Montanans support Governor Gianforte’s business equipment tax reform
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News from the office of Governor Gianforte
HELENA — A top priority in his Budget for Montana Families, Governor Gianforte’s proposal to reform the state’s business equipment tax to help small businesses, as well as family farms and ranches, received widespread support in a legislative hearing this morning.
Sponsored by Rep. Josh Kassmier, R-Fort Benton, House Bill 212 cuts taxes for Montana’s small business owners, family farmers, and family ranchers by expanding the business equipment tax exemption from $300,000 to $1 million.
Montana’s business equipment tax forces businesses, including family farms and ranches, to reallocate resources they would otherwise invest in their operation and create jobs with to pay a tax on the equipment and machinery they need to operate.
The business equipment tax also imposes a costly compliance burden, with businesses required to inventory and report their equipment to the state each year.
Reducing the burden of the business equipment tax on Montanans, this bill encourages business investment and promotes job creation.
In 2021, the governor worked with Rep. Kassmier to increase the business equipment tax exemption from $100,000 to $300,000.
Taken together, these reforms eliminate the business equipment tax burden for more than 5,000 small businesses, farms, and ranches.