Form Cab-2 - Air Or Water Pollution Control Equipment Application (Page 5 of 7) in pdf

Controlling Statute

For Air and Water Pollution Control Equipment

15-6-135. Class ﬁ ve property -- description -- taxable percentage.

(1) Class ﬁ ve property includes:

(a) all property used and owned by cooperative rural electrical and cooperative rural telephone associations organized

under the laws of Montana, except property owned by cooperative organizations described in 15-6-137(1)(a);

(b) air and water pollution control equipment as deﬁ ned in this section;

(d) any personal or real property used primarily in the production of ethanol-blended gasoline during construction and for

the ﬁ rst 3 years of its operation;

(e) all land and improvements and all personal property owned by a research and development ﬁ rm, provided that the

property is actively devoted to research and development;

(f) machinery and equipment used in electrolytic reduction facilities;

(g) all property used and owned by persons, ﬁ rms, corporations, or other organizations that are engaged in the business

of furnishing telecommunications services exclusively to rural areas or to rural areas and cities and towns of 1,200

permanent residents or less.

(2) (a) “Air and water pollution control equipment” means that portion of identiﬁ able property, facilities, machinery, devices, or

equipment designed, constructed, under construction, or operated for removing, disposing, abating, treating, eliminating,

destroying, neutralizing, stabilizing, rendering inert, storing, or preventing the creation of air or water pollutants that, except

for the use of the item, would be released to the environment. Reduction in pollutants obtained through operational tech-

niques without speciﬁ c facilities, machinery, devices, or equipment is not eligible for certiﬁ cation under this section.

(b) Requests for certiﬁ cation must be made on forms available from the department of revenue. Certiﬁ cation may not be

granted unless the applicant is in substantial compliance with all applicable rules, laws, orders, or permit conditions.

Certiﬁ cation remains in effect only as long as substantial compliance continues.

(c) The department of environmental quality shall promulgate rules specifying procedures, including timeframes for certi-

ﬁ cation application, and deﬁ nitions necessary to identify air and water pollution control equipment for certiﬁ cation and

compliance. The department of revenue shall promulgate rules pertaining to the valuation of qualifying air and water

pollution control equipment. The department of environmental quality shall identify and track compliance in the use of

certiﬁ ed air and water pollution control equipment and report continuous acts or patterns of noncompliance at a facility

to the department of revenue. Casual or isolated incidents of noncompliance at a facility do not affect certiﬁ cation.

(d) A person may appeal the certiﬁ cation, classiﬁ cation, and valuation of the property to the state tax appeal board. Ap-

peals on the property certiﬁ cation must name the department of environmental quality as the respondent, and appeals

on the classiﬁ cation or valuation of the equipment must name the department of revenue as the respondent.

(3) (a) New industrial property” means any new industrial plant, including land, buildings, machinery, and ﬁ xtures, used by new

industries during the ﬁ rst 3 years of their operation. The property may not have been assessed within the state of Montana

prior to July 1, 1961.

(b) New industrial property does not include:

(i) property used by retail or wholesale merchants, commercial services of any type, agriculture, trades, or professions

unless the business or profession meets the requirements of subsection (4)(b)(v);

(ii) a plant that will create adverse impact on existing state, county, or municipal services; or

(iii) property used or employed in an industrial plant that has been in operation in this state for 3 years or longer.

(4) (a) “New industry” means any person, corporation, ﬁ rm, partnership, association, or other group that establishes a new

plant in Montana for the operation of a new industrial endeavor, as distinguished from a mere expansion, reorganization, or

merger of an existing industry.

(b) New industry includes only those industries that:

(i) manufacture, mill, mine, produce, process, or fabricate materials;

(ii) do similar work, employing capital and labor, in which materials unserviceable in their natural state are extracted,

processed, or made ﬁ t for use or are substantially altered or treated so as to create commercial products or

materials;

(iii) engage in the mechanical or chemical transformation of materials or substances into new products in the manner

deﬁ ned as manufacturing in the North American Industry Classiﬁ cation System Manual prepared by the United States

ofﬁ ce of management and budget;

(iv) engage in the transportation, warehousing, or distribution of commercial products or materials if 50% or more of an

industry’s gross sales or receipts are earned from outside the state; or

(v) earn 50% or more of their annual gross income from out-of-state sales.

(5) Class ﬁ ve property is taxed at 3% of its market value.

History: (1), (2)(a), (3) thru (6)En. Sec. 5, Ch. 693, L. 1979; amd. Sec. 4, Ch. 660, L. 1979; (2)(b)En. Sec. 1, Ch. 659, L. 1979; amd. Sec.

60, Ch. 575, L. 1981; amd. Sec. 36, Ch. 370, L. 1987; amd. Sec. 1, Ch. 519, L. 1987; amd. Sec. 1, Ch. 568, L. 1987; amd. Sec. 3, Ch.

659, L. 1987; amd. Sec. 1, Ch. 694, L. 1991; amd. Sec. 1, Ch. 510, L. 1993; amd. Sec. 39, Ch. 418, L. 1995; amd. Sec. 26, Ch. 51, L.

1999; amd. Sec. 32, Ch. 426, L. 1999; amd. Sec. 2, Ch. 100, L. 2007.

Form Cab-2 - Air Or Water Pollution Control Equipment Application Page 5

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