Source: https://leg.mt.gov/bills/1997/Bills/House/HB0498_01.htm
Timestamp: 2018-06-18 05:46:25
Document Index: 239281419

Matched Legal Cases: ['art 2', 'art 5', 'art 5', 'art 5', 'art 5', 'art 6', 'art 8', 'art 2', 'art 5', 'art 5', 'art 1', 'art 1']

A Bill for an Act entitled: "An Act generally revising the taxation of certain vehicles; replacing the current system of taxation of automobiles, vans, sport utility vehicles, and light trucks with a fee in lieu of tax on light vehicles; allowing the owner of a light vehicle to register the vehicle for a 24-month period; replacing several fees imposed on light vehicles with a consolidated registration fee; replacing the local option vehicle tax with a local option fee based on fees in lieu of tax; replacing the tax on quadricycles with a fee in lieu of tax; providing definitions; amending sections 15-6-201, 15-8-201, 15-8-202, 15-24-101, 15-24-104, 15-24-105, 15-24-301, 15-24-302, 15-30-121, 15-50-207, 19-6-709, 20-9-141, 20-9-331, 20-9-333, 20-9-360, 20-9-501, 20-10-144, 20-10-146, 61-3-101, 61-3-208, 61-3-301, 61-3-303, 61-3-314, 61-3-315, 61-3-316, 61-3-317, 61-3-321, 61-3-325, 61-3-332, 61-3-456, 61-3-501, 61-3-503, 61-3-504, 61-3-506, 61-3-509, 61-3-510, 61-3-511, 61-3-520, 61-3-527, 61-3-535, 61-3-537, 61-3-701, 61-3-707, 61-4-310, 61-10-201, 80-7-810, 80-7-815, and 80-7-816, MCA; and providing effective dates and an applicability date."
A statement of intent is required for this bill because 61-3-506 gives rulemaking authority to the department of justice to implement the new method for the imposition of fees in lieu of tax on light vehicles. The legislature contemplates that the rules adopted by the department should address, at a minimum, the following:
(1) the imposition and collection of fees on light vehicles; and
(2) the procedures for determining the age of a light vehicle when the manufacturer's model year is not available.
(1) "Light vehicle" means a motor vehicle commonly referred to as an automobile, van, or sport utility vehicle or a truck having a manufacturer's rated capacity of 1 ton or less.
(2) "Vehicle age" means the age of the vehicle determined by subtracting the manufacturer's model year of the vehicle from the calendar year for which the tax is due.
NEW SECTION. Section 2. Light vehicle fee in lieu of tax -- exemptions -- 24-month registration -- refund. (1) Except as provided in subsection (2), there is a fee in lieu of property tax imposed on light vehicles. The fee is in addition to the tax on new motor vehicles and annual registration fees.
(2) (a) Light vehicles that meet the description of property exempt from taxation under 15-6-201(1)(a), (1)(c) through (1)(e), (1)(g), (1)(m), (1)(o), (1)(q), and (1)(w), 15-6-203, or 15-6-215, except as provided in 61-3-520, are exempt from the fee imposed in subsection (1).
(c) A dealer for light vehicles is not required to pay the license fee for light vehicles that constitute inventory of the dealership.
(3) The owner of a motor vehicle subject to the provisions of 61-3-313 through 61-3-316 may register the motor vehicle for a period not to exceed 24 months. The application for registration or reregistration must be accompanied by the fee in lieu of tax and all other fees required in this chapter for each 12-month period of the 24-month period.
NEW SECTION. Section 3. Schedule of fees for light vehicles -- payment of fee required for operation. (1) The following schedule, based on vehicle age, is used to determine the annual fee imposed by [section 2]:
1 or less $254
2-3 221
6-7 133
10 or more 34
(2) A light vehicle subject to the fee imposed by [section 2] may not be operated unless the fee has been paid and the vehicle is licensed. A lien for fees due on the vehicle occurs on the anniversary date of the registration and continues until the fees have been paid.
NEW SECTION. Section 4. Consolidated registration fee -- distribution. (1) A consolidated registration fee of $19 is imposed on the annual registration or reregistration of each motor vehicle subject to the provisions of 61-3-313 through 61-3-316 and to the fee in lieu of tax under [section 2]. A vehicle subject to the fee under this section is exempt from the fees imposed by 61-3-321(1) and (5), 61-3-510, 61-3-511, and 61-10-201.
(2) The fee must be collected by the county treasurer and distributed as follows:
(a) $8.50 to the county road fund;
(b) $10.50 to the state treasurer, to be distributed according to the following percentages:
(i) 47.6% to the state general fund;
(ii) 2.4% for payment of supplemental benefits provided for in 19-6-709;
(iii) 14.25% for the purposes of the weed control fee provided for in 61-3-510;
(iv) 9.5% for the purposes of the county motor vehicle computer fee provided for in 61-3-511;
(v) 26.25% to the department of transportation for the purposes of Title 61, chapter 10, part 2.
(3) If a vehicle is registered for a 24-month period as provided in 61-3-303(4), the fee imposed by this section must be paid for each 12-month period of the 24-month period.
(4) The fee imposed by this section does not apply to vehicles registered through a proportional registration agreement.
NEW SECTION. Section 5. Sport utility vehicle. "Sport utility vehicle" means a light vehicle designed to transport 10 or fewer persons that is constructed on a truck chassis or that has special features for occasional off-road use. The term does not include trucks having a manufacturer's rated capacity of 1 ton or less.
Section 6. Section 15-6-201, MCA, is amended to read:
(x) light vehicles as defined in [section 1]; and
Section 7. Section 15-8-201, MCA, is amended to read:
(b) light vehicles as defined in [section 1];
(c) motor homes, travel trailers, and campers;
(c)(d) watercraft;
(d)(e) livestock;
(e)(f) property defined in 61-1-104 as "special mobile equipment" that is subject to assessment for personal property taxes on the date that application is made for a special mobile equipment plate;
(f)(g) mobile homes held by a distributor or dealer of mobile homes as stock in trade; and
(g)(h) property subject to the provisions of 15-16-203.
"15-8-202. Motor vehicle assessment. (1) (a) The department shall, in each year, ascertain and assess all motor vehicles, other than light vehicles, motor homes, travel trailers, and campers or mobile homes, in each county subject to taxation as of January 1 or as of the anniversary registration date of those vehicles as provided by law, subject to 61-3-313 through 61-3-316 and 61-3-501. The assessment for all of taxable motor vehicles must be made in accordance with 61-3-503.
(b) The department of justice shall impose the fee in lieu of tax for light vehicles pursuant to [sections 2 and 3].
(c) The motor vehicles Taxes or fees in lieu of tax on motor vehicles under this subsection (1) must be assessed or imposed in each year to on the persons by whom who owned or claimed or in whose possession or control they the motor vehicles were at midnight of January 1 or the anniversary registration date, whichever is applicable.
(2) A tax or fee in lieu of tax may not be assessed or imposed against motor vehicles subject to taxation or a fee in lieu of tax that constitute inventory of motor vehicle dealers as of January 1. These vehicles and all other motor vehicles subject to taxation or a fee in lieu of tax that are brought into the state subsequent to after January 1 as motor vehicle dealers' inventories must be assessed to their respective purchasers as of the dates the vehicles are registered by the purchasers.
Section 9. Section 15-24-101, MCA, is amended to read:
"15-24-101. Assessment of proportionally registered interstate motor vehicle fleets -- tax payment of tax or fee required for registration. (1) The department of revenue shall assess, for the purpose of personal property taxes, the taxable vehicles in interstate motor vehicle fleets proportionally registered under the provisions of 61-3-711 through 61-3-733, and the assessment must be apportioned on the ratio of total miles traveled to in-state miles traveled as prescribed by 61-3-721. Interstate motor vehicle fleets are assessable for taxation purposes upon application for proportional registration and are assessed to the persons who own or claim the fleet or in whose possession or control the fleet is at the time of the application.
(2) With respect to any fleet contained in an original application that has a situs for the purpose of property taxation in Montana by the terms of this part or any other provision of the laws of Montana, the taxes on taxable vehicles are apportioned as provided in 15-24-303.
(3) With respect to any fleet contained in a renewal application, the taxable vehicles are assessed and taxed for a full year.
(4) Automobiles and trucks having a rated capacity of 1 ton or less Light vehicles that are part of an interstate motor vehicle fleet are subject to property tax the fee in lieu of tax imposed by [section 2]. If the fleet is proportionally registered, the tax fee is apportioned in the same fashion as the registration fee under 61-3-721.
(5) Vehicles contained in a fleet for which current taxes or fees, or both, have been assessed and paid may not be assessed or charged fees under this section upon presentation to the department of proof of payment of taxes, fees, or both for the current registration year. The payment of personal property taxes, fees, or both is a condition precedent to proportional registration or reregistration of an interstate motor vehicle fleet."
Section 10. Section 15-24-104, MCA, is amended to read:
"15-24-104. Situs in state of proportionally registered fleets -- collection of taxes and fees. (1) For the purposes of this part, any vehicle previously registered or that has had application for registration made under the provisions of 61-3-711 through 61-3-733 has a situs in the state for the purposes of taxation or the fee in lieu of tax.
(2) The department or its designated agent shall collect the personal property taxes or license fees, or both, prescribed in this part."
Section 11. Section 15-24-105, MCA, is amended to read:
"15-24-105. Deposit and distribution of taxes and fees on proportionally registered fleets. The personal property taxes and license fees in lieu of tax collected under this part shall must be deposited with the state treasurer for distribution to the general fund of each county on the following basis:
(1) for personal property taxes, according to the ratio of the taxable valuation of each county to the total state taxable valuation; and
(2) for vehicle license fees in lieu of tax, according to the ratio of vehicle license fees in lieu of tax, other than fees derived from interstate motor vehicle fleets, collected in each county to the sum of all such the fees collected in all the counties."
Section 12. Section 15-24-301, MCA, is amended to read:
(3) Nothing in this This section shall be may not be construed to levy a tax against a merchant or dealer within this state on goods, wares, or merchandise brought into the county to replenish the stock of the merchant or dealer.
(4) Any A motor vehicle not subject to a fee in lieu of tax, except for a motor vehicle subject to the fee in lieu of tax imposed by [section 2], brought, driven, or coming into this state by any a nonresident person temporarily employed in Montana and used exclusively for transportation of such the person is subject to taxation and assessment for taxes or fees in lieu of tax as follows:
(a) The motor vehicle is taxed or the fee in lieu of tax on the motor vehicle is imposed by the county in which it is located.
(b) One-fourth of the annual tax liability or fee in lieu of tax of the motor vehicle must be paid for each quarter or portion of a quarter of the year that the motor vehicle is located in Montana.
(c) The quarterly taxes or fees in lieu of tax are due the first day of the quarter.
(5) Agricultural harvesting machinery classified under class eight, licensed in other states another state, and operated on the lands land of persons a person other than the owner of the machinery under contracts a contract for hire shall be is subject to a fee in lieu of taxation tax of $35 per machine for the calendar year in which the fee is collected. The machines shall be are subject to taxation under class eight only if they are sold in Montana."
Section 13. Section 15-24-302, MCA, is amended to read:
(1) taxation of or the imposition of fees in lieu of tax on motor vehicles under 15-24-301(4) to the extent that subsection varies from the general provisions cited in this section; and
Section 14. Section 15-30-121, MCA, is amended to read:
(c) one-half of premium payments for medical care as provided in subsection (9) (10);
(3) expenses of household and dependent care services as outlined in subsections (3)(a) through (3)(c) and (9) (11) and subject to the limitations and rules as set out in subsections (3)(d) through (3)(f), as follows:
(8) contributions to the Montana drug abuse resistance education program provided for in 44-2-702, subject to the conditions set forth in 15-30-159; and
(9) light vehicle fees in lieu of tax, as provided by [section 2], paid during the tax year.
(9)(10) For the purpose of subsection (7)(a), deductible medical insurance premiums are those premiums that provide payment for medical care as defined by 26 U.S.C. 213(d).
(10)(11) (a) Subject to the conditions of subsection (3), a taxpayer who operates a family day-care home or a group day-care home, as these terms are defined in 52-2-703, and who cares for the taxpayer's own child and at least one unrelated child in the ordinary course of business may deduct employment-related expenses considered to have been paid for the care of the child.
(c) Only a day-care operator who is licensed and registered as required in 52-2-721 is allowed the deduction under this subsection (10) (11). (Subsection (8) terminates on occurrence of contingency--sec. 12, Ch. 808, L. 1991.)"
Section 15. Section 15-50-207, MCA, is amended to read:
(2) Personal property taxes or light vehicle fees in lieu of tax, as provided in [section 2], paid in Montana on any personal property or light vehicle of the contractor which that is used in the business of the contractor and is located within this state may be credited against the license fees required under this chapter. However, in computing the tax credit allowed by this section against the contractor's corporation license tax or income tax, the personal property tax or light vehicle fee in lieu of tax credit credited against the license fees herein required under this chapter shall may not be considered as license fees paid for the purpose of such the income tax or corporation license tax credit."
Section 16. Section 19-6-709, MCA, is amended to read:
(4) (a) Twenty-five cents of each motor vehicle registration fee provided for in 61-3-321 and the amount of the fee distributed under [section 4(2)(b)(ii)] must be deposited in the pension trust fund at the end of each fiscal year. The fee is fees are statutorily appropriated, as provided in 17-7-502, for payment of benefits to eligible recipients. The total funds must be distributed by the division in lump-sum payments to eligible recipients along with their normal retirement benefit payment.
(5) Every 10 years following July 1, 1991, the division shall review the size of the additional fee fees collected under 61-3-321(5) and distributed pursuant to [section 4(2)(b)(ii)] and deposited in the account in accordance with subsection (4)(a) and recommend to each legislature following the division's review any legislation necessary to reduce the fee fees to the minimum amount necessary to provide the supplemental benefits provided by this section."
Section 17. Section 20-9-141, MCA, is amended to read:
(B) revenue from property taxes and fees imposed under 23-2-517, 23-2-803, 61-3-504(2), 61-3-521, 61-3-527, 61-3-537, [section 3], and 67-3-204;
Section 18. Section 20-9-331, MCA, is amended to read:
"20-9-331. Basic county tax and other revenues for county equalization of the elementary district BASE funding program. (1) The county commissioners of each county shall levy an annual basic tax of 33 mills on the dollar of the taxable value of all taxable property within the county, except for property subject to a tax or fee under 23-2-517, 23-2-803, 61-3-504(2), 61-3-521, 61-3-527, 61-3-537, [section 3], and 67-3-204, for the purposes of local and state BASE funding program support. The revenue collected from this levy must be apportioned to the support of the elementary BASE funding programs of the school districts in the county and to the state general fund in the following manner:
(i) anticipated revenue from property taxes and fees imposed under 23-2-517, 23-2-803, 61-3-504(2), 61-3-521, 61-3-527, 61-3-537, [section 3], and 67-3-204."
Section 19. Section 20-9-333, MCA, is amended to read:
"20-9-333. Basic special levy and other revenue for county equalization of high school district BASE funding program. (1) The county commissioners of each county shall levy an annual basic special tax for high schools of 22 mills on the dollar of the taxable value of all taxable property within the county, except for property subject to a tax or fee under 23-2-517, 23-2-803, 61-3-504(2), 61-3-521, 61-3-527, 61-3-537, [section 3], and 67-3-204, for the purposes of local and state BASE funding program support. The revenue collected from this levy must be apportioned to the support of the BASE funding programs of high school districts in the county and to the state general fund in the following manner:
(f) anticipated revenue from property taxes and fees imposed under 23-2-517, 23-2-803, 61-3-504(2), 61-3-521, 61-3-527, 61-3-537, [section 3], and 67-3-204."
Section 20. Section 20-9-360, MCA, is amended to read:
"20-9-360. State equalization aid levy. (1) There is a levy of 40 mills imposed by the county commissioners of each county on all taxable property within the state, except property for which a tax or fee is required under 23-2-517, 23-2-803, 61-3-504(2), 61-3-521, 61-3-527, 61-3-537, [section 3], and 67-3-204. Except as provided in subsection (2), proceeds of the levy must be remitted to the state treasurer and must be deposited to the credit of the state general fund for state equalization aid to the public schools of Montana.
Section 21. Section 20-9-501, MCA, is amended to read:
(i) any anticipated money that may be realized in the retirement fund during the ensuing school fiscal year, including anticipated revenue from property taxes and fees imposed under 23-2-517, 23-2-803, 61-3-504(2), 61-3-521, 61-3-527, 61-3-537, [section 3], and 67-3-204;
Section 22. Section 20-10-144, MCA, is amended to read:
(e) anticipated or reappropriated revenue from property taxes and fees imposed under 23-2-517, 23-2-803, 61-3-504(2), 61-3-521, 61-3-527, 61-3-537, [section 3], and 67-3-204;
Section 23. Section 20-10-146, MCA, is amended to read:
(i) anticipated money that may be realized in the county transportation fund during the ensuing school fiscal year, including anticipated revenue from property taxes and fees imposed under 23-2-517, 23-2-803, 61-3-504(2), 61-3-521, 61-3-527, 61-3-537, [section 3], and 67-3-204;
Section 24. Section 61-3-101, MCA, is amended to read:
(4) The department shall determine the amount of light vehicle fees in lieu of tax to be collected at the time of registration for each light vehicle pursuant to [sections 2 and 3]. The county treasurer shall collect the fee in lieu of tax on each light vehicle at the time of its registration.
Section 25. Section 61-3-208, MCA, is amended to read:
Section 26. Section 61-3-301, MCA, is amended to read:
"61-3-301. Registration -- license plate required -- display. (1) Except as otherwise provided in this chapter, no a person may not operate a motor vehicle upon the public highways of Montana unless the vehicle is properly registered and has the proper number plates conspicuously displayed, one on the front and one on the rear of the vehicle, each securely fastened to prevent it from swinging and unobstructed from plain view, except that trailers, semitrailers, quadricycles, motorcycles, and vehicles authorized in 61-4-102(6) to display demonstrator plates may have but only one number plate conspicuously displayed on the rear. No A person may not display on a vehicle at the same time a number assigned to it under any motor vehicle law except as provided in this chapter. A junk vehicle, as defined in Title 75, chapter 10, part 5, being driven or towed to an auto wrecking graveyard for disposal is exempt from the provisions of this section.
(4) This section does not apply to a vehicle exempt from taxation under 15-6-215 or subject to taxation or the fee in lieu of tax under 61-3-520.
Section 27. Section 61-3-303, MCA, is amended to read:
"61-3-303. Application for registration. (1) Each owner of a motor vehicle operated or driven upon the public highways of this state shall for each motor vehicle owned, except as otherwise provided in this section, file or cause to be filed in the office of the county treasurer where of the county in which the owner permanently resides at the time of making the application or, if the vehicle is owned by a corporation or used primarily for commercial purposes, in the taxing jurisdiction of the county where in which the vehicle is permanently assigned, an application for registration or reregistration upon a blank on a form to be prepared and furnished prescribed by the department. The application must contain:
(i) the personal property taxes or fees in lieu of tax assessed or imposed against the vehicle for the current year of registration and the immediately previous year; or
(3) The application may not be accepted by the county treasurer unless the payments required by subsection (2) accompany the application. The Except as provided in subsection (4), the department of revenue may not assess, the department of justice may not impose, and the county treasurer may not collect taxes or fees for a period other than:
(4) The owner of a motor vehicle subject to the provisions of 61-3-313 through 61-3-316 and subject to the fee in lieu of tax as provided in [section 2] may register the motor vehicle for a period not to exceed 24 months. The application for registration or reregistration must be accompanied by the fee in lieu of tax and all other fees required in this chapter for each 12-month period of the 24-month period.
(5) The department of revenue may make full and complete investigation of the tax status of the vehicle. An applicant for registration or reregistration shall submit proof from the tax or other appropriate records of the proper county at the request of the department of revenue."
Section 28. Section 61-3-314, MCA, is amended to read:
Section 29. Section 61-3-315, MCA, is amended to read:
(2) The owner of a motor vehicle subject to the provisions of 61-3-613 through 61-3-616 and subject to the fee in lieu of tax as provided in [section 2] may register the motor vehicle for a period not to exceed 24 months. The registration expires on the last day of the 24th month commencing from the date of the designated registration period under 61-3-314 for which the vehicle is registered.
Section 30. Section 61-3-316, MCA, is amended to read:
"61-3-316. New registrations under staggered registration. Vehicles which are A vehicle that is registered for the first time in this state shall must be assigned a registration period corresponding to when they are the vehicle is first registered in this state. The Except as provided in 61-3-315(2), the registration period for a vehicle shall thereafter must remain the same from year to year."
Section 31. Section 61-3-317, MCA, is amended to read:
"61-3-317. New registration required for transferred vehicle -- grace period -- penalty -- display of proof of purchase. Except as otherwise provided herein in this section, the new owner of a transferred motor vehicle shall have has a grace period of 20 calendar days from the date of purchase to make application and pay the taxes or fees, or both, provided by part 5 of this chapter, unless the tax or fee has been paid for the year, as if the vehicle were being registered for the first time in that registration year. If the motor vehicle was not purchased from a duly licensed motor vehicle dealer as provided in this chapter, it is not a violation of this chapter or any other law for the purchaser to operate the vehicle upon the streets and highways of this state without a certificate of registration during the 20-day period, provided that at all times during that period a vehicle purchase sticker in a form prescribed and furnished by the department, obtained from the county treasurer or a law enforcement officer as authorized by the department, reciting the date of purchase is clearly displayed in the rear window of the motor vehicle. Registration and license fees collected under 61-3-321 and [section 4] are not required to be paid when a license plate is transferred under this section and 61-3-335. Failure to make application within the time provided herein in this section subjects the purchaser to a penalty of $10. The penalty shall must be collected by the county treasurer at the time of registration and shall be is in addition to the fees otherwise provided by law."
Section 32. Section 61-3-321, MCA, is amended to read:
(a) motor vehicles weighing 2,850 pounds or under (other than motortrucks), except light vehicles subject to the fee imposed under [section 4], $5;
(b) motor vehicles weighing over 2,850 pounds (other than motortrucks), except light vehicles subject to the fee imposed under [section 4], $10;
(c) electrically driven passenger vehicles, except light vehicles subject to the fee imposed under [section 4], $10;
(h) trailers, except housetrailers, and semitrailers over 2,500 up to 6,000 pounds declared weight (except housetrailers), $5;
(5) An additional fee of $5.25 a year for each registration of a vehicle, except light vehicles subject to the fee imposed under [section 4] and trailers and semitrailers registered in other jurisdictions and registered through a proportional registration agreement, must be collected as a registration fee. Revenue from this fee must be forwarded by the respective county treasurers to the state treasurer for deposit in the general fund. The department shall distribute 25 cents from the motor vehicle registration fee for payment of supplemental benefits provided for in 19-6-709.
Section 33. Section 61-3-325, MCA, is amended to read:
(b) (i) The Except as provided in subsection (2)(b)(ii), the department of transportation shall also collect a registration fee of $7.50 for each motor vehicle in the fleet in lieu of the registration fee provided for in 61-3-321. The department shall retain $4.50 of each registration fee for administrative costs and forward the remaining $3 to the state treasurer for deposit in the general fund in lieu of the fee provided in 61-3-321(5).
(ii) The department shall also collect the registration fee provided for in [section 4] for each motor vehicle subject to the fee in lieu of tax as provided in [section 2].
(d) The fees and taxes collected must be distributed by the department of transportation as provided in 61-3-321, [section 4], and part 5 of this chapter, based on the domicile of each motor vehicle."
Section 34. Section 61-3-332, MCA, is amended to read:
(6) For the use of tax-exempt motor vehicles and motor vehicles that are exempt from the fee in lieu of tax as provided in [section 2(2)(a)], in addition to the markings provided in this section, number plates must bear the following distinctive markings:
(7) On all number plates assigned to motor vehicles of the truck and trailer type, other than tax-exempt trucks that are also exempt from the light vehicle fee in lieu of tax as provided in [section 2(2)(a)] and tax-exempt trailers, there must appear the letter "T" or the word "TRUCK" on plates assigned to trucks and the letters "TR" or the word "TRAILER" on plates assigned to trailers and housetrailers. The letters "MC" or the word "CYCLE" must appear on plates assigned to vehicles of the motorcycle or quadricycle type.
Section 35. Section 61-3-456, MCA, is amended to read:
(b) assessment under 15-8-202 or 61-3-503, the fee in lieu of tax under [section 2], or the fee imposed under [section 4]; or
Section 36. Section 61-3-501, MCA, is amended to read:
"61-3-501. When vehicle taxes and fees are due. (1) Property taxes, fees in lieu of tax, new car taxes, and other registration fees must be paid on the date of registration or reregistration of the vehicle.
(2) If the anniversary date for reregistration of a vehicle passes while the vehicle is owned and held for sale by a licensed new or used car dealer, property taxes or fees in lieu of tax abate on such the vehicle properly reported with the department of revenue county treasurer until the vehicle is sold and thereafter. After the sale, the purchaser shall pay the pro rata balance of the taxes or fees in lieu of tax due and owing on the vehicle.
Section 37. Section 61-3-503, MCA, is amended to read:
(a) Except as provided in subsections (1)(c) through (1)(e), a A person who files an application for registration or reregistration of a motor vehicle shall before filing the application with the county treasurer submit the application to the department of revenue. The department of revenue shall enter on the application in a space to be provided for that purpose the market value and taxable value of the vehicle as of January 1 of the year for which the application for registration is made.
(b) Except as provided in subsection (1)(c), motor Motor vehicles are assessed for taxes on January 1 in each year irrespective of the time fixed by law for the assessment of other classes of personal property and irrespective of whether the levy and tax may be a lien upon real property within the state. A motor vehicle is not subject to assessment, levy, and taxation more than once in each year.
(2) The provisions of subsections (1)(a) through (1)(g) and (1)(b) do not apply to light vehicles, motorcycles, motor homes, travel trailers, campers, or mobile homes as defined in 15-1-101(1)."
Section 38. Section 61-3-504, MCA, is amended to read:
"61-3-504. Computation of tax. (1) The amount of taxes on a motor vehicle, other than an automobile, truck having a rated capacity of 1 ton or less a light vehicle, motorcycle, quadricycle, motor home, travel trailer, camper, or mobile home, is computed and determined by the county treasurer on the basis of the levy of the year preceding the current year of application for registration or reregistration.
Section 39. Section 61-3-506, MCA, is amended to read:
"61-3-506. Rules. (1) (a) The department of revenue shall adopt rules for the payment of property taxes and the department of transportation shall adopt rules for the payment of new car taxes under the provisions of 61-3-313 through 61-3-316, 61-3-501, and 61-3-520.
(b) The department of revenue may adopt rules for the proration of taxes for the implementation and administration of 61-3-313 through 61-3-316, 61-3-501, and 61-3-520, but shall specifically provide that new car taxes shall be for a 12-month period.
(2) The department of transportation shall adopt rules for the payment of new motor vehicle taxes under the provisions of 61-3-501 and 61-3-502.
(3) The department of justice may adopt rules for the implementation and administration of [sections 1 through 4] and the proration of fees under 61-3-520."
Section 40. Section 61-3-509, MCA, is amended to read:
"61-3-509. Disposition of taxes and fees in lieu of tax. (1) Except as provided in subsection subsections (2) and (3), the county treasurer shall, after deducting the district court fee, credit all taxes on motor vehicles and fees in lieu of tax on light vehicles, motorcycles, motor homes, quadricycles, travel trailers, and campers collected under 61-3-504, 61-3-521, 61-3-527, and 61-3-537, and [section 2] to a motor vehicle suspense fund, and at some time between March 1 and March 10 of each year and every 60 days after that date, the county treasurer shall distribute the money in the motor vehicle suspense fund in the relative proportions required by the levies for state, county, school district, and municipal purposes in the same manner as personal property taxes are distributed.
(2) The county treasurer shall deduct as a district court fee 7% of the amount of the 2% tax fee in lieu of tax collected on an automobile or truck having a rated capacity of 1 ton or less a light vehicle. The county treasurer shall credit the fee for district courts to a separate suspense account and shall forward the amount in the account to the state treasurer at the time that the county treasurer distributes the motor vehicle suspense fund. The state treasurer shall credit amounts received under this subsection to the general fund to be used for purposes of state funding of the district court expenses as provided in 3-5-901.
(3) (a) The county treasurer shall credit all fees in lieu of tax on light vehicles collected under [section 2], fees collected under [section 4], and other fees imposed by this chapter for a registration period of 24 months to a separate suspense account. The county treasurer shall distribute one-half of the amount in the account at the same time and in the same manner as the county treasurer distributes the motor vehicle suspense fund.
(b) The county treasurer shall distribute the other one-half of the amount in the account at the same time and in the same manner as the county treasurer distributes the motor vehicle suspense fund in the following year."
Section 41. Section 61-3-510, MCA, is amended to read:
"61-3-510. Weed control fee. (1) A Except as provided in subsection (3), a special weed control fee of $1.50 must be assessed on the annual registration or reregistration of each motor vehicle subject to registration. The fee must be collected by the county treasurer.
(c) vehicles or equipment that is not self-propelled or that requires towing when moved upon a highway of this state; and
(d) light vehicles subject to the fee imposed by [section 4]."
Section 42. Section 61-3-511, MCA, is amended to read:
"61-3-511. County motor vehicle computer fee. (1) A Except for light vehicles subject the fee imposed by [section 4], a county motor vehicle computer fee of $1 must be assessed on the annual registration or reregistration for each of the following:
(a) motor vehicles subject to registration or reregistration under Title 61, chapter 3;
(b) boats subject to registration or reregistration under Title 23, chapter 2, part 5;
(c) snowmobiles subject to registration or reregistration under Title 23, chapter 2, part 6; and
(d) off-highway vehicles subject to registration or reregistration under Title 23, chapter 2, part 8.
(2) The fee must be collected by the county treasurer and forwarded to the state treasurer for deposit in the state general fund."
Section 43. Section 61-3-520, MCA, is amended to read:
Section 44. Section 61-3-527, MCA, is amended to read:
Section 45. Section 61-3-535, MCA, is amended to read:
(a) light vehicles, quadricycles, and other vehicles subject to tax under 61-3-504(2) the fee in lieu of tax under [section 2]; and
(2) The option to reregister by mail need only be made available for vehicles, motor homes, and travel trailers registered at the close of the expiring registration period in the name of the applicant for reregistration and only if the value, age, length, or other criteria used to determine the tax or fee is available to the department.
Section 46. Section 61-3-537, MCA, is amended to read:
"61-3-537. (Temporary) Local option vehicle tax fee. (1) A county may impose a local vehicle tax fee on vehicles subject to a property tax the fee in lieu of tax under 61-3-504(2) [section 2] at a rate of up to 0.5% 25% of the value determined fee imposed under 61-3-503 [section 3(1)], in addition to the tax fee imposed under 61-3-504(2) [section 3(1)].
(2) A local vehicle tax fee is payable at the same time and in the same manner as the tax fee imposed under 61-3-504(2) [section 3(1)]. The first priority of the local vehicle tax fee is for district court funding, and the tax fee is distributed as follows:
(3) The governing body of a county may impose, revise, or revoke a local vehicle tax fee by adopting a resolution before July 1, after conducting a public hearing on the proposed resolution. The resolution may provide for the distribution of the local vehicle tax. A resolution that imposed a local option vehicle tax under this section, as this section read on December 31, 1997, does not apply to the imposition of a local option vehicle fee. (Terminates June 30, 2005--sec. 2, 3, Ch. 217, L. 1995.)
61-3-537. (Effective July 1, 2005) Local option vehicle tax. (1) A county may impose a local vehicle tax fee on vehicles subject to a property tax the fee in lieu of tax under 61-3-504(2) [section 2] at a rate of up to 0.5% 25% of the value determined fee imposed under 61-3-503 [section 3(1)], in addition to the tax fee imposed under 61-3-504(2) [section 3(1)].
(2) A local vehicle tax fee is payable at the same time and in the same manner as the tax fee imposed under 61-3-504(2) [section 3(1)] and is distributed in the same manner, based on the registration address of the owner of the motor vehicle.
(3) The governing body of a county may impose, revise, or revoke a local vehicle tax fee by adopting a resolution before July 1, after conducting a public hearing on the proposed resolution. A resolution that imposed a local option vehicle tax under this section, as this section read on December 31, 1997, does not apply to the imposition of a local option vehicle fee."
Section 47. Section 61-3-701, MCA, is amended to read:
"61-3-701. Foreign vehicles used in gainful occupation to be registered -- reciprocity. (1) Before any a foreign licensed motor vehicle may be operated on the highways of this state for hire, compensation, or profit or before the owner and/or or user thereof of the vehicle uses the vehicle if such the owner and/or or user is engaged in gainful occupation or business enterprise in the state, including highway work, the owner of the vehicle shall make application apply to a county treasurer for registration upon an application form furnished by the department. Upon satisfactory evidence of ownership submitted to the county treasurer and the payment of property taxes or fees in lieu of tax, if appropriate, as required by 15-8-201, 15-8-202, 15-24-301, 61-3-504, or 61-3-537, or [section 2], the treasurer shall accept the application for registration and shall collect the regular license fee required for the vehicle.
(2) The Upon payment of the taxes or fees, the treasurer shall thereupon issue to the applicant a copy of the certificate entitled "Owner's Certificate of Registration and Payment Receipt" and forward a duplicate copy of the certificate to the department. The treasurer shall at the same time issue to the applicant the proper license plates or other identification markers, which shall must at all times be displayed upon the vehicle when operated or driven upon roads and highways of this state during the effective period of the life of the license.
Section 48. Section 61-3-707, MCA, is amended to read:
"61-3-707. Foreign vehicles used for transportation in connection with employment. (1) Before a motor vehicle taxed or assessed a fee pursuant to 15-24-301(4) may be operated in Montana for a calendar quarter, the person responsible for payment of taxes must or fees shall apply for and obtain a window decal.
(4) There is a $2 fee for each decal, and money collected from this fee shall must be deposited to the county general fund. The $2 fee is in addition to the tax.
Section 49. Section 61-4-310, MCA, is amended to read:
"61-4-310. Single movement permit -- fee -- limitation -- county treasurer to issue. (1) A vehicle, subject to license under this title, may be moved unladen upon the highways of this state from a point within the state to a point of destination. The county treasurer at the point of the origin of the movement shall issue a special permit for the vehicle in lieu of fees required under 61-3-321, [section 4], and part 2 of chapter 10 of this title, upon application presented to the county treasurer in a form provided by the department, upon exhibiting to the county treasurer proof of ownership and evidence that the personal property taxes on the vehicle or fees in lieu of tax, if any are due, have been paid, and upon payment of a fee of $5. The permit must may not be in lieu of fees and permits required under 61-4-301 and 61-4-302.
(2) The permit must be for the transit of the vehicle only, and the vehicle may not at the time of the transit be used for the transportation of any persons, except the driver, or property for compensation or otherwise and must be for one transit only between the points of origin and destination as set forth in the application and shown on the permit.
(3) A junk vehicle being driven or towed to a motor vehicle wrecking facility or a motor vehicle graveyard for disposal is exempt from the provisions of this section. The definitions in 75-10-501 apply to this subsection."
Section 50. Section 61-10-201, MCA, is amended to read:
"61-10-201. Weight fees on motortrucks, truck tractors, and buses. In addition to other fees for the licensing of vehicles and except as provided in 61-10-203, there must be paid and collected annually for each truck, except a truck having a manufacturer's rated capacity of 1 ton or less and subject to the fee imposed under [section 4], each truck tractor, and each bus, based upon the manufacturer's rated capacity for trucks with a capacity of 1 ton or less and upon the maximum gross loaded weight and the maximum gross weight of any towed unit of each truck and truck tractor as set by the licensee in the licensee's application, the following fees:
61-10-106 through 61-10-110 750.00
in excess of 80,000 lbs."
Section 51. Section 80-7-810, MCA, is amended to read:
"80-7-810. Disposition of proceeds. Three percent of the proceeds from the fee imposed in 61-3-510 or 3% of the amount of the fee distributed pursuant to [section 4(2)(b)(iii)] may be retained by the county treasurer for costs of collection. The remainder must be deposited in the special revenue fund and must be expended as provided in 80-7-814. Twenty-five percent of the money deposited in the special revenue fund under this section must be used for research and development of nonchemical methods of weed management."
Section 52. Section 80-7-815, MCA, is amended to read:
"80-7-815. Noxious weed emergency -- expenditure authorized. (1) If a new and potentially harmful noxious weed is discovered growing in the state and is verified by the department, the governor may declare a noxious weed emergency. In the absence of necessary funding from other sources, this declaration authorizes the department to allocate up to $150,000 of the principal of the noxious weed management trust fund to government agencies for emergency relief to eradicate or confine the new noxious weed species.
(2) If the expenditure causes the principal of the trust fund to fall below $2.5 million, it must be replenished by the interest or revenue generated by the trust fund, by the other revenue provided by this part, or by revenue obtained from the fee imposed by 61-3-510 or distributed under [section 4(2)(b)(iii)], as determined by the department."
Section 53. Section 80-7-816, MCA, is amended to read:
"80-7-816. Account -- deposit -- investment. (1) There is an account in the state special revenue fund established in 17-2-102. The interest from the noxious weed trust fund and the fee imposed in 61-3-510 or distributed under [section 4(2)(b)(iii)] must be deposited in the account and must be expended as provided in 80-7-814.
(2) The department may direct the board of investments to invest the funds collected under subsection (1) pursuant to the provisions of 17-6-201. The income from the investments must be credited to the account in the state special revenue fund."
NEW SECTION. Section 54. Codification instruction. (1) [Sections 1 through 3] are intended to be codified as an integral part of Title 61, chapter 3, part 5, and the provisions of Title 61, chapter 3, part 5, apply to [sections 1 through 3].
(2) [Section 4] is intended to be codified as an integral part of Title 61, chapter 3, and the provisions of Title 61, chapter 3, apply to [section 4].
(3) [Section 5] is intended to be codified as an integral part of Title 61, chapter 1, part 1, and the provisions of Title 61, chapter 1, part 1, apply to [section 5].
NEW SECTION. Section 55. Saving clause. [This act] does not affect rights and duties that matured, penalties that were incurred, or proceedings that were begun before [the effective date of this act].
NEW SECTION. Section 56. Effective dates -- applicability -- rulemaking. (1) Except as provided in subsection (2), [this act] is effective January 1, 1998, and applies to tax years beginning after December 31, 1997.
(2) For the purposes of promulgating administrative rules under 61-3-506, [section 39 and this section] are effective on passage and approval.