Montana / State / 2023 Session
Ch. 650, L. 2023 (Senate Bill 104) Created the Montana subtraction for military pension and survivor benefit income
Added 15-30-2120(3)(n), (8) and (9), letting a taxpayer subtract a portion of military pension or retirement income and up to 50 percent of military survivor benefits from federal taxable income, first available in tax year 2024. Almost every description of it as a 50 percent exemption is wrong in the same way: subsection (8) caps the pension subtraction at the lesser of 50 percent of the pension or the taxpayer’s Montana source wage income, so a retiree with no Montana earnings subtracts nothing. Subsection (9) also excludes anyone who became a Montana resident before June 30, 2023 while already drawing the pension, and limits the subtraction to five consecutive years. The survivor benefit subtraction in (3)(n)(ii) is not caught by the wage cap, which the drafting makes plain and which no summary mentions.
Progress
Path to law: Bill in a two-chamber legislature
- Introduced Done, Senate
- In committee Done, Senate Taxation and Finance and Claims, then House Taxation and Appropriations
- Passed one chamber Done, Senate, 45-4
- Passed both chambers Done, The House passed it amended 72-27 on April 28, 2023 and the Senate concurred 47-2
- Signed by the governor Done,
- In effect Done,
Sponsors
- John Fuller
What it touches
- Mont. Code Ann. § 15-30-2120
Catalog entries (2)
Official record
Read Ch. 650, L. 2023 (Senate Bill 104) on the jurisdiction's own record