A BILL FOR AN ACT ENTITLED: "AN ACT PROVIDING ADDITIONAL state SUPPORT FOR the montana university system; ESTABLISHING A NEW INDIVIDUAL INCOME TAX BRACKET; PROVIDING AN APPROPRIATION; AMENDING SECTION 15-30-2103, MCA; and PROVIDING AN APPLICABILITY DATE."
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 15-30-2103, MCA, is amended to read:
"15-30-2103. Rate of tax. (1) There must be levied, collected, and paid for each tax year upon the taxable income of each taxpayer subject to this tax, after making allowance for exemptions and deductions as provided in this chapter, a tax on the brackets of taxable income as follows:
(a) on the first $2,900 of taxable income or any part of that income, 1%;
(b) on the next $2,200 of taxable income or any part of that income, 2%;
(c) on the next $2,700 of taxable income or any part of that income, 3%;
(d) on the next $2,700 of taxable income or any part of that income, 4%;
(e) on the next $3,000 of taxable income or any part of that income, 5%;
(f) on the next $3,900 of taxable income or any part of that income, 6%;
(g) on any taxable income in excess of $17,400 the next $482,600 of taxable income or any part of that income, 6.9%; and
(h) on any taxable income in excess of $500,000 or any part of that income, 7.1%.
(2) By November 1 of each year, the department shall multiply the bracket amount contained in subsection (1) by the inflation factor for the following tax year and round the cumulative brackets to the nearest $100. The resulting adjusted brackets are effective for that following tax year and must be used as the basis for imposition of the tax in subsection (1) of this section."
NEW SECTION. Section 2. Appropriation. (1) There is appropriated $4.6 million from the state general fund to the office of the commissioner of higher education for the fiscal year beginning July 1, 2022, for distribution to the university of Montana and Montana state university and their affiliated campuses by the board of regents of higher education to ensure that each campus can:
(a) fulfill the instructional and educational purposes in the various departments as described in Title 20, chapter 25, part 2; and
(b) contribute to the development of the full educational potential of each person pursuant to Article X, section 1(1) of the Montana constitution.
(2) The legislature intends that the appropriation be considered as part of the ongoing base for the next legislative session.
NEW SECTION. Section 3. Applicability. [This act] applies to the tax years beginning after January 1, 2022.