Bill Summary – FastDemocracy

67th Legislature                                                                                                   SB 154.1
                                                    SENATE BILL NO. 154
                                                 INTRODUCED BY J. SMALL
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   A BILL FOR AN ACT ENTITLED: “AN ACT GENERALLY REVISING THE COLLECTION OF DELINQUENT
   COAL GROSS PROCEEDS PROPERTY TAXES; PROVIDING FOR THE SUSPENSION OF DELINQUENT
   COAL GROSS PROCEEDS PROPERTY TAXES, INTEREST, AND PENALTIES BY THE GOVERNING BODY
   OF A COUNTY; AUTHORIZING GROSS PROCEEDS OBLIGATIONS TO BE SECURED BY REVENUE
   FROM INSTALLMENT PAYMENTS; AMENDING SECTIONS 7-6-1101, 7-6-1102, 7-6-1103, 7-6-1105, 7-6-
   1111, 7-6-1112, 7-6-1115, 15-16-102, 15-16-119, 15-16-301, 15-16-303, 15-16-401, 15-16-402, 15-16-404, 15-
   16-801, 15-17-122, 15-17-911, AND 15-23-704, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE
   AND APPLICABILITY DATES.”
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   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
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              NEW SECTION. Section 1.         Suspension of collection of coal gross proceeds taxes, interest, and
   penalties -- local government discretion -- payment plan. (1) After receiving written consent from the
   department, the governing body of a county or consolidated local government unit may suspend collection of
   delinquent coal gross proceeds taxes, interest, and penalties and enter into a payment plan that allows a coal
   producer to make installment payments of the delinquent coal gross proceeds taxes, interest, and penalties.
              (2)   The suspension must be in the best interest of the people of the county or consolidated local
   government. The governing body may refuse to suspend delinquent coal gross proceeds taxes, interest, and
   penalties if it determines that the suspension is not in the best interest of the county.
              (3)   In order for the governing body to grant a suspension and allow installment payments pursuant to
   this section, after receiving written consent from the department it shall adopt a resolution:
              (a)   providing notice, as set forth in 7-1-2121;
              (b)   holding a public hearing; and
              (c)   notifying the governor's office of budget and program planning and the department of revenue
   about a proposed action to suspend delinquent coal gross proceeds taxes, interest, and penalties.
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              (4)   The governor's office of budget and program planning and the department of revenue shall consult
   with the governing body regarding the impact on programs that would result from the proposed granting of the
   suspension, and the governing body shall consider the information before reaching a final decision.
              (5)   The resolution must state that the suspension is in the best interest of the people of the county or
   consolidated local government, based on full disclosure of all pertinent financial information by the coal gross
   proceeds taxpayer as required by the local government.
              (6)   Any taxing authority affected by the suspension may issue gross proceeds obligations under Title
   7, chapter 6, part 11. The governing body of a county or consolidated local government unit may require a coal
   producer to pledge additional collateral to secure payment as consideration for a payment plan.
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              NEW SECTION. Section 2.         Application of suspension and installment arrangement. The
   suspension of delinquent coal gross proceeds taxes pursuant to [section 1] applies to the portion allocated to
   the state, county, and school district shares in the same manner as the distributions are calculated in 15-23-
   703.
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              Section 3. Section 7-6-1101, MCA, is amended to read:
              "7-6-1101.    Definitions. As used in this part, unless the context clearly requires otherwise, the
   following definitions apply:
              (1)   "Governing body" means the legislative authority of a local government, by whatever name
   designated.
              (2)   "Gross proceeds obligations" are tax anticipation notes or revenue anticipation notes that mature
   at a time not to exceed 5 years from the date issued and are secured by the collection of certain coal gross
   proceeds taxes, interest, and penalties pursuant to [section 1].
              (2)(3)   "Local government" means any city, town, county, consolidated city-county, or school district.
              (3)(4)   "Ordinance" means an ordinance or resolution of the local government.
              (4)(5)   "Short-term obligations" are tax anticipation notes or revenue anticipation notes that mature at a
   time not to exceed 13 months from the date issued."
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              Section 4. Section 7-6-1102, MCA, is amended to read:
              "7-6-1102.    Short-term Gross proceeds and short-term obligations authorized. A local
   government may issue and sell gross proceeds obligations or short-term obligations as provided in this part in
   anticipation of taxes or revenues budgeted to be received and appropriated for expenditure during the fiscal
   year in which the obligations are issued. The proceeds of the obligations may be expended solely for the
   purposes for which the taxes or revenues were appropriated and for costs and expenses incident to the
   issuance and sale thereof. Pending expenditure, the proceeds may be invested as provided by law. The
   principal and interest on short-term obligations must be repaid from the money derived from the taxes and
   revenues in anticipation of which they were issued, income from investment of the proceeds of the obligations,
   and any money otherwise legally available for this purpose."
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              Section 5. Section 7-6-1103, MCA, is amended to read:
              "7-6-1103.    Issuance and sale of gross proceeds obligations and short-term obligations --
   procedure. (1) The issuance of gross proceeds obligations or short-term obligations must be authorized by an
   ordinance of the governing body that fixes the maximum amount of the obligations to be issued or, if applicable,
   the maximum amount that may be outstanding at any time, the maximum term and interest rate or rates to be
   borne by the obligations, the manner of sale, the maximum price, the form including bearer or registered as
   provided in Title 17, chapter 5, part 11, the terms, the conditions, and the covenants of the obligations. Short-
   term Gross proceeds obligations or short-term obligations issued under this section must bear fixed or variable
   rate or rates of interest that the governing body considers to be in the best interests of the local government.
   Variable rates of interest may be fixed in relationship to the standard or index that the governing body
   designates.
              (2)   The governing body may sell the gross proceeds obligations or short-term obligations at par or at
   a discount:
              (a)   at private negotiated sale to the board of investments as provided in Title 17, chapter 5, part 16; or
              (b)   at public sale to any other person. Any public sale must be noticed as provided in 7-7-4434."
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              Section 6. Section 7-6-1105, MCA, is amended to read:
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              "7-6-1105.   Refunding and renewal of short-term obligations. (1) Gross proceeds obligations may,
   from time to time, be renewed or refunded by the issuance of gross proceeds obligations. Gross proceeds
   obligations may not be renewed or refunded to a date later than 5 years from the end of the fiscal year in which
   the original short-term obligation was issued.
              (2)   Short-term obligations may, from time to time, be renewed or refunded by the issuance of short-
   term obligations. Short-term obligations may not be renewed or refunded to a date later than 6 months from the
   end of the fiscal year in which the original short-term obligation was issued."
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              Section 7. Section 7-6-1111, MCA, is amended to read:
              "7-6-1111.   Short-term Gross proceeds and short-term obligations -- security. (1) Gross proceeds
   obligations are not general obligations of the local government and are collectible only from the collection of
   coal gross proceeds taxes, interest, and penalties pursuant to [section 1].
              (2)   Short-term obligations are general obligations of the local government and must be secured by the
   taxes and revenues in anticipation of which the short-term obligations were issued and in such other manner as
   set forth in the ordinance authorizing their issuance."
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              Section 8. Section 7-6-1112, MCA, is amended to read:
              "7-6-1112.   Funds for payment of principal and interest. For the purpose of providing funds for the
   payment of principal of and interest on gross proceeds obligations or short-term obligations, the governing body
   may authorize the creation of a special fund or funds and provide for the payment from authorized sources to
   such funds of amounts sufficient to meet principal and interest requirements."
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              Section 9. Section 7-6-1115, MCA, is amended to read:
              "7-6-1115.   Local government debt limitations not to apply to short-term obligations. The debt
   limitations for local governments in Title 7, chapter 7, and Title 20, chapter 9, do not apply to gross proceeds
   obligations or short-term obligations issued in accordance with this part."
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              Section 10. Section 15-16-102, MCA, is amended to read:
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67th Legislature                                                                                                    SB 154.1
              "15-16-102. Time for payment -- penalty for delinquency. Unless suspended or canceled under the
   provisions of 10-1-606, [section 1], 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:
              (1)   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.
              (2)   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.
              (3)   All taxes due and not paid on or before 5 p.m. on May 31 of each year are delinquent and draw
   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 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
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   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."
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              Section 11. Section 15-16-119, MCA, is amended to read:
              "15-16-119. Taxation of personal property -- duty of department -- collection by department of
   administration. (1)       If the taxes on personal property are not a lien upon real property in the same county in
   an amount sufficient to secure the payment of the taxes, the department shall assess the property and compute
   the tax for the assessment. The department shall notify the county treasurer of the assessment and the amount
   of taxes due. To compute the taxes due on the personal property, the department shall use the appropriate
   mills levied during the previous year.
              (2)   The county treasurer shall notify the person against whom the tax is assessed and any other
   person having a properly perfected security interest of record of the amount and due date of the tax. The tax is
   due and payable 30 days from the date the treasurer mails the notice. Taxes not paid within 30 days become
   delinquent, and the penalty and interest provisions of 15-16-101 must be applied.
              (3)   The county treasurer shall, after the tax becomes delinquent, either proceed under subsection (7)
   or levy upon and take into possession the personal property against which a tax is assessed or any other
   personal property in the hands of the delinquent taxpayer. The county treasurer may proceed to sell the
   property in the same manner as property is sold on execution by the sheriff.
              (4)   The county treasurer shall, for the purpose of making the levy and sale, direct the sheriff to make
   the levy and sale. The sheriff, undersheriff, or any deputy sheriff of the county is ex officio a deputy county
   treasurer for sale purposes and may receive payment of the taxes, penalty, and interest. The sheriff is entitled
   to the fees, mileage, and costs as provided in 7-32-2141 and 7-32-2143, which must be assessed against the
   delinquent taxpayer.
              (5)   The county treasurer and the treasurer's sureties are liable on the treasurer's official bond for all
   taxes on personal property remaining uncollected by reason of the willful failure and neglect of the treasurer to
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   levy upon and sell the personal property for the taxes levied upon the property, including penalty and interest.
              (6)   Failure by the sheriff, undersheriff, or deputy sheriff acting as a deputy county treasurer to make
   the levy and sale results in a levy against the official bond of the sheriff, undersheriff, or deputy sheriff for
   payment of the delinquent tax, including penalty and interest.
              (7)   The county treasurer shall give the board of county commissioners a list of delinquent personal
   property taxpayers and the taxes due. The board may order the county treasurer to verify the list under oath
   and to send a copy of the list to the department of administration for collection under Title 17, chapter 4, part 1.
              (8)   The provisions of this section do not apply to property for which delinquent coal gross proceeds
   taxes or property taxes have been suspended or canceled under the provisions of [section 1] or Title 15,
   chapter 24, part 17."
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              Section 12. Section 15-16-301, MCA, is amended to read:
              "15-16-301. Delinquent list -- list of taxes suspended or canceled -- real property. (1) On the
   third Monday of June of each year, the county treasurer shall make a report to the county clerk and recorder in
   detail, showing the amount of taxes collected and a complete list of all persons and property then owing taxes.
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