Two Democrat Bills to Cut Costs for Montana Families went to Hearing this Week
As a responsible alternative to the Republican’s Billion Dollar Spending Spree, Democrats have a comprehensive and fair tax package that delivers real relief to working Montanans, not just the wealthy.
Two bills to bring critical tax relief to Montana families, workers, homeowners and renters were considered by the House Taxation Committee on Tuesday morning. HB 280 and HB 285 not only provide immediate tax relief for Montana families now, but they ensure ongoing protections, so rising costs don’t continue to burden working Montanans.
Here’s what fair tax relief actually looks like:
- HB 280 provides permanent property tax relief for homeowners and renters through an income tax credit that accounts for household income and property tax burden. Montana’s property tax system fails to recognize that home values and property taxes have risen faster than incomes. As a result, working families and seniors on fixed income are being priced out of their homes. HB 280 also protects funding for critical local services like schools, firefighters and police.
- HB 285 will return $90 million back to working families’. Instead of big tax handouts that mostly benefit the wealthiest Montanans, the Earned Income Tax Credit (EITC) will ensure working families see the benefits of tax relief. The state’s current Earned Income Tax Credit is only 3% of the federal credit. HB 285 would increase the state’s EITC to 60% of the federal amount and link the rate to inflation, so the value of the tax credit does not get swallowed as costs rise.