Revise taxation of net long-term capital gains

Montana's LC 3705 revises tax rates for net long-term capital gains, directly affecting taxpayers with investment gains. It reduces the top tax rate from 4.1% to 4.0% for most income brackets and lowers the initial rate from 3.0% to 2% on the first $50,000 (married filing jointly) or equivalent thresholds for other filing statuses. The bill also adjusts income thresholds annually using an inflation factor to maintain bracket relevance. This change applies specifically to "net long-term capital gains" as defined by federal law, excluding other taxable income.