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Bill Summary · HB 148

Legislative bill overview

HB 148 proposes to eliminate Montana's state income tax on Social Security benefits, which currently are taxed as ordinary income for residents whose total income exceeds certain thresholds. The bill would provide tax relief specifically to Social Security recipients by exempting these benefits from state taxation.

Why is this important

Montana currently taxes Social Security income for higher-income retirees, making it one of only 13 states that do so. Passage would reduce tax liability for seniors, potentially improving retirement security for fixed-income households, though the fiscal impact on state revenues would need to be offset elsewhere in the budget.

Potential points of contention

  • Revenue impact: Eliminating this tax source reduces state general fund revenue without identified offsetting cuts or new revenue sources, raising questions about budget sustainability
  • Equity concerns: The benefit primarily helps higher-income retirees whose Social Security combines with other retirement income above taxable thresholds; lower-income seniors already pay little to no tax on these benefits
  • Implementation: Requires administrative changes to tax code and may create complications for joint filers with mixed income sources

Compiled from official sources — confirm details with the bill’s official record.

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