42.17.101    DEFINITIONS

The following terms pertain to this chapter:

(1) "Advanced mineral payments" are payments made to royalty interest owners that represent the royalty interest owner's future share of the receipts from the sale of the natural resource.

(2) "Individual" means a worker who renders service in the course of an occupation.

(3) "Lookback letter" means the letter sent to employers notifying them of their filing frequency for employee wage withholding.

(4) "Mineral payments" are payments made to royalty interest owners that represent the royalty interest owner's future share of the receipts from the sale of the natural resource.

(5) "Net royalty amount payable" means the amount of mineral proceeds subject to withholding. This amount is equal to the gross royalty payments less any taxes and other expenses deducted pursuant to the royalty agreement in effect.

(6) "Net taxable earnings" means an employee's gross earnings minus the number of the employee's claimed withholding allowances multiplied by the withholding exemption amount provided in 15-30-2114, MCA for the year the Montana withholding tables were last revised.

(7) "Overriding royalty interest" means ownership in a percentage of production or production revenues, free of the cost of production, created by the lessee, company and/or working interest owner and paid by the lessee, company and/or working interest owner out of revenue from the well.

(8) "Person" means any natural person, company, corporation, association, partnership, joint venture, cooperative, estate, trust, receiver, or any other party or entity that has a working interest, royalty interest, overriding royalty interest, production payment, production payment including in-kind exchanges, or any other ownership interest entitled to production proceeds from deposits in this state.

(9) "Producer" is the person that extracts natural resources from deposits in the state.

(10) "Remitter" means the individual, entity, or trust obligated under a mineral lease to pay royalties to the royalty owner or their assignee, to deliver minerals to a purchaser to the credit of the royalty owner or their assignee, or to pay a portion of the proceeds of the sale of the minerals to the royalty owner or their assignee.

(11) "Reporting forms" include, but are not limited to:

(a) Form MW-1, the Montana Withholding Tax Payment Voucher;

(b) Form MW-3, the Montana Annual W-2 1099 Withholding Tax Reconciliation form;

(c) Montana Employee's Withholding Allowance and Exemption Certificate form (Form MW-4);

(d) Form W-2, the federal wage and tax statement form;

(e) Form RW-1, the Mineral Royalty Withholding Tax Payment Voucher form;

(f) Form RW-3, the Montana Annual Mineral Royalty Withholding Tax Reconciliation form; and

(g) Form 1099, the federal Information Return.

(12) "Take in kind" means an operator or non-operator who elects to receive production in lieu of proceeds from the sale of production.

 

History: 15-30-2547, 15-30-2620, MCA; IMP, 15-30-2501, 15-30-2538, MCA; Eff. 12/31/72; AMD, 1982 MAR p. 296, Eff. 2/12/82; AMD, 1996 MAR p. 1169, Eff. 4/26/96; AMD, 2001 MAR p. 1650, Eff. 8/24/01; AMD, 2004 MAR p. 2754, Eff. 11/5/04; AMD, 2007 MAR p. 2151, Eff. 12/21/07; AMD, 2010 MAR p. 177, Eff. 1/15/10; AMD, 2010 MAR p. 2230, Eff. 9/24/10; AMD, 2015 MAR p. 27, Eff. 1/16/15; AMD, 2016 MAR p. 1974, Eff. 10/29/16; AMD, 2019 MAR p. 2384, Eff. 12/28/19.