Posted: Feb 6, 2013 3:38 PM by Marnee Banks - MTN News
HELENA - Gov. Steve Bullock's plan to cut taxes on Montana businesses received a hearing on Wednesday.
Bullock's bill would entirely eliminate the business equipment tax on companies with less than $100,000 worth of equipment. Business equipment taxes are paid on items like construction vehicles, machinery, mining equipment, tools and furniture.
The current law says businesses with $20,000 or less in equipment are exempt from the equipment tax. Businesses with equipment valued between $20,000 and $3 million are taxed at 1.5%. Any equipment over $3 million is taxed at 3%.
Republican Senator Bruce Tutvedt (Kalispell) also has a plan to reduce the business equipment tax. His bill would raise the threshold so businesses with equipment valued at less than $10 million would be taxed at 1.5% and those above that threshold would pay 3%.