When enrolled in
  the alternative payment schedule, the owner remains enrolled until the owner provides a written request to
  terminate the alternative payment schedule. Requests to terminate the alternative payment schedule must be
  made before September 30 to apply to the current year. Termination requests made after September 30 will
  apply to payments for the next tax year.
          (4)      A county treasurer may require enrollment in an automated payment program as a condition of
  enrollment in the alternative payment schedule.
          (5)      A property owner enrolled in the alternative payment schedule may pay taxes before the due
  dates provided for in 15-16-102(2)(b).
          (6)      As provided in this section, the following definition applies:
                                                                -1-                      Authorized Print Version – HB 830
****
68th Legislature 2023                                                                                             HB 830.1
          (a)      "Primary residence" means a single-family dwelling unit, unit of a multiple-unit dwelling, trailer,
  manufactured home, or mobile home and the surrounding land classified as class four residential property that
  was owned and occupied by the taxpayer for at least 7 months of the year.
          (b)      The term does not include a dwelling that is not on a permanent foundation and that is
  classified by the department of revenue as personal property.
  6
          Section 2. Section 15-16-102, MCA, is amended to read:
          "15-16-102. Time for payment -- penalty for delinquency. (1) Unless suspended or cancelled under
  the provisions of 10-1-606, 15-23-708, or Title 15, chapter 24, part 17, all taxes levied and assessed in the state
  of Montana, except assessments made for special improvements in cities and towns payable under 15-16-103,
  are payable as follows: provided in this section.
          (1)(2)   (a)   One-half Except as provided in subsection (2)(b), one-half of the taxes are payable on or
  before 5 p.m. on November 30 of each year or within 30 days after the tax notice is postmarked, whichever is
  later, and one-half are payable on or before 5 p.m. on May 31 of each year.
          (b)      For a taxpayer enrolled in the alternative payment schedule for primary residences provided for
  in [section 1], one-seventh of the taxes must be paid on or before 5 p.m. on the last day of each month
  beginning on November 30 and ending on May 31 provided that the full amount of the taxes payable is made
  by 5 p.m. on May 31 of each year. The seven monthly payments must be equal and are due on November 30,
  December 31, January 31, February 28, March 31, April 30, and May 31.
          (2)(3)   (a) (i) Unless Except as provided in subsection (3)(a)(ii), unless one-half of the taxes are paid
  on or before 5 p.m. on November 30 of each year or within 30 days after the tax notice is postmarked,
  whichever is later, the amount payable is delinquent and draws interest at the rate of 5/6 of 1% a month from
  and after the delinquency until paid and 2% must be added to the delinquent taxes as a penalty.
          (ii)     For a taxpayer enrolled in the alternative payment schedule for primary residences provided for
  in [section 1], unless one-seventh of the taxes are paid on or before 5 p.m. on November 30 of each year or
  within 30 days after the tax notice is postmarked, whichever is later, the amount payable is delinquent and
  draws interest and penalty as provided in subsection (3)(a)(i).
          (3)(b)   All taxes due and not paid on or before 5 p.m. on May 31 of each year are delinquent and draw
                                                               -2-                      Authorized Print Version – HB 830
****
68th Legislature 2023                                                                                             HB 830.1
  interest at the rate of 5/6 of 1% a month from and after the delinquency until paid, and 2% must be added to the
  delinquent taxes as a penalty.
          (4)      (a) If the date on which taxes are due falls on a holiday or Saturday, taxes may be paid without
  penalty or interest on or before 5 p.m. of the next business day in accordance with 1-1-307.
          (b)      If Except for a taxpayer enrolled in the alternative payment schedule for primary residences
  provided for in [section 1], if taxes on property qualifying under the property tax assistance program provided for
  in 15-6-305 are paid within 20 calendar days of the date on which the taxes are due, the taxes may be paid
  without penalty or interest. If a tax payment is made later than 20 days after the taxes were due, the penalty
  must be paid and interest accrues from the date on which the taxes were due.
          (5)      (a) A taxpayer may pay current year taxes without paying delinquent taxes. The county
  treasurer shall accept a partial payment equal to the delinquent taxes, including penalty and interest, for one or
  more full tax years if taxes currently due for the current tax year have been paid. Payment of taxes for
  delinquent taxes must be applied to the taxes that have been delinquent the longest. The payment of taxes for
  the current tax year is not a redemption of the property tax lien for any delinquent tax year.
          (b)      A payment by a co-owner of an undivided ownership interest that is subject to a separate
  assessment otherwise meeting the requirements of subsection (5)(a) is not a partial payment.
          (6)      The penalty and interest on delinquent assessment payments for specific parcels of land may
  be waived by resolution of the city council. A copy of the resolution must be certified to the county treasurer.
          (7)      If the department revises an assessment that results in an additional tax of $5 or less, an
  additional tax is not owed and a new tax bill does not need to be prepared.
          (8)      The county treasurer may accept a partial payment of centrally assessed property taxes as
  provided in 76-3-207."
 23
          Section 3. Section 15-16-103, MCA, is amended to read:
          "15-16-103.    Special improvement districts with annual interest payments -- collection of
  special assessments for all special improvements. (1) Special assessments or installments of special
  assessments made for special improvements in towns and cities, the bonds for which annual interest payments
  have been specified and that were issued after July 1, 1981, and that have been duly and regularly made and
                                                               -3-                     Authorized Print Version – HB 830
****
68th Legislature 2023                                                                                                 HB 830.1
  levied by resolution according to law, shall be are payable as follows: provided in this section.
          (a)(2)     (a) One-half Except as provided in subsection (2)(b), one-half of the taxes are payable on or
  before 5 p.m. on November 30 of each year and one-half of the taxes are payable on or before 5 p.m. on May
  31 of each year.
          (b)        For a taxpayer enrolled in the alternative payment schedule for primary residences provided for
  in [section 1], one-seventh of the taxes must be paid on or before 5 p.m. on the last day of each month
  beginning on November 30 and ending on May 31 provided that the full amount of the taxes payable is made
  by 5 p.m. on May 31 of each year. The seven monthly payments must be equal and are due on November 30,
  December 31, January 31, February 28, March 31, April 30, and May 31.
          (3)        (a) (i) Except as provided in subsection (3)(a)(ii), If if the taxes are not paid on or before that
  date 5 p.m. on November 30, they are subject to the same interest and penalty for nonpayment as delinquent
  property taxes under 15-16-102. The penalty and interest may be waived by resolution of the city council, as
  provided in 15-16-102(6).
          (ii)       For a taxpayer enrolled in the alternative payment schedule for primary residences provided for
  in [section 1], unless one-seventh of the taxes are paid on or before 5 p.m. on November 30 of each year, the
  amount payable is delinquent and draws interest and penalty as provided in subsection (3)(a)(i).
          (b)        One-half of the taxes are payable on or before 5 p.m. on May 31 of each year. If the taxes are
  not paid on or before that date 5 p.m. on May 31, they are subject to the same interest and penalty for
  nonpayment as delinquent property taxes under 15-16-102. The penalty and interest may be waived by
  resolution of the city council, as provided in 15-16-102(6).
          (2)(4)     The collection of special assessments or installments of special assessments made for special
  improvements in towns and cities are as provided by 7-12-4181."
 23
          NEW SECTION. Section 4.           Appropriation. There is appropriated $35,000 from the general fund to
  the department of administration for the biennium beginning July 1, 2023, to purchase software upgrades and
  e-check systems for counties to implement the alternative payment schedule for primary residences.
 27
          NEW SECTION. Section 5.           Codification instruction. [Section 1] is intended to be codified as an
                                                                  -4-                      Authorized Print Version – HB 830
****
68th Legislature 2023                                                                                                HB 830.1
  integral part of Title 15, chapter 16, part 1, and the provisions of Title 15, chapter 16, part 1, apply to [section 1].
  2
          NEW SECTION. Section 6.          Applicability. [This act] applies to property tax payments due on or after
  November 30, 2024.
                                                          - END -
                                                                 -5-                      Authorized Print Version – HB 830
Statutes affected: 
HB0830_1.pdf: 15-16-102, 15-16-103
HB0830_2.pdf: 15-16-102, 15-16-103
Amended: 15-16-102, 15-16-103
Introduced: 15-16-102, 15-16-103