Six months before the legislative session is slated to kick off, a group of Republicans in Senate leadership have thrown their support behind a flat income tax proposal for 2027, thrusting one of Republican Gov. Greg Gianforte’s long-term priorities into the spotlight.

A Monday press release cited support for the policy from Senate President Matt Regier; Senate President Pro Tempore Ken Bogner; Senate Majority Leader Tom McGillvray; all the Senate majority whips; and Greg Hertz, R-Polson, who heads the Senate Taxation committee. Regier has requested a bill draft to “lower Montana income tax rates” for the 2027 session.

“The governor is encouraged by the growing support for his call for a flat income tax and looks forward to working with the legislature to deliver on this promise to Montanans,” said Kaitlin Timken, the governor’s director of communications. “In 2027, Governor Gianforte is focused on securing a fair, flat income tax rate to continue Montana’s strong economic momentum and return money back to Montanans who work hard to earn it.”

For the last three legislative sessions, the legislature has slashed income tax rates, moving the top income tax bracket from 6.9% to 5.4% during Gianforte’s tenure. The state has also moved from seven different income tax brackets to two.

Even as members of Senate leadership proclaim their support for the move to a flat income tax ahead of 2027’s session, some have found themselves at odds with more aggressive efforts to slash income taxes before.

During the 2025 session, for instance, the governor’s income tax proposal in Senate Bill 323 was tabled in Hertz’s Senate Taxation Committee. It would have cut the top-bracket tax rate from 5.9% to 4.9%. Hertz told the Montana Free Press at the time the legislation “pulls off too much money, too fast, at the top.” What eventually passed in 2025 in the form of House Bill 337 was a phased decrease of that top-bracket rate from 5.9% to 5.4%, along with raising the maximum threshold for the lower tax bracket, which stands at 4.7%.

Regier cited “momentum” on the issue as the reason Senate leadership has jumped into the fray to back the idea now. He said getting Senate leadership on board included some debate on the issue. But ultimately, there was agreement that the governor’s position was right on flat income tax. Regier pointed to both income tax and property tax cuts as topics of importance to Senate leadership ahead of 2027.

“We’ve had large, large surpluses in the past two sessions,” Regier said in an interview with the Beacon. “I’m looking at another surplus session. We have cut income tax the last two sessions … so it’s, to me, the premise of this — and to a lot of Republicans — is government is not a business. We should only take enough money from the people to operate government, and so we shouldn’t be running surpluses like that.”

During a February discussion with the Mountain States Policy Center, a right-leaning think tank, Gianforte said he hoped to get the state to a 4.7% flat income tax rate. A 2029 biennium report from the Legislative Fiscal Division projects that move would decrease individual income tax collections by an estimated $130 million per year by fiscal year 2029.

In Montana, income tax makes up the lion’s share of the state’s general fund, accounting for 66% of general fund revenues in fiscal year 2025, per a recent historical analysis from the Legislative Fiscal Division. Those dollars fund schools up to the Base Amount for School Equity, state supported public health programs, and salaries and pensions for state employees, among other items. In recent years, the state’s general fund has been flush with cash, in part thanks to higher-than-anticipated income tax collections.

Sen. Dave Fern, D-Whitefish, a seasoned legislator who serves on the Revenue Interim Committee, said several factors have contributed to the state’s revenue growth. In his estimation, those include high in-migration since the COVID days, more wealth in the state with people working remotely and making higher salaries, and more federal dollars going into people’s pockets thanks to pandemic-era policies.

Even so, Fern and most of his fellow Democratic caucus members have long been skeptical of the flat income tax idea. He cautioned that creating and maintaining a tax structure that keeps Montana’s general fund coffers at a sustainable level is important. Fern added he’s an advocate for maintaining the state’s current income tax levels for another two years to gain a better understanding of what Montana’s growth will look like moving forward — particularly as he anticipates changes coming down the pike.

“Beyond two years, do we have the capacity to deal with what we’re doing?” Fern said. “Will that growth rate of revenue, more income, more people moving here — will that continue? And you know, my reaction is, it will be neutered a bit, getting back to a more normal rate of growth.”

He also pointed to the 2029 biennium outlook, which identified provisions of 2025’s One Big Beautiful Bill Act that that could lower the amount of income tax the state collects. And, depending on the recommendations of the School Funding Interim Commission, which Fern sits on, he said the state could be looking at a different way of bankrolling school districts, which he anticipates could have a higher price tag on it than what has been status quo.

“It’s much easier to cut taxes than increase taxes,” Fern said.

For Gov. Gianforte, the same thing Fern identified as a holdup when it comes to a flat income tax rate serves as a go sign.

“The real advantage of a flat tax is once you get there, it’s very hard for future legislatures to raise it, because they’ve got to raise the tax on everybody, right?” the governor said at the Mountain States Policy Center discussion in February. “So, the penalty is higher.”

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Attorney General Aaron Ford announced Wednesday afternoon that his office has reached a nearly $30 million settlement with drug manufacturer Glenmark.

The settlement is part of a multi-state antitrust case against the generic drug manufacturer. 48 U.S. states and territories allege Glenmark engaged in a conspiracy to artificially inflate prices and reduce competition on the sale of more than 100 medications.

That includes drugs used to treat asthma, cancer and diabetes, among other conditions.

Nevada will distribute $41,000 to impacted agencies and over $13 million to a consumer restitution fund.

Individual Nevadans who bought one of Glenmark’s products between May 2009 and December 2019 may also be eligible for monetary compensation. Members of the public can find more information about eligibility at aggenericdrugs.com.

NEW MEXICO (KRQE) – Emergency crews are responding to a tank battery fire in the area of Frying Pan Road and Anthony Road in southern Lea County.

Officials are asking people to avoid the area and follow directions from emergency personnel and law enforcement. Multiple agencies are responding to the fire. No other information has been release, this is a developing story.