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, the bill modifies the eligibility criteria for claiming these exemptions by allowing individuals who became residents of the state on or after June 30, 2023, or those who remained residents after receiving military pensions, to qualify. The previous five-year limit for claiming the exemption has also been removed.

Furthermore, the bill repeals Section 4 of Chapter 650, Laws of 2023, which previously imposed restrictions on these exemptions. The changes will take effect on January 1, 2026, and will apply to tax years beginning after December 31, 2025. The bill aims to provide more favorable tax treatment for military personnel and their families, thereby encouraging residency and supporting those who have served in the armed forces.

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