HELENA – A Missoula lawmaker is sponsoring a bill that would create a new 7.9 percent tax bracket for people with annual incomes over $250,000.
Democratic Rep. Dave McAlpin told the House Taxation Committee that House Bill 395 is aimed at partially reversing a 2003 bill that revised state income tax law. He says the 2003 legislation was projected to cut tax revenues by $26 million per year, but actually turned out to be $100 million annually.
McAlpin says his proposed tax rate is still lower than the 11 percent top rate in place before the 2003 law was passed. He said the change would increase state income tax collections by $20 million annually.
Montana’s top income tax rate is 6.9 percent for taxable income above $14,900.
Don Hoffman of the Montana Taxpayers Association says given the current economy, it’s not the time to raise anyone’s taxes.