Legislative Report

1-28-23

January is quickly coming to a close! We capped off the week in Appropriations by passing out of committee several significant tax bills. A bill to increase the tax exemption on business equipment from $300,000 to $1,000,000 was passed on a party line vote with all Republicans favoring the increase. This will of course also impact local governments that will have to be backfilled by the primary source of revenue collected by the State, income taxes. This should help make Montana a more attractive home to small manufacturers and spur investment by those already here.

A bill carried by Representative Mercer returning income and property taxes as well as retiring some long term debt, was split into three bills. Originally it would have returned about $600,000,000 in income tax, $275,000,000 in property taxes and $125,000,000 in debt reduction. Subsequently, the income tax portion has been reduced to about $400,000,000. The refunds would be up to $1250 per person and $2500 per couple for income tax. Up to $500 per year for 2 years of residential property tax would be refunded. These three amounts passed out of Appropriations yesterday. Greater amounts are being resisted by the Governor, big government republicans and democrats. The democrats voted against all rebates. Unfortunately, too many have the taxpayers at the bottom of the list, who by the end of this biennium, will have paid in excess of $3,000,000,000 of taxes over the amount budgeted by the 2021 legislature. My position is and will continue to be, return the overcollection to those who paid it first. The budget for the coming biennium should address future needs. Future tax cuts shouldn’t be based on using the amount collected in the past. The cash is sitting in State accounts, earning interest that taxpayers could be earning or not paying on debt. By hanging on to your cash, the State is reaping another $125,000,000 or so per year in interest income.

On Tuesday, I will be presenting HB307 to the House Taxation Committee. 307 will return $1,000,000,000 in income taxes, up to $3,500/individual or $7,000/couple. It returns about $275,000,000 or up to $1,000 for residential property tax owners, this year. This bill does not send money to those that didn’t pay it first, it’s a refund not a redistribution. It also reduces some long-term debt by over $100,000,000. The Montana Freedom Caucus held a press conference on Thursday. I was able to present HB307 as a Montana Freedom Caucus priority bill. We also announced our support for bills protecting the life of the unborn and judicial reform.

Early in the week conservation districts from across the state once again came to Helena to share about their work. They came before our Appropriations Subcommittee C and did a great job of indicating that districts all across the state accomplish much with relatively few dollars and much volunteer labor. Dean Rogge from Garfield County and Steve Wanderaas from McCone County were among those sharing.

Wednesday evening, we heard from Governor Gianforte, where he did a good job of outlining accomplishments of the past two years. Eliminating the Bullock lockdown of our economy was near the top of the list that enabled Montanans to get back to work and create wealth and opportunities.

Thursday, the Department of Natural Resources and Conservation presented a detailed explanation of the Good Neighbor Authority, which in partnership with the federal government and the private sector, has successfully harvested timber on targeted tracts. These tracts are being thinned to help reduce fire risk by removing dead and overly thick growth. This program has proven very successful in reducing risk and providing timber for local mills and continues to grow in popularity and size. The Department also gave us details of the fire suppression efforts taken statewide in conjunction with local, state and federal agencies.

As much as the legislature has already done in a short amount of time, it’s just the beginning of what we have to do. Of course, in general, the top priorities for State government should be preserving and enhancing freedom, life, liberty and the pursuit of happiness! Those may seem like lofty ideals but are things, as legislators and citizens, we need to consider in almost every bill brought forward. Little things often mean a lot. That’s why I appreciate the help from those of you that take the time to contact me with your concerns and ideas, it does help.

High school juniors and seniors, contact me or legislative services about serving for a week as a page.

It’s Saturday afternoon and time to go hang out with Grandsons Jett {3} and Kip {1}! Have a great week everyone.

Respectfully, Representative Jerry Schillinger HD37, 406-974-2478, Jerry.Schillinger@legmt.gov