HB 337: Revise income tax laws to lower income taxes - Montana

HB0337_3(3).pdf → HB0337_X(10).pdf · 6 edits

MODERATE

The bill revises Montana's income tax brackets and rates to lower taxes for most taxpayers. It increases the income thresholds for the lowest tax bracket and reduces the highest income tax rate from 5.9% to 5.65%. Additionally, it adjusts the tax rates and thresholds specifically for net long-term capital gains.

Scope change

The bill applies to all Montana taxpayers subject to income tax, including individuals, married couples, heads of household, and estates.

REQUIREMENT

Income tax brackets for married couples filing jointly were expanded, raising the threshold for the lowest tax bracket from $41,000 to $95,000.

Income tax brackets for heads of household were expanded, raising the threshold for the lowest tax bracket from $30,750 to $71,250.

Income tax brackets for single individuals were expanded, raising the threshold for the lowest tax bracket from $20,500 to $47,500.

The highest income tax rate was reduced from 5.9% to 5.65% for all filing statuses.

Tax rates for net long-term capital gains were lowered, with the top rate reduced from 4.1% to 3.0% for most taxpayers and 4.1% for married individuals filing separately.

The income thresholds for net long-term capital gains tax brackets were increased across all filing statuses.

HB0337_X(9).pdf → HB0337_3(3).pdf · 6 edits

MODERATE

This bill revises Montana's income tax structure to lower rates and increase the income thresholds required to pay higher taxes. It applies to all taxpayers, including married couples, heads of households, and single filers, as well as estates and trusts. The changes aim to reduce the tax burden on middle-income earners while maintaining a progressive tax system.

Scope change

The bill's scope remains consistent with the original version, covering all Montana taxpayers subject to income tax, including individuals, surviving spouses, heads of household, and estates or trusts.

TIMELINE

Income tax brackets have been adjusted to increase the taxable income thresholds, meaning more income is taxed at the lower 4.7% rate before hitting the higher 5.65% rate.

REQUIREMENT

The highest income tax rate has been reduced from 5.9% to 5.65% for all filing statuses.

The special lower tax rate for net long-term capital gains has been reduced from 4.1% to 3.0%.

The threshold for the lower capital gains tax rate has increased, allowing more capital gains to be taxed at the reduced 3.0% rate before hitting the higher 4.1% rate.

The Earned Income Tax Credit (EITC) has been increased, providing a larger tax benefit to low-to-moderate income workers.

TECHNICAL

Minor formatting corrections were made to the bill text, such as removing duplicate numbers and fixing line breaks.

HB0337_X(3).pdf → HB0337_X(4).pdf · 4 edits

MODERATE

The bill updates Montana's income tax brackets and thresholds to reflect new economic conditions, likely adjusting for inflation or revenue needs. The changes increase the income levels at which higher tax rates apply for single filers, heads of households, and capital gains, while also modifying the language regarding the Earned Income Tax Credit. These adjustments mean that more taxpayers will fall into lower tax brackets, potentially reducing their tax liability under the new law.

Scope change

The bill's scope remains focused on amending specific sections of the Montana Code Annotated related to income taxation, but the applicability of the tax rates has shifted due to updated income thresholds.

REQUIREMENT

Increased the income threshold for the first tax bracket for single filers from $20,500 to $47,500, and for heads of households from $30,750 to $97,500.

Adjusted the income threshold for taxing net long-term capital gains from $20,500 to $47,500.

Corrected a typo in the tax rate for income exceeding the first bracket, changing it from 5.65% to 5.9%.

TIMELINE

Added specific language regarding effective dates and applicability dates to clarify when the new provisions take effect.

HB0337_4(10).pdf → HB0337_X.pdf · 5 edits

MODERATE

The bill revises Montana's income tax brackets to lower rates for most taxpayers while simultaneously increasing the income thresholds before higher tax rates apply. It also introduces a specific tax structure for net long-term capital gains and updates related definitions to ensure consistency with federal tax rules.

Scope change

The bill maintains the general scope of the income tax chapter but modifies the specific financial thresholds and rates applicable to different filing statuses (married, head of household, single, and estates/trusts).

REQUIREMENT

Tax brackets for married couples filing jointly were expanded, raising the threshold for the higher tax rate from $41,000 to $95,000 and adjusting the primary tax rate from 5.9% to 5.65%.

Tax brackets for heads of household were expanded, raising the threshold for the higher tax rate from $30,750 to $71,250 and adjusting the primary tax rate from 5.9% to 5.65%.

Tax brackets for single individuals were expanded, raising the threshold for the higher tax rate from $20,500 to $47,500 and adjusting the primary tax rate from 5.9% to 5.65%.

A new specific tax schedule was added for net long-term capital gains, which are taxed at lower rates (3.0% and 4.1%) with their own distinct income thresholds.

DEFINITION

The definition of 'Nonqualified taxable income' was added to clarify that it refers to taxable income that is not considered net long-term capital gains.

HB0337_3(2).pdf → HB0337_4.pdf · 1 edit

MINOR

The bill version was updated from HB 337.3 to HB 337.4, indicating a revision in the legislative process. The document includes minor formatting adjustments and page number updates, but no substantive policy changes were identified in the provided text.

TECHNICAL

The bill number was updated from HB 337.3 to HB 337.4, and page headers were adjusted to reflect the new version number.

HB0337_2(24).pdf → HB0337_3.pdf · 1 edit

MINOR

The bill version was updated from HB 337.2 to HB 337.3, indicating a revision in the legislative process. The text includes standard formatting updates for the header and page numbering. No substantive policy changes, such as new funding, altered eligibility rules, or modified definitions, were identified in the provided text.

TECHNICAL

The bill number was updated from HB 337.2 to HB 337.3, and page headers were adjusted to reflect the new version number.

HB0337_2(18).pdf → HB0337_2(19).pdf · 3 edits

MINOR

This version of HB 337 updates the legislative session year from 2025 to 2025 (no change in year) and adjusts the bill number format from HB0337.2 to HB 337.2. The text also shifts from a standard authorized print version to a version with specific formatting markers, indicating a transition in the document's official status or preparation stage.

TECHNICAL

The bill number formatting was adjusted from 'HB0337.2' to 'HB 337.2', adding a space between the bill type and number.

The document header was updated from 'Authorized Print Version' to 'Authorized Print Version - HB 337', adding a specific reference to the bill number.

The legislative session year was listed as '2025' in both versions, showing no substantive change in the session year.

HB0337_2(10).pdf → HB0337_2(11).pdf · 1 edit

MINOR

The amendment to HB 337.2 involves a minor formatting adjustment to the first line of the bill text, specifically adding extra indentation to the section regarding married individuals and surviving spouses. This change does not alter the legal substance, eligibility criteria, or policy requirements of the legislation.

Scope change

No change in scope or applicability; the bill applies to the same groups of people under the same conditions.

TECHNICAL

Added extra indentation to the text of subsection (a) regarding married individuals and surviving spouses, which is a formatting update with no impact on the law's meaning.

HB0337_2(8).pdf → HB0337_2(9).pdf · 1 edit

MINOR

The document shows minor formatting adjustments to the header and the first line of the text, removing extra spacing and aligning the bill number. No substantive policy changes, new requirements, or eligibility criteria were added or removed.

TECHNICAL

Adjusted header spacing and alignment to standardize the document layout.

HB0337_1(4).pdf → HB0337_2.pdf · 4 edits

MODERATE

HB 337 was amended to lower Montana's highest income tax rate from 5.9% to 5.65% and to increase the Earned Income Tax Credit. The bill also adjusts the income thresholds for tax brackets and updates the tax rates applied to net long-term capital gains, while expanding the statutory references to include the Earned Income Tax Credit provision.

Scope change

The bill's scope was expanded to explicitly include the Earned Income Tax Credit, and the applicability of tax rates and income thresholds was modified for all filing statuses (married, head of household, and single).

FISCAL

The highest income tax rate was reduced from 5.9% to 5.65% to lower the tax burden on high earners.

REQUIREMENT

The income thresholds for tax brackets were increased for married couples, heads of household, and single filers, allowing more income to be taxed at the lower 4.7% rate.

Tax rates and income brackets for net long-term capital gains were adjusted to align with the new general tax structure.

SCOPE

The bill now explicitly includes the Earned Income Tax Credit as a key component of the tax legislation.

LC1716.pdf → HB0337_1.pdf · 3 edits

MINOR

The bill was renumbered from LC 1716 to HB 337.1 and updated with new sponsor names. The core tax brackets and rates were modified to increase income thresholds and adjust tax rates, though the specific numerical values in the diff appear inconsistent and may require further legislative review. The document also includes a duplicate section that was removed in the final version.

Scope change

The legislative document type changed from a committee substitute (LC) to a House Bill (HB), indicating it has moved through the legislative process.

TECHNICAL

The bill number changed from LC 1716 to HB 337.1, and the list of sponsors was updated to include new names.

A duplicate version of Section 15-30-2103 was removed to consolidate the text into a single, consistent amendment.

REQUIREMENT

Taxable income thresholds and tax rates were altered; for example, the threshold for married joint filers changed from $41,000 to $140,000 in the first bracket, and the top tax rate for this group was adjusted from 5.9% to 5.65%.

Revise income tax laws to lower income taxes

What changed between versions

How they voted

Actions timeline

Sponsors