SB 93: Revise income taxes related to retired military members - Montana

SB0093_X(1).pdf → SB0093_X(2).pdf · 5 edits

MODERATE

This bill simplifies Montana's tax exemption for military pensions and survivor benefits by removing the requirement that residents must have lived in the state for five years to qualify. It also eliminates the previous expiration date for this exemption, ensuring long-term protection for military retirees. Additionally, the bill updates the tax code to clarify how certain deductions interact with federal credits and expands the list of taxable military income to include active-duty salary for those who entered service from Montana.

Scope change

The bill expands the scope of the military pension exemption by removing residency duration requirements and the statutory sunset date, making the benefit available to a broader range of military retirees and survivors regardless of how long they have lived in Montana.

ELIGIBILITY

Removed the five-year residency requirement for claiming the military pension and survivor benefits exemption.

Added specific language to clarify that salary received from the armed forces by residents who entered active duty from Montana is now explicitly included in the taxable income definition.

Included withdrawals from first-time home buyer savings accounts used for eligible purchase costs as a specific taxable item.

TIMELINE

Eliminated the statutory sunset date that previously limited how long the military pension exemption would remain in effect.

DEFINITION

Added new provisions regarding the treatment of deductions used to calculate federal tax credits and income distributions from estates or trusts.

SB0093_2(4).pdf → SB0093_X.pdf · 4 edits

MODERATE

This bill updates Montana's income tax law to better align with federal rules and expand tax exemptions for military personnel and their families. It removes an old five-year limit on claiming these exemptions and eliminates a previous sunset date, ensuring the benefits are permanent. The text also reorganizes the statute to clarify how various federal tax adjustments apply to Montana taxable income.

Scope change

The bill expands the scope of the tax exemption by removing the 5-year time limit for claiming it and eliminating the statutory sunset date, making the exemption permanent and available to more residents.

TIMELINE

Deleted the 5-year limit that previously restricted how long a resident could claim the military pension exemption.

Removed the statutory sunset date, ensuring the exemption remains in effect indefinitely rather than expiring on a specific date.

SCOPE

Updated the bill title and text to explicitly include 'Retirement' and 'Survivor Benefits' alongside military pensions for clarity.

TECHNICAL

Reformatted the statute to improve readability and align the text with the enrolled version of the bill.

SB0093_1(9).pdf → SB0093_2.pdf · 4 edits

MODERATE

The bill text has been renumbered and reorganized to reflect a new version of the legislation. The primary substantive change is the removal of a specific date restriction, which eliminates the 5-year limit for claiming a tax exemption and removes the statutory sunset date, thereby making the exemption permanent.

Scope change

The bill's scope has expanded by removing time-based limitations on eligibility for the tax exemption.

TIMELINE

Removed a specific date that previously limited when the tax exemption could be claimed.

Eliminated the 5-year limit for claiming the tax exemption, allowing residents to claim it indefinitely.

Repealed the statutory sunset provision, ensuring the exemption remains in effect permanently.

TECHNICAL

Adjusted page headers and bill numbering to reflect the updated legislative version.

SB0093.001.002_combo_final-condensed.pdf → SB0093_1(6).pdf · 2 edits

MINOR

The bill includes minor formatting updates to the header and a specific addition to the tax code regarding 529 plan contributions. The most significant policy change is the addition of a new provision that treats interest and other income related to 529 plan contributions made before January 1, 2024, as taxable income for Montana residents, whereas previously such income might have been treated differently or not explicitly addressed in this context.

Scope change

The bill's scope of applicability is expanded to include specific pre-2024 529 plan contribution income in the calculation of Montana taxable income.

ELIGIBILITY

Added a new rule requiring taxpayers to include interest and other income generated from 529 plan contributions made prior to January 1, 2024, when calculating their Montana taxable income.

TECHNICAL

Updated document headers and page numbering to reflect the new bill version and formatting standards.

SB0093_1(5).pdf → SB0093.001.002_combo_final-condensed.pdf · 4 edits

MODERATE

The bill was updated to include the drafter's name and revision history, reflecting its progression from the initial draft to the authorized print version. The core tax adjustment rules remain substantively unchanged, though minor formatting adjustments were made to the section headers.

TECHNICAL

Added drafter name and version metadata to the document header.

Adjusted section header formatting to remove extra spacing and align the bill number.

Reordered the page header information to place the amendment status before the legislature details.

Minor text cleanup in the tax adjustment section to improve readability.

LC0570.pdf → SB0093_1.pdf · 3 edits

MINOR

The bill was renumbered from LC 0570 to SB 93, indicating a transition from a committee or local bill to a formal Senate bill. The sponsor is now explicitly identified as J. Fuller, and the document headers were updated to reflect the new bill number and official Senate branding. These changes are primarily administrative and procedural, establishing the bill's official identity within the legislative process.

TECHNICAL

Bill number changed from LC 0570 to SB 93.

Sponsor name explicitly added as J. Fuller.

Document headers and footers updated to reflect the new bill number and official Senate branding.

Revise income taxes related to retired military members

What changed between versions

How they voted

Actions timeline

Sponsors