Rule 42.17.101 - DEFINITIONS The following definitions apply to this chapter:
(1) "Individual" means a worker who renders service in the course of an occupation.(2) "Lookback letter" means the letter sent to employers notifying them of their filing frequency for employee wage withholding.(3) "Mineral payments" mean payments made to royalty interest owners that represent the royalty interest owner's future share of the receipts from the sale of the natural resource.(4) "Net royalty amount payable" means the amount of mineral proceeds subject to withholding. This amount is equal to the gross royalty payments less any taxes and other expenses deducted pursuant to the royalty agreement in effect.(5) "Net taxable earnings" means an employee's gross earnings less the employee payments described in ARM 42.17.103(1).(6) "Overriding royalty interest" means ownership in a percentage of production or production revenues, free of the cost of production, created by the lessee, company and/or working interest owner and paid by the lessee, company and/or working interest owner out of revenue from the well.(7) "Person" means any natural person, company, corporation, association, partnership, joint venture, cooperative, estate, trust, receiver, or any other party or entity that has a working interest, royalty interest, overriding royalty interest, production payment, production payment including in-kind exchanges, or any other ownership interest entitled to production proceeds from deposits in this state.(8) "Producer" means the person that extracts natural resources from deposits in the state.(9) "Remitter" means the person obligated under a mineral lease to pay royalties to the royalty owner or their assignee, to deliver minerals to a purchaser to the credit of the royalty owner or their assignee, or to pay a portion of the proceeds of the sale of the minerals to the royalty owner or their assignee. A producer that is not paying mineral royalties directly to a mineral royalty owner is not a remitter.(10) "Reporting forms" include, but are not limited to:(a) Form MW-1, the Montana Withholding Tax Payment Voucher;(b) Form MW-3, the Montana Annual W-2 1099 Withholding Tax Reconciliation form;(c) Montana Employee's Withholding Allowance and Exemption Certificate form (Form MW-4);(d) Form W-2, the federal wage and tax statement form;(e) Form RW-1, the Mineral Royalty Withholding Tax Payment Voucher form;(f) Form RW-3, the Montana Annual Mineral Royalty Withholding Tax Reconciliation form; and(g) All forms included in the federal Information Return Series.(11) "Take in kind" means an operator or non-operator who elects to receive production in lieu of proceeds from the sale of production.Mont. Admin. r. 42.17.101
AMD, 2015 MAR p. 27, Eff. 1/16/2015; AMD, 2016 MAR p. 1974, Eff. 10/29/2016; AMD, 2019 MAR p. 2384, Eff. 12/28/2019; AMD, 2024 MAR p. 2324, Eff. 9/21/2024AUTH: 15-30-2547, 15-30-2620, MCA; IMP: 15-30-2501, 15-30-2538, MCA