Governor seeks elimination of equipment tax
By Montana Governor
Brian Schweitzer
Montana's economy is on the rebound. Jobs are being created. Commodities are at record production levels and at record prices, tourist visits at new highs and new technology companies are choosing to locate in Montana in record numbers. Unlike almost all other states, we have “cash in the bank”– currently over $330 million. Our state's finances are sound.
Montana's economy can only be as strong as our main streets. Economic development and job creation have been a priority for my administration, and I assure you it will continue to be a driving force – Montana is open for business! Improving the economy of Montana is a never-ending process that begins with our small businesses.
We already have cut more taxes for more businesses and citizens than any administration in Montana history. To preserve and even improve our outstanding business climate, I propose to eliminate the business equipment tax for 98.6 percent of all Montana businesses. The proposal will eliminate this tax for 30,500 total businesses, 13,000 from our previous efforts in 2005 and 17,500 from this plan.
Homeowners also deserve a tax break. I propose to allocate $36 million in income tax credits so that homeowners are able to reduce $36 million from the property tax on their home.
As many of you know, the executive budget was due Nov. 15. The budget I presented is balanced. Once again, I call for strong reserves to be maintained – $125 million – as “grain in the bin” to protect for the future. No other administration has built up our state's finances so strongly. Our bond ratings are higher today than they have ever been.
Montana is fortunate to be weathering the economic turmoil wreaking havoc on our nation's economy. In fact, our economic rankings in the nation continue to climb due to our pro-business environment and sound policies. Montana currently has the following high national rankings:
• Entrepreneurship and overall business start-up activity – first.
• Economic performance in economic competitiveness index – second.
• Sales taxes for business – third.
• Most educated workforce – fourth.
• Overall tax climate for business – sixth.
• Cost of Labor (includes productivity) – sixth.
• Overall business climate – eighth.
• Combined state and local tax burden – eighth lowest.
• Quality of life – eighth.
• State economic growth over last 3 years – eighth fastest.
• Property tax index – tenth.
Montana has had strong job growth – at record high wages:
• 5,000 private sector jobs created in the first 8 months of 2010.
• Highest average wages in Montana history.
• Executive branch job growth held to less than 1 percent per year over the last 10.
Montana is a special place. It is the best place to start a business, raise a family and build a community. Thank you for your commitment to Montana's main streets – I appreciate all that our tavern owners and small businesses contribute.
I look forward to continuing to work with you to make our great state – even better. Growing our state is something I can't do alone – I want to hear from you. Please visit our website at www.governor.mt.gov and submit your good ideas or apply for boards or councils. Or stop by when you are in Helena – the door is always open.
Happy holidays!