BEFORE THE DEPARTMENT OF REVENUE

OF THE STATE OF MONTANA

 

In the matter of the amendment of 42.23.801 and 42.26.233 relating to net operating losses and consistency in reporting with respect to property

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NOTICE OF PROPOSED AMENDMENT   NO PUBLIC HEARING CONTEMPLATED

 

TO:  All Concerned Persons

 

1.  On December 9, 2011, the department proposes to amend the above-stated rules.

 

2.  The Department of Revenue will make reasonable accommodations for persons with disabilities who wish to participate in the rulemaking process and 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. on October 21, 2011, 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) 444-5825; fax (406) 444-4375; e-mail [email protected].

 

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

 

            42.23.801  NET OPERATING LOSSES  (1)  The net operating loss deduction is allowed in accordance with the IRC (1954), as amended, for taxable periods ending on or before December 3, 1970.  For taxable periods which begin on and after January 1, 1971, the net operating loss deduction is allowed as provided in ARM 42.23.412 through 42.23.415 the rules contained in this subchapter.

            (2) remains the same.

 

            AUTH:  15-31-501, MCA

            IMP:  15-31-114, MCA

 

            REASONABLE NECESSITY:  The department proposes to amend ARM 42.23.801 to update the internal ARM references that were inadvertently not updated when transferring ARM 42.23.412 to ARM 42.23.801.  The transfer, as found in MAR Notice Number 42-2-863, at page 2053 of the 2011 Montana Administrative Register, Issue No. 18, became effective on September 23, 2011.

 

            42.26.233  CONSISTENCY IN REPORTING WITH RESPECT TO PROPERTY  (1) and (2) remain the same.

 

            AUTH:  15-1-201, 15-31-313, 15-31-501, MCA

            IMP:  15-1-601, and Title 15, chapter 31, part 3 15-31-301, 15-31-302, 15-31-303, 15-31-304, 15-31-305, 15-31-306, 15-31-307, 15-31-308, 15-31-309, 15-31-310, 15-31-311, 15-31-312, 15-31-321, 15-31-322, 15-31-323, 15-31-324, 15-31-325, 15-31-326, MCA

 

REASONABLE NECESSITY:  The department proposes to amend ARM 42.26.233 to update the implementing citations.

 

4.  Concerned persons may submit their data, views, or arguments in writing.  Written data, views, or arguments may 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) 444-4375; or e-mail [email protected] and must be received no later than 5:00 p.m., November 10, 2011.

 

5.  If persons who are directly affected by the proposed action wish to express their data, views, and arguments orally or in writing they must make written request for a hearing and submit this request along with any written comments they have to Cleo Anderson at the above address no later than 5:00 p.m., November 10, 2011.

 

6.  If the agency receives requests for a public hearing on the proposed action from either 10 percent or 25, whichever is less, of the persons who are directly affected by the proposed action; from the appropriate administrative rule review committee; from a governmental subdivision or agency; or from an association having no less than 25 members who will be directly affected, a hearing will be held at a later date.  Notice of the hearing will be published in the Montana Administrative Register.  Ten percent of those persons directly affected has been determined to be approximately 1526 based on approximately 15,262 corporation taxpayers in Montana, as of September 30, 2011.

 

7.  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 notice 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 number 4 above or faxed to the office at (406) 444-4375, or may be made by completing a request form at any rules hearing held by the Department of Revenue.

 

8.  An electronic copy of this notice is available on the department's web site at www.revenue.mt.gov.  Locate "Legal Resources" in the left hand column, select the "Rules" link and view the options under the "Notice of Proposed Rulemaking" heading.  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.  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 bill sponsor contact requirements of 2-4-302, MCA, do not apply.

 

 

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

CLEO ANDERSON                                     DAN R. BUCKS

Rule Reviewer                                              Director of Revenue

 

Certified to Secretary of State October 3, 2011