Budget & Taxes (Business Taxes)

introduced · Montana · Legislature Feb 6, 2025

LC 3338: Providing tax incentives to put Montana-produced food first

This bill proposes tax incentives for businesses and individuals who sell food produced in Montana by creating a state income tax subtraction for income derived from such sales. The legislation would amend existing state tax code sections to allow taxpayers to reduce their Montana taxable income when they earn revenue from locally produced food items. It directly affects Montana-based food producers, retailers, and consumers who purchase local products, aiming to support the state's agricultural economy through preferential tax treatment. The bill includes a delayed effective date and specifies when the provisions will apply to taxpayers.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax incentives for local food producers through income tax subtraction, supporting state agriculture and economic development while reducing tax burden on qualifying businesses.85% confidence

Sub-Topics Business Taxes Sales Tax Tax Incentives

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introduced · Montana · Legislature Dec 31, 2024

LC 4: Revise government entity limitations on property tax increases

This bill amends Montana's property tax laws to revise how government entities can increase property tax levies. It directly affects state and local taxing units such as school districts, counties, and municipalities that impose property taxes. The key provision allows entities to increase taxes by the prior year's assessed amount plus half of the average inflation rate over the previous three years, capped at 4% total growth. The bill also clarifies how newly taxable property is treated in calculations and establishes specific rules for tax increment financing districts.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill establishes property tax increase limits to promote fiscal responsibility and prevent excessive tax growth, protecting taxpayers from uncontrolled levies while allowing necessary inflation adjustments.85% confidence ✓ EducationSupports EducationBill allows school districts to increase property tax levies, which directly impacts school funding capacity and financial stability for K-12 education.75% confidence

Sub-Topics Business Taxes Property Tax

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introduced · Montana · Legislature Jan 15, 2025

LC 4314: Revise resort tax eligibility and allow use for workforce housing

This bill updates Montana's resort tax laws to allow an additional 1% tax rate on goods and services in designated resort areas, with the revenue specifically designated for infrastructure projects or workforce housing. It directly affects resort communities and areas that rely on tourism, requiring voter approval before any resort tax can be imposed or changed. The legislation also clarifies definitions for key terms like "workforce housing," which must have at least 20% of units available to renters earning between 60% and 120% of the area median income, and expands the population threshold for certain resort areas from 2,500 to 3,500 people.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill increases funding for workforce housing and infrastructure through designated resort tax revenue, advancing budget priorities for essential community needs.85% confidence ✓ HousingSupports HousingBill designates resort tax revenue specifically for workforce housing infrastructure, directly funding affordable housing initiatives and expanding housing availability.85% confidence

Sub-Topics Business Taxes Affordable Housing

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introduced · Montana · Legislature Jan 6, 2025

LC 21: Revise intangible personal property exemption

This bill amends Montana's property tax law to clarify which intangible personal property is exempt from taxation. It defines intangible property as non-physical assets like stocks, bonds, software, and goodwill, but explicitly excludes items that are integral to running a business or utility operations. The legislation requires that any intangible value included in the assessment of centrally assessed property be removed from the unit value to prevent double taxation. These changes will take effect on January 1, 2026, and apply to tax years beginning after December 31, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill prevents double taxation by removing intangible property values from assessments, reducing tax burden on businesses and preventing overpayment.85% confidence

Sub-Topics Business Taxes

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introduced · Montana · Legislature Jan 7, 2025

LC 1914: Provide property tax assistance for law enforcement and firefighters injured in the line of duty

This bill provides property tax assistance for law enforcement officers and firefighters who are injured in the line of duty, as well as for the surviving spouses of those killed in the line of duty. It establishes income-based tax rate reductions for the primary residences of eligible individuals, with lower income earners receiving greater percentage reductions on their property taxes. The legislation also expands the state's rulemaking authority to define eligibility requirements and implement annual income verification processes to ensure ongoing compliance with the program's criteria.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides property tax assistance and income-based tax rate reductions for injured law enforcement and firefighters, directly supporting fiscal relief for public service workers.90% confidence ✓ Criminal JusticeSupports Criminal JusticeBill provides financial assistance and tax relief to law enforcement officers injured in line of duty, strengthening support for criminal justice personnel.85% confidence

Sub-Topics Business Taxes Property Tax

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introduced · Montana · Legislature Feb 26, 2025

LC 2895: Revise social security income taxation

This bill revises Montana's state income tax calculations by adjusting how federal taxable income is modified to determine state taxable income. It directly affects Montana residents who file state income tax returns, particularly those with complex federal tax situations involving investments, retirement accounts, or business income. The key provision adds certain federal deductions back to income for state tax purposes while subtracting specific Montana-exempt items like interest on U.S. government bonds and military salaries. The bill also clarifies how withdrawals from savings accounts for medical, education, or home purchase purposes are treated differently depending on whether they are used for eligible expenses.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill modifies state income tax calculations to potentially provide tax relief for Montana residents with complex federal tax situations, aligning with fiscal management goals.85% confidence

Sub-Topics Business Taxes Income Tax

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introduced · Montana · Legislature Jan 15, 2025

LC 4313: Provide income tax relief for property taxes paid

This bill establishes a new workforce renter's tax credit for Montana residents under 62 with household incomes below $45,000 who pay rent-equivalent property taxes, allowing eligible renters to claim up to $1,200 or $1,750 depending on their rent-to-income ratio. It also permits qualifying teachers to exclude certain earned income when calculating this credit and ensures any excess credit is refunded even if the taxpayer has no state income tax liability. Additionally, the bill increases the residential property tax credit for elderly residents and includes an inflationary adjustment to the income thresholds where these credits begin to phase out. The legislation also schedules periodic reviews of various tax credits, including the new workforce renter's credit, to evaluate their effectiveness and impact on taxpayers every eight years.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides income tax relief for property taxes, creating a new tax credit for renters and teachers, which directly supports tax relief and fiscal assistance for lower-income residents.90% confidence ✓ HousingSupports HousingBill creates tax credit for low-income renters, providing financial relief that supports affordable housing access for vulnerable populations.85% confidence

Sub-Topics Business Taxes Income Tax Tax Credits Affordable Housing Property Taxes Renters

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introduced · Montana · Legislature Feb 12, 2025

LC 446: Increase business equipment tax exemption

This bill increases the tax exemption for business equipment classified as Class Eight property, which includes machinery, tools, and equipment used in agriculture, mining, manufacturing, and other commercial operations. The legislation directs the state to reimburse local governments, tax increment financing districts, and the university levy for the lost tax revenue resulting from this expanded exemption. Unlike previous exemptions that received reimbursement with inflation adjustments, this new exemption will receive reimbursements without any growth rate applied. The changes take effect immediately upon passage and apply to all qualifying business equipment currently or newly classified under the amended tax code.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill increases tax exemptions for business equipment and reimburses local governments for lost revenue, supporting business operations and maintaining local funding.85% confidence

Sub-Topics Business Taxes Property Tax Tax Incentives

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introduced · Montana · Legislature Dec 31, 2024

LC 984: Revise calculation of state education levies

This bill limits how much property taxes can grow for Montana's state education levies, specifically capping the increase at 3% above the prior year's revenue for certain state-mandated school taxes. It directly affects school districts and other governmental entities that collect property taxes for education purposes by restricting how many mills (tax rates) they can impose. The bill removes the ability to carry forward unused tax authority for specific state education mills and clarifies how newly taxable property and inflation adjustments are calculated. Local governments can still vote to raise additional taxes beyond these limits, but the state-mandated education portion is now strictly capped to prevent revenue growth exceeding the 3% threshold.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill limits property tax growth for education levies by capping increases at 3% and removing carryforward authority, restricting state education funding mechanisms.85% confidence ✗ EducationOpposes EducationBill caps property tax growth for education levies at 3%, limiting school districts' ability to raise funds and restricts unused tax authority carryover, potentially reducing available school resources.85% confidence

Sub-Topics Business Taxes Property Tax School Funding

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introduced · Montana · Legislature Dec 18, 2024

LC 2036: Provide for a child tax credit

This bill establishes a Montana child tax credit for resident taxpayers with qualifying children aged 5 or younger, providing a maximum refundable credit of $1,200 per child. The credit is reduced by $90 for every $1,000 of federal adjusted gross income exceeding $50,000, and it is not available if income surpasses a $56,000 threshold regardless of filing status. The legislation also adds this child tax credit to a list of tax credits that must be reviewed by the revenue interim committee every eight years to evaluate their effectiveness and impact. These policy changes apply to Montana income tax years beginning after December 31, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax credit relief for families with young children, reducing tax burden for middle/lower income households and supporting family financial stability.95% confidence

Sub-Topics Business Taxes Income Tax Tax Credits

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