Tax relief & school funding, oh my!

With Montana Republican legislators taking a shotgun approach to all kinds of tax relief, it’s difficult to say how it all will turn out, but it is laudable that taxpayers are being put on a priority pedestal.

GOP leaders in the House and Senate are making it clear that when it comes to “the end game” of passing a balanced budget in Helena, some taxpayers will be at the table along with the players that are always at the table from education, human services, corrections and other constituencies that pursue increased government spending.

And the Republicans are making it clear that their tax relief proposals are the ones that will be the last ones standing. They have put Democratic Gov. Steve Bullock’s proposals for eliminating the business equipment tax on small businesses and a one-time $400 rebate for homeowners on ice in committee.

Meanwhile, Sen. Bruce Tutvedt, R-Kalispell, is pushing a business equipment tax reduction with higher exemptions; Rep. Scott Reichner, R-Bigfork, has sponsored a permanent property-tax-relief bill that amounts to about $100 million annually; and there is legislation being considered to simplify the state’s income tax as well as to exempt from taxes pollution-control equipment required by new federal regulations.

All these proposals have moved on to either the House or Senate after being passed by the other. Of course, eventually these Republican bills will all be competing for a limited amount of money available for tax relief, and they will be competing for the favor of Gov. Bullock, who still can wield the veto pen.

That brings us to probably the most celebrated tax relief measure, which is actually a bill aimed at restructuring school funding that is sponsored by Sen. Llew Jones, R-Conrad.

Senate Bill 175 relies on an influx of natural resource revenue as a means to provide funding for schools and tax relief for homeowners at the same time. The bill would do both to the tune of more than $100 million over a two-year period.

Jones tried something similar two years ago that did not clear the Legislature. Since then, he has managed to build a coalition of support among education and business groups, and as a result the bill cleared the Senate with a combination of Republican and Democratic backing.

In the end, Jones’ bill could be going head-to-head with Reichner’s permanent property-tax-relief bill, and that’s where reality might set in for Republicans.

The bottom line is that whatever tax relief clears the Legislature, it also must win the signature of Gov. Bullock, the Democrats’ main source of leverage in this arena. Our guess is that Jones’ bill, with its coalition of support, will stand a better chance.

But Montanans should be confident that some form, or even multiple forms, of tax relief is probably heading their way.

Editorials represent the majority opinion of the Daily Inter Lake’s editorial board.