Last week, Governor Gianforte debuted his budget proposal. It provides an outline of priorities that goes to the legislature for consideration, debate, and passage before returning to the governor’s desk in the form of enrolled bills awaiting his signature. Coming in at $100 million less than Governor Bullock’s previous proposal, it helps to address an issue we all knew was coming as a consequence of Covid–a reduced budget.
The four key points of focus for the governor’s budget are: tax relief, trades education, teacher pay, and substance abuse treatment–each an area our business community is interested in. Below are some of the highlights:
- Reduces the top marginal income tax rate from 6.9% to 6.75%.
- Approximately 4,000 businesses will not have to pay business equipment tax with a proposed raise to the exemption threshold.
- Nearly a half billion dollars is proposed to go toward infrastructure.
- Revenue from cannabis sales and a tobacco settlement, expected to total $23.5 million, will go to substance abuse treatment.