The Revenue Interim Committee began to wrap up its interim work at a meeting on July 21. The agenda included agency updates and required reports, an update on the tax deed process, and continued work on the required review of tax credits.

The committee requested as committee legislation five draft bills that address errors or outdated provisions of law.

As a result of the committee's review of certain tax credits, the committee requested as committee legislation two bills:

• TC01: revising the credit for energy conserving expenditures; and
• TC02: repealing the new or expanded industry credit.

The committee recommended not reviewing the foreign states tax credit in the future but will review a bill draft to revise the tax credit review process to require all other credits to be reviewed on a 10-year cycle. Draft legislation will also be presented to allow for the alternative energy systems credit to be refunded and to increase the minimum project amount for public projects subject to the contractor's gross receipts tax.

The committee did not make a recommendation about the elderly homeowner or renter credit. The HJ 35 Tax Study Committee recommended to the Revenue Interim Committee a broader property tax circuit breaker credit that would repeal the elderly homeowner and renter credit. The committee will consider recommendations about the elderly homeowner and renter tax credit after considering the property tax circuit breaker credit bill.

The committee also asked staff to draft two other bills to:

• Address county treasurer concerns about the tax deed process for residential, agricultural, and forest property with a dwelling; and
• Remove the tax haven list from corporate income tax laws and to instead provide criteria for the Department of Revenue to determine tax havens.

The Department of Revenue also asked the committee to request four bills on behalf of the agency. The committee approved the request.

The Revenue Interim Committee will join the Legislative Finance Committee, Legislative Council, and Legislative Audit Committee for a revenue update on August 12. The Revenue Interim Committee will likely hold a short meeting in August on a date to be determined.

Committee staff: Megan Moore, memoore@mt.gov or 406-444-4496
Committee website: https://www.leg.mt.gov/committees/interim/2019rvic/