Current through Register Vol. 6, March 22, 2024
(1) End of quarter
and service mechanical and electronic meter readings are used for tax
calculation purposes and must be taken at the same time. Mechanical meters must
be reported exactly as displayed on the machine and not from an audit ticket.
Machine owner quarterly reporting requirements are as follows:
(a) For each machine utilizing an approved
automated accounting and reporting system, the machine owner or a designated
representative shall transmit files to the department, in a format prescribed
by the department, with the following information:
(i) for tier I systems, all electronic meter
readings and all events set out in ARM 23.16.2105 for each day the machine is
in operation;
(ii) for tier II
systems:
(A) all electronic meter readings for
each week or two-week period for which the machine is approved to
report:
(B) electronic and
mechanical meter readings up to 14 days prior to the end of the quarter but not
later than seven days after the last day of each quarter may be designated as
the quarter end meter readings; and
(C) before- and after-service electronic and
mechanical meter readings must be submitted if meters are reset or
malfunction.
(b) For machines utilizing an approved
automated accounting and reporting system, after the final set of meter
readings for the quarter is received, the department will electronically
transmit a machine income and tax estimate by machine and location to the
machine owner. Upon receipt of the machine income and tax advisory, the owner
must contact the department within seven days in order to dispute the machine
income and tax estimate.
(c) The
machine owner will have until midnight of the 15th day of the month following
the quarters ending March 31, June 30, September 30, and December 31 to confirm
and pay any tax due by electronic check or credit/debit card using a
state-sponsored internet site.
(d)
For each machine permitted during a reporting quarter not utilizing an approved
automated accounting and reporting system, the machine owner or a designated
representative must file with the department a quarterly tax report signed by
the machine owner or a designated representative. The forms prescribed and
supplied by the department require readings from the mechanical and electronic
meters as required by the act. The report will be used by the department to
verify payment of all taxes for the machine as required by the act. The
following requirements apply:
(i) Forms 6 and
6a make up quarterly video gambling machine tax report. Forms 6 and 6a are
incorporated by reference and are available from any Gambling Control Division
office location or on the department's web site,
www.dojmt.gov/gaming.
(ii) The report must be delivered to Gambling
Control Division, 615 South 27th Street, Suite A, Billings, Montana 59101, or
bear a United States postal service postmark not later than midnight of the
15th of the month following the quarters ending March 31, June 30, September
30, and December 31.
(iii) The
mechanical and electronic meter readings must be recorded for the report within
seven days of the close of the operator's last day of business in the reporting
quarter. The readings must be supported by the original printed accounting
ticket.
(2) If
a machine owner shares machine ownership, or a machine's revenues with another
person or business entity, the machine owner or his designated representative
must provide upon the same quarterly tax form prescribed by the department in
(1), information for each machine as follows:
(a) full identification including name,
address, and social security number (or federal identification number) of all
persons or business entities involved in the above-mentioned business
relationship;
(b) percentages of
participation in machine income by each person or business entity involved in
the above-mentioned business relationship; and
(c) specific machine income (total
collections less amounts paid to players without adjustment for expenses) paid
to and/or received by each person or business entity involved in the
above-mentioned business relationship.
(3) For the purposes of this rule the term
theft includes the physical break-in or entry into the video gambling machine,
or manipulation of the machine by external means, resulting in the accumulation
of credits available for redemption without the insertion of money. If the
gross income reported for a machine has been reduced to reflect a loss
resulting from a theft from the machine, the machine owner or a designated
representative shall submit the following information together with the
quarterly report:
(a) documentation from a law
enforcement agency verifying that the theft was reported;
(b) a letter or other document signed by the
machine owner's business insurance agent indicating the amount paid or to be
paid, if any, by the insurer to cover the loss resulting from the theft;
and
(c) the last cash-access
accounting ticket generated before the theft occurred and the first cash-access
accounting ticket generated after the theft occurred. The tickets will be used
by the department to calculate the maximum amount that may be deducted for a
loss resulting from a theft.
(d) In
all cases the theft loss must be supported by records required in ARM
23.16.1827.
(4) If the
machine owner or a designated representative fails to file the quarterly tax
report or remit the required gross machine income tax when due, the following
penalties will be assessed:
(a) 0 - 30 days
late = 10% of tax due;
(b) 31 - 60
days late = 25% of tax due;
(c) 61
- 90 days late = 50% of tax due;
(d) 91 days or more = 100% of tax
due.
(5) The imposition
of these penalties does not preclude the department from taking further action
against the machine owner responsible for preparing the report, including, but
not limited to, temporary cease and desist orders under 23-5-136,
MCA.
AUTH: 23-5-115, 23-5-621, MCA; IMP: 23-5-136, 23-5-610,
23-5-621, 23-5-637, MCA