STATE & LOCAL BUSINESS NEWS

Governor Gianforte Highlights Proposals To Cut Property Taxes, Create Jobs, Support Small Business

Submitted by Brooke Stroyke

 

Joining small business owners at a standing-room-only event hosted by the Kalispell Chamber of Commerce, Governor Greg Gianforte today shared his pro-jobs, pro-family, pro-business priorities for the 68th Legislative Session and year ahead, including his proposal to provide Montanans with $500 million in property tax relief in 2023 and 2024.

“Our budget, built for hardworking Montana families, will deliver the largest tax cut in state history, create more good-paying jobs, and bring the American Dream into greater reach for more Montanans,” Governor Gianforte said. “All Montanans deserve to keep more of what they earn, and Montana taxpayers at every income level will see relief from our proposals.”

Participating in a fireside chat with Tagen Vine, chair of the Kalispell Chamber of Commerce Board of Directors, the governor highlighted elements of his Budget for Montana Families, which provides Montanans with $1 billion in property and income tax relief, the largest tax cut in Montana history.

The governor’s budget provides $500 million in property tax relief for Montanans for their primary residence over the next two years.

“Montanans need property tax relief, and we’re delivering that with our budget proposal, $1,000 this year to Montanans for their primary residence and $1,000 next year,” Gov. Gianforte said. “With a $2,000 property tax rebate over the next two years, the average Flathead County property taxpayer will have a property tax cut of about 37%.”

Recognizing the overwhelming bulk of property taxes go to local government, the governor has also called for property tax reforms, including greater transparency and accountability in local government spending, an option to pay property taxes monthly, and greater fiscal responsibility from local governments.

To make Montana more competitive and help Montanans keep more of what they earn, the governor’s budget reduces the income tax rate most Montanans pay from 6.5% to 5.9% and substantially increases the state’s earned income tax credit. When the governor took office, the top income tax rate was 6.9%.

“Our Budget for Montana Families cuts the tax rate most Montanans pay, encourages work by greatly expanding the earned income tax credit, and makes it easier for families to raise their kids with the child tax credit,” the governor continued.

To support hardworking families, the governor’s budget also provides families with a $1,200 child tax credit for children under six years of age, as well as a $5,000 adoption tax credit to make it easier for Montanans to open their homes to children.

“When a young family in Kalispell gets a $1,200 tax credit for each young child to help cover the cost of child care, food, and clothing, that’s real relief,” Gov. Gianforte said.

Notably, the governor’s budget also makes Montana debt-free in ’23, paying down all general obligation debt and saving taxpayers $40 million over the biennium.

In addition to providing Montanans with $1 billion in tax relief, the governor’s budget invests the state’s surplus to make needed, overdue repairs, save for emergencies, and pay off debt.

The governor’s balanced, fiscally responsible budget also invests to spur job creation, build safer communities, address the substance use epidemic, recruit and retain teachers, promote trades education, and repair state-run facilities.

In the discussion, the governor also touted his plans to cut taxes for Montana’s small businesses, farmers, and ranchers by expanding the business equipment tax exemption from $300,000 to $1 million, which would build on similar reforms from 2021 to eliminate the business equipment tax burden for more than 5,000 small businesses, farms, and ranches.

“By further reforming the business equipment tax this session, we’ll remove more than 5,000 small businesses, farms, and ranches from the business equipment tax rolls,” the governor said. “With those savings, these small business owners, family farmers, and family ranchers can invest in their operations and create more good-paying Montana jobs.”

Under Governor Gianforte’s leadership, more Montanans are working than ever before. On Monday, the governor announced Montanans created a record number of new businesses in 2022, which follows a year of record-breaking business creation in the governor’s first year in office.

Business Equipment Reporting Requirement

The department recently notified business owners with a business equipment reporting requirement, that it is time to report for Tax Year 2023. Businesses with a statewide market value greater than $300,000 in business equipment are required to report the equipment they own as of January 1, 2023, by March 1, 2023 to avoid a 20 percent penalty.

Business owners can report online using the department’s TransAction Portal (TAP) at https: tap.dor.mt.gov. Online reporting forms are pre-populated with the business equipment reported in 2022.  Owners need to review the previously reported assets and make any needed additions and deletions. An immediate confirmation receipt will be sent after the report is submitted.

Businesses whose statewide market value of equipment is $300,000 or less are exempt from the business equipment tax. These businesses do not have a reporting requirement in 2023 unless: (1) they have acquired new personal property that would increase their equipment’s aggregate market value above the exemption amount; or, (2) the department requests a personal property reporting form be completed.

For more information, visit MTRevenue.gov or contact us at (406) 444-6900 or DORCustomerAssistance@mt.gov.

Submitted by  Montana Department of Revenue

Yaak River Tavern & Mercantile Fuel Pump is 24/7

Our Fuel Pump is Now 24/7. To pay at the pump you must swipe your card even though it prompts you to insert

 

Courtesy of Yaak River Tavern & Mercantile. Photo Courtesy of Ashley South