Governor Greg Gianforte signed legislation that will return $1,000 to $1,250 from the relief pot of $764 Million to Montana residents. (Photo: CNBC)
This week, Governor Greg Gianforte signed legislation that will return $1,000 to $1,250 from the relief pot of $764 Million 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 and ongoing reductions in state income taxes.
Montana is expected to have a $2.5 billion surplus, with the governor returning a significant portion to taxpayers from the said relief pot.
The package will provide $764 million in tax rebates and permanently reduce state tax collections by approximately $150 million annually.
Taxpayers will save approximately $300 million over the next two fiscal years.
HOW MUCH WILL YOU GET?
Individual taxpayers will be eligible for up to $1,250 in income tax rebates for their 2021 taxes as a result of House Bill 192. This will be from the $764 million relief pot.
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.
WHAT ELSE SHOULD YOU KNOW
The governor also introduced Senate Bill 121, providing permanent income tax relief.
The bill reduces the income tax rate that most 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.
