Montana 2025 Regular Session

Montana Senate Bill SB93

Introduced
1/6/25  
Refer
1/13/25  
Engrossed
2/3/25  
Refer
2/4/25  
Refer
4/22/25  
Enrolled
4/29/25  

Caption

Revise income taxes related to retired military members

Impact

If enacted, SB93 will significantly affect Montana's tax landscape by amending Section 15-30-2120 of the Montana Code Annotated. It will potentially allow military retirees and their families to retain more of their retirement income, thus enhancing their financial stability. Furthermore, the elimination of the sunset provision will provide long-term predictability and certainty for those making financial plans around their military-related incomes. This could also attract more military families to relocate to or remain in Montana, positively impacting the local economy.

Summary

Senate Bill 93 (SB93) is an act aimed at revising income tax provisions in Montana concerning military pensions, retirement incomes, and survivor benefits. The bill expands the existing tax exemption for military-related incomes to a broader group of individuals who either became residents of Montana or maintained their residency after a certain date. Additionally, the bill seeks to eliminate the current five-year limit on claiming these exemptions and to remove the statutory sunset that was previously applied, ensuring sustained tax relief for eligible taxpayers.

Sentiment

The general sentiment around SB93 appears to be positive, especially among veteran advocacy groups and military families, who view it as a crucial recognition of their service. Legislators supporting the bill argue that it will ensure better financial security for military personnel and their dependents. However, some concerns may arise regarding the financial implications for the state's tax revenue as the bill expands the scope of tax exemptions.

Contention

While the bill enjoys broad support, notable points of contention may center around the fiscal responsibility of such tax exemptions. Critics might question the long-term sustainability of these financial concessions and how they fit within broader state budget considerations. Additionally, there is the potential for debate on whether the bill adequately addresses the needs of other senior citizens and non-military retirees, ensuring fairness in tax policy across different demographics.

Companion Bills

No companion bills found.

Previously Filed As

MT HB652

Eliminate state taxes on veterans retirement

MT SB1

Personal income taxes: exclusion: Military Services Retirement and Surviving Spouse Benefit Payment Act.

MT SB53

Revise income tax laws to provide conforming changes for prior legislation

MT HB827

Revise social security income taxation

MT SB1407

Personal Income Tax Law: exclusions: military retirement pay: survivor benefit pay.

MT HB60

Income Tax - Subtraction Modification for Military Retirement Income (Keep Our Heroes Home Act)

MT SB26

State Income Taxes; with regard to military retirement income, to determine and apply a cost-of-living adjustment to the amount of allowable retirement pay; require the state revenue commissioner

MT HB4201

Individual income tax: retirement or pension benefits; department of corrections retirement and pension benefits; exempt from income taxes. Amends sec. 30 of 1967 PA 281 (MCL 206.30).

MT SB1371

Income tax; subtraction; retirement distribution

MT HB761

Income Tax - Subtraction Modification for Military Retirement Income (Keep Our Heroes Home Act)

Similar Bills

No similar bills found.