Senate Bill No. introduced by M. Yakawich aims to revise Montana's income tax brackets to lower income taxes for various categories of taxpayers. The bill amends Section 15-30-2103 of the Montana Code Annotated, significantly increasing the income thresholds before higher tax rates apply. For instance, the income bracket for married individuals filing jointly is raised from $41,000 to $200,000, with similar increases for heads of households and other individual taxpayers. The bill also introduces a modified inflation factor that will adjust these brackets annually based on the consumer price index, specifically using the index for June 2024 instead of June 2023.

Additionally, the bill establishes a transition period, stating that the modified inflation factor will not take effect until the tax year 2026. It also includes provisions for immediate effectiveness upon passage and retroactive applicability to income tax years beginning after December 31, 2024. This legislation is designed to provide tax relief to Montanans by adjusting the income tax structure to reflect higher income levels before higher tax rates are applied.

Statutes affected:
LC Text: 15-30-2103
SB0203_1(1): 15-30-2103
SB0203_1(10): 15-30-2103
SB0203_1(11): 15-30-2103
SB0203_1(2): 15-30-2103
SB0203_1(3): 15-30-2103
SB0203_1(4): 15-30-2103
SB0203_1(5): 15-30-2103
SB0203_1(6): 15-30-2103
SB0203_1(7): 15-30-2103
SB0203_1(8): 15-30-2103
SB0203_1(9): 15-30-2103
SB0203_1: 15-30-2103