| HOME | SEARCH | ABOUT US | CONTACT US | HELP | ||
 |
 |
|
|
| Montana Administrative Register Notice 42-2-964 | No. 19 10/14/2016 | |
|
||
| Prev | Next | ||
|
BEFORE THE DEPARTMENT OF REVENUE OF THE STATE OF MONTANA
TO: All Concerned Persons
1. On November 9, 2016, at 2 p.m., the Department of Revenue will hold a public hearing in the Third Floor East Conference Room of the Sam W. Mitchell Building, located at 125 North Roberts, Helena, Montana, to consider the proposed adoption, amendment, and repeal of the above-stated rules. The hearing room is most readily accessed by entering through the east doors of the building facing Sanders Street.
2. The Department of Revenue will make reasonable accommodations for persons with disabilities who wish to participate in this public hearing or need an alternative accessible format of this notice. If you require an accommodation, contact the department no later than 5 p.m. on October 31, 2016, to advise us of the nature of the accommodation you need. Please contact Laurie Logan, Department of Revenue, Director's Office, P.O. Box 7701, Helena, Montana 59604-7701; telephone (406) 444-7905; fax (406) 444-3696; or e-mail [email protected].
3. The rule proposed to be adopted provides as follows:
NEW RULE I AGRICULTURAL LAND REAPPRAISAL (1) The department will value all agricultural land in accordance with the 2017-2018 Montana Agricultural Land Classification Manual, published on September 23, 2016, and available at revenue.mt.gov. Agricultural land values will reflect productivity values as required by 15-7-201 and 15-44-103, MCA. (2) The reappraisal of agricultural land improvements consists of: (a) field reviews of each property, which will be kept to a minimum, including: (i) determination of the accuracy of existing information in the CAMA system and on the property record card (PRC); (ii) observation of condition; (iii) review of quality of construction and depreciation assignment; and (iv) collection of additional data as needed; (b) collection, verification, and analysis of agricultural property data; and (c) entry of data into the CAMA system including: (i) correcting, updating, or adding property data; (ii) reviewing edit reports; and (iii) adding supplementary data, including outbuildings. (3) This rule applies to tax years January 1, 2017, through December 31, 2018.
IMP: 15-7-111, 15-7-112, 15-7-201, 15-9-101, MCA
REASON: The department proposes adopting New Rule I to provide a dedicated rule for the agricultural valuation process due to the passage of Senate Bill 157 L. 2015, which changed the reappraisal cycle for agricultural land to two years and left forest lands on a six-year reappraisal cycle. When both land types were on the same six-year reappraisal cycle, the information could be located together in a single rule. The legislative change necessitates that the department separate the information into two rules for the purpose of timely providing updated reappraisal information for each reappraisal cycle for both property types. Forest land reappraisal will remain in ARM 42.18.135, as amended to apply only to that property type. The department also proposes adopting the more comprehensive 2017-2018 Montana Agricultural Land Classification Manual by reference in this rule, because this manual guides the valuation of all agricultural land in Montana.
4. The rules proposed to be amended provide as follows, new matter underlined, deleted matter interlined:
42.18.122 (a) residential land and improvements; (b) commercial land and improvements; (c) industrial land and improvements; and
(2) The department shall also use the (3) The department shall also use the
IMP: 15-7-111, MCA
REASON: The department proposes amending ARM 42.18.122 to update the rule with the upcoming reappraisal cycle calendar-year references to capture the changes enacted by Senate Bill 157 L. 2015, which shortened the reappraisal cycle for class three and four property from six years to two years; and to provide the current publication date for the updated Montana Reappraisal Plan. The department proposes amending the rule to clarify that the 2017-2018 Montana Reappraisal Plan is a general document that guides reappraisal of all residential, commercial, industrial, and agricultural properties, and that the Appraisal Guide and the 2017-2018 Montana Agricultural Land Classification Manual are more detailed documents that apply specifically to the appraisal of residential, commercial, and industrial properties, and agricultural land, respectively. The department proposes amending (1) by striking (d) and (e) to remove language that is repetitive of (a) through (c), renumbering existing (f) as new (d), and striking the current references to forest land in (d). The department further proposes striking all of (4) because the appraisal of forest land is now addressed separately in ARM 42.18.135, as proposed to be amended in this same notice. In addition to updating the calendar year reference in (2), the department proposes making language amendments to update the publications referenced with their current names and to make the section easier to read and understand. The department proposes amending (3) to add a reference to New Rule I, which is proposed to be adopted in this same notice. Because the proposed new rule covers the details of agricultural reappraisal, (a) and (b) are no longer needed in this rule and are therefore proposed to be stricken. The department also proposes amending newly numbered (4) to remove an unnecessary reference to the cycle years, to add a reference to the guide, and to update the department's web site address. The department further proposes amending the language in newly numbered (5) and (6) to encompass all documents referenced in the rule instead of referencing only the manual, and proposes amending newly numbered (8) to update the calendar-year reference for the upcoming reappraisal cycle that begins in 2017. The department further proposes amending the rule title to include more specific references to the rule content as amended and to update the calendar year reference for the upcoming reappraisal cycle.
42.18.134 (a) through (c) remain the same. (d) data entry in the CAMA system, including: (i) through (2) remain the same. (3) The collection, verification, analysis, and data entry of cost information, sales information, and income and expense information is an important component of the CAMA system. The department shall formulate procedures for collection, verification, and validation of cost information, sales information, and income and expense information. Accuracy of cost information, sales information, and income and expense information is critical to the development of: (a) through (g) remain the same. (4) Residential and commercial lots and tracts are valued through the use of land valuation models. Homogeneous areas within each county are geographically defined as neighborhoods. The land valuation models reflect January 1, (a) through (d) remain the same. (5) and (5)(a) remain the same. (b) For the sales comparison models, the key components that influence value and the appropriate level of influence are determined through use of multiple regression analysis. The department may develop separate sales comparison models and separate income and expense models for each neighborhood and/or market area. If the taxpayer's property has different characteristics, for example, a different quality of construction or square footage than any of the comparable sales properties (comps), the department adjusts the value of the comps. The adjustments reflect how much each of the differences in characteristics affects the value of a property. The adjustments are made based upon information obtained from the market. Once the values of the (c) through (6) remain the same. (7) The PRC review consists of analyzing and collecting component information such as quality of construction and condition of improvements. This review allows the appraiser to compare property information to an estimate of value. Discrepancies in data or the collection of additional information required by the review results in updating the CAMA system data. (8) Final determinations of value are conducted once all required field and program needs of the CAMA system are met. The appraised value for residential and commercial property may include the applicable indicators of value using the: (a) through (9) remain the same. (10) In appraising residential and commercial properties, the department will utilize the Appraisal Guide, published on September 23, 2016, and located at revenue.mt.gov.
IMP: 15-7-111, 15-7-112, 15-7-201, 15-9-101,
REASON: The department proposes amending ARM 42.18.134 to remove unnecessary language and include a reference to ARM 42.18.122 in (1) to improve the clarity of that section. The department further proposes updating the market-value calendar-year reference in (4) and the calendar-year reference in (11) for the upcoming reappraisal cycle for residential and commercial property that begins in 2017. The department also proposes amending (3), (5), (7), and (8) to add the word "system" after CAMA and/or to spell out the word "comps" as "comparable sales" to make the language in these sections more clear. The department further proposes adding new (10) as a location to adopt, by reference, the comprehensive Appraisal Guide and to provide the online address where the guide can be viewed. The department proposes striking 15-44-103, MCA, from the implementing section because this statute covers the valuation of forest land, which is not covered in this rule. The department further proposes striking the word "plan" from the rule title to eliminate potential confusion because the comprehensive reappraisal plan is covered in ARM 42.18.122, while this rule sets forth the reappraisal process for residential and commercial properties only.
42.18.135 2015 (2) The reappraisal of (a) through (d) remain the same. (3) The department will appraise forest land in accordance with the 2015-2020 Montana Forest Land Classification manual, published on October 10, 2014, and located at revenue.mt.gov. (3) remains the same, but is renumbered (4).
IMP: 15-7-111, 15-7-112, 15-7-201, 15-9-101, 15-44-103, MCA
REASON: The department proposes amending ARM 42.18.135 to add clarity to the sentence in (1) regarding who conducts the review referenced in this rule. The department further proposes removing all references to agricultural valuation and leaving only forest land valuation in the rule due to the passage of Senate Bill 157 L. 2015, which changed the reappraisal cycle for agricultural land from six years to two years, but left the six-year reappraisal cycle in place for forest land. The reappraisal plan identified in ARM 42.18.122, as proposed to be amended in this same notice, and New Rule I, as proposed to be adopted in this same notice, address the two-year reappraisal cycle for agricultural property. The department also proposes adding new (3) to include a reference to the 2015-2020 Montana Forest Land Classification Manual and to provide the online address where the manual can be viewed. The department also proposes amending the rule title to remove the reference to agricultural and to change the word "lands" from plural to singular to correspond with the removal of agricultural property from the rule and to strike the word "plan" to eliminate potential confusion because the comprehensive reappraisal plan is covered in ARM 42.18.122 while this rule sets forth the reappraisal process for forest land only.
42.18.136 (1) and (2) remain the same. (3) This rule applies to tax years January 1,
IMP: 15-7-111, MCA
REASON: The department proposes amending ARM 42.18.136 to update the calendar-year reference in the rule title and in (3) for the upcoming reappraisal cycle for industrial property that begins in 2017.
5. The department proposes to repeal the following rule:
42.18.133 2015 MONTANA GENERAL REAPPRAISAL PLAN
IMP: 15-7-111, 15-7-112, 15-7-201, 15-9-101, 15-44-103, MCA
REASON: The department proposes repealing ARM 42.18.133 as the rule has been determined to be duplicative of ARM 42.18.122, as proposed to be amended in this same notice, and is therefore no longer necessary.
6. Concerned persons may submit their data, views, or arguments, either orally or in writing, at the hearing. Written data, views, or arguments may also be submitted to: Laurie Logan, Department of Revenue, Director's Office, P.O. Box 7701, Helena, Montana 59604-7701; telephone (406) 444-7905; fax (406) 444-3696; or e-mail [email protected] and must be received no later than November 21, 2016.
7. Laurie Logan, Department of Revenue, Director's Office, has been designated to preside over and conduct this hearing.
8. 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 that 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 a particular subject matter or matters. Notices will be sent by e-mail unless a mailing preference is noted in the request. A written request may be mailed or delivered to the person in 6 above or faxed to the office at (406) 444-3696, or may be made by completing a request form at any rules hearing held by the Department of Revenue.
9. An electronic copy of this notice is available on the department's web site at revenue.mt.gov/rules. 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. While the department also strives to keep its web site accessible at all times, in some instances it may be temporarily unavailable due to system maintenance or technical problems.
10. The bill sponsor contact requirements of 2-4-302, MCA, apply and have been fulfilled. The primary sponsor of Senate Bill 157, L. 2015, Senator Bruce Tutvedt, was contacted by letter on July 16, 2015, and subsequently notified on September 20, 2016.
11. With regard to the requirements of 2-4-111, MCA, the department has determined that the adoption, amendment, and repeal of the above-referenced rules will not significantly and directly impact small businesses. Documentation of the department's determination is available at revenue.mt.gov/rules or upon request from the person in 6.
/s/ Laurie Logan /s/ Mike Kadas Laurie Logan Mike Kadas Rule Reviewer Director of Revenue
Certified to the Secretary of State October 3, 2016.
|
A directory of state agencies is available online at http://www.mt.gov/govt/agencylisting.asp.
For questions about the organization of the ARM or this web site, contact [email protected].
