Tax Relief for Farmers and Small Businesses in Montana

Missoula, MT (KGVO-AM News) - Montana Governor Greg Gianforte held his weekly press conference on Thursday in the State Capitol building, this time focusing on bills that he hopes will reduce, sometimes drastically, what he considers onerous business equipment taxes, especially on agricultural operations.

“So, what is the business equipment tax?, began Governor Gianforte. “For farmers, it's an annual tax on their tractors. It's an annual tax on every combine they own. For dentists and doctors, it's an annual tax on their machines, even on their instruments. For restaurant owners, it's an annual tax on their grills, even their knives, forks and spoons. For a carpenter, welder, plumber or home builder, it's an annual tax on all of their tools.”

Governor Gianforte Focused on Business Equipment Taxes

Gianforte looked back on the history of the business equipment tax.

“When I first took office, the exemption from the tax on equipment was only for $100,000 per small business,” he said. “If you were a farmer in 2021, you didn't have to pay the tax if your equipment was worth less than $100,000, but I've met many farmers, and they'll tell you their equipment is well north of $100,000. In fact, a single tractor costs more than that, and a single combine is closer to a million dollars.”

Gianforte looked back on his efforts to rein in the business equipment tax.

Gianforte said his Efforts have Removed Over 5,000 Businesses from the Tax Rolls

“As a result of our efforts, we've managed to cut taxes for businesses, taking more than 5,000 small businesses, farms and ranches, off the business equipment tax roll entirely,” he said. “But we're not done yet. We need to go farther. My budget proposed increasing the exemption for the tax on business equipment from $1 million to $3 million.”

Gianforte singled out Montana Senator Josh Kassmier for his efforts in passing important legislation to help reduce business equipment taxes.

Gianforte Praised Senate Bill 322 by Senator Kassmier

“Introduced this year by Senator Kassmier, Senate Bill 322 makes this reform a reality by further reforming the burdensome tool tax,” he said. “So, another 700 businesses, farms and ranches will come off the tax rolls. Montanans sent us here to cut taxes and expand opportunity, and cutting this tax does exactly that.”

Gianforte also took questions from reporters present at the press conference following his prepared remarks.

Click here to see the full press conference with Governor Gianforte.