Montana Code 15-35-107. When value of coal may be imputed — procedure
15-35-107. When value of coal may be imputed — procedure. (1) The department may impute a value to the coal that approximates market value f.o.b. mine in a case where:
Terms Used In Montana Code 15-35-107
- Agreement: means a signed contract that is valid under Montana law between a coal mine operator and a purchaser or broker for the sale of coal that is produced in Montana. See Montana Code 15-35-102
- Contract: A legal written agreement that becomes binding when signed.
- Person: includes a corporation or other entity as well as a natural person. See Montana Code 1-1-201
- Prepared for shipment: includes but is not limited to services such as in-mine movement, crushing, sizing, screening, storing, mixing, loading, treatment with substances including chemicals or oils, and other preparation of the coal for disposition. See Montana Code 15-35-102
- Process: means a writ or summons issued in the course of judicial proceedings. See Montana Code 1-1-202
- Produced: means severed from the earth. See Montana Code 15-35-102
(a)the operator of a coal mine is using the produced coal in an energy-conversion or other manufacturing process; or
(b)a person sells coal under a contract that is not an arm’s-length agreement.
(2)For purposes of subsection (1), “market value f.o.b. mine” means the value of the coal subsequent to being prepared for shipment on the mode of transportation taken to its final destination.
(3)When imputing value, the department may apply the factors used by the federal government under 26 U.S.C. § 613, or that provision as it may be labeled or amended, in determining gross income from mining or the department may apply any other or additional criteria it considers appropriate. Each subject taxpayer shall upon request by the department furnish a copy of its federal income tax return, with any amendments, filed for the year in which the value of coal is being imputed and copies of the contracts under which it is selling coal at the time. When the department’s estimate of market value is contested in any proceeding, the burden of proof is on the contesting party.