Montana Republican Gov. Greg Gianforte signed two bills into law Thursday to simplify the state’s income tax code while also cutting the top marginal rate. Gianforte was joined by Republican lawmakers to sign the bills at a manufacturing business in Kalispell.
“Together we’ve made great progress to reform our tax system and provide tax relief for all Montanans, and it’s been long overdue.”
With Gianforte’s stamp of approval, Montana’s new income tax code will shrink from seven brackets to two, a major simplification championed by Republican lawmakers. The bill will eliminate 23 tax credits in the process.
Gianforte signed another companion bill that cuts taxes for the top marginal tax rates from 6.9% to 6.75% in 2022, and then to 6.5% in 2024.
Cutting income taxes was a top goal for the governor this legislative session as part his “Comeback Plan” aimed at boosting the state’s economy.
“We needed to make Montana more competitive, and these bills do that.”
Gianforte says that with all of the tax cuts Republicans have passed this session, taxpayers are set to see a $120 million reduction in what they pay to the state.
Democrats have pushed back against the slate of tax proposals and asked Gianforte to veto them. They say the policies benefit the wealthy rather than middle- and low-income Montanans.