Perry bill looks to cut business taxes

A bill sponsored by House District 3 representative Zac Perry could give local governments the ability to offer even greater tax breaks to new businesses or businesses that want to expand in Montana.

House Bill 226 would give new or expanding businesses a 75 percent property tax abatement in their first five years. After that, the tax abatement would go up 15 percent a year until the business met its full property tax obligation.

Currently, Montana law allows up a to a 50 percent tax abatement.

Perry, a Democrat, told the Hungry Horse News recently the bill could help a business like SmartLam expand in Columbia Falls. The bill is part of Gov. Steve Bullock’s Main Street Montana program, which looks to encourage new business development in the state.

The governor specifically cited the tax cut in his state of the state address last month.

The tax break isn’t automatic for a new business. It’s at the discretion of the taxing body — whether it’s a county or city and the law requires a public hearing on the tax break.

The business must apply for the break and if it’s denied by the local governing body within 120 days of the application, the business can challenge the decision in district court.

Last month, the bill received a hearing in the House Taxation Committee, where most people and organizations spoke in favor of the measure, though it was suggested the bill might be amended to allow either a 75 or 50 percent tax abatement.

The Montana League of Cities and Towns, the Montana Taxpayers Association and the Montana Chamber of Commerce all expressed support for the bill.

The bill is expected to get a vote on the House floor this week, Perry said.