By Josh Margolis
FORT BENTON, Mont. (NMB) – Governor Greg Gianforte was at Golden Triangle Brewing in Fort Benton on Tuesday afternoon to sign House Bill 303 into law.
HB 303 raises the business equipment tax threshold from $100,000 to $300,000. This will exempt thousands of businesses from paying annual taxes on their property, particularly farming and ranching operations.
“In Montana, every small business, every year, has to calculate the value of their capital equipment and then pay an annual tax on it. This is cumbersome, it takes a lot of time, and it’s expensive…This is going to take about 3,500 businesses off the tax rolls in Montana and free up many that they can reinvest in their employees and their businesses.”
The equipment tax is 1.5 percent for all taxable market value under $6 million, and 3 percent for all taxable market value over $6 million.
“So if (a business) has $250,000 in equipment, $100,000 was exempted before. 1.5 percent of $150,000 is how much they will be able to invest back in equipment,” Gianforte says.
This means businesses with less than $300,000 in business equipment will not have to pay any equipment tax, and businesses with more than $300,000 in business equipment will not be taxed on the first $300,000.
Golden Triangle Brewery owners Stacia and Brandon Roberts said they currently have about $250,000 in business equipment.
“With this bill, with Josh (Kassmier) and what you’ve helped do, it allows us to potentially keep up with consumer demand,” Brandon Roberts told Gianforte. “Anything like this that can help us keep doing what we’re doing, to get our product out there.”
The bill was sponsored by Representative Josh Kassmier (R-Fort Benton), who was on hand at the bill signing ceremony.
“This was one of the main priorities I had during the session. This was priority number one from the beginning, because this affects all small businesses across Montana. Everyone will get a tax break that is paying into this business equipment. And it is a great honor to have the Governor come down here to Fort Benton and show support for the local agriculture communities in signing the bill.”
Kassmier added that many of his constituents work in the agriculture field, which will benefit from the tax break.
“Local ranchers and farmers will get a tax benefit from this bill. So that will greatly impact local communities and local farmers and ranchers.”
The bill made its way through the legislature with mostly republican support, although one democrat in the house and a handful of democrats in the senate supported the measure.
According to the Montana Free Press, those against the bill argued it may lead to property tax increases or could force the state to cut funding from other services.
Gianforte counters that by saying that the bill backfills the local communities that will be losing tax revenue with general fund dollars.
The bill initially raised the exemption threshold to $200,000, but that amount increased to $300,000 by the time it reached the Governor’s desk.
