[{"_1":2,"_87":-5,"_88":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6116677,"mediaKeyId","2732479-117c186136b00221a53001d1ae64a935","parentId",2732479,"title","Senate Tax Committee approves amendment to SB 117 changing newly taxable capture, inflation cap and creating reserve for large taxpayers","audioSeconds",1142,"startMs",2194000,"endMs",3336000,"viewUrl","/Search/View?dp=1&key=2732479-117c186136b00221a53001d1ae64a935&start=2194&end=3336","thumbnailUrl","https://assets.pipeline.soar.com/2732479-117c186136b00221a53001d1ae64a935/thumbnail_2194000.jpg","articleUrl","/articles/6116677/Montana/Senate-Tax-Committee-approves-amendment-to-SB-117-changing-newly-taxable-capture-inflation-cap-and-creating-reserve-for-large-taxpayers","mediaUrl","https://secure.pipeline.soar.com/6116677-2f46e754f79c99fccc1df4c2c9b06d6b/orig.mp4?Expires=1771173106&Signature=hrNSppScW4SMf4eqGVDKhHpmreK9JV6VsfBayKAqnDGA3J6FtfBaGYwi-5gh0Nx-yLeI0LzfEtGo0e9iakycplnWJMMFQh9wwqLz1cnygJaZzNdOxqnEGV~gDl9nNE7fDcRPmxi6b4SOiDggo6y0fgt9UdYrLi5AJdlZzgLlhKTezc9ScNUkMRapMYCb~iV~Fj0zOr1FdC0aYxkKxPOX8-B3x63H5t13C-ys1MrE2dgCPVUh6eYWad~VMFO5AyK5ZdUo42FhEqFHz6fR8-DzWVqTi6DA~VgvFqKTmbDfQtlWoJx7pH8Ei2PBrc6wuLnijJHzSjRB332u788HZjmpRQ__&Key-Pair-Id=KUT5TJCACFTXG","author","Montana Legislature","date","2025-03-21T00:00:00Z","article","The Senate Tax Committee conducted executive action on Senate Bill 117 and approved an amendment that revises how local governments may account for inflation and newly taxable property. The amendment was presented to the committee by a staff presenter and approved by voice vote; the committee then moved the bill as amended to the Senate floor.

Under the amendment described to the committee, the prior statutory allowance that let counties use \"half the rate of inflation\" would become a full inflation allowance, capped at 4 percent averaged over the last three years. The amendment also changes how newly taxable property is treated: for class 4 property (smaller businesses and homes) 75 percent of newly taxable value may be retained by the local government and 25 percent would be used to reduce mills for existing taxpayers; for other classes the amendment sets a 50 percent capture with a 10 percent portion required to be placed into a large‑taxpayer reserve account.

Staff walking through the amendment told the committee the reserve account is intended to smooth sudden losses if a large taxpayer leaves a county. \"This gives them a savings account to say we're gonna smooth that,\" the presenter said, explaining that the reserve's earnings may be used for targeted investments while the corpus is preserved and that use of the corpus is triggered only when a large taxpayer's drop meets specified thresholds.

The amendment also defines a \"large taxpayer\" threshold (taxable value in the top 20 percent of county taxpayers) and sets a trigger for reserve use when a large taxpayer's taxable value declines by 25 percent or more from the prior year. The amendment enumerates eligible uses for reserve principal investment income — including paying outstanding capital bonds, temporarily reducing mill levies over a 10‑year period, attracting industry, expanding employment, and infrastructure investment.

Senators discussed the policy balance between providing relief to existing taxpayers and allowing local governments to retain revenue from growth. Senator Beard asked for and received confirmation from the presenter that depositing into the large‑taxpayer reserve is required by the amendment. \"So if you go to page 50%, they have to go back to the requirements ... where they shall deposit annually the revenue generated from newly taxable classes other than class 4 and the large taxpayer reserve account,\" the presenter said.

Committee members expressed support for the amendment’s effort to address long‑standing property‑tax pressures. Senator Fern said the change to full inflation up to 4 percent was important for local governments that had been constrained by the half‑inflation rule; Senator Dunwell said he would vote yes reluctantly, indicating the bill still needed improvement but supported moving it forward.

The committee approved the amendment by voice vote and then approved SB 117 as amended, advancing the bill to the Senate floor for further consideration. Proxy votes were recorded during the voice votes (including aye votes recorded for several senators by proxy).","mediaType","Video","parentTitle","Senate Taxation - Friday, Mar 21, 2025 08:49 - 10:02","oneSentenceSummary","Committee adopted an amendment to Senate Bill 117 that raises the allowable inflation adjustment for local levies, reduces the share of newly taxable value counties may keep, and requires a reserve account for large taxpayers; the committee then advanced SB 117 to the Senate floor as amended.","taxTitle","2025 Legislature MT, Montana","taxId",77694,"location","Montana","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":44,"_47":81,"_49":82,"_51":83,"_53":84,"_55":56,"_57":58,"_59":85,"_61":62,"_63":64,"_65":86,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6116682,"Senate Tax Committee hears bill to lower disability threshold for Montana veterans’ property-tax reduction",1424,770000,"/Search/View?dp=1&key=2732479-117c186136b00221a53001d1ae64a935&start=770&end=2194","https://assets.pipeline.soar.com/2732479-117c186136b00221a53001d1ae64a935/thumbnail_770000.jpg","/articles/6116682/Montana/Senate-Tax-Committee-hears-bill-to-lower-disability-threshold-for-Montana-veterans-property-tax-reduction","https://secure.pipeline.soar.com/6116682-e83645d989176e3400cb62993a70778d/orig.mp4?Expires=1771173106&Signature=FhS0B8BtZdWWDEZWurBam2EWk9J6XZk2t26N~UJQY8kvMsoha6sVZjTRdz1hme7GID90-5m~04DbHfU92qovewtyJaWHiuVyQrGw8k3bn7A~dZ4r~Uw4X4Q4Keq6-MQTR~Hmd91rUtH4p76Q7yr4N8frhc5rCuJPKJFm8rszA0QqIK2vQBy6GZvXJ1kx8gH4UIiXUaEDHBoVI1F~cavMnAdX5AEwXRFmY3WmCtHIgpKaXu-lRkSPyuiev5BlOOECl1-tR667gxVtwvna~pBirOyx~xv~yI0S03IMsMgFzE-t0HVTwQ15Tim9DsqpnGiK-PLHqH4ZZ-S9~fWtJKaIYA__&Key-Pair-Id=KUT5TJCACFTXG","Senate Bill 424, introduced by Senator Ellie Boldman, was heard Wednesday by the Montana Legislature’s Senate Tax Committee. The bill would change eligibility for Montana’s Disabled Veterans Assistance program so that veterans rated by the U.S. Department of Veterans Affairs at 60–90 percent service‑connected disability could receive a reduced property‑tax benefit; current law requires a 100 percent rating.

The proposal’s sponsor said the change is intended to match Montana with most neighboring states and extend relief to veterans who are substantially, though not completely, rated disabled by the VA. \"All my bill does is sort of, put us at a pretty conservative matching to some of our surrounding states,\" Senator Ellie Boldman said during her opening remarks.

Committee members heard testimony from veterans and veterans’ groups who urged support. Duane Cunningham, adjutant for the American Legion of Montana and a retired Navy veteran, told the committee, \"This is a good bill because it opens a whole lot of doors when a veteran is getting ready to get out of the service.\" Roger Hagan, who testified as a private citizen and said he was recently appointed to the Board of Veterans Affairs, cited the state constitution’s direction that veterans may receive special consideration and said broader eligibility could attract military retirees to Montana.

State staff described how the bill would change benefit levels and the program’s pool of eligible recipients. Bryce Kaatz, bureau chief with the Property Assessment Division, said the bill would lower the threshold from 100 percent to 60 percent and adjust the benefit tiers: veterans rated 60–90 percent who meet the program’s income limits would receive a 50 percent reduction rather than the current 100 percent benefit reserved for 100 percent‑rated veterans. Kaatz told the committee, \"In the fiscal note, we estimate around 5,400, just under 5,500 additional people would qualify,\" a projection based on national VA disability statistics applied to Montana.

Kaatz also summarized current program enrollment and fiscal impacts from the fiscal note: \"There are 3,400 enrolled in the current Montana Disabled Veterans Program. That's about a $1.5 million hit to the SCEPTER account ... and about a $6.5 million statewide shift to all other property owners,\" he said, noting that the local impacts would vary by county depending on the concentration of eligible parcels.

Kaatz clarified surviving‑spouse rules: a surviving spouse of a qualifying veteran remains eligible if unmarried and meeting income thresholds. Committee members asked staff about data availability; Kaatz said Montana does not maintain detailed public records tying veterans to specific disability ratings in the state.

Supporters emphasized practical and recruitment effects. \"This will be a good one. We would open a few eyes that, hey, I don't have to be 100% service connected to get a tax break on my property taxes,\" Duane Cunningham said. Senator Boldman said the change would have a fairly small fiscal impact while aligning Montana with other Western states.

The hearing closed without a committee vote on Senate Bill 424; committee staff indicated the fiscal note and additional information would be available ahead of any future executive action.

The committee proceeded to other business after closing SB 424’s hearing.","Senate Bill 424 would expand eligibility for Montana’s disabled-veteran property-tax reduction from 100% VA disability to a 60–90% band with scaled benefits; sponsors and veterans groups said the change would align Montana with neighboring states, while state fiscal staff outlined estimated costs and program rules.","actionData","errors"]

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Senate Tax Committee approves amendment to SB 117 changing newly taxable capture, inflation cap and creating reserve for large taxpayers

Senate Tax Committee hears bill to lower disability threshold for Montana veterans’ property-tax reduction