A NEW eight-bill package offers significant tax cuts and rebates to Americans.
Governor Greg Gianforte signed legislation this week that will return $1,000 to $1,250 to Montana residents.
The Republican governor has dubbed the package “the largest tax cut in Montana history,” with a total value of more than $1 billion.
The package includes short-term property and income tax rebates as well as ongoing reductions in state income taxes.
Montana is expected to have a $2.5 billion surplus, with the governor returning a significant portion of that to taxpayers.
The package will provide $764 million in tax rebates and will permanently reduce state tax collections by approximately $150 million per year.
Taxpayers will save approximately $300 million over the next two fiscal years.
“We have a historic surplus today because we passed a conservative budget two years ago,” the governor said.
“Because Montanans overpaid their taxes, we’re returning it to the people who worked hard to earn it,” he continued.
HOW MUCH WILL YOU GET?
In addition, bill HB 222 provides a $500 per year property tax rebate to homeowners for their primary residence in 2023 and 2024, totaling over $280 million in relief.
According to the Bozeman Daily Chronicle, details on how homeowners can apply for property tax rebates will be available soon, but income tax rebates will be credited to taxpayers automatically.
It’s still unclear whether the payments are subject to any income restrictions.
The governor’s office was contacted for comment by the US Sun.
WHAT ELSE SHOULD YOU KNOW
The governor also introduced Senate Bill 121, which would provide permanent income tax relief.
The bill reduces the income tax rate that the majority of Montanans pay from 6.75 percent to 5.9 percent.
The rate was 6.9 percent when the governor took office in 2021.
The bill also triples the earned income tax credit in order “to assist lower-income working Montanans and incentivize work,” according to the release.
Over the next three years, SB 121 will raise more than $500 million in permanent income tax.
“Together, we are guided by our shared conservative values of fiscal responsibility, smaller government, and lower taxes.” “Gianforte stated in a press release.
“”As we work to make Montana an even better place to live, work, and raise a family, our shared conservative values show us the way,” he continued.
When applying for social security, make sure you are aware of the tax limits.
In addition, learn what the “break-even” age is and how to calculate your own.
Read also: Tax Return 2023 : Minimum Taxable Income For Taxpayers