BEFORE THE DEPARTMENT OF REVENUE
OF THE STATE OF MONTANA
In the matter of the amendment of ARM 42.19.406 relating to extended property tax assistance program (EPTAP)
TO: All Concerned Persons
1. On September 2, 2009, at 8:30 a.m., a public hearing will be held in the Third Floor Conference Room (329) located in the East Wing of the Sam W. Mitchell Building, at Helena, Montana, to consider the amendment of the above-stated rule.
Individuals planning to attend the hearing shall enter the building through the east doors of the Sam W. Mitchell Building, 125 North Roberts, Helena, Montana.
2. The Department of Revenue will make reasonable accommodations for persons with disabilities who wish to participate in this public hearing or need an alternative accessible format of this notice. If you require an accommodation, contact the Department of Revenue no later than 5:00 p.m., August 17, 2009, to advise us of the nature of the accommodation that you need. Please contact Cleo Anderson, Department of Revenue, Director's Office, P.O. Box 7701, Helena, Montana 59604-7701; telephone (406) 444-5828; fax (406) 444-3696; or e-mail firstname.lastname@example.org.
3. The rule proposed to be amended provides as follows, stricken matter interlined, new matter underlined:
42.19.406 EXTENDED PROPERTY TAX ASSISTANCE PROGRAM
(1) The department will determine which taxpayers are potentially eligible for the extended property tax assistance program and will mail applications to those taxpayers. The department determines the taxpayers who are potentially eligible during the first year of the reappraisal cycle (tax year 2009 for the current cycle) based upon the following requirements set forth in 15-6-193, MCA:
(a) A potentially eligible property is limited to a qualified residence which means any class four residential dwelling in Montana that is a single-family dwelling unit, unit of a multiple-unit dwelling, trailer, manufactured home, or mobile home, and as much surrounding land, not exceeding one acre, as is reasonably necessary for use of such a dwelling. The dwelling must be actually occupied by itself or in combination with no more than one other class four residential dwelling in Montana for at least seven months each year;
(b) The qualified residence must be the same residence as was owned by the taxpayer on December 31, 2008;
(c) The taxable value of the qualified residence must have experienced greater than a 24% increase due to reappraisal; and
(d) The property taxes on the qualified residence must have increased by $250 or more between tax year 2008 and tax year 2009, based upon the tax year 2008 mill levy.
(2) An individual unit of a multiple-unit dwelling that meets the qualification requirements of (1)(a) through (1)(d) may be eligible for the benefits allowed under this program, provided that the owner of the individual unit meets the occupancy requirement in (1)(a). The department will mail one application form to the owner of a multiple-unit dwelling to determine if the owner meets the occupancy requirement on an individual unit, and if not, there will be no benefit granted to the owner of a multi-unit dwelling through this program.
(3) In order to receive the tax rate adjustment, the qualified residence property owner of record, the qualified residence property owner's agent, or a qualifying entity of a qualified residence must annually complete and forward an application to the Department of Revenue, P.O. Box
5805 6169, Helena, Montana 59604- 5805 6169.
(a) In order for qualifying taxpayers to receive the tax rate adjustment for tax year
2003 2009, the department mailed letters will mail applications to taxpayers by in June 30 August , 2003 2009, advising them that completed applications must be postmarked on or before July 25, 2003 the due date preprinted on the application form, and returned to the department if they want wish to be considered for the tax rate adjustment. The preprinted due date will be 30 calendar days from the date of the application being mailed to the taxpayer by the department. This notification will also advise d the applicants that applications postmarked after July 25, 2003 the preprinted due date , will not be considered for the tax rate adjustment.
(b) Beginning with tax year
2004 2010 and all subsequent tax years, the completed applications must be postmarked on or before April 15 in order for applicants to receive the tax rate adjustment for the year the tax rate adjustment is sought. Applications postmarked after April 15 will not be considered for the tax rate adjustment provided for under this section.
(2) through (4) remain the same but are renumbered (4) through (6).
(5)(7) Income for an entity includes those shown in (2) (4) and also the income of any natural person or entity that is a trustee of, or controls, 25% or more of the entity.
(6) remains the same but is renumbered (8).
(7)(9) The completed application form must include:
(a) the applicant's social security number or federal identification number (FEIN); and
(b) copies of the applicant's federal individual, partnership, estates or trusts, or corporate income tax return for the tax year immediately preceding the year of the application. For example: complete copies (including all schedules) of the appropriate
2003 2009 tax year return must accompany a 2004 2010 application for the extended property tax assistance program, which is due by April 15, 2004 2010.
(8)(10) Failure to provide the required information in (2) (4) through (7) (9) will result in the application being denied. All tax return information will be treated as confidential by the department.
(9) and (10) remain the same but are renumbered (11) and (12).
(11)(13) For tax year 2003 2009, assessment notices will be prepared and mailed for all parcels of real property without regard to whether parcels qualify for the program as provided in this rule. The property reappraisal values are not impacted by the provisions of the extended property tax assistance program, and in accordance with 15-7-102, MCA, the department will not issue or mail revised assessments for those parcels qualifying for the extended property tax assistance program.
(12)(14) Beginning with tax year 2004 2010, and in accordance with 15-7-102, MCA, the department will not mail assessment notices for parcels when a valuation change is due solely to successful qualification for the extended property tax assistance program, since the market value of the property is not impacted by the program.
(13) and (14) remain the same but are renumbered (15) and (16).
AUTH: 15-1-201, MCA
IMP: 15-6-193, MCA
REASONABLE NECESSITY: The proposed amendments to this rule are made to reflect and clarify the direction of the 2009 Legislature relative to the Extended Property Tax Assistance Program (EPTAP) through its passage of HB 658. The significant changes to the EPTAP enacted with the passage of HB 658 included the definition of a "qualified residence", and reducing the benefit to land associated with a qualified residence from five acres previously, to one acre for this reappraisal cycle (January 1, 2009, through December 31, 2014). Other amended language is needed to clarify how the program is applied to multi-unit dwellings, and it is also necessary to clarify the administrative processing of applications for tax year 2009, and then also for the following five years of the reappraisal cycle. Dates are also amended to mesh with dates associated with this reappraisal cycle.
4. Concerned persons may submit their data, views, or arguments, either orally or in writing, at the hearing. Written data, views, or arguments may also be submitted to: Cleo Anderson, Department of Revenue, Director's Office, P.O. Box 7701, Helena, Montana 59604-7701; telephone (406) 444-5828; fax (406) 444-3696; or e-mail email@example.com and must be received no later than September 10, 2009.
5. Cleo Anderson, Department of Revenue, Director's Office, has been designated to preside over and conduct the hearing.
6. An electronic copy of this Notice of Public Hearing is available through the department's site on the World Wide Web at www.mt.gov/revenue, under "for your reference"; "DOR administrative rules"; and "upcoming events and proposed rule changes." The department strives to make the electronic copy of this Notice of Public Hearing conform to the official version of the Notice, as printed in the Montana Administrative Register, but advises all concerned persons that in the event of a discrepancy between the official printed text of the Notice and the electronic version of the Notice, only the official printed text will be considered. In addition, although the department strives to keep its web site accessible at all times, concerned persons should be aware that the web site may be unavailable during some periods, due to system maintenance or technical problems.
7. The Department of Revenue maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency. Persons who wish to have their name added to the list shall make a written request, which includes the name and e-mail or mailing address of the person to receive notices and specifies that the person wishes to receive notices regarding particular subject matter or matters. Notices will be sent by e-mail unless a mailing preference is noted in the request. Such written request may be mailed or delivered to the person in 4 above or faxed to the office at (406) 444-3696, or may be made by completing a request form at any rules hearing held by the Department of Revenue.
8. The bill sponsor contact requirements of 2-4-302, MCA, apply and have been fulfilled. The primary bill sponsor was contacted on July 22, 2009, by regular mail.
/s/ Cleo Anderson /s/ Dan R. Bucks
CLEO ANDERSON DAN R. BUCKS
Rule Reviewer Director of Revenue
Certified to Secretary of State August 3, 2009