Billings, Montana – With the enormous tax cut package that Governor Greg Gianforte signed into law this week, Montana families may soon see a bit more financial relief. According to the governor, the regulations are intended to reduce financial burden as living expenses in the Treasure state rise.
The House Bill 192 tax rebate is one of the measures. Beginning the following year, full-time residents of the state may be qualified for a $1,250 income tax reimbursement, according to Becky Spencer, an Enroll Tax Agent at Laser 1040 in Billings. In 2021, the federal income tax rate will drop by 80%, while Montana’s rate would remain unchanged, according to Spencer. resulting in a state surplus and additional funds that might eventually find their way back into taxpayers’ pockets.
“it really was a windfall for that state of MT that was that the tax rates for the federal got lowered, but the little goodies that the federal gave along with the tax cuts Montana left their rates the same and didn’t dock those goodies, so this will kind of make up for it a little bit of what happened.” said Becky.
Spencer said House Bill 222, which established a $280,000,000 property tax relief for property owners to cope with Montana’s high property taxes, resulted in another sizable tax cut. Owners of real estate will need to apply for the HB 222 Tax Relief, and if granted, they might earn up to $500.
“What they are going to rebate 500-dollars right now is for the payment that you made last November and the one that you are going to make in May, that’s what you are getting the rebate one and its $500 or the amount of the property tax paid to the county.” said Becky.
Spencer said in 2023 Montana’s income tax rate will decrease as a result of the legislation Governor Gianforte signed from 6.75 percent to 5.9 percent.
It’s too early to say how these tax cuts will affect Montana taxpayers, according to Becky, and only time will tell if they experience the same results that Governor Gianforte anticipates. For the FY2023 tax season, Governor Gianforte stated that he wants to make sure Montanans keep more of their earnings.
