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Revenue &Transportation Interim Committee June Update


Posted Date: 
June 4, 2012
Contact: 
Megan Moore, Committee Staff

RTIC Winding Up Work on Two Interim Studies

In April, the Revenue and Transportation Interim Committee decided to wrap up the House Joint Resolution 13 study of simplifying individual income taxes and the Senate Joint Resolution 23 study of tax exemptions of nonprofit organizations.

Committee Finishes Nonprofit Tax Exemption Study

Nonprofit organizations listed under 26 U.S.C. 501(c) of the Internal Revenue Code are exempt from federal income taxation. Most exempt organizations must file a Form 990 with the Internal Revenue Service to maintain the tax exemption.

Many nonprofits in Montana are also exempt from state corporation license taxes. As part of the SJR 23 study, Megan Moore, committee staff, used information from Form 990 to estimate the amount of taxes nonprofit organizations with the highest levels of income would pay if they were subject to the state's corporation license tax. She said that imposing the corporation license tax on nonprofits could generate, under certain assumptions, as much as $32 million a year.

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Megan Moore | 406-444-4496 | memoore@mt.gov