House Leader Pitches Sales Tax Proposal for Montana

By Beacon Staff

HELENA – The Republican House Majority leader is proposing a plan to do away with Montana’s income tax and replace it with a sales tax.

Rep. Tom McGillvray says House Bill 596 would boost the state’s economy by eliminating the time and cost of income tax filing.

Other supporters say states with a sales tax instead of an income tax attract workers and increase wages.

No opponents spoke at the bill’s hearing Wednesday but a recent poll conducted by Lee Newspapers found that only 25 percent of Montanans support replacing the income tax with a sales tax.

McGillvray’s measure would repeal the state’s income tax but does not provide an exact plan for a sales tax. The bill asks for a study of how best to craft a tax plan.

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