Updated: Jul 21
When it comes to having a competitive tax environment, Montana is stepping-up its game.
Governor Greg Gianforte has signed a flurry of bills that bring about the largest tax cut in state history, reducing income, property, capital gains and even business equipment taxes in the state.
On the income tax side, Montana's top rate falls from 6.75% to 5.9%. The bill also triples the earned income tax credit.
Another bill - HB 221 - simplifies Montana's capital gains income tax and lowers the cap gains rates to the fourth lowest in the country.
HB 222 provides $500 million in property tax relief for homeowners for the primary residence.
The governor also signed into law HB 192, which provides Montana income taxpayers with rebates of up to $1,250.
While the rebates will be welcome news for many families, a preferred policy should seek ways to lower long-term burdens rather than issue one-time checks.
HB 212 - also signed by the governor, increases the business equipment tax exemption to $1 million.