Governor Greg Gianforte said Wednesday that expanding the tax exemption will be one of his top priorities for the next legislative session.
The governor, speaking with a Kalispell farm equipment dealer, called for further reductions in Montana’s commercial equipment tax by increasing the exemption level. In the year In 2021, Gianforte signed a bill that would triple the exemption from $100,000 to $300,000, meaning owners of equipment worth up to $300,000 would not pay the tax. The law affected about 3,400 businesses in the state.
According to the governor, further reforms are needed to ease the burden of carrying a weapon.
“The result is an incentive to invest in equipment like this and an incentive to invest in Montana jobs,” he said of the tax’s impact on business.
Gianforte’s spokeswoman Brooke Stricke said the governor’s office has not released a new release rate and is still crunching the numbers. The governor plans to roll out more policy priorities next year, she said.
Gianforte campaigned on reforming Montana’s tax laws and cutting taxes. Last year, he signed new laws that cut the state’s top income tax rate and create new lower tax brackets starting in 2024.
On Wednesday, he said the state economy’s GDP growth was the seventh highest in the country.
The governor was joined by several Republican lawmakers and representatives of the equipment industry on Wednesday.
“Republican lawmakers are broadly supportive of tax cuts for Montana businesses and are excited to hear more about the governor’s proposal to build on the good work done in the 2021 legislative session,” said Kyle Schmach, a spokesman for legislative Republicans.
Senate Minority Leader Jill Cohenor said Democrats look forward to seeing a budget memo on this and other proposals Gianforte is expected to bring next session while pursuing his own priorities.
“As Democrats, our priorities on taxes are meaningful property tax relief and making sure the super-wealthy are paying their fair share,” she said. Montana’s tax policy should benefit everyday Montanans and small businesses across the state. Unfortunately, the governor has so far focused on helping big corporations and the wealthy.
In the year House Bill 303 raised the exemption to $300,000 in 2021 and was projected to reduce annual tax revenue to $4.4 million in fiscal year 2021 and then to $6.6 million in fiscal year 2025, according to a fiscal analysis provided by the Montana Department of Revenue. The law reimburses local governments for lost property tax revenue with money from the state’s general fund.
The state is currently sitting on a $1.7 billion surplus heading into the next session.
Tom Coughlin is deputy editor of Lee’s newspaper state bureau. His coverage focuses on the outdoors, recreation and natural resources.
