Senate Bill No. introduced by M. Yakawich aims to revise Montana's income tax brackets to lower income taxes and increase the amount of taxable income before a higher tax rate applies. The bill amends Section 15-30-2103 of the Montana Code Annotated (MCA) by significantly raising the income thresholds for various taxpayer categories, including married individuals, heads of households, and single individuals. For instance, the first tax bracket for married individuals filing jointly is increased from $41,000 to $200,000, with similar adjustments for other categories. Additionally, the bill introduces a modified inflation factor that will be used to adjust these brackets annually, with the consumer price index for June 2024 being substituted for June 2023.

The bill also includes provisions for its effective date and retroactive applicability, stating that it will take effect upon passage and approval, and will apply retroactively to income tax years beginning after December 31, 2024. Furthermore, it specifies that the modified inflation factor will not apply until tax year 2026. Overall, this legislation is designed to provide tax relief to Montana residents by adjusting income tax brackets and ensuring that the tax system remains responsive to inflation.

Statutes affected:
LC Text: 15-30-2103
SB0203_1(1): 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