1. (1) The payor of a parimutuel payoff that is over $5,000 and 300 to one odds must withhold federal income tax on the total winnings payment at a rate defined by the Internal Revenue Service.
2. (2) Payments that are subject to withholding under the above rules are to be treated in the same manner as if they were wages paid by an employer to an employee. Thus, the payor is liable for withholding the tax and paying it over to the federal government.

Authorizing statute(s): 23-4-202, MCA

Implementing statute(s): 23-4-301, 23-4-302, 23-4-303, MCA

History: Eff. 12/31/72; AMD, Eff. 5/4/74; AMD, Eff. 5/5/77; AMD, 1979 MAR p. 39, Eff. 1/26/79; TRANS, from Dept. of Prof. & Occup. Lic., Ch. 274, L. 1981, Eff. 7/1/81; AMD, 1995 MAR p. 2796, Eff. 12/22/95; TRANS, from Dept. of Commerce, 2002 MAR p. 1500; TRANS, from 32.28.1621, 2015 MAR p. 2252, Eff. 12/25/15; AMD, 2018 MAR p. 2400, Eff. 12/8/18.