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Yahoo
29-04-2025
- Business
- Yahoo
Gianforte signs third income tax reduction bill of his administration
Montana Gov. Greg Gianforte signs House Bill 337 into law, giving Montanans a $756 million income tax cut over the next four years. (Micah Drew/Daily Montanan) Surrounded by three dozen Republican lawmakers on the steps of the Montana capitol, Gov. Greg Gianforte on Monday signed into law a bill cutting income taxes — the third reduction over the five years of his administration. House Bill 337, sponsored by House Speaker Brandon Ler, R-Savage, lowers Montana's top tax rate by .5% over two years, expands the eligibility threshold for filers to pay the state's lower tax rate, and doubles the Earned Income Tax Credit. 'Once again this legislative session, we're putting money back in Montanan's pockets through permanent, long term tax reductions, and we couldn't have done it without the legislators that are here with me today,' Gianforte said before affixing his signature to the new law. Calling it the 'largest tax cut in Montana's history,' Gianforte said decreasing the top tax rate was a step closer to his goal of having a single, flat rate in the state, which he said will make the state more friendly to businesses and individuals. 'We still have the highest income tax rate in the region and one of the highest in the nation. It's a drag on our economy, a wet blanket on job creation and a burden on Montana families,' Gianforte said. While the governor focused most of his remarks on the reduction of the top tax rate from 5.9% to 5.4% over the next biennium, Ler remarked that the bill's 'real power comes from how we've restructured the entire system.' The threshold where Montana filers move between the state's two income brackets is substantially raised under the new law — essentially tripling the income individuals and joint filers can earn before paying a higher rate. The law also doubles the state's earned income credit, which targets the state's lowest earners. 'This is reform that reaches everyone,' Ler said. 'We didn't get here overnight. This bill is a result of careful policy work and a clear vision that is a shared belief that Montanans deserve a tax code that works for them, not against them.' The three changes made to the state's tax structure will reduce the revenue flowing to the state's general fund by roughly $756 million by fiscal year 2029, according to a fiscal analysis of the legislation, which was a major sticking point for detractors. Sen. Dave Fern, D-Whitefish, said the bill was 'well meaning, but it's just too expensive,' during debate on the Senate floor. Fern brought his own income tax bill aimed at lower and middle class earners that carried a lower fiscal note but didn't make it through the House. The bill passed both chambers with all Democrats in opposition on their initial votes, and just two Democrats voting for the bill overall. 'Government does not exist to give tax cuts to people who do not need them. Government exists to fund schools, fix roads, and provide public safety. Democrats do not support robbing people of essential services to pay for tax cuts for people who absolutely do not need them,' House Appropriations Committee Vice Chairperson Rep. Mary Caferro, D-Helena, said in a press release. 'The public is not crying out for more tax cuts for people at the top.' Gianforte proposed an even larger tax break in his budget last November, which would have cut the top tax rate by a full percentage point without adjusting the lower rate threshold. The new law emerged as a compromise between the governor's plan and one championed by the conservative wing of the senate. 'I've heard loud and clear from Montanans in every corner of our state, income tax relief is a top priority, and I'm incredibly proud of each person up here for helping deliver that needed relief,' Gianforte said. The Legislature wrapped up its 83rd day in Helena on Monday, and is expected to adjourn later this week after the final details are hammered out on a package of property tax relief proposals.
Associated Press
25-04-2025
- Business
- Associated Press
Major income tax cut heads to Montana governor's desk
A major income tax cut that would reduce state revenues by an estimated $267 million a year by 2028 cleared the Montana Legislature on Tuesday, passing a final vote in the Senate to head toward the desk of Republican Gov. Greg Gianforte. House Bill 337, sponsored by Speaker of the House Brandon Ler, R-Savage, scales back the state's top-bracket tax rate over the next two years while extending a lower-bracket rate to higher incomes. It passed on near-party line votes, with support from all Republicans and opposition from nearly all Democrats. Advocating for the bill during a hearing before the Senate Taxation Committee on April 9, Ler argued the legislation would produce an income tax cut across the income spectrum. 'That means giving the populace more money and not having more money up here in state government,' Ler said. Opponents had worried that continuing to scale back income taxes, the state's primary revenue source, will eventually make it harder to cover the cost of public services. They also argued the lion's share of the savings will go to high-income earners. 'It doesn't target the Montanans who actually need it, who are the lower- and middle- income Montanans,' Senate Minority Leader Pat Flowers, D-Belgrade, argued as the bill was debated on the Senate floor April 18. According to the Montana Budget and Policy Center, a Helena think tank that typically advocates for progressive tax policy and opposed HB 337, about two-thirds of the bill's savings will go to the wealthiest 20% of taxpayers. Higher-income taxpayers also pay a greater share of state taxes under current law. According to figures from the Montana Department of Revenue, the highest earning 20% of individual taxpayers reported 64% of the state's taxable income and paid 70% of state income taxes collected in 2023. Gianforte has made repeated pushes to reduce the state's top-bracket income tax rate a centerpiece of his policy agenda since he took office in 2021 and has signed multiple rounds of Republican-backed income tax cuts that have reduced that rate from 6.9% to the current 5.9%. He routinely argues that lower income taxes will bolster Montana's economy by making it a more competitive destination for entrepreneurs. The Ler bill implements a slightly smaller cut than the one initially included in Gianforte's pre-session budget proposal, which would have implemented a phased cut to the top-bracket tax rate, ultimately reducing it 4.9%. A fiscal analysis concluded that proposal would have reduced state revenues by about $304 million a year by 2028. Instead, Ler's proposal would drop the top-bracket rate to 5.65% in 2026 and then 5.4% in 2027, also phasing in the cut. Unlike the Gianforte proposal, it would also apply a current lower-bracket 4.7% rate to higher incomes, raising the threshold where that lower marginal rate is replaced with the top-bracket one from $21,000 to $47,500 for individual taxpayers. That threshold is doubled for married couples who file joint tax returns. For an individual filer earning $50,000 a year and claiming a $15,000 standard deduction — therefore with $35,000 in taxable income — the Ler bill would result in $167 in annual savings once fully implemented, according to MTFP calculations. For an individual filer earning $200,000 a year and taking that same standard deduction, the annual savings would be $1,004. The Gianforte proposal, in comparison, would have saved that $50,000 taxpayer slightly less, $139 a year and that $200,000 taxpayer substantially more, $1,639 a year. The Ler bill also includes a portion of the governor's proposal that would expand a state Earned Income Tax Credit available to lower-income working families starting next year, doubling it from 10% to 20% of an analogous credit available in the federal tax system. That increase would represent a relatively small share of the bill's overall price tag, about $38 million a year. Other major income tax bills proposed this session have stalled. Senate Bill 323, brought by Sen. Josh Kassmier, R-Fort Benton, to implement the governor's proposal, stalled in its initial Senate committee earlier this month. Another major income tax cut bill, Billings Republican Sen. Mike Yakawich'sSenate Bill 203, passed the Senate but was tabled by the House Taxation Committee on April 16. Income taxes are the major source of funding for Montana's state government. Montana property tax collections, in comparison, almost exclusively flow to fund local services. ___ This story was originally published by Montana Free Press and distributed through a partnership with The Associated Press.
Yahoo
24-04-2025
- Business
- Yahoo
Gianforte presses Legislature to pass property tax relief bills during Kalispell visit
Apr. 24—Despite an ongoing legislative stalemate, Gov. Greg Gianforte stuck firmly to his vision for fiscal relief at a press conference in Kalispell on Wednesday. While visiting the Rancher's Daughter, an Idaho Street farm-to-table retailer, Gianforte unveiled a poster outlining key agenda items from his 2025 State of the State address. "We can't check off property taxes or income taxes yet," he acknowledged. "Or the budget or judicial reform." The solitary success on the board was higher teacher starting pay. Gianforte checked off the box before a crowd of about a dozen people, saying he plans to sign the STARS Act, which contributes $100 million toward raising teacher starting pay, after the Senate passed it on Tuesday. As far as his fiscal objectives for the state, Gianforte maintained that "there's still time" for bills to reach his desk before the Legislature's May 5 deadline. Gianforte declined to comment on the bills currently awaiting his review, including an income tax bill introduced by Speaker of the House Brandon Ler, R-Savage. Instead, he focused on the property tax legislation currently under debate in the House and Senate. "As I said, we have very clear priorities. We need to give property tax relief. I think it needs to be permanent, meaningful, and it's got to be targeted to Montana homeowners, renters and small businesses," said Gianforte. The governor's proposal, which raises taxes on second homes and short-term rentals while reducing them on primary residences and long-term rental properties, is among the bills still in contention. As to the financial burdens Montanans may face because of the tariffs levied during the ongoing trade war initiated by the Trump administration, Gianforte acknowledged there would likely be "a little disruption." A report from the Budget Lab at Yale estimates that the tariffs put in place on April 2 alone will cost U.S. households an average of $2,100 per year. But he argued that the tariffs, which are a tax on imported goods, would benefit businesses and consumers in the long run. "I think the president's been very clear. He's using tariffs as a negotiation tool," said Gianforte. Reporter Hailey Smalley can be reached at hsmalley@ or 758-4433.
Yahoo
08-03-2025
- Politics
- Yahoo
As 2025 Montana Legislature hits halfway point, party leaders point to priorities
Republican and Democratic leaders spoke on Friday about the first half of the session. (Photo by Mike Clark for the Daily Montanan) As the 2025 Montana Legislature hit its midway point, leaders from both parties spoke on their achievements from the first 48 days and their priorities going into the second half of the session. Republicans touted bills they have pushed to change the judiciary — a major priority for the party — but Democrats said they'd killed a number of those bills and were prepared to continue. 'For far too long, Montana's judiciary has overstepped its bounds, blocking the will of the people and legislating from the bench,' said Speaker of the House Brandon Ler, R-Savage. 'House Republicans are fighting back.' House Minority Leader Katie Sullivan, D-Missoula, said the Democrats are active on the battlefield too. 'We're going to do everything we can to knee cap each bill the majority brings that try to take over the courts,' Sullivan said. 'We have independent, impartial courts right now, and we need to keep it that way.' The 69th Legislature breaks until March 14, and the first half of the session has been punctuated by spats and turbulence in the Senate. 'It's been wild,' said Senate President Matt Regier, R-Kalispell, in a meeting with reporters Tuesday. ' … Honestly, speaking … leadership's job is to deal with a lot of things, not just legislation. But I wish the first half of the session was more focused on legislation.' Republicans hold a majority in both chambers, though a cohort of nine Senators in that party have formed what equates to a majority coalition with Democrats in the upper chamber. 'We started this session with a commitment to freedom, fairness and affordability,' said Senate Minority Leader Pat Flowers, D-Belgrade. 'We believe, so far, we've been able to deliver on those goals and values. All 18 of our Democratic votes have been critical in passing a number of important bills and defeating many harmful ones.' In the meantime, the House has churned through its work. Majority Leader Steve Fitzpatrick, R-Great Falls, said the House has considered a high volume — and high quality — of legislation. 'I think the professionalism in the House has been tremendous,' Fitzpatrick said. 'We've had a few moments, but that's OK.' Sullivan said there has been 'a lot' of bipartisan work in the House. 'The relationship working across the aisle has been good,' Sullivan said. Property taxes Property taxes are one of those bipartisan issues because they have increased substantially across the state. Three major property tax proposals advanced out of the House, one Republican bill and two from Democrats. Majority Leader Fitzpatrick, R-Great Falls, said the idea was generally to move all of them to the Senate together. However, Fitzpatrick said House Bill 231, sponsored by Conrad Republican Rep. Llew Jones and supported by Gov. Greg Gianforte, might end up being the most preferred. At least for his urban district, it's a no brainer. 'There isn't a person in my district that isn't going to benefit from (HB) 231 unless you've got some property somewhere else,' Fitzpatrick said. HB 231 would shift some of the tax burden onto those who are not residents of the state, but own property in Montana. Since it was introduced, Fitzpatrick said, it was amended to allow for more of a tax cut for homes valued on the lower end of the spectrum. Most of the discussion around property taxes has been which of the 18 Montana tax classes will have their rates adjusted — with a focus on reductions for residential payers — and if there's a tax credit the two parties can agree on. Another change to HB 231 is that it is linked with House Bill 154, a bill, from Rep. Jonathan Karlen, D-Missoula. Karlen's bill would create a tax credit to help people who may have been living in their home for years, but end up priced out, while House Bill 155, from Rep. Mark Thane, D-Missoula, would establish a tax rate for residential properties based on market value of the property. Thane's bill has some support for Republican leadership, with Senate President Matt Reiger saying ideas in it have 'merit.' Judiciary In a video update of the first part of the session, Speaker Ler identified two judiciary bills in particular that Republicans had moved forward. He said House Bill 39, sponsored by Rep. Tom Millett, R-Marion, would bring transparency to races by allowing political parties to support judicial candidates 'so Montanans actually know where they stand.' Ler also pointed to House Bill 65, sponsored by Rep. Lee Deming, R-Laurel, which would audit the State Bar of Montana to 'shine a light' on how the legal system operates. 'But the most important bills are still yet to come,' Ler said. One of the biggest debates has been a partisan judiciary. Democrats have wanted to keep partisan politics outside the third branch, but Republicans argue politics are already present, and voters deserve transparency. House Bill 295, brought by Rep. Paul Fielder, R-Thompson Falls, would have allowed judicial candidates to list their party affiliation and failed to pass the floor. The House also voted down a proposal, House Bill 751, from Rep. Braxton Mitchell, R-Columbia Falls, that would have made the Supreme Court candidates list their party affiliation. Sullivan called killing those two House bills 'very good.' Senate Bill 42, which would require justices of the peace, and district and state supreme court judges to run on partisan ballots, passed the upper chamber and will be taken up by the House. Medicaid Expansion A major priority for Democrats and some Republicans this session was reauthorizing Medicaid expansion, which insures nearly 80,000 people, and a major proposal to do so, from Rep. Ed Buttrey, R-Great Falls, already passed both chambers. Legislators from small towns have said the program is critical to keeping little hospitals, which operate on the margins, open, and other supporters have said it's important for the economy. Although the state supports expansion, the Trump administration is making aggressive moves to cut the federal government, and any decrease could impact Montana. 'With all the talk about Medicaid and Medicare potentially being cut significantly, it has put the community into a tailspin,' said Rep. Mary Caferro, D-Helena. 'People are very afraid of losing their services.' Social Issues Republicans also celebrated the quick movement of some bills aimed at protecting women and girls, which Democrats have fought against and criticized Friday as discriminatory. 'When it comes to protecting Montana's children, House Republicans are standing strong against extreme gender ideology,' Speaker Pro Tempore Katie Zolnikov, R-Billings, said in a video update. Zolnikov pointed to a couple of bills in particular, both sponsored by Rep. Kerri Seekins-Crowe, R-Billings. Zolnikov said House Bill 300 ensures girls' sports locker rooms and private spaces 'remain for biological females.' The bill also aims to keep 'biological men' out of athletic programs for females. She also touted House Bill 121, to designate bathroom use for strictly males and females, as furthering the same protections. 'Parents, not politicians, should decide what's best for their children,' Zolnikov said. 'We will never stop fighting for Montana's families.' Democratic legislators have fired back during floor sessions and in committees, with many of the bills drawing significant debate, including arguments some legislation is attacking people who are transgender. Sullivan spoke on the topic Friday, saying Republicans were focusing on the wrong things. 'Montana sent us here to fund schools, fix roads, cut their taxes, and instead, the other party has been pretty obsessed on the floor with social issues,' Sullivan said. 'Voters, I think, would be disgusted to know just how many bills we have had on the floor that have been regulating people's bodies.' Daily Montanan reporter Micah Drew contributed to this report.
Yahoo
07-03-2025
- Politics
- Yahoo
Senator lobs ‘waste, fraud and abuse' allegations at Senate President Regier — who rejects claims
Senate President Matt Regier, R-Kalispell, testifies in front of the Senate Judiciary Committee on Wednesday, February 12, 2025. (Nathaniel Bailey for the Daily Montanan) On the last day before the 69th Montana Legislature adjourned for transmittal break and after the Senate held a marathon floor session to debate and vote on 99 bills, one lawmaker stood up and unleashed a series of allegations against the Senate president, requesting the chamber open an ethics investigation. The allegations by Sen. Shelley Vance, R-Belgrade, stem from an article published by the Montana Free Press earlier this week, which laid out a series of actions taken by current Senate President Matt Regier, R-Kalispell, when he hired a lawyer using taxpayer funds during the 2023 session and interim period. 'It's a witch hunt,' Regier told reporters after the Senate adjourned, adding that every action he took was '100% legal and business as normal.' This marks the second time the legislative auditor has been asked to look into waste, fraud and abuse allegations against a sitting senator. Earlier this year, an investigation into former president and current Sen. Jason Ellsworth, R-Hamilton, began with the auditor and led to a full Senate Ethics Committee investigation, which is scheduled to hold a hearing on Friday morning. Thursday, a substitute motion was made to ask the Legislative Auditor to look into the allegations and publish findings before the Senate takes further action. According to the article Vance cited, Regier hired a private attorney 'to serve as his partisan lawyer' while Speaker of the House, despite legislative rules not allowing for the Speaker to have his own lawyer — he had to share one with then-Senate President Ellsworth. To change that rule, Regier brought forth a bill in 2023 for an additional partisan attorney, but the bill failed to pass. Records cited by MTFP indicate Regier used public funds to pay attorney Abby Jane Moscatel $22,970 for the 2023 session. Currently, Moscatel is under a joint contract by Regier and current Speaker of the House Brandon Ler, R-Savage, to provide legal services during the session. In her motion, Vance requested the Senate refer a matter of ethics regarding the 'conduct of President Matt Regier' to the Senate Rules Committee. She said she had read the MTFP article and was 'greatly troubled.' 'I believe we need to engage in further investigations,' Vance said. She asked the committee to address the following questions: Why Regier hired an attorney after the bill to authorize and fund the work failed; Whether Regier engaged in 'waste, fraud and abuse' by hiring an attorney to perform legal tasks that the legal staff and legislative services typically perform; Whether Regier acted unlawfully by using state resources to pay for legal services related to a private matter related to two constitutional initiatives last year; Whether Regier engaged in waste, fraud and abuse by attempting to evade limits of spending authority; Whether Regier acted unlawfully by directing his attorney to perform legal work on state and federal immigration laws without authority; and Whether Regier failed to disclose a conflict of interest. 'Mr. President, these are many of the same issues raised in the matter involving Senator Ellsworth,' Vance said. 'Since we referred Senator Ellsworth to ethics, it only makes sense we begin a similar investigation into the current president of the Senate as well.' Sen. Ellsworth, R-Hamilton, is currently under an investigation by the Senate Ethics Committee, as well as under criminal investigation by the Department of Justice, for a contract he entered into last December with a business associate for $170,100. Regier referred allegations of impropriety against Ellsworth to the Legislative Auditor, who released a memo that said Ellsworth's actions constituted waste of government resources and an abuse of power. In response to Vance's motion, Sen. Daniel Zolnikov, R-Billings, made a substitute motion to send the questions about Regier to the Legislative Auditor. 'This would be consistent with the process that the former president went through,' Zolnikov said. 'We should attempt to stay consistent. Let the auditor do the report and let him do the findings. That will be intellectually honest and consistent.' The Senate voted 34-16 to send the matter to the auditor, with Regier voting in favor. Vance and Ellsworth voted against the substitute motion. 'I'm happy to send it to audit and expect 100% exoneration, and then we can get back to really rooting out corruption,' Regier told reporters. 'I'm worried about corruption in this building, and how do we root that out. And if there's a cost to standing up to corruption, I'm ready to pay that.' Ellsworth and Regier have been on opposing sides, despite being members of the same Senate majority party. On the first day of the session, Ellsworth and eight other Republican senators joined all Democrats in changing Senate rules decided on by the GOP leadership. Since then, Democrats and the nine Republicans including Vance have formed a 'working majority' coalition to stymie Regier's agenda and push through some legislative priorities. Senate Minority Leader Pat Flowers, D-Belgrade released a statement about the allegations against Regier: 'Fairness, government transparency, and integrity are core values for my caucus and for our constituents. The allegations of activities of President Matt Regier are serious. We must have accountability in this matter and stay on track to deliver results for Montanans. A review of the allegations by the Legislative Auditor is an appropriate place to start.'
