Montana governor wants tax rebates, cuts with budget surplus

HELENA, Mont. (AP) —

Gov. Greg Gianforte reiterated his administration’s priorities to enhance Montana’s financial system in his State of the State deal with delivered Wednesday to the Legislature, whose job over the following few months will embody figuring out learn how to allocate an unprecedented $2.6 billion finances surplus.

“The very fact of the matter is Montanans overpaid,” Gianforte mentioned of tax funds. “We have to give it again.”

Montana is amongst many states that constructed giant finances surpluses by means of a surge in state tax revenues following coronavirus shutdowns and due to an inflow of federal pandemic aid funds and elevated wages.

Gianforte, a Republican, has proposed $500 million in property tax rebates for major residences, a discount within the high earnings tax fee, a toddler tax credit score for households with younger kids and paying off the state’s $118 million in bonded debt.

He additionally urged lawmakers to move payments to additional minimize enterprise taxes and authorities crimson tape, encourage extra innovation in training and make it simpler for credentialed well being care employees to maneuver to Montana and start working immediately with out licensing boundaries.

“Montanans need higher alternative, good-paying jobs, tax aid, the very best training potential for his or her children, reasonably priced, accessible, high-quality well being care, protected communities, attainable housing, stronger households and accountable, efficient authorities,” he mentioned.

However his tax proposal will not be the one one lawmakers can be contemplating.

Earlier this week, just a little greater than a 3rd of the 102 Republicans within the Legislature launched an alternate invoice calling for paying off $100 million of state debt, $275 million in property tax rebates and a $1 billion earnings tax rebate, which would come with as much as $3,500 per individual relying on their 2021 state earnings tax legal responsibility.

Democrats, who’re within the political minority, need to see tax aid focused extra to low- and middle-income residents and renters, an expanded youngster tax credit score and extra money directed to childcare and reasonably priced housing.

Montana’s inhabitants has grown since 2020 by practically 39,000 individuals, or 3.5%, based on U.S. Census estimates. Nevertheless, housing stock hasn’t saved tempo, resulting in elevated housing and rental prices, pricing some individuals out of the market.

The governor’s proposed finances requires setting apart $200 million to assist builders pay for sewer and water service to cut back the price of constructing new housing initiatives.

The governor “failed to offer any actual options to the housing disaster,” Rep. Shannon O’Brien mentioned within the Democrats’ response to his speech.

“The governor says that enterprise has grown in Montana, bringing new jobs, however enterprise can’t thrive once they can’t discover the employees. What good are new jobs if individuals can’t afford to reside the place they work?” she requested.

Democrats need to put $500 million in a workforce housing belief fund to assist builders and nonprofits construct reasonably priced housing, in addition to providing incentives for landlords to just accept diminished rents.

Montana’s unemployment fee has remained at 3% or decrease since October 2021, whereas the variety of working Montanans is at an all-time excessive, the governor’s workplace has mentioned.

Gianforte requested lawmakers to assist him incentivize work by rising the state’s earned earnings tax credit score.

The proposed tax credit don’t start to fulfill the wants of Montana households who’re paying as much as $1,000 a month per youngster for youngster care — if they’ll discover it, O’Brien mentioned.

Democrats need to create extra youngster care scholarships, permitting present stay-at-home mother and father the liberty to decide on whether or not they need to work, O’Brien mentioned.