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Department of Revenue backs SB 53 to tidy Montana tax code and conform to federal changes
Summary
Department of Revenue witnesses told the House Taxation Committee SB 53 makes technical corrections to filing statuses, aligns 529/ABLE contribution limits for married filers, updates mineral royalty withholding to reference the marginal tax rate in effect, and adopts a federal 529‑to‑Roth rollover provision effective for tax years after 12/31/2023.
The House Taxation Committee heard Senate Bill 53, a Department of Revenue‑sponsored cleanup bill to align Montana statutes with prior state changes and recent federal rules.
Jake Ford, bureau chief of the Income Tax and Withholding Bureau, explained the bill’s primary technical fixes: changing the statutory language so married filers can utilize joint filing status to double contribution limits on college 529 and ABLE accounts (effectively moving a $3,000 individual limit to $6,000 for joint filers under the simplified filing system); clarifying that the elderly homeowner/renter credit due date aligns with the standard Form 2 return deadline and extensions; changing mineral royalty withholding to refer to the highest marginal tax rate in effect (so withholding tracks future rate changes); and adopting a federal change allowing rollovers from 529 accounts to Roth IRAs, with applicability to tax years after Dec. 31, 2023.
Ford said Section 8 removes a rarely used certificate requirement tied to archaic inheritance/state tax situations (pre‑2001/2004), easing probate burdens for a diminishing set of taxpayers. Department staff Brian Olson and other informational witnesses remained available for technical questions.
Committee members asked clarifying questions about the certificate repeal, filing extensions and withholding mechanics; department staff said the changes promote conformity and reduce unnecessary taxpayer steps.
Outcome: Hearing closed; no committee vote on SB 53 occurred during the session.
