Appropriations committee advances Social Security tax change, updates licensing fees; several tax bills tabled

The House Appropriations Committee on Tuesday advanced House Bill 8-27, a revision to Social Security income taxation, and approved higher licensing fees for food and lodging establishments, while tabling several proposed tax changes that drew fiscal concern.

The committee voted to recommend a do-pass for HB 8-27 (Social Security income taxation) and passed HB 8-53 (updated licensing fees for local public-health inspections). Several other measures received full hearings but were either tabled for further work (including a child tax credit and a proposal to average property appraisals) or not acted on pending additional fiscal detail (the business equipment tax exemption bill and amended vape tax language).

Why it matters: Several proposals considered affect large numbers of Montana taxpayers and local government revenues. The Social Security income tax revision drew sustained discussion and a recorded roll-call recommendation; the licensing-fee bill is intended to restore funding used by local health jurisdictions for inspections; property-tax and business-equipment proposals could shift significant revenue burdens between property classes and the state general fund.

What the committee acted on

- Social Security income taxation (HB 8-27): Representative Melody Cunningham, sponsor, summarized the bill as a narrower alternative to proposals that would fully exempt Social Security income. "The idea for this bill came from knocking on doors and we all heard about property taxes from my retirees," Cunningham said during her presentation. The committee voted to recommend the bill (do‑pass); the committee recorded a final recommendation vote of 17 in favor and 6 opposed.

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