For the legislative week ending February 6

Date: February 06, 2015

Lower Business Equipment Tax Passes
A top priority of NFIB/Montana in this session of the Montana Legislature is House Bill 213, which increases the amount of equipment valuation exempt from the business equipment tax from $100,000 to $500,000. 
The bill is sponsored by Rep. Mike Miller (R) Helmville. On February 6, it passed the House Tax Committee on a 12-to-8 vote. It is now headed for a second reading on the House floor next week.
In its original form, the bill did not reimburse local governments for their loss in revenue. This is called backfilling. In 2013, the Legislature raised the amount of equipment valuation exempt from the tax from $20,000 to $100,000, and did backfill the local communities. 
Before passing from the House Tax Committee February 6, HB 213 was amended to backfill local governments, raising the financial impact to the general fund by some $20 million. The original fiscal impact was $4.3 million over two years. Mike Kadas, director of the Montana Department of Revenue, opposed the bill on behalf of Gov. Steve Bullock’s office. 

Balanced Budget Amendment
Another priority for NFIB/Montana is House Joint Resolution 4, sponsored by Rep. Matthew Monforton (R) of Bozeman, which calls on the Congress to form a constitutional convention by enabling Article V of the U.S. Constitution for the sole purpose of forcing the federal government to balance its annual budget. 
A hearing was held on February 3 by the House Judiciary Committee. No action was taken. A similar bill, Senate Joint Resolution 7 by Sen. Roger Webb (R) of Billings, was also heard also on February 3, before the Senate Judiciary Committee but was promptly tabled in executive action. 
A third bill calling for an Article V convention was heard in the House Administration Committee the same day. This is House Joint Resolution 3 by Rep. Elli Hill (D) of Missoula. It is still awaiting executive action.
Taxes
Meanwhile this week, the Senate endorsed a bill February 5 to cut individual income taxes in Montana by some $55 million a year.
Senate Bill 200, sponsored by Sen. Duane Ankney (R) of Colstrip, passed the Senate on a 29-to-20, party-line vote. It was sent to the Senate Finance Committee for a review before the Senate takes a final vote on the bill next week. 
The House on Friday passed and sent to the Senate two bills to reduce income taxes by a combined $120 million over the next two years. 
One was House Bill 166, sponsored by House Majority Leader Keith Regier (R) of Kalispell, that cuts state tax rates by one-tenth of one percent. It passed the House 56-to-41. 
The second tax bill to pass the House was House Bill 169 by Rep. Art Wittich (R) of Bozeman. It is a one-time income tax cut and a tax break for residential property owners of up to $100. This bill passed the House 57-to-41. 
Another Senate tax bill, SB 171 by Rep. Bruce Tutvedt (R) of Kalispell, is sitting in Senate Taxation Committee awaiting action. It was heard in committee on January 29.
And finally there is House Bill 266 by Rep. Nicholas Schwaderer (R) of Superior. He proposes putting a 10 percent income tax cut across the board to a vote of the people. Many groups spoke against this measure in a hearing on February 6, because they felt it was the job of the Legislature to lower taxes, not the job the people.  
All of these tax-cut bills may get a negative reaction if passed by both houses when they go before Governor Bullock with his vow to maintain a $300,000 ending fund balance for the next two years. 
Gasoline Tax
A bill that would have raised the gasoline tax by five cents, HB 275 by Rep. Nancy Wilson (D) of Missoula, was tabled in the House Transportation Committee, February 2. It proposed to raise the gas tax from the current 27 cents to 32 cents. 
Hiring of Military Veterans, Spouses
A bill that would allow employers to adopt hiring preferences for military veterans and qualified spouses without violating equal opportunity laws was heard before the Senate Business Committee last Monday. This is Senate Bill 196 by Sen. Mary Caferro (D) of Helena, and is awaiting committee action next week.
Paycheck Fairness Act
A bill reported on last week, Senate Bill 158, which would prohibit employers from not allowing employees to discuss wages and benefits with other employees, was tabled in Senate Business Committee on February 3.
Upcoming Hearings
  • A big bill opposed by NFIB/Montana will be heard February 9 in the House Business Committee. This is House Bill 384 by Rep. Mary Ann Dunwell (D) of Helena. This bill would raise the minimum wage in increments over two years to $10.10 per hour. It would also halt the annual increases currently in place until the $10.10 target was reached, and then continue the inflationary raises thereafter.
  • A priority from 2013 for NFIB/Montana, the Small Business Impact Act that required state agencies to consider whether proposed rules would have an economic effect on small businesses, was passed. But, it had a sunset of July 2015 to see how the law would be used and received. House Bill 396 by Rep. Don Jones (R) of Billings has been introduced that would take away the sunset provision and make the law permanent. A hearing is scheduled for February 10 in the House Business Committee. 
  • Another bill of interest to NFIB/Montana is House Bill 277. It would give employers a tax credit of up to $1,000 for hiring qualified apprentices in their businesses. A hearing is set for February 11 in House Tax Committee. NFIB/Montana will be supporting this bill. It is sponsored by Rep. Christy Clark (R) of Havre. 

Getting Involved 
Getting involved in the 2015 Legislature is easy. The best way to have your voice heard quickly is to phone 406-444-4800. Operators are on hand in the Capitol Building to take messages up to five legislators for each call, and delivery is within a half an hour. For those wanting more information on locating legislators, getting an e-mail address, looking to view committee meetings and floor sessions on television or over computers, and just to review all hearings and reading of the actual bills, they can go to www.leg.mt.gov and access everything electronically.
      
Past Reports
 

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