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Senate tax panel hears bill to require electronic payment for large tax bills
Summary
Sen. Galt’s Senate Bill 54 would require taxpayers owing $50,000 or more to pay electronically, lower the previous threshold and direct the Department of Revenue to set acceptable methods by rule. Supporters say the change speeds processing and improves security; committee scheduled executive action for the next day.
Senator Galt introduced Senate Bill 54, which would require taxpayers who owe $50,000 or more in state taxes to remit payment electronically and authorize rulemaking to specify acceptable electronic methods. The bill was taken up in the Montana Senate Tax Committee where supporters from the Department of Revenue described expected administrative efficiencies and taxpayer protections.
The bill “is pretty simple,” sponsor Senator Galt said, explaining the measure would lower the payment threshold from $500,000 to $50,000 and include an exemption for taxpayers who cannot make electronic payments. Kristin Gutowski, information management bureau chief for the Montana Department of Revenue, testified as a proponent and described current electronic options available to taxpayers: an online public portal called Tap where taxpayers can make free electronic check payments or pay by credit card (with fees), as well as wire transfers and ACH payments initiated by a bank.
Gutowski told the committee that the bill would allow the department, under Title 15, Part 1, Section 803, to “specify in rule acceptable electronic payment methods” and that the change would speed processing because many electronic payments can be posted automatically. She explained that “electronic payments are more secure in the fact that they are a traceable, electronic identifier” and noted validation and fraud-protection checks financial institutions provide during payment processing.
Department staff estimated the lower threshold would affect “about 2,000 payments” and produce time savings during peak processing periods. Committee members also heard that roughly 80% of taxpayers already pay electronically, and that the bill would support outreach encouraging more electronic interactions.
Committee members asked for underlying statistics and modeling. A department witness said the agency could provide additional data on projected time savings and payer counts to help the committee’s deliberations. The committee chair said executive action on SB 54 would be considered at the committee’s next meeting.
No formal vote was taken during the hearing.
