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Gianforte-backed tax bills set for first hearing in Montana Legislature

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Gianforte-backed tax bills set for first hearing in Montana Legislature


HELENA — Gov. Greg Gianforte has made tax reduction a central a part of his funds plan, touting proposals for $1 billion in property and earnings tax reductions. Now, a number of the key concepts in that plan are set for his or her first hearings within the Montana Legislature.

Earlier this month, Gianforte held a information convention the place he referred to as on lawmakers to take fast motion on tax reduction proposals.

“In the end, this isn’t the federal government’s cash, it’s the cash of hard-working Montanans who earn it,” he stated. “We’re dedicated to placing a refund in Montanans’ pockets by means of everlasting, long-term tax reduction and rebates.”

Three of the governor’s priorities could have committee hearings on Tuesday. The Senate Taxation Committee will hear testimony on Senate Invoice 121, sponsored by Sen. Becky Beard, R-Elliston. It might make two giant modifications: dropping the highest earnings tax charge from 6.5% to five.9%, beginning in 2024; and greater than tripling the state earned earnings tax credit score for lower-income households.

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Throughout the 2021 legislative session, lawmakers handed a invoice that can scale back the variety of state earnings tax brackets from seven to 2 as of 2024. The 2 charges had been set to be 4.7% and 6.5%.

In line with an evaluation from the Governor’s Workplace of Finances and Program Planning, decreasing the highest charge – which leaders say most Montanans pay – would cut back state earnings tax collections by $127.8 million the primary yr and $150.6 million a yr by 2027.

The state earned earnings tax credit score relies on a federal program for low- and moderate-income households. Presently, Montana permits folks eligible for the federal credit score to say 3% of that quantity from the state. SB 121 would enhance that to 10%. The governor’s funds workplace estimated the change would increase the claimed credit from $4.7 million a yr to $15.8 million a yr.

“Montanans are struggling to make ends meet and have been paying extra earnings taxes than the state must fund important providers,” Beard stated Monday in an announcement from Senate Republican management. “This can be a frequent sense conservative strategy, giving Montanans a increase by completely reducing the taxes they pay.”

The Home Taxation Committee will maintain hearings Tuesday on two different proposals. Home Invoice 222, sponsored by Rep. Tom Welch, R-Dillon, would supply a property tax rebate of as much as $1,000 every of the following two years on a Montana property proprietor’s main residence inside the state. Gianforte stated that might return about $500 million to taxpayers.

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Home Invoice 212, from Rep. Josh Kassmier, R-Fort Benton, would vastly enhance the exemption for Montana’s enterprise tools tax. Presently, companies should pay a tax on all kinds of kit, from farm implements to mining and oil and fuel equipment to business furnishings and fixtures. Smaller companies are exempted if their whole tools values lower than $300,000. HB 212 would increase that restrict to $1 million.

The Legislature already elevated the exemption from $100,000 to $300,000 within the 2021 session, and Gianforte stated these will increase would hold greater than 5,000 companies, farms and ranches from paying any enterprise tools tax.

Gianforte has additionally proposed different tax modifications, together with a toddler tax credit score and a credit score for adoptions. Nevertheless, his proposals aren’t the one concepts for tax reductions.

Final week, the Home Appropriations Committee held a listening to on Home Invoice 192, from Rep. Invoice Mercer, R-Billings. It might put aside $250 million for property tax rebates – a single $1,000 cost in comparison with HB 222’s two funds – however one other $650 million for particular person earnings tax rebates. People would obtain as much as $1,250, and married {couples} would stand up to $2,500.

Mercer instructed MTN it made sense to dedicate a number of the surplus to paying again particular person earnings taxpayers, since that’s largely the place the excess got here from. He stated utilizing $900 million for rebates would nonetheless depart properly over $1 billion accessible for lawmakers to make use of for different wants. He stated as a result of his invoice was utilizing one-time-only funds, he would not consider it could intervene with a long-term lower within the earnings tax charge.

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Moreover, Senate GOP leaders are highlighting one other invoice, from Sen. Greg Hertz, R-Polson, that might simplify the state’s company earnings tax calculations to make use of a single issue primarily based on gross sales.

With extra tax proposals coming, it’s clear determining simply how a lot state income to offer again to taxpayers – and the way to do it – can be an enormous debate proper by means of the top of the session.





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Real Madrid's Coach Visits Montana

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Real Madrid's Coach Visits Montana


Montana — After another successful season for Los Blancos, Carlo Ancelotti is spending some time in The Treasure State.

Over the past few days, Real Madrid Coach Carlo Ancelotti has shared some photos from a vacation with his spouse, Mariann Barrena McClay, in Montana. They have spent some time horseback riding and checking out the Sawmill Saloon in Darby.

This vacation follows a trophy-filled season at Real Madrid, during which they won La Liga, the Champions League, and the Spanish Super Cup. They probably feel alright about their chances next season, considering that Mbappe is joining the squad.

The small town of Darby, situated on Montana Highway 93, recorded a population of 783 in the 2020 census. The town is home to logging and rodeo events, along with a farmer’s market. In July, they host a Bluegrass and Strawberry Festivals. The closest ski area to Darby is Lost Trail Powder Mountain, which is in Idaho and Montana.

Image Credits: Carlo Ancelotti, Visit Darby (Image above)

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There is a way for Montana residential property taxes to go down

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There is a way for Montana residential property taxes to go down



The upcoming property tax year could be a little easier on homeowners and renters than last year.

The operative word in that sentence is could. Here’s why this year could be easier, not a slam-dunk “will be easier.”

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Three policy-generated numbers mathematically merge in a complex equation to determine what you pay in property taxes: 1) the state’s assessed value of your property; 2) the state’s tax rate applied to your property; and 3) every city and county’s total ask in taxes for the year (for the sake of simplicity, schools won’t be part of this particular explanation).

Cities and counties determine the size of the property tax pie (No. 3); state policy determines the size of your slice (Nos. 1 and 2). State law already caps how much cities and counties can increase the size of the pie, with a few exceptions falling outside of that cap, including voted bonds and levies and new properties that have come online in the last year.

2024 is not a reappraisal year, so the value of your home will not go up, for tax purposes. The Legislature also won’t meet this year, so the residential property rate will remain at 1.35%. So, for many jurisdictions across the state, if there are no voted bonds or levies, residential property taxes should only increase by the statutorily mandated one-half of the 3-year average of inflation. That should be the case, but it won’t be. Given that the tax pie is finite, if one piece gets smaller, another must get bigger.

There are 16 classifications of property, each with a different appraisal method and tax rate. The centrally assessed tax classification (telecoms, railroads, pipelines, airlines and NorthWestern Energy) appeal their valuations every year, regardless of where we are in the re-appraisal cycle. This process is underway, and they had until June 20 to submit their protests. These industries have deployed fleets of attorneys to Helena to contest their valuations. These negotiations happen behind closed doors and are always successful in reducing values for these industries.

This dramatically affects residential property taxpayers. When corporations in these industries successfully argue for a reduction in their value, they reduce the taxes they pay and increase yours. When the national telecoms, railroads, airlines, pipelines and NorthWestern Energy get a tax break in Montana, the size of their piece of the property tax pie gets smaller. That means someone else’s piece necessarily gets bigger – yours. When these corporations’ property taxes go down, yours go up. Residential taxpayers cover the costs of tax breaks for the centrally assessed industries. Even if cities’ and counties’ total tax levies remain the same this year, the state granting a reduction in value for centrally assessed property will make residential property taxes go up.

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But it doesn’t have to be this way.

If the centrally assessed industries were to acknowledge the massive property tax gut punch for homeowners and renters in 2023 and just sit out this round of appeals, that could really help your 2024 property taxes. For many of these national corporations, Montana is a tiny piece of their market. These reductions won’t matter much for them, but the property tax increases for Montanans sure will.

National telecoms, railroads, pipelines, airlines and NorthWestern Energy should just say no when it comes to appealing their respective valuations. The Montana employees and customers who need to afford to live here deserve your consideration more than your shareholders.

That’s not the only way to avoid this situation, though. If the Department of Revenue, at the direction of the governor, didn’t cave during these negotiations but instead stood tall for homeowners and renters and didn’t reduce these valuations, that could keep your property taxes down.

The state’s Property Tax Task Force is meeting now. Productive property tax conversations are happening in interim legislative committees and across the state. But 2025 is a long way off in terms of relief. Things could be better this year. National telecoms, railroads, airlines, pipelines and NorthWestern Energy should not appeal their valuations. And if they do, the Department of Revenue should make the negotiations public.

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That actually would help.

Missoula County Commissioners Dave Strohmaier, Juanita Vero and Josh Slotnick.



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Crews battle Montana Creek Fire along Parks Highway south of Talkeetna

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Crews battle Montana Creek Fire along Parks Highway south of Talkeetna


By Anchorage Daily News

Updated: 40 seconds ago Published: 1 hour ago

Firefighters on Saturday were battling a rapidly growing fire about 2 miles northeast of the community of Montana Creek — near Mile 95 of the Parks Highway — as warm, dry conditions in much of the state fueled additional fire activity.

The Montana Creek Fire, which was reported around 3:15 p.m. Saturday, grew quickly from a quarter acre to about 20 acres, Alaska Division of Forestry and Fire Protection officials wrote in an update. By 6:30 p.m. Saturday, the fire was estimated between 70 and 100 acres, KTNA reported, based on information from state fire officials.

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At least three wildland fire engines, two helicopters, two scoopers, a fire retardant aircraft and a load of smokejumpers were responding, among other resources, fire officials wrote in their post. Flames up to 5 feet were observed and trees were torched as the blaze burns in an area with black spruce, fire officials wrote.

Crews were making progress Saturday evening, a public information officer told KTNA.

The Parks Highway remained open Saturday evening, but drivers were asked to slow down and use caution in the fire area as crews continued to fight the blaze and work between Mile 94 and 98, fire officials said. Alaska State Troopers said around 5:30 p.m. Saturday that residential roads between Mile 94 and 98 were “only open to residential traffic.”

The Upper Susitna Community & Senior Center said on Facebook that it was open for anyone needing shelter as a result of the Montana Creek Fire.

State fire officials said that burn suspensions continue to remain in effect for the Matanuska-Susitna, Valdez/Copper River, Fairbanks, Delta and Tok areas until conditions improve.

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On the Kenai Peninsula, a wildfire near Tustumena Lake in the Kasilof area forced evacuations of the nearby Tustumena Lake Campground, borough officials wrote in a social media post.

Personnel from Central Emergency Services and the state Division of Forestry and Fire Protection were responding to the fire, and more air and ground resources were on the way, Kenai Peninsula Borough officials wrote.

The borough said its Office of Emergency Management has activated a call center at 907-262-4636 for non-emergency calls about the Tustumena fire management operations.

In Interior Alaska, crews are monitoring and responding to multiple wildfires, including some that have been burning for several days.

Additional information about wildfire response in Alaska is available at akfireinfo.com.

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