February 11, 2019 MSCPA Legislative Call Agenda

Link to LAWS list of MSCPA bills: http://laws.leg.mt.gov/legprd/law_utilities.CallBillSearchResults?P_ENTY_ID_SEQ2=19155&P_PFLT_APPL_S EQ=3&P_SESS=20191

Call in information: Join Zoom Meeting: https://zoom.us/j/111796372

Phone: 1 720 707 2699 Meeting ID: 111 796 372

Support Monitor Oppose Ignore

Newly Introduced

Bill LC Primary Status Status Date Short Title Number Number Sponsor HB 365 LC1205 Kimberly (H) Hearing -- (H) 02/14/2019; 9:00 Use portion of bed tax for agritourism Dudik (D) Taxation AM, Rm 152 grants HD 94 HB 367 LC1305 Rodney (H) Hearing -- (H) 02/14/2019; 9:00 Require advisory committee for urban Garcia (R) Taxation AM, Rm 152 renewal districts that use TIF HD 52 HB 372 LC2990 Tom (H) Hearing -- (H) 02/14/2019; 9:00 Increase inflation limitation on Welch (R) Taxation AM, Rm 152 government entities for property tax HD 72 levies HB 376 LC1474 Ross H (H) Hearing -- (H) 02/12/2019; 9:00 Repeal the real estate recovery Fitzgerald Taxation AM, Rm 152 account. (R) HD 17 HB 377 LC1643 Matt (H) Hearing -- (H) 02/13/2019; 9:00 Revoke property tax exemption for Regier (R) Taxation AM, Rm 152 payment of excessive compensation HD 4 HB 385 LC1424 Wylie Galt (H) Referred to 02/04/2019 Authorize blackjack to be played in (R) HD 30 Committee -- (H) licensed establishments Taxation HB 386 LC1134 (H) Hearing -- (H) 02/12/2019; 9:00 Revising the procedure for cancelling (R) HD 12 Taxation AM, Rm 152 delinquent taxes on commercial property HB 394 LC1969 Greg Hertz (H) Referred to 02/05/2019 Revise property tax appraisal and tax (R) HD 12 Committee -- (H) appeal process Taxation HB 401 LC1967 Greg Hertz (H) Referred to 02/06/2019 Repeal temporary tribal property tax (R) HD 12 Committee -- (H) exemption Taxation HB 403 LC1178 Barry (H) Referred to 02/06/2019 Generally revise coal tax laws Usher (R) Committee -- (H) HD 40 Taxation HB 404 LC3127 Joshua (H) Referred to 02/06/2019 Revise the itemized deduction for Kassmier Committee -- (H) medical expenses (R) HD 27 Taxation HB 405 LC1034 Joel G (H) Introduced 02/07/2019 Create catch and keep program for Krautter rural economic development (R) HD 35 SB 204 LC0966 Margaret (S) Hearing -- (S) 02/21/2019; 8:00 Revise tax exemption laws for certain (Margie) Taxation AM, Rm 405 mobile homes MacDonald (D) SD 26 SB 207 LC2347 Tom (S) Hearing -- (S) 02/13/2019; 8:00 Provide taxpayer election to contribute Jacobson Taxation AM, Rm 405 to ABLE and education savings (D) SD 11 accounts SB 208 LC1216 Tom (S) Hearing -- (S) 02/13/2019; 8:00 Provide tax credit for student loan Jacobson Taxation AM, Rm 405 payments (D) SD 11 SB 211 LC1312 Russel (S) Referred to 02/06/2019 Require holding period for certain (Russ) Committee -- (S) property tax exemptions Tempel (R) Taxation SD 14 SB 215 LC3258 Roger (S) Referred to 02/06/2019 Revising the legislature's revenue Webb (R) Committee -- (S) estimating process SD 23 Taxation SB 217 LC1580 David (S) Hearing -- (S) 02/13/2019; 8:00 Revise taxation of security income Howard Taxation AM, Rm 405 (R) SD 29 SB 237 LC0546 Albert (S) Introduced 02/07/2019 Provide a tax credit for individual Olszewski health insurance premiums (R) SD 6

Group talked about the progress so far and expectation is that the period between 60 and 45 days will be very busy with tax bills. John Iverson is going to research SB 217 to find out the reasoning behind this bill.

Reports from last week’s hearings

HB240 – Revise reporting requirements for third-party settlement organizations (Jim Hamilton) 3rd Party orgs are companies like Uber where payments are submitted to the org who then pay sub contractors who do the actual work. Currently the de minimis limitation is $20,000 or 200 transactions to require a form 1099K be filed reporting that income. This bill was amended so that the de minimis limitation would become $600, the same as required for a 1099-MISC. Only testimony was from the DOR who support the bill.

HB320 - Generally revise laws related to tax-advantaged savings plans (Bill Mercer) If a parent or grandparent gave to a 529 or ABLE account this bill would prevent creditors from going after these funds if the contributor goes through bankruptcy.

SB75 - Revise laws related to the Board of Public Accountants Similar testimony to the Senate, there were a couple questions related to how other board compared to the accountancy board.

HB300 – Generally revise taxes and the distribution of revenue through sales tax (Kerry White) Long hearing on a long bill. The sponsor walked through how the tax would work and explained what current laws would be repealed or amended to make this work. One proponent testified pointing to the need for the tax regulations to change in Montana.

Opponents of the bill pointed to a number of issues with the bill. The tax would be regressive, introduces volatility to the system, difficult to adequately fund local government, etc. There was also no fiscal note for the bill available yet.

There was strong support for an interim study of the tax system in Montana. Will be interesting to watch this bill if it moves forward.

SB2 - Allow government accounting standards to include DOA framework Good hearing committee asked good questions and voted 17-0 to move it forward.

It is expected that HB300 will make it to the House floor for a vote. If the bill doesn’t pass they will likely try to have an interim committee look into the Montana tax system as a whole.

This week’s hearings

Monday House Appropriations – Room 102, 3pm HB226 – Exempt certain shooting ranges from property taxation (Brad Tschida)

Tuesday House Taxation – Room 152, 9am HB194 – Revise lodging and rental car taxes including local option (Mary Ann Dunwell) HB340 – Revising the residential property tax credit for the elderly (Mike Hopkins) HB386 – Revising the procedure for cancelling delinquent taxes on commercial property (Greg Hertz)

Senate Taxation – Room 405, 8am HB200 – Revising tax laws related to mobile homes, house trailers, manufactured homes (Mary Ann Dunwell) HB201 – Revising tax lien laws (Mary Ann Dunwell) HB213 – Revise the tax rate for certain oil production (Llew Jones)

Wednesday Senate Taxation – Room 405, 8am SB207 – Provide taxpayer election to contribute to ABLE and education savings accounts (tom Jacobson) SB208 – Provide tax credit for student loan payments (Tom Jacobson) SB217 – Revise taxation of security income (David Howard)

House Taxation – Room 152, 9am HB377 – Revoke property tax exemption for payment of excessive compensation (Matt Regier)

Thursday Senate Taxation – Room 405, 8am HB148 – Require 2/3 of legislature to enact a new tax or fee or a tax or fee increase (Forrest Mandeville)

House Taxation – Room 152, 9am HB365 – Use portion of bed tax for agritourism grants (Kimberly Dudik) HB367 – Require advisory committee for urban renewal districts that use TIF (Rodney Garcia) HB372 – Increase inflation limitation on government entities for property tax levies (Tom Welch)

Friday

Saturday

Tax Bills

Bill LC Primary Status Status Date Short Title Number Number Sponsor HB 72 LC0172 Marilyn Marler (S) Committee 02/07/2019 Clarify penalty and interest laws (D) HD 90 Report--Bill Concurred HB 88 LC0090 Kim Abbott (D) (S) Committee 02/07/2019 Revise 529 ABLE account laws HD 83 Report--Bill Concurred HB 130 LC1376 John Fuller (R) (H) Hearing -- (H) 01/22/2019; 9:00 Revise income tax law to exempt HD 8 Taxation AM, Rm 152 military pensions HB 144 LC1390 Alan Redfield (H) Hearing -- (H) 01/24/2019; 9:00 Eliminate certain tax credits (R) HD 59 Taxation AM, Rm 152 HB 148 LC1176 Forrest (S) Hearing 02/14/2019; 8:00 Require 2/3 of legislature to enact a Mandeville (R) AM, Rm 405 new tax or fee or a tax or fee HD 57 increase HB 193 LC0178 Mary Ann (H) Hearing -- (H) 01/31/2019; 9:00 Establish a carbon tax and Dunwell (D) HD Taxation AM, Rm 152 distribute revenue 84 HB 216 LC1196 Kimberly Dudik (H) Tabled in 02/01/2019 Revise tax laws related to student (D) HD 94 Committee * -- (H) loan reimbursements by employers Taxation HB 226 LC0618 Brad Tschida (H) Hearing -- (H) 02/11/2019; 3:00 Exempt certain shooting ranges (R) HD 97 Appropriations PM, Rm 102 from property taxation

HB 269 LC1874 Derek Skees (R) (H) Hearing -- (H) 02/01/2019; 9:00 Constitutional amendment for HD 11 Taxation AM, Rm 152 taxpayer protection act to limit tax types HB 300 LC0137 Kerry White (R) (H) Hearing -- (H) 02/06/2019; 8:00 Generally revise taxes and the HD 64 Taxation AM, Rm 152 distribution of revenue through sales tax HB 320 LC2405 Bill Mercer (R) (H) Hearing -- (H) 02/04/2019; Generally revise laws related to HD 46 Business and Labor 10:00 AM, Rm tax-advantaged savings plans 172 SB 111 LC1310 (S) Hearing -- (S) 01/31/2019; 2:00 Extend termination date of (R) SD 4 Finance and Claims PM, Rm 303 qualified endowment tax credit SB 141 LC1514 Dick Barrett (D) (S) Hearing -- (S) 01/29/2019; 8:00 Repeal water's-edge election for SD 45 Taxation AM, Rm 405 corporate income tax SB 142 LC1513 Dick Barrett (D) (S) Hearing -- (S) 01/29/2019; 8:00 Revise tax haven list for corporate SD 45 Taxation AM, Rm 405 income tax purposes SB 145 LC1989 (R) (S) Tabled in 01/30/2019 Revise income tax laws related to SD 13 Committee* -- (S) married taxpayers Taxation SB 189 LC0520 Dick Barrett (D) (S) Hearing -- (S) 02/07/2019; 3:00 Establish a carbon tax and SD 45 Energy and PM, Rm 317 distribute revenue Telecommunications

License Bills

Bill LC Primary Status Status Date Short Title Number Number Sponsor HB 105 LC0280 Katie Sullivan (D) (H) Hearing -- (H) 02/01/2019; 8:30 Revise process for out-of-state HD 89 Business and AM, Rm 172 licensure for professional Labor licensing boards SB 75 LC0310 (H) Hearing 02/06/2019; 8:30 Revise laws related to the Board (D) SD 39 AM, Rm 172 of Public Accountants

Other Bills

Bill LC Primary Status Status Date Short Title Number Number Sponsor HB 108 LC0262 Gordon Pierson (D) (S) Hearing 02/08/2019; 8:30 Clarify reporting requirements for HD 78 AM, Rm 422 escrow businesses HB 240 LC1459 Jim Hamilton (D) (H) Hearing -- (H) 02/05/2019; 9:00 Revise reporting requirements for HD 61 Taxation AM, Rm 152 third-party settlement organizations SB 2 LC0125 Margaret (Margie) (H) Committee 02/07/2019 Allow government accounting MacDonald (D) SD Executive Action- standards to include DOA 26 -Bill Concurred framework SB 19 LC0129 Roger Webb (R) SD (S) Hearing -- (S) 01/10/2019; Revise laws related to local 23 Judiciary 10:00 AM, Rm government budgeting and 422 accounting