Lawmakers Approve Major Income Tax Cuts with Passage of House Bill 337

Montana taxpayers are set to see lower income taxes following the Legislature’s approval of House Bill 337, a flagship proposal backed by the Republican majority and sponsored by House Speaker Brandon Ler (R-Savage). The bill passed the Senate on April 18, 2025, delivering a key win for GOP lawmakers who campaigned on reducing the state’s tax burden.

HB 337 modifies Montana’s income tax structure by lowering rates and shifting more residents into the lowest tax bracket, a move Republicans say will provide permanent relief to working families. The measure also reduces the state’s top income tax rate. In a post on social media platform X, the Montana House GOP declared, “HB 337 means lower rates and more money in your pocket!”

Originally introduced with automatic annual tax reductions, the bill was amended in the Senate to include financial triggers. These benchmarks must be met for future rate cuts to proceed, addressing concerns about the state’s long-term fiscal stability. “We’re ensuring responsible tax cuts that benefit Montanans without jeopardizing deficits,” Speaker Ler said during floor debate.

The Senate vote followed party lines, with Republicans unified in support and Democrats opposed. Democratic lawmakers criticized the bill as disproportionately favoring high earners and potentially undermining state-funded services. Republicans countered that the broad-based tax relief would boost economic activity and benefit residents across income levels.

“Montanans sent us here to reduce government overreach and let them keep more of their money,” Ler said. “HB 337 delivers on that promise.”

Speaker Ler, a rancher in his third term and newly elected to his leadership role this session, has prioritized tax reduction and limited government. His push for HB 337 builds on a legislative record that includes support for Second Amendment rights and expanded parental authority.

By: Politics406 staff