[{"_1":2,"_88":-5,"_89":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6095462,"mediaKeyId","2837416-54c5d12cb6e0d02a5aa6c06235bd7157","parentId",2837416,"title","Senate Tax Committee advances several tax measures in executive actions; childcare credit and contractor relief pass","audioSeconds",90,"startMs",7476000,"endMs",7566000,"viewUrl","/Search/View?dp=1&key=2837416-54c5d12cb6e0d02a5aa6c06235bd7157&start=7476&end=7566","thumbnailUrl","https://assets.pipeline.soar.com/2837416-54c5d12cb6e0d02a5aa6c06235bd7157/thumbnail_7476000.jpg","articleUrl","/articles/6095462/Montana/Senate-Tax-Committee-advances-several-tax-measures-in-executive-actions-childcare-credit-and-contractor-relief-pass","mediaUrl","https://secure.pipeline.soar.com/6095462-9032068ec5b1021b3273bddb4ad2db0b/orig.mp4?Expires=1775001305&Signature=mb9hcVmSRbD9QHgsNt3nWU8bBqPxV8EW3zl7HirJ~ID~81KO32cnEwC1um3pEegn5UgRwW28DsVtUeIhnH93g5BXzy-XcopQEMRJr07DCuJeXmh8~xbFUPuotCLXC0lOtjMqTf6iXllWET2lKGy~B8-VN7mJvAFubL05xLKWvO6T-Mm4mJ3aQGZPWWkFMyPjWxhcjUq4Hd7yhPVbZXu1yaItS1xJtREIuGdIgNEVKbV41aSYheHior9G~ahQbOcYAAnrIsIZoHOxIezWRgWzNatLX1L373UPdnP0lmhuBPxovUeXyqKpRNLm~jSmnj~wY8TfZq5vSuP~kAhfr9HeGw__&Key-Pair-Id=KUT5TJCACFTXG","author","Montana Legislature","date","2025-04-01T00:00:00Z","article","The Montana Senate Tax Committee conducted executive actions (EA) on multiple bills after hearing SB 558. Committee members amended, debated and moved several measures; the committee advanced some bills to the next stage, tabled at least one large-cost proposal and withdrew or delayed action on others pending fiscal notes.

Key outcomes

- Senate Bill 321 (childcare tax credit and related business credits) — Passed as amended. Senator Beard moved the bill as amended; the committee adopted two amendments that reduced the direct household credit from $1,200 to $600 and removed an investment-income disqualifier (among other technical changes). Final roll-call recorded: Vice Chair Beard — No; Vice Chair Fern — Yes; Senator Heyman — Yes; Senator Galt — No; Senator Yakovich — Yes (proxy recorded earlier as no in one tally, later recorded yes); Senator McCain — Yes; Senator Dunwell — Yes; Chair Hertz — No. Tally: 5 yes, 3 no. The sponsor and proponents framed the measure as a vehicle to support childcare access and workforce participation; opponents and some senators raised concerns about subsidy effects and fiscal cost.

- Senate Bill 536 (contractors’ gross receipts relief amendment) — Passed as amended (voice vote). Committee adopted an amendment to allow refunds or relief for certain construction firms that are effectively employee-owned (examples cited include ESOP-like arrangements). The amendment and final passage were approved by voice vote; a precise roll-call was not recorded in the transcript.

- Senate Bill 542 (two-year freeze on property reappraisal values) — Passed (voice vote; final announcement recorded as 7–1). Senator Galt moved the bill; the committee voice vote yielded a 7–1 outcome with Senator Dunwell recorded as opposed.

- Senate Bill 538 (business deduction / tax-change proposal) — Tabled. Committee members identified the bill’s estimated fiscal cost as large (~$54 million annually per discussion) and voted to table the measure to prioritize limited general fund resources.

- Senate Bill 549 (school-related K–12 education expense credit) — Amendment was introduced and then withdrawn; committee deferred further action to a later meeting pending sponsor input and legal review related to scope and constitutionality (members raised Espinosa-related questions about private-school funding and tax credits).

What the votes mean

The committee used EA to move a package of niche and targeted tax measures while pausing or tabling larger-cost, broadly scoped tax cuts until fiscal notes and further analyses are available. The child-care credit bill (SB 321) advanced with bipartisan support but not unanimity; the contractor relief measure (SB 536) moved forward after a narrowly tailored amendment intended to address stranded contractor gross receipts for certain employee-owned firms; the property reappraisal pause (SB 542) passed on broad committee support; and high-cost proposals were deferred.

Next steps

Several bills advanced from committee and will proceed in the legislative process; fiscal notes and additional analyses remain outstanding for several measures (committee asked staff and the Department of Revenue for updated fiscal estimates). The committee scheduled additional EA the following day to continue work as fiscal notes arrive.

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Sen. Shelly Vance, sponsor of SB 558 and a state senator from Senate District 34, told the committee she brought the bill to start a policy conversation about property tax relief and said a rebate would not satisfy her constituents. “I don’t want a rebate. That’s insulting,” Vance said, urging lawmakers to consider shifting school levies into a statewide sales tax account and thereby reduce property-tax bills for homeowners.

The proposal is modeled on a South Dakota sales tax package and would impose a broad sales tax with a long list of exemptions, Vance said. She cited a Department of Revenue memorandum estimating nonresident travelers spent roughly $3.76 billion in 2019 and said nonresident visitors could contribute an estimated $44 million to $55 million in annual sales tax revenue — figures she offered as context for taxing some visitor-driven consumption.

Supporters included Todd Devlin, a Prairie County commissioner testifying on behalf of the Montana Association of Counties (MACo). Devlin said MACo’s policy supports using any revenue from a tax on luxury goods and services to reduce property taxes and to distribute some funding to low- or no-revenue counties.

Several organizational opponents described practical and distributional concerns. The Montana Society of Certified Public Accountants (spokesperson identified as Lloyd) said the bill was provided with little notice and raised a specific concern about taxing mobile, highly mobile professional services such as accounting; that could create a competitive disadvantage for Montana firms, the witness said. Amanda Curtis of the Montana Federation of Public Employees said her membership opposes a sales tax even if revenue is directed to education. Rose Bender of the Montana Budget & Policy Center said sales taxes are more regressive than property taxes and more volatile across economic cycles, and Jake Brown of the Montana AFL-CIO said the measure would shift the burden onto working families and retirees.

Derek Bell, division administrator for the Montana Department of Revenue’s Business and Income Tax Division, testified as an informational witness and warned the committee about implementation challenges. Bell said South Dakota required about 70 full-time equivalent positions to administer its tax. “I would be extremely skeptical that we’d be able to stand this up by January 1, 2026,” Bell told the committee, citing staffing, technology, and membership in the Streamlined Sales and Use Tax Agreement as additional hurdles.

Representatives of public education also testified. Doug Reisig of the Montana Quality Education Coalition said school districts are watching levy success rates fall and that the discussion about how to fund schools merits a full, statewide conversation. Committee members repeatedly asked about exemptions for necessities, the treatment of lease and rental payments, protection of bonded levies, evolving online sales sourcing after the Wayfair decision, and options to protect low-income households (such as tax credits or special refunds).

Committee members and staff noted the bill’s 130-page structure includes numerous exemptions and specific deposit language referencing statutory procedures. No committee action was taken on SB 558 at the hearing; the chair closed the hearing and the committee moved to executive actions on other bills while fiscal notes and additional analyses remain outstanding.

The hearing record closed without a committee vote; members asked staff and the Department of Revenue to supply fiscal notes and implementation estimates so the committee can continue consideration in future meetings.

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Senate Tax Committee advances several tax measures in executive actions; childcare credit and contractor relief pass

Senate Tax Committee hears wide-ranging proposal to replace school property levies with statewide sales tax