Montana Governor Greg Gianforte announced a pro-family, pro-business tax relief agenda in a press conference on January 5, 2023. The plan includes providing $1 billion in tax relief to hardworking Montanans, according to an article published by the State of Montana Newsroom on November 10, 2022.
Gov. Gianforte’s budget includes $500 million in property tax relief for primary residences, with a $1,000 rebate in 2023 and 2024, totaling $2,000 in relief over the next two years. The relief is intended to help retired couples afford rising property taxes and keep the homes they have raised their families in.
The governor has proposed property tax reforms, including increased transparency and accountability in local government spending, the option to pay property taxes monthly, and increased fiscal responsibility from local governments.
To make the state more competitive and help residents keep more of their earnings, the governor’s budget reduces the income tax rate from 6.5% to 5.9% and significantly increases the state’s earned income tax credit. The top income tax rate was 6.9% when the governor took office in 2021.
The governor’s budget includes a $1,200 child tax credit for families with children under six years of age and a $5,000 adoption tax credit to make it easier for residents to adopt children. The budget also cuts taxes for small business owners, farmers, and ranchers by expanding the business equipment tax exemption from $300,000 to $1 million, eliminating the tax burden for over 5,000 small businesses, farms, and ranches.
The governor stated that these measures will support small business owners and make families and communities stronger. Under the Governor’s leadership, employment in Montana is at an all-time high and the state set a record for the number of new businesses formed in 2022, following a record-breaking year in 2021.