The Montana Legislature has a new, interactive model to forecast impacts of a hypothetical sales tax in the state.
Lawmakers on the Modernization and Risk Analysis Committee last year charged legislative staff to develop long-term models of Montana’s tax revenue. Legislators will use the models to predict how changes to tax policy could affect the state’s finances.
The task for legislative staff included analyzing impacts of adding streams of tax revenue Montana currently does not possess.
Staff this week released their model for a hypothetical state-wide sales tax. The model uses spending data to project revenue a sales tax could generate across a variety of industries, from both Montana residents and tourists
The data came from the University of Montana’s Institute for Tourism and Recreation Research and S&P Global, a financial analytics firm.
Users can adjust the tax rate and filter by different industries to project sales tax revenue under various conditions.