The HJ 35 Tax Study Committee, a subcommittee of the Revenue Interim Committee, finished its work at an August 25 meeting. The committee spent the interim considering state and local tax policy, focusing on property taxes, individual income and corporate income taxes, and natural resources taxes.

Three draft bills were the topic of discussion at the final meeting: a general statewide sales tax (HJ35-06), a draft to tax second homes at the commercial tax rate (HJ35-07), and a bill to decouple from net operating loss deduction provisions contained in the CARES Act (HJ35-08).

The committee recommended HJ35-08 to the Revenue Interim Committee, which will consider at its September 11 meeting that proposal and four others previously recommended by the HJ 35 Committee:

• HJ35-01 - Full inflation for mill levy limit;
• HJ35-02 - Property tax circuit breaker;
• HJ35-03 - Increase minimum corporate income tax to $200; and
• HJ35-04 - Revise calculation of capital gains tax credit.

The Revenue Interim Committee also met briefly on August 25. The committee concluded its tax credit review for the interim by recommending retention of the elderly homeowner and renter tax credit.

A performance auditor also presented a recent legislative audit of short-term lodging and rental vehicles. In response to a recommendation to the Legislature contained in the audit, the committee asked staff to work with the Department of Revenue to provide a draft bill addressing the recommendation. The committee will consider the draft at the September 11 meeting.

Committee staff: Megan Moore, memoore@mt.gov or 406-444-4496
Committee website: https://www.leg.mt.gov/committees/interim/2019rvic/