The bill revises state income taxation related to 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 requirement to claim the exemption for five consecutive years remains in place.

Furthermore, the bill repeals Section 4 of Chapter 650 from the Laws of 2023, which likely contained provisions that are now outdated or redundant due to the changes made in this bill. The effective date for these changes is set for January 1, 2026, and they will apply to tax years beginning after December 31, 2025. Overall, the bill aims to provide more favorable tax treatment for military personnel and their families, enhancing their financial benefits in the state.

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(5): 15-30-2120
SB0093_X(6): 15-30-2120
SB0093_X(7): 15-30-2120
SB0093_X: 15-30-2120