Bill Summary – FastDemocracy

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68th Legislature 2023                                                                                        SB 362.1
                                               SENATE BILL NO. 362
                                          INTRODUCED BY S. MORIGEAU
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  A BILL FOR AN ACT ENTITLED: “AN ACT REVISING PROPERTY TAX REFUNDS; ELIMINATING THE TIME
  LIMIT TO CLAIM A REFUND RESULTING FROM AN ERRONEOUS ASSESSMENT OF PROPERTY TAXES;
  AMENDING SECTIONS 15-8-601 AND 15-16-603, MCA; AND PROVIDING AN EFFECTIVE DATE AND AN
  APPLICABILITY DATE.”
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  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
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          Section 1. Section 15-8-601, MCA, is amended to read:
          "15-8-601.   Assessment revision -- conference for review. (1) (a) Except as provided in subsection
  (1)(b), whenever the department discovers that any taxable property of any person has in any year escaped
  assessment, been erroneously assessed, or been omitted from taxation, the department may assess the
  property provided that the property is under the ownership or control of the same person who owned or
  controlled it at the time it escaped assessment, was erroneously assessed, or was omitted from taxation. All
  revised assessments must be made within 10 years after the end of the calendar year in which the original
  assessment was or should have been made, unless the department determines a person was assessed an
  amount that was greater than the correct amount of the assessment. There is no time limit for a revised
  assessment if it results in a refund to any person.
          (b)      Within the time limits set by 15-23-116, whenever the department discovers property subject to
  assessment under Title 15, chapter 23, that has escaped assessment, been erroneously assessed, or been
  omitted from taxation, the department may issue a revised assessment to the person, firm, or corporation who
  owned the property at the time it escaped assessment, was erroneously assessed, or was omitted from
  taxation, regardless of the ownership of the property at the time of the department's revised assessment.
          (c)      If an erroneous assessment is due to a calculation error by the department, the department
  shall revise the assessment of like properties that were also erroneously assessed using the same calculation.
          (2)      When the department proposes to revise the statement reported by the taxpayer under 15-8-
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68th Legislature 2023                                                                                                SB 362.1
  301, the action of the department is subject to the notice and conference provisions of this section. Revised
  assessments of centrally assessed property and industrial property that is assessed annually by the department
  are subject to mediation pursuant to 15-1-212.
          (3)      (a) Notice of revised assessment pursuant to this section must be made by the department by
  postpaid letter addressed to the person interested within 10 days after the revised assessment has been made.
  If the property is locally assessed, the notice must include the opportunity for a conference on the matter, at the
  request of the person interested, within 30 days after notice is given.
          (b)      An assessment revision review conference is not a contested case as defined in the Montana
  Administrative Procedure Act. The department shall keep minutes in writing of each assessment revision review
  conference, and the minutes are public records.
          (c)      Following an assessment revision review conference or expiration of the opportunity for a
  conference, the department shall order an assessment that it considers proper. Any party to the conference
  aggrieved by the action of the department or a taxpayer who does not request a conference may appeal to the
  county tax appeal board within 30 days of receipt of the revised assessment or the department's assessment
  made pursuant to the conference.
          (4)      The department shall enter in the property tax record all changes and corrections made by it."
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          Section 2. Section 15-16-603, MCA, is amended to read:
          "15-16-603. Refund of taxes -- limitations on refunds. (1) Subject to the provisions in subsections
  (2) and (3), a board of county commissioners shall order a refund:
          (a)      on a tax, penalty, interest, or cost paid more than once or erroneously or illegally collected if an
  appeal pursuant to 15-1-402 was not available;
          (b)      on a tax paid for which a refund is allowed under 15-16-612 or 15-16-613;
          (c)      on a tax, penalty, or interest collected as a result of an error in the description or location of real
  property or improvements or for duplicate taxes paid as determined by the department of revenue;
          (d)      on net or gross proceeds tax, centrally assessed property tax, penalty, or interest when the
  department of revenue notifies the board of county commissioners of an assessment revision completed
  pursuant to 15-8-601;
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68th Legislature 2023                                                                                              SB 362.1
           (e)      upon entry of a decision either by the district court or by the Montana tax appeal board under
  15-2-306 that has not been appealed to a higher court; or
           (f)      on a decision that a refund is payable as a result of a taxpayer prevailing in a motor vehicle tax
  or fee proceeding under 15-15-201.
           (2)      The taxpayer shall prove that a refund is due under subsection (1)(a) or (1)(b).
           (3)      (a) A refund may not be granted under subsection (1)(a) or (1)(b) unless the taxpayer or a
  representative of the taxpayer files a written claim with the board of county commissioners within 10 years after
  the date when the second half of the taxes would have become delinquent if the taxes had not been paid.
           (b)   The refund required under subsection (1)(c) must be made for 5 tax years or for the duration of the
  error, whichever period is shorter.
           (c)(b)   A refund may not be made under subsection (1)(c) unless the taxpayer allowed the department
  of revenue access to the taxpayer's property for the purposes of appraising the property."
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           NEW SECTION. Section 3.          Effective date. [This act] is effective July 1, 2023.
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           NEW SECTION. Section 4.          Applicability. [This act] applies to requests for refunds received on or
  after [the effective date of this act].
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                                                                 -3-                      Authorized Print Version – SB 362
Statutes affected: 
SB0362_1.pdf: 15-8-601, 15-16-603
SB0362_2.pdf: 15-8-601, 15-16-603
Amended: 15-8-601, 15-16-603
Introduced: 15-8-601, 15-16-603