Billings, Mont. Montana families could soon see a little more financial relief after Governor Greg Gianforte signed into law a massive package of tax cuts last week. The governor says the laws are meant to alleviate financial strain as the cost of living in the Treasure state goes up.
One of those laws is House Bill 192 a tax rebate. Becky Spencer, an Enroll Tax Agent at Laser 1040 in Billings says starting next year full-time state residents could be eligible for a $1,250 income tax rebate. Spencer explained that money is coming from when the national income tax rate decreased by 80% in 2021 and Montana's income tax rate stayed the same. Leading to a state surplus and more money that could Potentially land back in 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 Another major tax cut come from house bill 222 which established a $280,000,000 property tax relief for property owner to help with Montana's high property taxes. Property owners will have to apply for the HB 222 Tax relief and if approved owners can earn up to 500-dollars.
"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.
Becky said its too earlier to tell how these tax cuts will impact Montana tax payers and only time will tell if they receive the same outcome Gov. Gianforte expects. Governor Gianforte said he hopes to make sure Montanan's keep more of what they earn for the FY2023 tax season.