Lots on taxes after transmittal

We are now past the transmittal cutoff, which means the bills that did not make it from one house to the other in time are now dead, so to speak. No need to worry however, there are still plenty of bills to watch as they move through the bill-making process, some of which I have concerns about. The concerns are either wanting a bill to pass or hoping it dies.

We had one of these concerning bills come through the Senate Tax Committee this last week. The short title of SB 511, introduced by Sen. Daniel Zolnikov, R-Billings, seemed like it might fix some of the state’s runaway property tax increases. “An act generally revising property tax limits of increases,” or words to that affect, was to do away with newly assessed property taxes for new construction, be it new sub-divisions or industry. The problem with SB 511 is that the counties rely on these taxes and need them in order to operate effectively. The only proponent (in favor of the bill) was the governor’s office, as incidentally the state would get their full share whether the bill passed or not. More than 30 city and county folks came in opposition of (against) the proposed tax formula that was to be used, which would limit what cities and counties would get from new construction. As of now, the counties and the sponsor of the bill are trying to work out a compromise that slows the property tax increase, but still allows for cities and counties necessary dollars to function. This bill, as we heard during the public hearing and as previously stated, had the intention of alleviating some of the tax burden for the fast-growing areas of the State. However, it had the consequence of doing harm to smaller rural areas. It also meant more local control lost to the State.

Additional bills I am paying close attention to have to do with energy and tax credits. Calumet, the refinery in Great Falls, is developing a green diesel. They are asking the state for a tax credit on the new part of the facility that is being repurposed for development of the fuel. It will be a green tax credit, much like the solar credits that are currently offered. The fuel is being transported to the west coast, where buyers are willing to pay a premium for anything called a green fuel product.

Also, the media industry is seeking more tax abatements or credits, which they have done in at least every legislative session while I have been senator. As of now, they receive a $12 million credit and want more, upwards of a $30 million credit. They claim they bring more to the state in revenue, including tourism, than the credit we would be granting. I do have an issue with businesses requesting a subsidy to continue to exist. While I can justify maybe one to get started, I do not support credits in perpetuity. Not everyone agrees with me, so we continue to talk.

As always, be safe!

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Sen. Russ Tempel. R-Chestser, can be emailed at [email protected]