Montana Legislature continues work on tax relief bills

HELENA — Each Republican Gov. Greg Gianforte and the Republican majority within the Montana Legislature have recognized tax aid as one in every of their high priorities for the 68^th Session. However as lawmakers start listening to the primary set of main tax payments, some variations have appeared in precisely how they need to return cash to taxpayers.

One in all Gianforte’s primary priorities has been a property tax rebate, utilizing a number of the state’s greater than $2 billion surplus. He’s backed Home Invoice 222, sponsored by Rep. Tom Welch, R-Dillon, which initially proposed a rebate of as much as $1,000 every of the following two years on a Montana property proprietor’s main residence inside the state. A fiscal evaluation estimates the invoice would have returned about $534 million to about 292,200 eligible households every year.

Final Wednesday, the Home Taxation Committee tabled HB 222. On the next morning, Gianforte – who has repeatedly referred to as for fast motion on tax payments – criticized the choice at his weekly information convention, saying it might delay wanted aid. Later that day, the committee revived HB 222 and superior it, however not earlier than amending it to chop the rebate to $500 every year.

Home Majority Chief Rep. Sue Vinton, R-Billings, made the preliminary movement to desk the invoice.

“Tabling a invoice through the legislative course of is one thing that’s utilized for quite a few causes,” she mentioned. “On this case, we simply wanted a little bit extra time to debate this advanced invoice, and we took 24 hours and introduced the invoice again, had a fantastic dialogue and handed it out.”

Vinton mentioned Republican lawmakers minimize the rebate with the intention of redirecting a number of the funding to an revenue tax rebate. Many within the Republican caucus had referred to as for that as early as final yr.

“Our caucus may be very cognizant of the necessity for property tax aid and revenue tax rebates on this state of affairs,” mentioned Vinton.

Vinton and the opposite high GOP leaders within the Home and Senate have signed on as co-sponsors to Home Invoice 192, launched by Rep. Invoice Mercer, R-Billings. That invoice proposes $250 million for property tax rebates and $650 million for revenue tax rebates.

Supporters of returning revenue taxes have mentioned it makes probably the most sense as a result of leaders imagine the state surplus got here largely from higher-than-expected revenue tax collections. It will additionally apply to a special set of Montanans than a property tax rebate. HB 192’s fiscal evaluation estimated 460,000 folks would obtain an revenue tax rebate.

HB 222 and HB 192 at the moment are amongst a number of main payments which might be in entrance of the Appropriations Committee, the Home’s primary funds panel. Others embody Home Invoice 212, from Rep. Josh Kassmier, R-Fort Benton, which might elevate the exemption for the enterprise tools tax; and Home Invoice 251, from Rep. Llew Jones, R-Conrad, which might dedicate $150 million to paying off state money owed.

It’s anticipated Appropriations will quickly begin coordinating the competing proposals – significantly these coping with one-time-only tax reductions – and advance a set of payments to the Home ground within the coming days.

Additionally in Appropriations is Home Invoice 258, sponsored by Rep. Jonathan Karlen, D-Missoula, which Democrats have touted as their primary proposal for one-time property tax aid. It will additionally supply a property tax rebate, however in contrast to the Republican proposals, it might be focused to these making lower than 130% of their county’s median revenue, and it might additionally present funds for renters.

Although Democrats are within the minority, Home Minority Chief Rep. Kim Abbott, D-Helena, mentioned she hopes their concepts can be a part of the dialog as tax proposals begin shifting ahead.

“Our strategy on tax coverage is to get aid to the oldsters who want it,” she mentioned. “Any proposal that comes out of the Appropriations Committee, we’re going to evaluate with these values in thoughts – who’s benefiting, and is it serving to the oldsters that need assistance probably the most.”

Abbott mentioned it might be extra chargeable for the Legislature to attend for up to date income numbers in March earlier than taking motion on tax coverage.

Vinton acknowledged there might be extra surplus income coming in by the top of the session, and mentioned she expects these payments received’t be the final phrase on this problem.

“That is only a begin, and we actually will search for laws to proceed our efforts going ahead,” she mentioned.

Throughout his information convention final week, Gianforte mentioned he understood the Legislature would put its stamp on the tax payments, however he once more urged them to behave rapidly.

“My message may be very easy: It’s think about the plan, modify it if you happen to should, get it to my desk – as a result of we have to get the aid to Montanans,” he mentioned.