Last week, a package of proposals that would have used a billion dollars of Montana’s $2.5 billion+ surplus for tax rebates and other spending initiatives passed the last Senate vote necessary to get them on Governor Greg Gianforte’s desk.
Montana Free Press reported that the state would be authorized to offer income tax rebates of up to $1,250 per taxpayer and property tax credits of up to $1,000 per homeowner if Gianforte signs the legislation into law, which is expected to happen. These rebate initiatives would cost the state an estimated $764 million in total.
Other legislation in the six-bill package, known by lawmakers as “the six-pack,” would pay down state debt, lower capital gains tax rates, lower business equipment taxes for select company owners, and provide $100 million to a highway development fund.
Gianforte stated at a news conference (per Missoula Current) that Montanans of all economic levels will benefit. According to his administration, the bundle of laws provides a permanent income tax reduction of more than $500 million.
On his approach to his desk for signing, he gave thanks to the lawmakers who had sponsored the laws.
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Property Tax Rebates, Other Reliefs in Montana: What You Need to Know
The Montana legislature has approved legislation providing people with tax rebates and breaks worth more than $1 billion, The Associated Press (via KFYRTV) reported. But, the Republican governor’s budget proposal, which included a child tax credit, has been partially rejected by lawmakers.
As a result of a flood of federal pandemic relief funding and the subsequent rise in salaries, Montana is one of several states that have built up sizable budget surpluses through an increase in state tax receipts.
One legislation lawmakers enacted offers individual income taxpayers a one-time tax rebate of up to $1,250, but no more than what they paid in state taxes in 2021, for a projected total of $480 million in relief.
In accordance with another provision, homeowners who live in their houses for the next two years would get a $500 property tax rebate, according to the amount of property taxes they now pay. For the rebates, which amount to around $284 million in tax relief, residents must apply. Gianforte has suggested an annual refund of up to $1,000.
Legislation has also been approved to boost the earned income tax credit, lower the tax burden on long-term capital gains, and lower the maximum state income tax rate from 6.5% to 5.9%.
For a couple who lived in their house and paid that amount in taxes, the combined income and property tax rebates could be $3,500.
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