Key Tax Bills To Be Heard in Montana Senate
Author: Kyle Schmauch, Communications and Policy Manager
Key Tax Bills to be Heard in Montana Senate Kyle Schmauch, Communications and Policy Manager HELENA, Mont.— Two of legislative Republicans’ big tax priorities will be heard in the Senate Taxation Committee tomorrow morning.
“Our number one priority this legislative session is providing financial relief to Montanans who are suffering from inflation and the high cost of living,” said Sen. Jason Ellsworth, a Hamilton Republican and President of the Senate. “Part of that equation is cutting Montanans’ taxes again. I’m excited to see two of our key priority tax bills moving in the Senate this early in the legislative session.”
Senate Bill (SB) 121 is the Republicans’ signature long-term tax relief bill of the 2023 legislative session. SB 121 would cut the state’s income tax rate paid by middle-class Montanans from 6.5% to 5.9%, allowing Montanans to keep more of their hard-earned money. The bill also increases the Earned Income Tax Credit from 3% to 10%, providing a refundable tax credit to lower and moderate income workers.
SB 121 is sponsored by Sen. Becky Beard, R-Elliston and is also one of Governor Gianforte’s policy priorities.
“Montanans are struggling to make ends meet and have been paying more income taxes than the state needs to fund essential services,” Beard said. “This is a common sense conservative approach, giving Montanans a raise by permanently cutting the taxes they pay.”
The second tax bill being heard in the Senate tomorrow is Senate Bill 124, sponsored by Sen. Greg Hertz, R-Polson. SB 124 simplifies Montana’s corporate taxes to benefit Montana businesses.
“This bill will help put Montana companies on a more even playing field with companies based in other states,” Hertz said. “By moving to a single sales factor on corporate taxes, we’ll be cutting taxes for many Montana businesses and treat them the same as out-of-state corporations, instead of our current system that penalizes home-grown Montana companies.”
Senate Bills 121 and 124 are the first Senate bills of what will be a suite of legislation to provide financial relief to Montanans and Montana-based businesses this legislative session.
