Legislatures & Taxes — It’s that Time of Year

In this case the Legislature and taxes issue is in the PIA Western Alliance state of Montana. But tax issues, and what to do with the hard earned dollars you pass onto your state government every year, are happening in all of the PIA Western Alliance states and all states around the country.

As the come up in the nine states of the association, we’ll cover them.

Montana’s tax fight is — no surprise — between Republicans and Democrats and the issue is what to do with the state’s anticipated $2.5 billion surplus. Last week, Republicans in the Treasure State’s House of Representatives passed a six-bill package that Montana House Speaker Matt Regier of Kalispell said will return a huge portion of that money to the state’s citizenry.

“This is your surplus money and it’s coming back to you,” he said.

In this case the surplus money amounts to $1 billion. If the bill passes the Montana senate, it will turn into rebate checks and some breaks for Montana businesses. Rebates will be based on 2021 state income taxes and will return up to $1,250 for individuals. Property tax cuts will be up to $1,000 based on the 2022 and 2023 property taxes.

Businesses would see cuts in the business equipment tax.

Capital gains taxes will be reduced. The state’s debt will be paid down and an allocation of $100 million will go to the highway construction fund.

Democrats in Montana’s House and Senate are opposed to the plan. Representatives in the party do like the money for the highway construction fund but Democrats think more money should be allocated to help people with childcare costs, and to support nursing homes that are closing, and for more assistance for housing for the state’s workforce.

Another issue is timing. State Rep. Emma Kerr-Carpenter of Billings said normally, Montana’s main budget bill — House Bill 2 — comes about at the end of the session.

“We haven’t even paid our bills yet. We haven’t even passed a House Bill 2. And here we are, trying to spend money,” she said.

Source link: Montana Free Press — http://bit.ly/3XbAAjI

About PIA Western Alliance

The Professional Insurance Agents Western Alliance is a membership organization promoting and enhancing the success of independent agencies seeking to grow, learn and be heard within the industry.


More Industry News