Gov. Bullock and Sen. Tutvedt Praise Equipment Tax Exemption.
Flathead Senator Bruce Tutvedt met with Governor Steve Bullock in Helena at the Great Harvest Bread Company earlier this afternoon to highlight and explain a new law that cuts taxes on Montana's businesses. ABC Montana's Joe Moeller brings us more from Helena.
"Now we are completely eliminating all businesses equipment taxes for Great Harvest Bread Company and another almost 11,000 businesses throughout the State of Montana." says Governor Steve Bullock.
Beginning January first businesses like this Great Harvest Bread Company in Helena will be saving money due to the new law, SB 96, that exempts or lowers taxes on business equipment.
Under SB96, proposed by Senator Bruce Tutvedt and signed by Governor Steve Bullock, businesses that own less than $100,000 worth of equipment will now be exempt from paying taxes on that property.
Governor Bullock and Senator Tutvedt Stopped by and toured this Great Harvest Bread Company to see how this law will impact this business and others around the state.
"This really is a main street Montana business and as Senator and I tour that part of what makes this success products and the people but it is also the tools of the trade are businesses equipment that in the past has been taxed." continued Bullock.
The law will cut taxes on 17,000 businesses around the state, and for nearly 11,000 of those businesses, including this bakery in Helena, they will not see equipment tax at all.
"We don't have a lot of extra money so I mean any little bit will help, because it is just money we didn't have and now we can put it back in the business." says the owner of Great Harvest Bread Company, Ray Clum.
Senator Tutvedt sees his bill as a way to help Montanan companies grow and to ultimately grow Montana's economy.
"We wanted to find ways to improve the business environment in Montana for main street in employers better opportunity to employee more people, be more productive so we can have higher wages, be a better place to do business and raise families." says Senator Bruce Tutvedt.
Businesses that own more than $100,000 in equipment will be exempt from the $100,000 of equipment value, and those with value between $100,000 and $6 million will pay tax on 1.5% which is reduced from 2%, in total businesses around the state save roughly $11 million. This week businesses were sent a letter notifying them the change was coming on this tax.