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Montana Administrative Register Notice 42-2-815 No. 20   10/29/2009    
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BEFORE THE DEPARTMENT OF REVENUE

OF THE STATE OF MONTANA

 

In the matter of the adoption of New Rules I through III and amendment of ARM 42.20.307, 42.20.601, 42.20.605, 42.20.606,42.20.610, 42.20.620, 42.20.625, 42.20.650, 42.20.655, 42.20.660, 42.20.665, 42.20.670, 42.20.675, and 42.20.680 relating to Agricultural Land Valuation

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NOTICE OF PUBLIC HEARING ON PROPOSED ADOPTION AND AMENDMENT

 

TO:  All Concerned Persons

 

1.  On November 23, 2009, at 8:30 a.m., a public hearing will be held in the Reception Area (Third Floor) Conference Room of the Sam W. Mitchell Building, at Helena, Montana, to consider the adoption and amendment of the above-stated rules.

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., November 9, 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 canderson@mt.gov.

 

3.  It is the intent of the department, through the following rule amendments to bring the rules into compliance with the recommendations of the 2006-2008 Governor's Agricultural Land Advisory Council and guidelines from the 2009 Legislative Select Sub-Committee on Reappraisal.  In general, the rules are necessary to ensure that the taxpayers and affected public understand how some of the data used in the valuation of agricultural land is gathered and used in the application of the law.

 

4.  The proposed new rules do not replace or modify any sections currently found in the Administrative Rules of Montana.  The proposed new rules provide as follows:

 

NEW RULE I  STEPS IN DETERMINING THE CLASSIFICATION OF AGRICULTURAL LAND  (1)  Steps in the agricultural classification process include the use of the:

(a)  USDA Farm Service Administration (FSA) field delineations, called line work, for initial identification of general agricultural land use;

(b)  initial internal desktop land use classification, using the criteria for each agricultural land use;

(c)  on-site field reviews, operator interviews, and inspection by local department appraisal staff;

(d)  producer responses to photomaps mailed to all individual operators; and

(e)  digitally identifying each producer's agricultural land use in a Geographic Information System (GIS).

 

AUTH:  15-7-111, MCA

IMP:  15-7-201, 15-7-202, 15-7-208, MCA

 

            REASONABLE NECESSITY:  The department is proposing to adopt New Rule I because it is important to help taxpayers understand the several steps involved in the determination of agricultural land use.  The sole intent of the process is to identify the correct and current land use for each producer.

 

NEW RULE II  STEPS NECESSARY TO VALUE AGRICULTURAL LAND THAT DOES NOT HAVE A PUBLISHED SOIL SURVEY  (1)  Denied access (DA) lands do not currently have any agricultural use productivity information associated with them from a published soil survey.

(a)  When denied access lands are encountered in the department's efforts to assign a productivity to an agricultural use, the department will use Geographic Information System (GIS) technology to determine the highest level of productivity in the same agricultural use from the surrounding soils within one mile of the DA land and will assign the highest level of productivity to the denied access lands.

(b)  When the owner of the land makes arrangements with the Natural Resource Conservation Service (NRCS) and provides written proof to the department that an arrangement has been made to have a soil survey conducted on their lands, the department will use GIS technology to determine the average level of productivity in the same agricultural use from the surrounding soils within one mile of the denied access land and will assign the average level of productivity to the denied access lands.

            (c)  Upon completion of the soil survey by the NRCS the department will apply the productivity of the soil to the agricultural use as indicated in the published soil survey.

            (d)  When the department receives the information in (b) or (c) above within 30 days of receipt of the assessment or the 1st Monday in June, the department will make the adjustments for the current tax year.  If the information is received after that date, it will be adjusted for the following tax year.

(2)  Not completed (NOTCOM) lands do not have any agricultural use productivity information associated with them from a published soil survey.

(a)  When NOTCOM lands are encountered in the department's efforts to assign a productivity to an agricultural use, the department will use GIS technology to determine the average level of productivity in the same agricultural use from the surrounding soils within one mile of the NOTCOM land and will assign the average level of productivity to the NOTCOM lands.

            (b)  Upon completion and publication of the soil survey by the NRCS the department will apply the productivity of the soil to the agricultural use as indicated by the published soil survey.

 

AUTH:  15-7-111, MCA

IMP:  15-7-201, 15-7-202, 15-7-208, MCA

 

            REASONABLE NECESSITY:  The department is proposing to adopt New Rule II because there are instances where soil survey information is not available or not published yet.  In these instances, it is important for the department to let taxpayers know how that agricultural land will be classified and valued.  The new rules are intended to provide that information.

 

NEW RULE III  STEPS IN DETERMINING THE PRODUCTIVITY OF AGRICULTURAL LAND  (1)  Productivity is determined using the Natural Resource Conservation Service (NRCS) soil surveys.  The productivity determination is specific to the agricultural land use classification under average management practices.

(2)  Productivity is adjusted to reflect, as near as possible, average management practices for an area using the following procedures:

(a)  for lands whose productivity is based on bushels of spring wheat per acre, the soil survey productivity is adjusted to reflect the 12-year countywide average spring wheat production as reported by Montana Agricultural Statistical Services;

(b)  for irrigated lands, the soil survey productivity for tons of irrigated alfalfa hay per acre is adjusted on a county-by-county basis to reflect producer responses received during the 2008-2009 map mailing process and information obtained from irrigation districts.  Since the soil survey productivity is based on a full application of water, the adjustment is made based on the amount of water the producer is actually able to apply on a regular basis; and

(c)  for grazing land, the midpoint of production for the amount of air-dry herbage grown between "unfavorable" precipitation years and "normal" precipitation years is used to determine the land's productivity.

 

AUTH:  15-7-111, MCA

IMP:  15-7-201, 15-7-202, MCA

 

            REASONABLE NECESSITY:  The department is proposing to adopt New Rule III because the productivity estimates identified in the respective soil surveys need to be tempered to reflect average management practices.  The text contained in New Rule III, sections (1), (2), (2)(a), and (2)(c) was recommended by the 2006-2008 Governor's Agricultural Land Valuation Advisory Committee and is being proposed by the department.  Section (2)(b) was developed by the department with the advice of the 2009 Legislative Select Sub-Committee on Reappraisal.

 

5.  The rules proposed to be amended provide as follows, stricken matter interlined, new matter underlined:

 

42.20.307  VALUATION OF ELIGIBLE MINING CLAIM LAND  (1)  All land contained in an eligible mining claim except that land described in ARM 42.20.305 shall be valued as class three grazing land.  The appropriate grazing land classification will be G2B productivity and valuation determination will be based on the statewide average productivity value of grazing land.

 

AUTH: 15-1-201, MCA

IMP: 15-6-101, 15-8-111, MCA

 

            REASONABLE NECESSITY:  The amendments proposed to (1) are made to clarify the process to be used by the department for reappraisal cycles beginning January 1, 2009.  There will no longer be grades associated with the process.  Rather, the values will be determined by the productivity of the soil according to the agricultural use of the land.  In this instance the department is required by law to value the land as grazing land.  It will be valued at the value assigned to the statewide average productivity value of grazing land in Montana.

 

42.20.601  DEFINITIONS  The following definitions apply to this subchapter:

(1) through (7) remain the same.

(8)  "Classification" is the agricultural use of the land.  The department classifies agricultural land into one of five agricultural use classes.  The department's five agricultural uses are described in 42.20.660 through 42.20.680.

(8) and (9) remain the same but are renumbered (9) and (10).

(11)  "Denied access or DA land" is a term used by the United States Department of Agriculture Natural Resource Conservation Service (NRCS) to describe lands where they were prohibited from conducting a soil survey by the owner of the land.

(10) through (19) remain the same but are renumbered (12) through (21).

(22)  "Not completed or NOTCOM land" is a term used by the Natural Resource Conservation Service to describe lands where they have not completed a soil survey or have completed the soil survey but the results have not been published for public use.

            (20) through (22) remain the same but are renumbered (23) through (25).

(23)(26)  "Productive capacity or productivity" means the ability of a soil to produce crops or forage under the environment where it occurs and under a specified system of management.  The productive capacity can change over time due to changes in soil fertility or more efficient farming practices and equipment.

(27)  "Productive capacity value and productivity value" are synonymous and interchangeable terms for the per-acre value of the agricultural land based on its productive capacity.  The productive capacity value is determined using the formula described in 15-7-201, MCA, and is further identified in ARM 42.20.660, 42.20.665, 42.20.670, 42.20.675, and 42.20.680.

(24) through (26) remain the same but are renumbered (28) through (30).

 

AUTH: 15-7-111, MCA

IMP: 15-1-101, 15-6-133, 15-7-201, 15-7-202, MCA

 

            REASONABLE NECESSITY:  The department is proposing to amend ARM 42.20.601 to help ensure that all Montana taxpayers affected by this rule can clearly understand the data used and the steps and processes taken by the department in the valuation of agricultural land for the correct application of the law.

            This rule specifically addresses instances where soil survey information is not available because Natural Resource Conservation Service staff was not allowed access to the land or a soil survey has not been entirely completed or has not been published.

 

42.20.605  AGRICULTURAL LANDS  (1) remains the same.

(2)  Current schedules for determining grade, classification land use classifications, productivity levels, and assessed values per acre are adopted in ARM 42.20.660, 42.20.665, 42.20.670, 42.20.675, and 42.20.680.

(3)  Taxable values for each land use classification and production category productivity level will be phased in or phased down pursuant to 15-7-111, MCA, and ARM 42.20.503.

 

AUTH:  15-1-201, MCA

IMP: 15-6-133, 15-7-103, MCA

 

            REASONABLE NECESSITY:  The department is proposing to amend ARM 42.20.605 to make clear the changes in methodology that the department will be using in valuing agricultural land for property tax purposes.  The new methodology and approach to land identification, productivity, and valuation is embodied in the Montana Agricultural Land Classification Manual.

            These amendments were recommended by the 2006 – 2008 Governor's Agricultural Land Valuation Advisory Committee.  As a result, there will no longer be valuation schedules which grouped and averaged large quantities of property together even though variations may have been evident.  Rather, each acre of agricultural land will be valued according to the productivity of the specific soil make-up for that acre, and for the agricultural land use to which the acre is classified (i.e. grazing, irrigated farm land, nonirrigated summer fallow farm land, nonirrigated continuously cropped farm land or nonirrigated continuously cropped hay land).  The purpose is to result in a more precise, fair, and accurate value for each of the 50 million acres of privately owned agricultural land.  The formula for determining the value of each acre of agricultural land is defined in 15-7-201, MCA.

 

42.20.606  EXCEPTIONS TO AGRICULTURAL LAND ASSESSMENT

(1)  The following land shall not be classified and assessed as agricultural land:

(a)  land that is used for residential, commercial, or industrial purposes, or has covenants or other restrictions that effectively prohibit agricultural use, including lands described in ARM 42.20.156;

(b)  land that has covenants or other restrictions that effectively prohibit agricultural use;

(c)  land described in ARM 42.20.156; or

(b)(d)  land that meets the provisions of ARM 42.20.705 to be assessed as forest land.

(2)  Land described in (1)(a) may not be assessed by the department at a value lower than the agricultural land assessed value previously determined for the land by the department.

(a)  For ownerships of contiguous land that are equal to or greater than 160 acres in size, the land which has covenants or other restrictions that effectively prohibit agricultural use as described in (1)(a), shall be assessed as forest land, provided the parcel meets the provisions of ARM 42.20.156, 42.20.705, and 42.20.710 to be assessed as forest land.

(i)  The qualifying acres of forest land shall be assessed at the value of the productive grade of forest land that most closely approximates the former assessed value of the property, but in no case will the assessed value be lower than the former assessed value.  If there are remaining acres not qualifying for forest land assessment, the remaining acres shall be assessed and taxed as class 4 land.

(ii)  If the land does not qualify as forest land, the land shall be assessed and taxed as land not specifically included in another class in accordance with 15-6-134 (1)(a), MCA.

(b)  For ownerships of contiguous land that are at least 20 acres but less than 160 acres in size, the land which has covenants or other restrictions that effectively prohibit agricultural use as described in (1) (a), shall be assessed as forest land, provided the parcel meets the provisions of ARM 42.20.705, 42.20.710, and 42.20.156 to be assessed as forest land.

(i)  The qualifying acres of forest land shall be assessed at the value of the productive grade of forest land that most closely approximates the former assessed value of the property, but in no case will the assessed value be lower than the former assessed value.  If there are remaining acres not qualifying for forest land assessment, the remaining acres shall be assessed and taxed as class 4 land.

(ii)  If the land does not qualify as forest land, the land shall be assessed and taxed as land not specifically included in another class in accordance with 15-6-134 (1)(a), MCA.

(c)  For ownerships of contiguous land that are less than 20 acres in size, the land which has covenants or other restrictions that effectively prohibit agricultural use as described in (1)(a) , shall be assessed as forest land, provided the parcel meets the provisions of ARM 42.20.156, 42.20.705, and 42.20.710 to be assessed as forest land.

(i)  The qualifying acres of forest land shall be assessed at the value of the productive grade of forest land that most closely approximates the former assessed value of the property, but in no case will the assessed value be lower than the former assessed value. If there are remaining acres not qualifying for forest land assessment, the remaining acres shall be assessed and taxed as class 4 land.

(ii)  If the land does not qualify as forest land, the land shall be assessed and taxed as land not specifically included in another class in accordance with 15-6-134 (1)(a), MCA.  If the land does not qualify as agricultural land, it will be reviewed by the department to determine if it qualifies to be classified and valued as Class 10 forest land, and if it does not meet those qualifications, it will be classified and valued as Class 4 tract land.

 

AUTH: 15-1-201, MCA

IMP: 15-6-133, 15-6-134, 15-7-201, 15-7-202, 15-44-101, 15-44-102, 15-44-103, MCA

 

REASONABLE NECESSITY:  The department is proposing to amend ARM 42.20.606 to identify lands that don't receive agricultural land classification and valuation.  The proposed amendments also provide for the taxpayers the process used by the department to progressively review and determine the correct property tax classification for the land in Montana.

 

42.20.610  CLASSIFICATION AND APPRAISAL OF EASEMENTS ON AGRICULTURAL LAND  (1)  Road, irrigation ditch, or power line easements that do not transfer title to such rights-of-way are taxable and will be classified, graded, and valued as adjoining agricultural land.

(2) and (3) remain the same.

 

AUTH:  15-7-111, MCA

IMP: 15-7-103, 15-7-201, 15-7-206, MCA

 

REASONABLE NECESSITY:  The department is proposing amendment to ARM 42.20.610 by striking the word "graded," to clarify that agricultural lands are no longer graded.  They are valued according to the agricultural use and the productivity level of the soil for the specific agricultural use to which land is being applied.  The result is a more accurate identification of individual agricultural land use and agricultural land valuation.

 

42.20.620  CRITERIA FOR AGRICULTURAL LAND VALUATION FOR LAND TOTALING LESS THAN 20 ACRES  (1) through (7) remain the same.

(8)  If the land is used primarily to raise and market livestock, the land must be capable of sustaining a minimum number of animal unit months of carrying capacity.  The minimum number of animal unit months of carrying capacity must equate to $1,500 in annual gross income as determined by the Montana State University-Bozeman's Department of Agricultural Economics and Economics, with cattle as the base.

(a)  Beef cows are owned to produce calves, usually one calf per year.

(b)  The calf is the annual product produced from the grazing land via the beef cow.

(c)  Calf prices have averaged approximately $1.00 per pound.  Weaning weights for calves are typically 500 pounds.  The average revenue produced by one cow/calf pair is $500.  Three sold calves from three cow/calf pairs would generate $1,500 in income.

(d)  Based on a 10-month grazing season (typical), 30 AUM are required to generate $1,500 (3 cow/calf pair X 10 months = 30 AUM).

(e)  For the reappraisal cycle ending December 31, 2008 2014, the Montana State University-Bozeman's Department of Agricultural Economics and Economics determined the minimum number of animal unit months of carrying capacity to be 30 animal unit months.  For subsequent reappraisal cycles, the minimum number of animal unit months of carrying capacity needed to equate to $1,500 in annual gross income for each cycle will be determined by the Montana State University-Bozeman's Department of Agricultural Economics and Economics for the base year for each cycle.  The base year for each cycle will be established by administrative rule.

(f)  One animal unit (AU) is assumed to consume 915 pounds of dry herbage production per month from native grazing land.  The carrying capacity may be based on information obtained from the United States Natural Resource and Conservation Service (NRCS) soil survey.  If a soil survey does not exist, the carrying capacity may be based on an estimate by the NRCS, the local county agricultural extension agent, or the department.  Based on the manner in which the NRCS measures dry herbage production and the lost forage consumption due to grazing livestock and other causes, the per-acre per-year dry herbage production consumed is 25% of the NRCS estimate for an unfavorable the midpoint between the normal and unfavorable precipitation year estimates on nonirrigated grazing land.  On nonirrigated domestic grazing land, the department shall increase the estimated nonirrigated native grazing land carrying capacity by 50% (1.5).  The department shall use the following formula, based on NRCS soil survey information, to calculate the carrying capacity for nonirrigated native grazing land, which does not exhibit significant overgrazing or weed infestation:

(i)  per-acre per-year dry herbage production multiplied by 0.25 equals the per-acre per-year dry herbage production consumed by livestock;

(ii)  per-acre per-year dry herbage production consumed by livestock divided by 915 pounds of dry herbage production consumed per-month per-animal unit equals the animal unit months per acre (AUMs/acre); and

(iii)  livestock acres grazed multiplied by AUMs/acre equals the total AUMs.

(9) through (14)(c) remain the same.

(15)  Land qualifying in (13) and (14) will be graded and assessed as at the value established by the department for the highest productivity level of nonirrigated continuously cropped farm land, grade 1A4.

(16) through (20) remain the same.

 

AUTH: 15-1-201, MCA

IMP: 15-7-201, 15-7-202, 15-7-203, 15-7-206, 15-7-207, 15-7-208, 15-7-209, 15-7-210, 15-7-212, MCA

 

REASONABLE NECESSITY:  The department is proposing to amend ARM 42.20.620(8)(e) to correct the ending date for the current reappraisal cycle, December 31, 2014.

The proposed amendments to (8)(f) are made at the recommendation of the 2006-2008 Governor's Agricultural Land Valuation Advisory Committee.  The committee determined that the midpoint herbage production estimate between the normal and unfavorable precipitation year estimates provided by NRCS was more accurate.  Previously, only the unfavorable precipitation year estimate was used by the department.

The proposed amendments to (15) are made to correct reference from the previous use of grades by the department to the use of a more accurate productivity level approach.

 

42.20.625  CRITERIA FOR AGRICULTURAL LAND VALUATION FOR LAND TOTALING 20 TO 160 ACRES IN SIZE  (1) through (10) remain the same.

(11)  If the land is used primarily to raise and market livestock, the land must be capable of sustaining a minimum number of animal unit months of carrying capacity.  The minimum number of animal unit months of carrying capacity must equate to $1,500 in annual gross income as determined by the Montana State University-Bozeman's, Department of Agricultural Economics and Economics, with cattle as the base.

(a)  Beef cows are owned to produce calves, usually one calf per year.

(b)  The calf is the annual product produced from the grazing land via the beef cow.

(c)  Calf prices have averaged approximately $1.00 per pound.  Weaning weights for calves are typically 500 pounds.  The average revenue produced by one cow/calf pair is $500.  Three sold calves from three cow/calf pairs would generate $1,500 in income.

(d)  Based on a 10-month grazing season (typical), 30 AUM are required to generate $1,500 (3 cow/calf pair X 10 months = 30 AUM).

(e)  For the reappraisal cycle ending December 31, 2008 2014, the Montana State University-Bozeman's Department of Agricultural Economics and Economics determined the minimum number of animal unit months of carrying capacity to be 30 animal unit months.  For subsequent reappraisal cycles, the minimum number of animal unit months of carrying capacity needed to equate to $1,500 in annual gross income for each cycle will be determined by the Montana State University-Bozeman's Department of Agricultural Economics and Economics for the base year for each cycle.  The base year for each cycle will be established by administrative rule.

(f)  One animal unit (AU) is assumed to consume 915 pounds of dry herbage production per month from native grazing land.  The carrying capacity may be based on the information obtained from the NRCS soil survey.  If a soil survey does not exist, the carrying capacity may be based on an estimate by the NRCS, the county agricultural extension agent, or the department.  Based on the manner in which the NRCS measures dry herbage production and the lost forage consumption due to grazing livestock and other causes, the per-acre per-year dry herbage production consumed is 25% of the NRCS estimate for an unfavorable the midpoint between the normal and unfavorable precipitation year estimates on nonirrigated grazing land.  On nonirrigated domestic grazing land, the department shall increase the estimated nonirrigated native grazing land carrying capacity by 50% (1.5).  The department shall use the following formula, based on NRCS soil survey information, to calculate the carrying capacity for nonirrigated native grazing land, which does not exhibit significant overgrazing or weed infestation:

(i)  per-acre per-year dry herbage production multiplied by 0.25 equals the per-acre per-year dry herbage production consumed by livestock;

(ii)  per-acre per-year dry herbage production consumed by livestock divided by 915 pounds of dry herbage production consumed per-month per-animal unit equals the animal unit months per acre (AUMs/acre); and

(iii)  livestock acres grazed multiplied by AUMs/acre equals the total AUMs.

(12) through (17)(c) remain the same.

(18)  Land qualifying in (13 16) and (14 17) will be graded and assessed as at the value established by the department for the highest productivity level of nonirrigated continuously cropped farm land, grade 1A4.

(19) through (21) remain the same.

 

AUTH: 15-1-201, MCA

IMP: 15-6-133, 15-6-134, 15-7-201, 15-7-202, MCA

 

REASONABLE NECESSITY:  The department is proposing to amend 42.20.625 to correct the ending date for the current reappraisal cycle, December 31, 2014, in section (11)(e).

The proposed amendments to (11)(f) are made at the recommendation of the 2006-2008 Governor's Agricultural Land Valuation Advisory Committee.  The committee determined that the midpoint herbage production estimate between the normal and unfavorable precipitation year estimates provided by NRCS was more accurate.  Previously, only the unfavorable precipitation year estimate was used by the department.

The proposed amendments to (18) are made to correct reference from the previous use of grades by the department to the use of a specific productivity level as directed by the 2009 Legislature.

 

42.20.650  VALUATION OF NONQUALIFIED AGRICULTURAL LAND FROM 20 TO 160 ACRES  (1)  Parcels of land that meet the criteria as nonqualified agricultural land under ARM 42.20.601 are valued at the productive capacity statewide average productivity value of grazing land, grade G3.

(2)  Parcels of land not qualifying for forest land under ARM 42.20.705 and that qualify as nonqualified agricultural land under ARM 42.20.601 are valued at the productive capacity statewide average productivity value of grazing land, grade G3.

 

AUTH: 15-1-201, MCA

IMP: 15-6-133, 15-7-201, 15-7-202, MCA

 

REASONABLE NECESSITY:  The department is proposing to amend ARM 42.20.650 to clarify the process used by the department for the current and subsequent reappraisal cycles.  There will no longer be grades associated with the process.  Rather, the values will be determined by the productivity of the soil according to the agricultural use of the land.  This change in process was recommended by the 2006-2008 Governor's Agricultural Land Valuation Advisory Committee.

 

42.20.655  VALUATION OF ONE ACRE BENEATH IMPROVEMENTS ON AGRICULTURAL AND NONQUALIFIED AGRICULTURAL LAND  (1)  An agricultural valuation will be made for each one-acre area beneath each residence(s) located on agricultural land as defined in ARM 42.20.660, 42.20.665, 42.20.670, 42.20.675, and 42.20.680.

(a)  Occupancy of the residential improvement for the purpose of applying this rule shall be irrelevant.

(b)  A single one-acre agricultural land value determination will be made when multiple residences are located on the same one-acre area.

(c)  Each one-acre area beneath the residence(s) on agricultural land as stated in (1) shall be appraised according to the productive capacity value consistent with the class with the highest productive value and production capacity highest productivity value of agricultural land.

(d)  To avoid double taxation, the productive capacity value for the one acre beneath the residence(s) on agricultural land must be subtracted from the productive capacity productivity value for the entire property ownership.

(2)  A market value determination will be made for each one-acre area beneath each residence(s) which is located on nonqualified agricultural land.

(a)  Occupancy of the residential improvement for the purpose of applying this rule shall be irrelevant.

(b)  A single one-acre market value determination will be made when multiple residences are located on the same one-acre area.

(c)  Each one-acre area beneath a residential improvement on nonqualified agricultural land as defined in (2) shall be appraised according to market value consistent with that of comparable land.

(d)  If the one acre of land is located on a nonqualified agricultural parcel of land that is many miles from a suburban area, the market value assigned to the one-acre area will be consistent with the market value of comparable land.  In no case will the market value be lower than the lowest market value assigned to improved tracts within the county.

(e)  If the one acre of land is located on a nonqualified agricultural parcel of land that is near a suburban area, the market value assigned to the one-acre area will be consistent with the market value of surrounding suburban land.

(f)  To avoid double taxation, the productive capacity statewide average productivity value for the agricultural productive of the grazing land grade 3 for the one acre beneath the residence(s) on nonqualified agricultural land improvements must be subtracted from the productive capacity productivity value for the entire property ownership.

(3) remains the same.

 

AUTH: 15-1-201, MCA

IMP: 15-6-134, 15-7-103, 15-7-201, 15-7-202, 15-8-111, MCA

 

REASONABLE NECESSITY:  The department is proposing to amend ARM 42.20.655 to remove the previous reference of the use of a grade and replace that reference with the correct terminology which is used for the current and subsequent reappraisal cycles.

 

42.20.660  NONIRRIGATED SUMMER FALLOW FARM LAND  (1)  The following is the schedule for the nNonirrigated summer fallow farm land productive capacity productivity values for each year of the reappraisal cycle beginning January 1, 2003 2009, are:

(a)  Productive capacity values are cCalculated by using the formula defined in 15-7-201, MCA., where the agricultural land productivity valuation formula is:

(i)  V = I/R;

(ii)  V is the productivity value of the agricultural land;

(iii)  I is the net income attributed to the acre of land using a crop share approach, which means applying the percentage of income from production (the share) that is attributed to the landlord (owner) of the land; and

(iv)  R is the capitalization rate or the rate that converts an ongoing income stream into an estimate of value.

(b)  For the reappraisal cycle beginning January 1, 2009, the per acre nonirrigated summer fallow farm land value is calculated as follows:

(i)  Average price for spring wheat = $4.58 per bushel;

(ii)  Gross income per acre = Number of bushels per acre times $4.58 per bushel;

(iii)  Net income per acre = Gross income per acre times 12.5%, which is the landlords crop share percentage for nonirrigated summer fallow farm land; and

(iv)  Productivity value per acre = Net income per acre divided by 0.064, which is the capitalization rate of 6.4%, in decimal form, as set forth in 15-7-201, MCA.

(b)(c)  For lands with an increase in value The the department will apply a phase-in percentage as defined in 15-7-111, MCA, and ARM 42.20.503 to the full reappraisal productive capacity productivity values for nonirrigated summer fallow farm land for the reappraisal cycle beginning January 1, 2003 2009.

(i)  For lands with a decrease in value as a result of the 2009 reappraisal, the lower value will be implemented immediately.

 

NONIRRIGATED FARMLAND,

SUMMER FALLOW BASIS

 

 

Bu. Wheat

2003

2004

2005

 

Per Acre

Assessed

Assessed

Assessed

 

GRADE

Summer

Fallow

Value/AC

Value/AC

Value/AC

 

 

 

 

 

1a8

40+

$317.07

$324.84

$332.62

1a7

38 - 39

$301.41

$308.80

$316.20

1a6

36 - 37

$285.75

$292.76

$299.77

1a5

34 - 35

$270.09

$276.72

$283.34

1a4

32 - 33

$254.44

$260.68

$266.92

1a3

30 - 31

$238.78

$244.64

$250.49

1a2

28 - 29

$223.12

$228.59

$234.07

1a1

26 - 27

$207.46

$212.55

$217.64

1a

24 - 25

$191.81

$196.51

$201.22

1b

22 - 23

$176.15

$180.47

$184.79

2a

20 - 21

$160.49

$164.43

$168.36

2b

18 - 19

$144.83

$148.39

$151.94

2c

16 - 17

$129.17

$132.34

$135.51

3a

14 - 15

$113.52

$116.30

$119.09

3b

12 - 13

$97.86

$100.26

$102.66

4a

10 - 11

$82.20

$84.22

$86.24

4b

8 - 9

$66.54

$68.18

$69.81

5

< 8

$31.32

$32.08

$32.85

 

NONIRRIGATED FARMLAND,

 

SUMMER FALLOW BASIS

 

 

Bu. Wheat

2006

2007

2008

 

Per Acre

Assessed

Assessed

Assessed

GRADE

Summer Fallow

Value/AC

Value/AC

Value/AC

 

 

 

 

 

1a8

40+

$340.40

$348.18

$355.96

1a7

38 - 39

$323.59

$330.98

$338.38

1a6

36 - 37

$306.78

$313.79

$320.80

1a5

34 - 35

$289.97

$296.60

$303.22

1a4

32 - 33

$273.16

$279.40

$285.64

1a3

30 - 31

$256.35

$262.21

$268.07

1a2

28 - 29

$239.54

$245.01

$250.49

1a1

26 - 27

$222.73

$227.82

$232.91

1a

24 - 25

$205.92

$210.63

$215.33

1b

22 - 23

$189.11

$193.43

$197.75

2a

20 - 21

$172.30

$176.24

$180.18

2b

18 - 19

$155.49

$159.04

$162.60

2c

16 - 17

$138.68

$141.85

$145.02

3a

14 - 15

$121.87

$124.66

$127.44

3b

12 - 13

$105.06

$107.46

$109.86

4a

10 - 11

$88.25

$90.27

$92.29

4b

8 - 9

$71.44

$73.07

$74.71

5

< 8

$33.62

$34.39

$35.16

 

AUTH: 15-1-201, MCA

IMP: 15-7-103, 15-7-201, MCA

 

REASONABLE NECESSITY:  The department is proposing to amend ARM 42.20.660 to correct the terminology to that which is currently being used, strikes the valuation schedules that were used previously to value nonirrigated summer fallow farm land, and replaces them with the formula used to calculate the productivity values of nonirrigated summer fallow farm land for the reappraisal cycles.

The new methodology recommended by the 2006-2008 Governor's Agricultural Land Valuation Advisory Committee requires each acre of land to be valued within its agricultural use (i.e. grazing, tillable irrigated farm land, nonirrigated summer fallow farm land, nonirrigated continuously cropped farm land or nonirrigated continuously cropped hay land) according to the soil productivity indicated for the land.  This valuation is to be completed in accordance with the requirements found in 15-7-201, MCA.

The language regarding the "phase in" of values is included to provide knowledge and assurance to landowners that the phase-in provisions of Montana law are also applied to agricultural land.

 

42.20.665  NONIRRIGATED, CONTINUOUSLY CROPPED FARM LAND

(1)  The following is the schedule for the nNonirrigated continuously cropped fallow farm land productive capacity productivity values for each year of the reappraisal cycle beginning January 1, 2003 2009, are:

(a)  Productive capacity values are cCalculated by using the formula defined in 15-7-201, MCA., where the agricultural land productivity valuation formula is:

(i)  V = I/R;

(ii)  V is the productivity value of the agricultural land;

(iii)  I is the net income attributed to the acre of land using a crop share approach, which means applying the percentage of income from production (the share) that is attributed to the landlord (owner) of the land; and

(iv)  R is the capitalization rate or the rate that converts an ongoing income stream into an estimate of value.

(b)  For the reappraisal cycle beginning January 1, 2009, the per acre nonirrigated continuously cropped farm land value is calculated as follows:

(i)  Average price for spring wheat = $4.58 per bushel;

(ii)  Gross income per acre = Number of  bushels per acre times $4.58 per bushel;

(iii)  Net income per acre = Gross income per acre times 25%, which is the landlords crop share percentage for nonirrigated continuously cropped farm land; and

(iv)  Productivity value per acre = Net income per acre divided by 0.064, which is the capitalization rate of 6.4%, in decimal form, as set forth in 15-7-201(4)(c), MCA.

(b)(c)  For lands with an increase in value The the department will apply a phase-in percentage as defined in 15-7-111, MCA, and ARM 42.20.503 to the full reappraisal productive capacity productivity values for nonirrigated continuously cropped fallow farm land for the reappraisal cycle beginning January 1, 2003 2009.

(i)  For lands with a decrease in value as a result of the 2009 reappraisal, the lower value will be implemented immediately.

 

NONIRRIGATED FARMLAND,

CONTINUOUSLY CROPPED BASIS

 

 

 

 

 

 

Bu. Wheat

2003

2004

2005

 

Per Acre

Assessed

Assessed

Assessed

GRADE

Per Year

Value/AC

Value/AC

Value/AC

 

 

 

 

 

1A4

44+

$696.76

$713.85

$730.95

1A3

42 - 43

$665.45

$681.77

$698.10

1A2

40 - 41

$634.13

$649.69

$665.24

1A1

38 - 39

$602.82

$617.60

$632.39

1A

36 - 38

$571.50

$585.52

$599.54

1

34 - 35

$540.19

$553.44

$566.69

2

32 - 33

$508.87

$521.35

$533.84

3

30 - 31

$477.56

$489.27

$500.99

4

28 - 29

$446.24

$457.19

$468.13

5

26 - 27

$414.93

$425.10

$435.28

6

24 - 25

$383.61

$393.02

$402.43

7

22 - 23

$352.29

$360.94

$369.58

8

20 - 21

$320.98

$328.85

$336.73

9

18 - 19

$289.66

$296.77

$303.88

10

16 - 17

$258.35

$264.69

$271.03

11

14 - 15

$227.03

$232.60

$238.17

12

12 - 13

$195.72

$200.52

$205.32

13

10 - 11

$164.40

$168.44

$172.47

14

< 10

$78.29

$80.21

$82.13

 

 

 

 

 

 

Bu. Wheat

2006

2007

2008

 

Per Acre

Assessed

Assessed

Assessed

GRADE

Per Year

Value/AC

Value/AC

Value/AC

 

 

 

 

 

1A4

44+

$748.04

$765.13

$782.23

1A3

42 - 43

$714.42

$730.75

$747.07

1A2

40 - 41

$680.80

$696.36

$711.91

1A1

38 - 39

$647.18

$661.97

$676.76

1A

36 - 37

$613.56

$627.58

$641.60

1

34 - 35

$579.94

$593.19

$606.45

2

32 - 33

$546.32

$558.81

$571.29

3

30 - 31

$512.70

$524.42

$536.13

4

28 - 29

$479.08

$490.03

$500.98

5

26 - 27

$445.46

$455.64

$465.82

6

24 - 25

$411.84

$421.25

$430.66

7

22 - 23

$378.22

$386.87

$395.51

8

20 - 21

$344.60

$352.48

$360.35

9

18 - 19

$310.98

$318.09

$325.20

10

16 - 17

$277.36

$283.70

$290.04

11

14 - 15

$243.74

$249.31

$254.88

12

12 - 13

$210.12

$214.93

$219.73

13

10 - 11

$176.50

$180.54

$184.57

14

< 10

$84.05

$85.97

$87.89

 

AUTH: 15-1-201, MCA

IMP: 15-7-103, 15-7-201, MCA

 

REASONABLE NECESSITY:  The department is proposing to amend ARM 42.20.665 for the same reason as stated in ARM 42.20.605.

 

42.20.670  NONIRRIGATED CONTINUOUSLY CROPPED HAY LAND

(1)  The following is the schedule for the nNonirrigated continuously cropped hay land productive capacity productivity values for each year of the reappraisal cycle beginning January 1, 2003 2009, are:

(a)  Productive capacity values are cCalculated by using the formula defined in 15-7-201, MCA., where the agricultural land productivity valuation formula is:

(i)  V = I/R;

(ii)  V is the productivity value of the agricultural land;

(iii)  I is the net income attributed to the acre of land using a crop share approach, which means applying the percentage of income from production (the share) that is attributed to the landlord (owner) of the land; and

(iv)  R is the capitalization rate or the rate that converts an ongoing income stream into an estimate of value.

(b)  For the reappraisal cycle beginning January 1, 2009, the per acre nonirrigated continuously cropped hay land value is calculated as follows:

(i)  Average price for alfalfa = $63.04 per ton;

(ii)  Gross income per acre = Number of tons per acre times $63.04 per ton;

(iii)  Net income per acre = Gross income per acre times 25%, which is the landlords crop share percentage for nonirrigated continuously cropped hay land; and

(iv)  Productivity value per acre = Net income per acre divided by 0.064, which is the capitalization rate of 6.4%, in decimal form, as set forth in 15-7-201, MCA.

(b)(c)  For lands with an increase in value The the department will apply a phase-in percentage as defined in 15-7-111, MCA, and ARM 42.20.503 to the full reappraisal productive capacity productivity values for nonirrigated continuously cropped hay land for the reappraisal cycle beginning January 1, 2003, 2009.

(i)  For lands with a decrease in value as a result of the 2009 reappraisal, the lower value will be implemented immediately.

 

NONIRRIGATED CONTINUOUSLY

CROPPED HAYLAND

 

 

GRADE

Tons of

Hay Per

Acre

2003

Assessed Value/AC

2004

Assessed

Value/AC

2005

Assessed

Value/AC

 

 

 

 

 

1

3.0+

$661.17

$684.14

$707.10

2

2.5 -2.9

$587.78

$601.17

$614.57

3

2.0 - 2.4

$478.93

$489.84

$500.76

4

1.5 - 1.9

$370.08

$378.52

$386.95

5

1.0 - 1.4

$261.23

$267.19

$273.14

6

.5 - .9

$152.39

$155.86

$159.33

7

<.5

$54.42

$55.66

$56.90

 

NONIRRIGATED CONTINUOUSLY

CROPPED HAYLAND

 

 

GRADE

Tons of

Hay Per

Acre

2006

Assessed Value/AC

2007

Assessed

Value/AC

2008

Assessed

Value/AC

1

3.0+

$730.07

$753.03

$776.00

2

2.5 -2.9

$627.96

$641.36

$654.75

3

2.0 - 2.4

$511.67

$522.59

$533.50

4

1.5 - 1.9

$395.38

$403.82

$412.25

5

1.0 - 1.4

$279.09

$285.05

$291.00

6

.5 - .9

$162.80

$166.28

$169.75

7

<.5

$58.14

$59.38

$60.63

 

AUTH:  15-1-201, MCA

IMP:  15-7-103, 15-7-201, MCA

 

REASONABLE NECESSITY:  The department is proposing to amend ARM 42.20.670 for the same reason as stated in ARM 42.20.605.

 

42.20.675  TILLABLE, IRRIGATED FARM LAND  (1)  The following is the schedule for the full reappraisal productive capacity values for tTillable, irrigated farm land values for each year of the reappraisal cycle beginning January 1, 2003 2009, are:

(a)  Productive capacity values are cCalculated by using the formula defined in 15-7-201, MCA., where the agricultural land productivity valuation formula is:

(i)  V = I/R;

(ii)  V is the productivity value of the agricultural land;

(iii)  I is the net income attributed to the acre of land using a crop share approach, which means applying the percentage of income from production (the share) that is attributed to the landlord (owner) of the land; and

(iv)  R is the capitalization rate or the rate that converts an ongoing income stream into an estimate of value.

(b)  For the reappraisal cycle beginning January 1, 2009, the per acre tillable irrigated farm land value is calculated as follows:

(i)  Average price for alfalfa = $63.04 per ton;

(ii)  Gross income per acre = Number of tons per acre times $63.04 per ton;

(iii)  Net income per acre = Gross income per acre times 25%, which is the landlords crop share percentage for tillable irrigated farm land;

(iv)  Less water cost = Net income per acre minus water cost allowance; and

(v)  Productivity value per acre = Net income per acre less water cost allowance divided by 0.064, which is the capitalization rate of 6.4%, in decimal form, as set forth in 15-7-201, MCA.

(c)  There are seven allowable water cost classes for tillable irrigated farm land.

 

ASSESSED VALUE PER ACRE BY WATER CLASS (WC)

 

 

 

 

 

 

 

Tons

 

WC1

WC2

WC3

WC4

WC5

Alfalfa

 

Under

$20.00

$25.00

$30.00

$35.00

Per Acre Grade

 

$19.99

$24.99

$29.99

$34.55

$40.00

 

1A

863.19

788.19

710.06

631.94

553.51

4.5+

1B

741.94

666.92

588.81

510.69

432.56

4.0 - 4.4

2

620.69

545.69

467.56

389.44

311.31

3.5 - 3.9

3

499.44

424.44

346.31

268.19

218.25

3.0 - 3.4

4

378.19

303.19

225.06

218.25

218.25

2.5 - 2.0

5

256.94

218.25

218.25

218.25

218.25

<2.0

6

218.25

218.25

218.25

218.25

218.25

 

WATER COST CLASSES (WC)

WC1

WC2

WC3

WC4

WC5

WC6

WC7

Under

$20.00

$25.00

$30.00

$35.00

$40.00

$45.00

$19.99

$24.99

$29.99

$34.99

$39.99

$44.99

$49.99

 

(2)  For lands with an increase in value The the department will apply a phase-in percentage as defined in 15-7-111, MCA, and ARM 42.20.503 to the full reappraisal productive capacity productivity values for tillable, irrigated farm land for the reappraisal cycle beginning January 1, 2003 2009, if the values are higher than the base values in effect for tax year 2002 2008.

(i)  For lands with a decrease in value as a result of the 2009 reappraisal, the lower value will be implemented immediately.

(3) remains the same.

(4)  The following examples demonstrate how the phase-in formula calculates the assessed value for irrigated land:

(a)  For 2002 2008:

(i)  the 2002 2008 full reappraisal value for irrigated grade 1A land in water class five is $518.63;

(ii)  the full reappraisal value for the same irrigated grade land in water class five in 2008 2014 is $553.51; and

(iii)  the change in value is $34.88 ($553.51 - $518.63).

(b)  The 2003 2009 phase-in value = $518.63 + (34.88 x .1666) = $518.63 + $5.81 or $524.44.

(c)  For 2007 2013:

(i)  the 2002 2008 full reappraisal value for irrigated grade 1A land in water class five is $518.63;

(ii)  the full reappraisal value for the same irrigated grade land in water class five in 2008 2014 is $553.51; and

(iii)  the change in value is $34.88 ($553.51 - $518.63).

(d)  The 2007 2013 phase-in value = $518.63 + (34.88 x .8330) = $518.63 + $29.06 or $547.69.

(5)  The department will not apply a phase-in percentage calculation to the full reappraisal productive capacity productivity values for tillable, irrigated farm land values for the reappraisal cycle beginning January 1, 2003 2009, if the values are lower than the base values in effect for tax year 2002 2008. If the full reappraisal productive capacity productivity values for tillable, irrigated farm land are lower than the base values in effect for tax year 2002 2008, the full reappraisal productive capacity productivity values for tillable, irrigated farm land will be fully implemented on January 1, 2003 2009, and remain in effect for each year of the reappraisal cycle.

(6)  Water costs are the combination of allowable labor costs, on-farm energy costs, and a $10 15 base water cost which is applicable to every acre of irrigated land.  Total allowable water costs may not exceed $40 50 for each acre of irrigated land.

(7)  Allowable labor costs which pertain to this rule are $15 for flood irrigation, $10 for sprinkler irrigation, and $5 for pivot irrigation, as provided in 15-7-201, MCA.

(8) through (10) remain the same.

(11)  The minimum value of irrigated land is $411.48 as determined by using 23 bushels of spring wheat and the nonirrigated continuously cropped farmland methodology.

(11) and (12) remain the same but are renumbered (12) and (13).

 

AUTH: 15-1-201, MCA

IMP: 15-7-103, 15-7-201, MCA

 

REASONABLE NECESSITY:  The department is proposing to amend ARM 42.20.675 to correct terminology, strike the valuation schedules that were used previously to value tillable irrigated farm land, and replaces them with the formula used to calculate the productivity values of tillable irrigated farm land for the current and subsequent reappraisal cycle.

The new methodology recommended by the 2006-2008 Governor's Agricultural Land Valuation Advisory Committee requires each acre of land to be valued within its agricultural use (i.e. grazing, tillable irrigated farm land, nonirrigated summer fallow farm land, nonirrigated continuously cropped farm land or nonirrigated continuously cropped hay land) according to the soil productivity indicated for the land.  This valuation is to be completed in accordance with the requirements found in 15-7-201, MCA.

The changes to the allowable base cost, the allowable labor costs, and the allowable water cost categories are to comply with the provisions of HB 658 (Ch. 483, L. 2009), while the minimum value of irrigated land is determined under the advice provided by the 2009 Legislative Select Sub-Committee on Reappraisal.

 

42.20.680  GRAZING LAND  (1)  The following is the schedule for the gGrazing land productive capacity productivity values for each year of the reappraisal cycle beginning January 1, 2003 2009, are:

(a)  Productive capacity values are cCalculated by using the formula defined in 15-7-201, MCA., where the agricultural land productivity valuation formula is:

(i)  V = I/R;

(ii)  V is the productivity value of the agricultural land;

(iii)  I is the net income attributed to the acre of land using an adjusted average private grazing lease rate; and

(iv)  R is the capitalization rate or the rate that converts an ongoing income stream into an estimate of value.

(b)  For the reappraisal cycle beginning January 1, 2009, the per acre grazing  land value is calculated as follows:

(i)  Average private grazing lease = $15.72 per Animal Unit Month (AUM);

(ii)  Less expense allowance = $ 3.93 per AUM ($15.72  X 25%);

(iii)  Adjusted gross income per AUM = $11.79 ($15.72 minus $3.93);

(iv)  Statewide average productivity = 0.31 AUM per acre;

(v)  Net income per acre = $11.79 per AUM times X AUM per acre; and

(vi)  Productivity value per acre = Net income per acre divided by 0.064, which is the capitalization rate of 6.4%, in decimal form, as set forth in 15-7-201(4)(c), MCA.

(b)(c)  For lands with an increase in value The the department will apply a phase-in percentage as defined in 15-7-111, MCA, and ARM 42.20.503 to the full reappraisal productive capacity productivity values for grazing land for the reappraisal cycle beginning January 1, 2003, 2009.

(i)  For lands with a decrease in value as a result of the 2009 reappraisal, the lower value will be implemented immediately.

 

GRAZING LAND

 

 

 

 

 

 

 

 

GRADE

Acres

Per

Animal

Unit

2003 Assessed Value/AC

2004 Assessed Value/AC

2005 Assessed Value/AC

 

 

 

 

 

1A2

<.30

$664.75

$682.03

$699.32

1A1

.30 - .50

$332.37

$341.02

$349.96

1A+

.51 - .59

$241.73

$248.01

$254.30

1A

.60- 1.00

$166.19

$170.51

$174.83

1B

1.01 - 1.89

$91.69

$94.07

$96.46

2A

1.90 - 2.19

$66.47

$68.20

$69.93

2B

2.20 - 2.79

$54.26

$55.68

$57.09

3

2.80 - 3.79

$40.91

$41.97

$43.03

4

3.80 -5.59

$28.59

$29.33

$30.08

5

5.60 -9.99

$17.15

$17.60

$18.05

6

>9.99

$10.64

$10.91

$11.19

 

GRAZING LAND

 

 

 

 

 

 

 

 

GRADE

Acres

Per

Animal

Unit

 

2006 Assessed Value/AC

 

2007 Assessed Value/AC

 

2008 Assessed Value/AC

 

 

 

 

 

1A2

<.30

$716.60

$733.89

$751.17

1A1

.30 - .50

$358.30

$366.94

$375.59

1A+

.51 - .59

$260.58

$266.87

$273.15

1A

.60- 1.00

$179.15

$183.47

$187.79

1B

1.01 - 1.89

$98.84

$101.23

$103.61

2A

1.90 - 2.19

$71.66

$73.39

$75.12

2B

2.20 - 2.79

$58.50

$59.91

$61.32

3

2.80 - 3.79

$44.10

$45.16

$46.23

4

3.80 -5.59

$30.82

$31.57

$32.31

5

5.60 -9.99

$18.49

$18.94

$19.39

6

>9.99

$11.47

$11.71

$12.02

 

AUTH: 15-1-201, MCA

IMP: 15-7-103, 15-7-201, MCA

 

REASONABLE NECESSITY:  The department is proposing to amend ARM 42.20.680 for the same reason as stated in ARM 42.20.605.

 

6.  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 canderson@mt.gov and must be received no later than December 4, 2009.

 

7.  Cleo Anderson, Department of Revenue, Director's Office, has been designated to preside over and conduct the hearing.

 

8.  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.

 

9.  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 6 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.

 

10.  The bill sponsor contact requirements of 2-4-302, MCA, apply and have been fulfilled.  The primary bill sponsor, Representative Mike Jopek, was contacted on July 22, 2009, by regular mail.  Representative Jopek was also provided with a copy of the proposed rules on October 15, 2009.

 

 

/s/ Cleo Anderson                             /s/ Dan R. Bucks

CLEO ANDERSON                          DAN R. BUCKS

Rule Reviewer                                   Director of Revenue

 

Certified to Secretary of State October 19, 2009

 

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