Montana State Legislature

2011-2012 Revenue and Transportation

The Revenue and Transportation Committee is a 12-member, joint bipartisan committee of the Legislature that meets between legislative sessions. It has administrative rule review, draft legislation review, program evaluation, and monitoring responsibilities for the Montana Department of Revenue and the Montana Department of Transportation.

The webpage is down for maintenance.

As per Section 2-3-12, MCA, the Legislature deems audio files to serve as the official record of committee meetings. Minutes logs accompany the audio and video and highlight the actions taken in the meeting. Minutes logs are posted and attached to the audio and video once they become available. To access the minutes log, navigate to the committee you are looking for and either select the link to the audio of that day or in the search area select the "Minutes" link. 

Floor session audio and video may be accessed by selecting either House or Senate as the committee type and then either House Floor Session or Senate Floor Session from the list of committees. Interim committee archives are under listed under the committee type menu under "Interim." Full Interim committee pages including information and full archives are here: Interim Committees

Contact the Legislative Branch Webmaster with any technical issues.

Non-Legislative and Special Event Audio and Video can be found here - Audio/Video Archives for all Legislative Meetings

Agenda -- Minutes Log for September 13, 2012 and September 14, 2012

Study Final Reports
HJR 13 Study of Individual Income Tax (updated from July)
SJR 17 Study of Centrally Assessed Property
SJR 23 Study of Tax Exemptions for Nonprofit Organizations (updated from July)

Committee Requested Bill Drafts
LC 9500: Provide for one 2-year property reappraisal cycle followed by annual reappraisal for class 3, 4, and 10 property
LC 9500: Summary table
LC 9501: Require DOR to review property tax exemptions and publish a list of exempt properties

Legislative Fiscal Division General Fund Report
General Fund Revenue Update: 2013 Biennium
General Fund Revenue update (slides)

Economic Overview Materials
U.S. and Montana Economic Outlooks -- IHS (slides)
Overview of Montana Oil and Gas Related to Revenue Estimates-- Dave Pursell (slides)
Montana Economic Outlook -- Paul Polzin (slides)
Montana Business and Labor Trends -- Barbara Wagner (slides)
Labor Day Report 2012 -- Montana Department of Labor and Industry 
Chamber of Commerce Perspective -- Jon Bennion (slides)
Agricultural outlook -- Myles Watts (slides)

Other
Proposed Bill Draft Requests to Clarify, Simplify, or Repeal Certain Tax Provisions -- Megan Moore

Department of Revenue
Department of Revenue Reports

Department of Revenue and Department of Transportation Monitoring
Administrative Rule Review -- August 29, 2012

Agenda

HJR 13 Study of Individual Income Tax
Final report summary -- Jaret Coles, Megan Moore, Stephanie Morrison

SJR 17 Study of Centrally Assessed & Industrial Property
Briefing on Large Industrial Property Taxation -- Megan Moore
Briefing on Centrally Assessed Property Appeals Process -- Megan Moore
Current Issues Involving Montana's Centrally Assessed Property Taxation Statutes and Procedures -- Kristen Gustafson Juras (revised September 18, 2012)

SJR 23 Study of Tax Exemptions for Nonprofit Organizations
Final report summary -- Megan Moore

Other
Review of the Refundable Income Tax Credit Relief Multiple-- Megan Moore
Revenue Estimating Process and Consideration of Agenda Items -- Megan Moore
Proposed Bill Draft Requests to Clarify, Simplify, or Repeal Certain Tax Provisions -- Megan Moore
Letter from the Ambassador to the United States from Luxembourg
Apportioning Income of Multinational Enterprises -- Michael J. McIntyre

Department of Revenue
Department of Revenue Reports
Biennial Recommendations Concerning Tax Haven Jurisdictions -- Dan Bucks, Department of Revenue
Memorandum on Corporation Tax Water's Edge Election -- Brenda Gilmer, Department of Revenue

Department of Transportation
Proposed Confederated Salish & Kootenai Tribes-Montana Gasoline Tax Agreement
Reports on Dyed Fuel Enforcement and Biodiesel Fuel Tax Incentives

Department of Revenue and Department of Transportation Monitoring
Administrative Rule Review -- July 9, 2012
Supplemental Rule Review -- July 17, 2012

Agenda (Revised) -- Minutes (w/Exhibits)

HJR 13 Study of Individual Income Tax
Alternative Methods of Taxing Individual Income - Jeff Martin
Summary of Montana Tax Income - Jaret Coles

SJR 23 Study of Tax Exemptions for Nonprofit Organizations
Projected Corporate Tax Payments - Megan Moore
Data for Projected Corporate Tax Payments
Analysis of Limiting Exemptions - Megan Moore

Other
LC 9000: Revise uniform penalty & interest provisions
LC9000 Summary Table
Proposed Rule Changes to Revenue Estimating Process
Montana's Intergenerational Transfer of Wealth -- Linda Reed
Annual Report on Charitable Endowment Credit -- Dan Dodds, Department of Revenue

Legislative Fiscal Division General Fund Reports
General Fund Revenue Update - 2013 Biennium
General Fund Revenue Update (Slides)

Department of Revenue
Department of Revenue Reports

Department of Transportation
Montana's Approach to Asset Management

Department of Revenue and Department of Transportation Monitoring
Administrative Rule Review - April 16, 2012

Agenda (Revised)

Meeting Days

  • Thursday, February 16, 2012 -- Minutes (Approved w/Exhibits)
  • Friday, February 17, 2012 -- Minutes (Approved w/Exhibits)

HJR 13 Study of Individual Income Tax
Review of State Income Tax and Select Income Tax Returns - Jaret Coles
Effect of Tax Credits on Individual Income Tax Rate - Stephanie Morrison
Married Tax Filers: 2007 and 2010 - Stephanie Morrison

SJR 17 Study of Centrally Assessed Property & Industrial Property 
Unitary Valuation PowerPoint -- Thomas Hamilton 
Unitary Valuation Notes for PowerPoint -- Thomas Hamilton
Centrally Assessed Property memorandum -- Department of Revenue
Annualized Growth Rates for Assessed Value: 1999-2011 -- Department of Revenue
Centrally Assessed Values: 2005-2011 -- Department of Revenue
Assessed Values of Top 25 Industrial Companies -- Department of Revenue

SJR 23 Study of Tax Exemptions for Nonprofit Organizations
Attorney General's Montana Hospital Report
Report on Montana's Hospitals Community Benefits -- Slides new.gif
Hospital Bad Debt and Charity Care updated data - Megan Moore
Unreimbursed Medicare and Medicaid Costs - Megan Moore
Analysis of Property Tax Exemptions from TY2003 to TY2011 - Department of Revenue
Memo on business tax exemptions - Department of Revenue

Other
Bill draft to revise uniform penalty & interest provisions (LC9000) - Jeff Martin
Fiscal analysis of penalty & interest bill draft -- Department of Revenue
Memo re Revenue Estimating Process dated February 10, 2012 - Jeff Martin

Legislative Fiscal Division General Fund Reports
General Fund Revenue Update: 2013 Biennium
General Fund Revenue PowerPoint Presentation
Revenue Estimating Process Memo - Terry Johnson

Agency Reports
Department of Revenue

Department of Revenue and Department of Transportation Monitoring
Administrative Rule Review February 3, 2012

Revised draft agenda

Meeting Days

  • Thursday, December 8, 2011 -- Minutes (Approved with exhibits linked)
  • Friday, December 9, 2011 -- Minutes (Approved with exhibits linked)

HJR 13 Study of Individual Income Tax

SJR 17 Study of Centrally Assessed Property & Industrial Property

SJR 23 Study of Tax Exemptions for Nonprofit Organizations

Legislative Fiscal Division General Fund Reports

Agency Reports

Department of Revenue and Department of Transportation Monitoring

Agenda (Revised)

Meeting Days

  • Monday, September 26, 2011 -- Minutes (Approved w/Exhibits)
  • Tuesday, September 27, 2011 -- Minutes (Approved w/Exhibits)

HJR 13 Individual Income Tax Study

SJR 17 Study of Centrally Assessed Property & Industrial Property

SJR 23 Study of Tax Exemptions for Nonprofit Organizations

Other Material

  • Memorandum on SB 199 and SB 411 Uniform Penalty and Interest 

Legislative Fiscal Division General Fund Update

Agency Reports

  • Department of Transportation
    Memorandum re responses to questions concerning MDT's bridge analysis related to the Kearl Module Transportation Plan
  • Department of Revenue
    Reports

Department of Revenue and Department of Transportation Monitoring

Agenda

Meeting Days

  • June 15, 2011 -- Approved Minutes (with Exhibits)
  • June 16, 2011 -- Approved Minutes (with Exhibits)

Committee Work Plan and Study Assignment

Agency Reports

Legislative Fiscal Division General Fund Update

Other Material

Department of Revenue and Department of Transportation Monitoring

  • HJR 13: Study of state income tax and options for revision
  • SJR 17: Study of the valuation of centrally assessed property and industrial property for tax purposes
  • SJR 23: Study of tax exemptions for nonprofit organizations

HJR 13 Study: Individual Income Tax and Options for Revision

--Updated final report summary, August 2012
--Final report summary, July 2012
--Alternative Methods of Taxing Individual Income, Jeff Martin, April 2012
--Summary of Montana Tax Income, Jaret Coles, April 2012 
--Review of State Income Tax and Select Income Tax Returns, Jaret Coles, February 2012
--Effect of Tax Credits on Individual Income Tax Rate, Stephanie Morrison, February 2012 
--Married Tax Filers: 2007 and 2010, Stephanie Morrison, February 2012
--Individual Income Tax Credit & Deduction Analysis, Stephanie Morrison, December 2011
--Individual Income Tax in the United States and Montana, Jaret Coles, September 2011
--Analysis of Individual Income Tax Credits, Stephanie Morrison, September 2011
--Study plan, June 2011

SJR 17: Valuation of Centrally Assessed Property and Industrial Property for Tax Purposes

--Updated Final report summary, October 2012
--Final report summary, August 2012
--Briefing on Large Industrial Property Taxation, Megan Moore, July 2012
--Briefing on Centrally Assessed Property Appeals Process, Megan Moore, July 2012
--Overview of Selected States' Methods for Valuing Centrally Assessed Property, Jeff Martin, December 2011
--Summary of Major Centrally Assessed Cases, Jaret Coles, December 2011
--Overview of Property Classification, Assessment, and Taxation, Jeff Martin, September 2011
--Study plan, June 2011

SJR 23: Tax Exemptions for Nonprofit Organizations

--Updated final report summary, October 2012
--Updated final report summary, August 2012
--Final report summary, July 2012
--Projected Corporate Tax Payments, Megan Moore, April 2012
--Analysis of Limiting Exemptions, Megan Moore, April 2012
--Hospital Bad Debt and Charity Care updated data, Megan Moore, February 2012
--Unreimbursed Medicare and Medicaid Costs, Megan Moore, February 2012
--Analysis of Agricultural and Forest Property Owned by Nonprofit Organizations Concerned with Preservation, Megan Moore, December 2011
--Exempt Property in the Seven Most Populous Counties, Megan Moore, December 2011
--Additional Information re: Property Tax Exemptions in Other States, Megan Moore, December 2011
--Analysis of Hospital Charity Care and Bad Debt, Megan Moore, December 2011
--Background Report on Income and Property Tax Exemptions, Megan Moore, September 2011
--Study plan, June 2011

The Revenue and Transportation Interim Committee requested that staff draft the following as possible committee bills:

  • LC9000: Revise uniform penalty & interest provisions
    • Approved as committee bill at April meeting and renumberd LC 110
  • LC9500: Provide for one 2-year property reappraisal cycle followed by annual reappraisal for class 3, 4, and 10 property
    • Approved as committee bill at September meeting and renumbered LC 398
  • LC9501: Require DOR to review property tax exemptions and publish a list of exempt properties
    • Not approved as committee bill at September meeting
  • The following drafts will be acted upon at the November 19 meeting:
    • LC9502: Amend entitlement share payment for Missouls TIF 1-1C
    • LC9503: Clarify that class 8 property tax adjustments are based on corporation license tax collections
    • LC9504: Remove references to local government severance tax
    • LC9505: Repeal taxable value decrease for value added manufacturing

The Legislature, including the Revenue and Transportation Interim Committee (RTIC), plays a significant role in the administrative rulemaking process and is authorized to review administrative rules for compliance with the Montana Administrative Procedure Act, also known as MAPA. More information about the rule review process, the RTIC's role and responsibilities, objections to administrative rules, and rules currently proposed by the two agencies under the RTIC's purview is available below or by clicking on the links above.

Contact Jaret Coles at jcoles@mt.gov for more information on administrative rule review by the RTIC.

Administrative Rule Review

The Montana Legislature may authorize administrative agencies to implement and carry out legislative enactments through the adoption of administrative rules. An administrative rule is an agency regulation, standard, or statement of general applicability that implements, interprets, or prescribes law or policy or describes the organization, procedures, or practice requirements of an agency. See 2-4-102(11), MCA. When this occurs, the legislature establishes law through the adoption of statutes and authorizes an agency to make specific rules or regulations to implement or interpret those statutes. Once adopted, administrative rules carry the full force and effect of law and are subject to judicial challenge.

Administrative agencies are required to follow certain procedures in adopting administrative rules. These procedures are set forth in the Montana Administrative Procedure Act (MAPA). The purpose of MAPA is to ensure that the public receives notice of agency rulemaking and is provided an opportunity for meaningful public participation. MAPA also establishes general uniformity for rulemaking across agencies and provides due process safeguards to the public and to those that will be regulated by the administrative rules.

Administrative rules are published in the Administrative Rules of Montana (ARM), which is updated twice a month by the Montana Administrative Register (MAR). The MAR contains rulemaking notices regarding proposed new, amended, or repealed rules. The MAR also contains notices of adopted rules, recently issued attorney general's opinions, and notices of vacancies on state boards. The ARM and MAR are maintained by the Secretary of State's office and may be accessed at the following website: http://www.mtrules.org/.

Role of the Revenue and Transportation Interim Committee

The legislature, including the RTIC, plays a significant role in the administrative rulemaking process and is authorized to review administrative rules for compliance with MAPA. As part of this process, legal staff for the RTIC notifies the RTIC of proposed, amended, or repealed administrative rules and of any concerns regarding the rulemaking process.

The RTIC is responsible for reviewing administrative rules from the following agencies:

There are several avenues for RTIC involvement in the agency rulemaking process. Specifically, the RTIC may take any one or combination of the following actions:

  • Request an agency's rulemaking records for checking compliance with MAPA. 2-4-402(2)(a), MCA.
  • Prepare written recommendations for the adoption, amendment, or rejection of a rule and submit those recommendations to the agency proposing the rule and submit oral or written testimony at a rulemaking hearing. 2-4-402(2)(b), MCA.
  • Require that a rulemaking hearing be held in accordance with the provisions of 2-4-302 through 2-4-305, MCA. 2-4-402(2)(c), MCA.
  • Institute, intervene in, or otherwise participate in proceedings involving this chapter in the state and federal courts and administrative agencies. 2-4-402(2)(d), MCA.
  • Poll the legislature by mail to determine whether a proposed rule is consistent with the intent of the legislature. The results of the poll are admissible in any court proceeding involving the validity of the proposed or adopted rule. 2-4-403 and 2-4-404, MCA.
  • Require an economic impact statement relating to the adoption of a rule. 2-4-405, MCA.
  • Object to all or some portion of a proposed or adopted rule and delay the adoption of the rule for sixth months or delay the effective date of the rule until the day after final adjournment of the next legislative session. 2-4-305(9), 2-4-306(4)(c), and 2-4-406(4), MCA.

Objections to Administrative Rules

The RTIC may elect to object to a proposed administrative rule. If a majority of the members of the RTIC notify the chair that they object to a proposed administrative rule, the RTIC must notify the agency of the objection and that the RTIC intends to address the objection at the next RTIC meeting. Following notice of the objection, the rule may not be adopted until publication of the last issue of the register that is published before the 6-month period during which the adoption notice must be published. The RTIC may withdraw its objection and allow the adoption notice to be published.

If the RTIC meets and objects to all or some portion of a proposed rule before it is adopted because it considers the rule not to have been proposed or adopted in substantial compliance with 2-4-302, 2-4-303, and 2-4-306, MCA, the rule or portion of the rule objected to is not effective until the day after final adjournment of the next regular legislative session. The RTIC may withdraw its objection to the administrative rule or the rule may be changed to comply with RTIC's objections and concerns. However, the failure of the RTIC to object in any manner to the adoption, amendment, or repeal of a rule is inadmissible in court to prove the validity of any rule.

The significance of an objection to an administrative rule is that the RTIC may delay the effective date of the administrative rule for 6 months or until the adjournment of the next legislative session. In addition, following an objection the agency may not enforce or implement the proposed administrative rule in question until the new effective date. Finally, by objecting to an administrative rule, the RTIC may shift the burden to the agency in a court proceeding to prove that the rule or portion of the rule objected to by the RTIC substantially complies with the provisions of MAPA.

Proposed Rules

The Department of Revenue maintains an administrative rules website that provides access to hearing proposal notices, adoption notices, no hearing proposal notices, emergency rules, and negotiated rulemaking notices.

The Department of Transportation does not maintain an administrative rules website, but notices can be found on the Secretary of State's website at http://www.mtrules.org/. Under the Montana Administrative Register heading, type 18 in the “Search by Notice No.” box.

RTIC Staff Review of Administrative Rules

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