BEFORE THE DEPARTMENT OF TRANSPORTATION

OF THE STATE OF MONTANA

 

In the matter of the amendment of ARM 18.9.701 and the repeal of ARM 18.9.702 pertaining to Motor Fuels tax

) ) ) )

NOTICE OF PROPOSED AMENDMENT AND REPEAL   NO PUBLIC HEARING CONTEMPLATED

 

TO: All Concerned Persons

 

1. On April 13, 2014, the Department of Transportation proposes to amend and repeal the above-stated rules.

 

2. The Department of Transportation will make reasonable accommodations for persons with disabilities who wish to participate in this rulemaking process or need an alternative accessible format of this notice. If you require an accommodation, contact Department of Transportation no later than 5:00 p.m. on April 3, 2014, to advise us of the nature of the accommodation that you need. Please contact Judy Bauer, Department of Transportation, Motor Fuels Section, P.O. Box 201001, Helena, Montana, 59620-1001; telephone (406) 444-6027; fax (406) 444-5411; TTY Service (406) 444-7696 or (800) 335-7592; or e-mail jbauer@mt.gov.

 

3. The rule as proposed to be amended provides as follows, new matter underlined, deleted matter interlined:

 

            18.9.701 WAIVER OF MOTOR FUEL PENALTIES (1) The department may waive the motor fuel late file and late pay penalties for gasoline, aviation fuel and special fuel if there is "good or reasonable cause." Good or reasonable cause means any late filing and late payment of a motor fuel tax for any of the following reasons:

            (a) and (b) remain the same.

            (c) inability to file and pay because the distributor's assets are impounded or frozen because of bank failure; or

            (d) inability to file and pay because of a serious medical emergency of the taxpayer.; or

            (e) first time late filing offense within a three year period of timely filings.

            (2) through (5) remain the same.

 

AUTH: 15-70-104, MCA

IMP:  15-70-210, 15-70-352, MCA

 

REASON:  The proposed amendment is necessary because the Legislative Audit Division conducted an audit on the department's Motor Fuels Section and made a recommendation that ARM 18.9.701 be amended to make it consistent with 15-70-210, MCA. The statute allows the department to waive a late tax filing penalty upon the distributor showing of good cause. The proposed amendment will clarify that "good cause" includes a first time late filing offense or a timely filing history for a three year period, because IFTA already allows this penalty waiver good cause reason for IFTA users, and this amendment will make the penalty waiver consistent for distributors as well.

            The proposed amendment will increase revenue by approximately $5,071.04, as this amount was suspended under a graduated (suspended) late filing penalty rule for fiscal year 2013. Since the graduated penalty rule will no longer be in effect, the department may assess full 10% penalties at a higher amount unless a good cause finding for penalty waiver can be made under ARM 18.9.701 as amended.

 

4. The department proposes to repeal the following rule:

 

            18.9.702  SUSPENSION OF PENALTIES

 

AUTH:  15-70-104, MCA

IMP:  15-70-210, 15-70-352, MCA

 

REASON:  The proposed amendment is necessary because the Legislative Audit Division conducted an audit on the department's Motor Fuels Section and made a recommendation that ARM 18.9.702 be repealed to make it consistent with 15-70-210, MCA. The statute allows the department to waive a penalty upon the distributor showing of good cause, but does not allow for the graduated (suspended) penalty provisions set forth in ARM 18.9.702. The proposed amendment is also necessary because ARM 18.9.702 is archaic and difficult to administer. Since the amendment of 15-70-113, MCA, and ARM 18.9.103 in 2001 to allow electronic filing and payment, including an additional five days to pay, the instances of late payments have been reduced. The department no longer needs to impose graduated penalties for late payments.

 

            The proposed amendment will increase revenue by approximately $5,071.04, as this amount was suspended under this graduated (suspended) late filing penalty rule for fiscal year 2013. Since the graduated penalty rule will no longer be in effect, the department may assess full 10% penalties at a higher amount unless a good cause finding for penalty waiver can be made under ARM 18.9.701 as amended.

 

5. Concerned persons may submit their data, views, or arguments concerning the proposed actions in writing to: Judy Bauer, Department of Transportation, P.O. Box 201001, Helena, Montana, 59620-1001; telephone (406) 444-6027; fax (406) 444-5411; or e-mail jbauer@mt.gov, and must be received no later than 5:00 p.m., April 10, 2014.

 

6. If persons who are directly affected by the proposed actions wish to express their data, views, or arguments orally or in writing at a public hearing, they must make written request for a hearing and submit this request along with any written comments to Judy Bauer at the above address no later than 5:00 p.m., April 10, 2014.

 

7. If the agency receives requests for a public hearing on the proposed action from either 10 percent or 25, whichever is less, of the persons directly affected by the proposed action; from the appropriate administrative rule review committee of the Legislature; from a governmental subdivision or agency; or from an association having not less than 25 members who will be directly affected, a hearing will be held at a later date. Notice of the hearing will be published in the Montana Administrative Register.  Ten percent of those directly affected has been determined to be 15 persons based on 150 fuel tax distributors in Montana.

 

8. The department 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 that includes the name, e-mail, and mailing address of the person to receive notices and specifies for which program the person wishes to receive notices. 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 contact person in 5 above or may be made by completing a request form at any rules hearing held by the department.

 

9. An electronic copy of this proposal notice is available through the Secretary of State's web site at http://sos.mt.gov/ARM/Register. The Secretary of State strives to make the electronic copy of this notice 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 Secretary of State works 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.

 

10. The bill sponsor contact requirements of 2-4-302, MCA, do not apply. 

 

11. With regard to the requirements of 2-4-111, MCA, the department has determined that the amendment and repeal of the above-referenced rules will not significantly and directly impact small businesses.

 

 

/s/ Carol Grell Morris                                    /s/ Michael T. Tooley                                   

Carol Grell Morris                                        Michael T. Tooley

Rule Reviewer                                             Director

                                                                  Department of Transportation

           

Certified to the Secretary of State March 3, 2014.