Senate panel hears push to raise business equipment tax exemption to $3 million

Summary

Supporters told the Senate Taxation Committee that raising Montana's business equipment tax exemption from $1 million to $3 million will ease burdens on small businesses and farms; opponents warned the change would shift costs to homeowners and school districts and increase general fund obligations.

HELENA, Mont.

Supporters of an increase in Montana's business equipment tax exemption urged the Senate Taxation Committee on March 27 to approve Senate Bill 322, saying the change would relieve small businesses, farms and other equipment-intensive operators from an onerous, hard-to-administer property tax. Opponents told the committee the proposal would shift tax burden to homeowners and school districts and increase reliance on the state general fund.

Proponents said rising equipment costs make the current $1 million exemption obsolete. "Increasing this from 1,000,000 to 3,000,000 will take another, I think it's about 300," said Bridal Beatty, director of the Montana Department of Revenue, adding the change would remove most small businesses and farms from the rolls and simplify reporting. John Semple of the Montana Grain Growers Association and other industry witnesses described modern farm machinery prices that can put…

Senate panel hears push to raise business equipment tax exemption to $3 million

Summary

Subscribe to keep reading