The bill revises state income taxation concerning military pensions, retirement, and survivor benefits in Montana. It amends Section 15-30-2120 of the Montana Code Annotated (MCA) to eliminate the statutory sunset of the exemption for military pensions and survivor benefits, allowing these exemptions to continue indefinitely. Additionally, it modifies the eligibility criteria for claiming these exemptions by allowing individuals who became residents of the state on or after a specified date to qualify. The previous five-year limit for claiming the exemption has also been removed, although the bill maintains that the exemption can only be claimed for five consecutive years after meeting the residency requirements.

Furthermore, the bill repeals Section 4 of Chapter 650, Laws of 2023, which likely contained provisions that are now outdated or redundant due to the changes made in this legislation. The effective date for the new provisions is set for January 1, 2026, and they will apply to tax years beginning after December 31, 2025. This legislative change aims to provide more favorable tax treatment for military personnel and their families, thereby encouraging residency in Montana.

Statutes affected:
LC Text: 15-30-2120
SB0093_1(1): 15-30-2120
SB0093_1(2): 15-30-2120
SB0093_1(3): 15-30-2120
SB0093_1(4): 15-30-2120
SB0093_1(5): 15-30-2120
SB0093_1(6): 15-30-2120
SB0093_1(7): 15-30-2120
SB0093_1(8): 15-30-2120
SB0093_1(9): 15-30-2120
SB0093_1: 15-30-2120
SB0093_2(1): 15-30-2120
SB0093_2(2): 15-30-2120
SB0093_2(3): 15-30-2120
SB0093_2(4): 15-30-2120
SB0093_2: 15-30-2120
SB0093_X(1): 15-30-2120
SB0093_X(2): 15-30-2120
SB0093_X(3): 15-30-2120
SB0093_X(4): 15-30-2120
SB0093_X: 15-30-2120