Current through Register Vol. 6, March 22, 2024
(1) A tribal member
who owns vehicles and other personal property in whole or in part is subject to
the provisions of this rule. The following requirements apply to tribal
personal property in order to meet the ownership test:
(a) The exemption applies to tribal members
living on the reservation of the tribe in which they are an enrolled
member;
(b) If the tribal member
owns 100% of the interest in personal property (such as vehicles) , the
property is 100% exempt; and
(c) If
the personal property is jointly owned by tribal members and nontribal members
and there is no indication of the percentage of ownership for each owner, the
exemption of the property is prorated among the owners as if each owner owned
equal interests in the property. An example of this is when a tribal member and
two nontribal members register a vehicle. The vehicle is on the reservation of
the tribal member and there is no indication of the percentage of ownership for
each owner. The vehicle receives a 33% exemption and is taxed for the remaining
67%.
(d) If there is an indication
of percentage of ownership, the exemption will be prorated based on the
indicated percentages. For motor vehicles, the percentage of ownership must be
proven by submittal of a current title or registration indicating the
percentage of ownership. For other personal property, the percentage of
ownership can be proven by submittal of a bill of sale or an affidavit, signed
by all owners, indicating each owner's percentage of ownership.
(2) The following requirements
apply to tribal real property in order to meet the ownership test:
(a) The exemption involving an ownership test
applies to real property located on the reservation in which the tribal member
is an enrolled member. In most cases the percentage of ownership is stated on
the deed or instrument that transfers intention that the land be subject to
state taxation, or if the land is held by the United States government in trust
for the enrolled member, it is not generally taxable and is exempt.
(b) Property acquired under a federal statute
in which Congress expressed its intention that the land be subject to state
taxation, such as the Indian General Allotment Act of 1887, is not entitled to
an exemption and will remain on the tax roll, unless it was placed in trust
after acquisition under the particular federal statute. If the local staff
cannot determine whether the property was acquired under a federal statute
authorizing state taxation or is held in trust by the United States, the
property will be placed on the tax roll until the owner can produce proof that
the property is entitled to an exemption. Therefore, if the tribal member owns
20% of the property and is entitled to an exemption, 20% of the property will
receive an exemption and the remaining 80% of the property will remain on the
tax roll. The assessment will be addressed to and sent to the nontribal
member(s).
(3) Military
personnel who own vehicles and other personal property in whole or in part are
subject to the provisions of this rule.
(a)
If a military person is entitled to an exemption for that person's personal
property under the Soldiers and Sailors Relief Act, the amount of exemption
will depend on their percentage of ownership. If there are owners other than
the military person and the ownership document does not indicate the ownership
interest, the property must be prorated among the owners as if each owner owned
equal interests in the property. For example, if a vehicle is owned by a
military person and his/her spouse and there is no legal indication of the
percentage of ownership, the vehicle would receive a 50% exemption.
(b) To receive an exemption under the
Soldiers and Sailors Relief Act, the military person must be a nonresident and
provide the department with proof that they have orders assigning them to duty
in Montana.
(c) There is no
exemption allowed for real property of active military personnel or personal
property used in or arising from a trade or business of the active duty
military personnel.
(4)
For other types of exemptions that require an application for exemption and an
ownership test to qualify, the exemption is based on the percentage of
ownership as contained in the document that evidences ownership, and on whether
or not the property satisfies the use test required by the exemption statute
(if a use test is required). If the document does not show the ownership
interest, the value of the property must be prorated among the owners as if
each owner owned equal interests in the property. An example would be if a
church and a pastor are both listed as owners of a house. The house is occupied
by the pastor and he is a member of the clergy. The church's 50% interest is
exempt from taxation. The pastor's 50% interest is not exempt from taxation.
This portion of the rule applies to properties which receive an exemption under
15-6-201,
15-6-203,
15-6-209, MCA.
AUTH:
15-1-201, MCA; IMP:
15-6-201,
15-6-203,
15-6-209,
15-24-1208,
MCA