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Committee hears bill to exempt Social Security from Montana income tax; opponents warn of large revenue loss
Summary
House Bill 148 would exempt Social Security benefits from Montana income tax. Proponents including AARP and retiree groups called the tax unfair to retirees; opponents warned it could cost the state roughly $100 million annually and urged a fiscal note and targeted approach.
Representative Ron Marshall introduced House Bill 148 to the House Taxation Committee, saying the measure would remove Social Security benefits from Montana’s taxable income. "Today, I bring you House Bill 148, and it is the bill to exempt Social Security benefits from taxation," Marshall said.
AARP Montana’s government-relations director, Kristin Paige Nei, testified in strong support, saying Social Security provides foundational income for roughly 172,000 Montana retirees and that Montana is one of a small number of states that still taxes Social Security benefits. "Montana is currently 1 of 8 states that still tax Social Security…
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