Lawmakers won't hold special session on property taxes; Income tax changes take effect

Montana lawmakers will not meet for a special session to address rising property taxes. A group of staunchly conservative members had requested the Legislature convene in January. The group drafted four proposals to consider, including a cap on the state’s share of property levies and using the state’s projected budget surplus to rebate taxpayers. The effort failed to gain enough support among both parties. About 30 legislators did not respond to the poll proposing the special session.

Democrats asked Gov. Greg Gianforte to call a special session last summer to cut the state’s property tax rate amid rising property values, but did not poll members. Gianforte’s office criticized Democrats for voting against tax rebates and said a special session would be a waste of resources.

Income tax changes go into effect

Two income tax changes are going into effect for 2024 collections.

State lawmakers amended the tax code during both the 2021 and 2023 legislative sessions, and that will result in lower income taxes for most Montanans this year.

Senate Bill 399 reduces the number of income tax brackets from seven to two and eliminates more than a dozen tax credits in an effort to simplify tax filings. It also eliminates income taxes entirely for the state’s lowest wage earners — an estimated 50,000-70,000 people.

Senate Bill 121 cut Montana’s top income tax rate from 6.5% to 5.9%. That rate applies to anyone making about $18,000 a year or more.

Republicans champion these changes as broad tax relief and proof of a fiscally sound budget. Democrats voted against the bills, arguing they disproportionately benefit the wealthy and reduce revenue for important services.

While Montanans won’t see the changes as they file for returns this spring, they’ll be in full effect next tax season.