(1) A taxpayer 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 by submitting a completed personal property reporting form.

(2) If the statewide aggregate market value of a person or business entity's class eight property is $20,000 or less as determined by the department, the person or business entity is exempt from class eight taxation. 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. The department requires biennial reporting of all class eight property beginning in tax year 2011.

(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) The taxpayer's completed personal property statement as provided for in 15-8-301, MCA, must be returned to the department postmarked no later than February 15. If a taxpayer fails to return a completed personal property statement by February 15, the department will provide a written notice to the taxpayer advising the taxpayer of their obligation to return a completed personal property statement. The notice shall also advise the taxpayer that they are subject to penalty for refusing or neglecting to respond to the department's request for information under the provisions of 15-1-303 and 15-8-309, MCA, or any other applicable statute.

(5) Statements postmarked after March 15 will be assessed the penalty provided in (4) unless:

(a) the taxpayer provides evidence of their inability to comply with the timeframes set forth in (4) due to hospitalization, physical illness, infirmity, or mental illness; and

(b) evidence that this/these condition(s), while not necessarily continuous, existed at sufficient levels in the period of January 1 to March 15 to prevent timely filing of the reporting form.

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

(7) 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.

(8) 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.

(9) This rule is effective for tax years beginning after December 31, 2010.