Work-comp, biz-tax among business issues
By Ronda Wiggers
Montana Machine Coin Operators Association
Most of the previous Tavern Times articles have focused on those issues that are specific to the industry – gaming, liquor, DUI – so I thought I would touch on a few other items that may affect your business as well.
Early in the session, members of the Appropriations committee debated the idea to use some of your machine license fees from Gambling Control and deposit them into the general fund. This is the money that you pay to fund Gambling Control and was never intended to be used to balance the budget. After much discussion and explaining the current use of the money to committee members, we were successful in having this provision removed from the bill. Your fee money stays where it belongs.
Virtually every lobbyist representing a business interest worked on passage of the changes to our Worker's Compensation laws. As I am sure you know, Montana currently has the highest work-comp rates in the nation. The bill was lengthy and made a number of changes in medical and settlement benefits, as well as changes to encourage an employee to return to work at the earliest possible date.
One portion of the legislation that will likely be of interest to you is the limits on course and scope. The new changes limit the employer's liability if an employee is injured off premises during a break or while engaged in a social or recreational activity sponsored by the employer. Due to a couple of recent Supreme Court rulings, a number of employers ceased to have company picnics and parties for fear of extra liability. This change addresses that issue in a positive manner.
Overall, it is estimated that the changes should save employers between 10 and 20 percent in their work-comp premiums. It is likely that some of these savings could show up as early as your next renewal.
We also joined with other business interests to pass a reduction in business equipment taxes. Currently, anyone with over $20,000 of business equipment is paying taxes on 3 percent of the market value of their equipment. Changes passed this session will lower that rate to 2 percent of market value up to $2 million of equipment. After mills are applied, this will result in your business equipment taxes being reduced one third of their previous amount.
If year-over-year income tax collections go up by 4 percent or more, the tax rate will drop to 1.5 percent on the first $3 million in business equipment. This would result in your business equipment taxes being one half of what they were previously.
If you happen to be one of those businesses that have over $2 million in business equipment – or $3 million after the second change – you will continue to pay the 3 percent on all amounts over that threshold.
One last item you may find helpful in your day-to-day operations are the new laws on an employer's rights concerning medical marijuana. Current law indicated that if an employee tested positive on a drug test, but was able to show a prescription was the cause of that result, they could not be terminated.
New law says that medical marijuana is NOT considered a prescription under this law. A positive test result is reason to terminate. It also adds to the list of those employees that can be drug tested – anyone driving a vehicle as part of their work and expands the definition to anyone that has fiduciary responsibilities.
It makes it clear that your insurance and/or work comp do not have to cover medical marijuana prescriptions and adds impairment due to medical marijuana as a reason for work comp to not cover an injury. Finally, it makes it clear that an employer can have a zero tolerance policy and this can be grounds for termination.
When the drug-testing law was originally written, it did not consider that marijuana would be considered legal in any form. Because of this, it was vague on employer's rights in this area. The changes make it clear that you do not have to employ impaired workers, even if they have a prescription.
One final note: You do not have to take down your “no guns allowed” sign. The “bring your gun to the bar” bill died.