(1) Taxpayers having property in the state of Montana on January 1 of each tax year, must complete the statement as provided in 15-8-301, MCA.

(2) If the aggregate market value of a person or business entity's class eight property on a statewide basis is $20,000 or less, the person or business entity is exempt from class eight taxation. In order to determine whether individual taxpayers or business entities are below that threshold, the department will require all persons or business entities with an aggregate market value over $5,000 to report their class eight property for the 2006 tax year. In subsequent years of the reappraisal cycle, the department will not require annual reporting for those taxpayers that have demonstrated they are below the $20,000 exemption threshold for the 2006 tax year, unless the person or business entity acquires new class eight property or a departmental review as provided in 15-8-104, MCA, indicates a need to report. To ensure fair and accurate reporting of all taxable class eight property, the department may require all persons or business entities to report their class eight property periodically. It is the department's current plan to require a report of all class eight property for tax year 2010 and, if judged necessary, for additional future tax years at intervals to be determined.

(3) The department will provide educational information on the class eight personal property exemption to all individual taxpayers or business entities the department is aware of that currently have class eight business personal property.

(4) Except as provided in (2) , taxpayers having taxable property in the state of Montana on January 1 of each year must complete the statement as provided for in 15-8-301, MCA. With the exception of livestock owners, the taxpayer has 30 days from the date of receipt of any request for information to respond to the department's request. The department may grant an extension if the taxpayer requests such an extension during the 30-day period. No extension may be granted that allows the taxpayer to report after March 15.

(5) A taxpayer who raises livestock subject to the per capita fees has 14 days from February 1 to respond to the department request for information. The department may grant an extension if the taxpayer requests such an extension before February 15.

(6) If the taxpayer fails to respond to the department request for information during the timeframes set forth in (2) , (3) , and (4) , the department shall assess the property under the provisions of 15-1-303, 15-8-309, and 15-24-904, MCA, or any other applicable statute.

(7) Industrial and commercial property taxpayers shall provide documentation of the installed costs of intangible personal property included on the taxpayer's accounting records.

(8) If the department determines that one or more of the reports required in (1) have been filed by multiple jointly owned enterprises, or if the department determines that property has been transferred to or otherwise placed under the ownership and control of a family member or other individual within 12 months prior to the filing of the report, the department shall:

(a) in the case of jointly owned business enterprises, determine whether the enterprises were created for a valid business purpose other than the minimization of tax liability; or

(b) in the case of an individual, determine whether the transfer was made for a valid purpose other than the minimization of the transferor's tax liability.

(9) If the department determines that no valid reason other than the minimization of tax liability exists, the department will aggregate the market value of all of the enterprises' or individual's class eight property.

(10) This rule is effective for tax years beginning after December 31, 2005.