Governor Greg Gianforte gave his state of the state address Wednesday night, just hours after the Montana state Senate endorsed his income tax reduction and expansion of the earned income tax credit. The support was overwhelming - 34 in favor and 15 opposed.
SB 121 would lower the state's income tax rate of 6.5% to no more than 5.9%. Some lower income earners would pay even less - 4.7%. A final vote could come as early as Thursday.
In his state of the state address, Governor Gianforte said "working together, we’re providing the largest tax cut in state history, creating greater opportunities for Montanans to prosper, thrive, and achieve the American dream."
Montana's income tax rate was the subject of our recent study on reducing income taxes in both Montana and Idaho. Lawmakers in both states could go a step further now by adding revenue triggers to automatically lower the rate in the future.