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Committee hears bill asking voters whether excess income-tax revenue should be returned to taxpayers
Summary
Representative Caleb Hinkle asked the committee to approve HB 327, a legislative referendum request that would ask voters whether the legislature should create an automatic system to return excess income-tax revenue. Budget and social-service groups warned that an automatic refund mechanism could impair future legislatures' flexibility to respond to economic downturns and fund essential services.
Representative Caleb Hinkle introduced House Bill 327 as a request for a referendum asking Montana voters whether the legislature should establish a program to return excess income-tax revenue automatically to resident taxpayers. Hinkle said the idea grew from constituent conversations and noted past over-collections in 2023 and earlier sessions; he estimated roughly $700 million in over-collected income tax currently sitting in state…
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