A bill to reduce state taxes on Social Security income is moving through the Montana Legislature.
The bill would exempt from taxes the first $30,000 in Social Security income for a single person and $60,000 for a couple.
The Senate passed the bill 31-19 in late February and the House endorsed it 61-39 on second reading Monday. The current exemptions of $25,000 for an individual and $32,000 for a couple were set in 1983 and have not been adjusted for inflation.
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The bill also cleared the House Appropriations committee on a 12-10 vote Thursday. A fiscal note estimates the proposal could save Montana seniors a combined $16 million a year starting in July 2020, with that number increasing as the state's population ages.
Supporters say the tax reduction would help seniors better afford their increasing property taxes. Opponents worry about losing the money from the state budget.