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Montana Administrative Register Notice 42-2-957 No. 16   08/19/2016    
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BEFORE THE DEPARTMENT OF REVENUE

OF THE STATE OF MONTANA

 

In the matter of the amendment of ARM 42.19.1401, 42.19.1403, 42.19.1404, 42.19.1407, 42.19.1408, and 42.19.1411 pertaining to urban renewal districts (URD), targeted economic development districts (TEDD), and tax increment finance districts (TIFD)

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NOTICE OF PUBLIC HEARING ON PROPOSED AMENDMENT

 

TO: All Concerned Persons

 

1. On September 13, 2016, at 10:30 a.m., the Department of Revenue will hold a public hearing in the Third Floor Reception Area Conference Room of the Sam W. Mitchell Building, located at 125 North Roberts, Helena, Montana, to consider the proposed amendment of the above-stated rules. The hearing room is most readily accessed by entering through the east doors of the building facing Sanders Street.

 

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 no later than 5 p.m. on August 26, 2016, to advise us of the nature of the accommodation you need. Please contact Laurie Logan, Department of Revenue, Director's Office, P.O. Box 7701, Helena, Montana 59604-7701; telephone (406) 444-7905; fax (406) 444-3696; or e-mail lalogan@mt.gov.

 

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

 

42.19.1401 DEFINITIONS The following definitions apply to this subchapter:

(1) "Levy district" means a geographically distinct area where all of the properties are subject to the same combination of taxing jurisdictions.

(1) and (2) remain the same, but are renumbered (2) and (3).

(4) "Taxing jurisdiction" means a government entity authorized to impose tax on property.

(3) and (4) remain the same, but are renumbered (5) and (6).

 

AUTH: 15-1-201, MCA

IMP: 7-15-4202, 7-15-4203, 7-15-4204, 7-15-4205, 7-15-4206, 7-15-4207, 7-15-4208, 7-15-4209, 7-15-4210, 7-15-4211, 7-15-4212, 7-15-4213, 7-15-4214, 7-15-4215, 7-15-4216, 7-15-4217, 7-15-4218, 7-15-4278, 7-15-4279, 7-15-4280, 7-15-4281, 7-15-4282, 7-15-4283, 7-15-4284, MCA

 

REASON: The department proposes amending ARM 42.19.1401 to add definitions for "levy district" and "taxing jurisdiction" to clarify the difference between the two terms as used in the rules in this subchapter.

 

42.19.1403 NEW URBAN RENEWAL DISTRICTS (URD) – INFORMATION REQUIRED TO ENABLE THE DEPARTMENT TO CERTIFY BASE TAXABLE VALUE (1) The department will certify the base taxable value of a newly created URD if the department determines that the following information exists and has been provided to the department:

(a) and (b) remain the same.

(c) a map representing the URD's boundary including a legal description of the URD (boundary map);

(d) through (k) remain the same.

(2) After the local government has developed the URD boundary map identified in (1)(c), and prior to the submission of the information required by this rule, the local government must submit a copy of the URD boundary map to the Montana Department of Revenue, Centrally Assessed and Industrial Property Unit.

(3) Upon receipt of the local government's URD boundary map, the Centrally Assessed and Industrial Property Unit will:

(a) work with all centrally assessed and industrial taxpayers having property located within the external boundaries of the URD to identify the taxpayer's property; and

(b) provide the local government with a description required in (1)(k) of all centrally assessed and industrial property located within the URD boundary.

(2) remains the same, but is renumbered (4).

 

AUTH: 15-1-201, MCA

IMP: 7-15-4202, 7-15-4210, 7-15-4215, 7-15-4216, 7-15-4282, 7-15-4284, MCA

 

REASON: The department proposes amending ARM 42.19.1403 to include the term "boundary map" in (1)(c) for clarity and to add the language in new (2) and (3) to establish a process for identifying centrally assessed property within a URD. As proposed, this process will make the required identification of centrally assessed property easier and less burdensome for local governments.

 

42.19.1404 NEW TARGETED ECONOMIC DEVELOPMENT DISTRICTS (TEDD) – INFORMATION REQUIRED TO ENABLE THE DEPARTMENT TO CERTIFY BASE TAXABLE VALUE (1) remains the same.

(2) After the local government has developed the boundary map identified in (1)(k), and prior to the submission of the information required by this rule, the local government must submit a copy of the TEDD boundary map to the Montana Department of Revenue, Centrally Assessed and Industrial Property Unit.

(3) Upon receipt of the local government's TEDD boundary map, the Centrally Assessed and Industrial Property Unit will:

(a) work with all centrally assessed and industrial taxpayers having property located within the external boundaries of the TEDD to identify the taxpayer's property; and

(b) provide the local government with a description required in (1)(m) of all centrally assessed and industrial property located within the TEDD boundary.

(2) remains the same, but is renumbered (4).

 

AUTH: 15-1-201, MCA

IMP: 7-15-4279, 7-15-4282, 7-15-4284, 76-1-103, MCA

 

REASON: The department proposes amending ARM 42.19.1404 to add new language in (2) and (3) to establish a process for identifying centrally assessed property within a TEDD. As proposed, this process will make the required identification of centrally assessed property easier and less burdensome for local governments.

 

42.19.1407 DETERMINATION OF BASE YEAR TAXABLE AND INCREMENTAL VALUE VALUES OF A NEWLY CREATED TAX INCREMENT FINANCING DISTRICTS (TIFD) (1) The base year taxable value for the TIFD will be determined as follows:

(a) and (b) remain the same.

(c) The base year taxable value of a TIFD may only be calculated as provided for in (1)(a) and (b) department will calculate base taxable values using the total taxable value of all property within a TIFD prior to the application of any local abatement identified in Title 15, chapter 24, MCA.

(d) The department will calculate incremental taxable values by subtracting the base taxable value identified in (1)(c) from the total taxable value of all property within the TIFD after the application of any local abatements identified in Title 15, chapter 24, MCA.

 

AUTH: 15-1-201, MCA

IMP: 7-15-4284, 7-15-4285, 15-10-420, MCA

 

REASON: The department proposes amending ARM 42.19.1407(1) to add language in new (c) and (d) to clarify how the department will calculate base taxable values and incremental taxable values and to ensure that those values are calculated in a manner that is consistent with the definitions of base taxable and incremental taxable values as identified in 7-15-4283, MCA.

The department further proposes amending the rule title to reflect the content of the rule as amended to include the calculation of both base values and incremental values.

 

42.19.1408 DETERMINATION AND REPORT OF BASE YEAR, ACTUAL, AND INCREMENTAL TAXABLE VALUES – TIMING (1) through (4) remain the same.

(5) If a TIFD encompasses two or more levy districts, the department will:

(a) calculate the total base taxable value and total and incremental taxable value for the TIFD; and

(b) apportion the base taxable value and the incremental taxable value to each levy district according to its contribution to the total taxable value of the TIFD.

 

AUTH: 15-1-201, MCA

IMP: 7-15-4284, 7-15-4285, 15-10-202, 15-10-420, MCA

 

REASON: The department proposes amending ARM 42.19.1408 to add the language in new (5) to explain, by rule, the process the department will use to calculate base, actual, and incremental taxable values when a TIFD encompasses more than one levy district. This clarification is intended to help local governments understand how values are calculated in these situations for budgeting purposes.

 

42.19.1411 DETERMINATION OF BASE YEAR TAXABLE VALUES OF AN AMENDED TIFD – REPORTING OF BASE YEAR, ACTUAL, AND INCREMENTAL TAXABLE VALUES (1) In cases where a TIFD boundary amendment adds new property to an existing TIFD:

(a) remains the same.

(b) the base year and incremental taxable value values of the property being added to the TIFD by the boundary amendment will be calculated pursuant to ARM 42.19.1407.

(2) and (3) remain the same.

 

AUTH: 15-1-201, MCA

IMP: 7-15-4282, 7-15-4284, 7-15-4285, 15-10-420, MCA

 

REASON: The department proposes amending ARM 42.19.1411(1)(b) to strike the word "year" and add the word "incremental" to clarify how the department will base taxable values and incremental taxable values and to ensure that those values are calculated in a manner that is consistent with the definitions of base taxable and incremental taxable values as identified in 7-15-4283, MCA.

 

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: Laurie Logan, Department of Revenue, Director's Office, P.O. Box 7701, Helena, Montana 59604-7701; telephone (406) 444-7905; fax (406) 444-3696; or e-mail lalogan@mt.gov and must be received no later than September 27, 2016.

 

5. Laurie Logan, Department of Revenue, Director's Office, has been designated to preside over and conduct this hearing.

 

6. 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 that includes the name and e-mail or mailing address of the person to receive notices and specifies that the person wishes to receive notice regarding a particular subject matter or matters. Notices will be sent by e-mail unless a mailing preference is noted in the request. A 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.

 

7. An electronic copy of this notice is available on the department's web site at revenue.mt.gov/rules. The department 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. While the department also strives to keep its web site accessible at all times, in some instances it may be temporarily unavailable due to system maintenance or technical problems.

 

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

 

9. With regard to the requirements of 2-4-111, MCA, the department has determined that the amendment of the above-referenced rules will not significantly and directly impact small businesses. Documentation of the department's determination is available at revenue.mt.gov/rules or upon request from the person in 4.

 

 

/s/ Laurie Logan                          /s/ Mike Kadas

Laurie Logan                               Mike Kadas

Rule Reviewer                             Director of Revenue

         

Certified to the Secretary of State August 8, 2016.

 

 

 

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