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Businesses and counties spar over expanding business equipment tax exemption
Summary
SB322 would raise the business equipment tax exemption, with proponents arguing relief for equipment‑intensive small businesses and counties urging bridge and budget impacts; committee held further fiscal analysis and agreed to delay executive action to allow updated fiscal notes.
Sen. Josh Kasmeier presented Senate Bill 322 to increase the Class 8 business equipment tax exemption for small and equipment-intensive businesses. Supporters — including the Department of Revenue director, agriculture and building-industry groups, chambers of commerce and stock-growers associations — argued the change reduces reporting burdens and frees cash for local investment.
Opponents, led by Rose Bender of the Montana Budget and Policy Center, argued that repeated prior exemptions and rate reductions have shifted tax burdens to homeowners and warned that the bill lacks a mechanism to fully reimburse school districts for lost taxable value. Department of Revenue and Property Assessment Bureau staff (Dylan Cole, Bryce Kautz) answered technical questions about how many businesses remain on the rolls and explained that an amended exemption level reduced the expected general-fund cost by roughly a third from earlier estimates.
Members discussed requesting an updated fiscal note to reflect a conceptual amendment from the Senate finance committee. The sponsor did not object to delaying executive action; the committee set executive action for a later date to receive the updated fiscal information.
Ending: The committee held off on executive action to obtain an updated fiscal note and to consider amendments that would affect the fiscal estimate and local reimbursements.
