Speech
Martz/Ohs Administration Tax Plan Announcement
Remarks of Governor Judy Martz
State Capitol
4/15/2002
This is a very exciting day for our Administration and the citizens of our great state. ///
I have a vision for Montana as an economically vibrant place. To be economically vibrant, there are numerous elements to an economic strategy that all must work together. Those elements include tax reform, good paying jobs in a quality environment and education funding reform.
These are the cornerstones of our Administration. ///
Months of research and discussion by the Department of Revenue and my Office of Economic Opportunity have brought us here today. I want to take this opportunity to specifically thank Revenue Director Kurt Alme, Chief Business Officer Dave Gibson and their staffs for all their hard work.
I would also like to thank the many Montanans from across the state who have helped us formulate this plan. You have shared your ideas and solutions with us and have truly made this plan the peoples document. ///
After months of study and review, today, on tax day, I am announcing the largest income tax cut in over 30 years for the people of Montana. ///
We propose to cut income taxes for all Montanans by 10%. ///
Beginning in 2004, this 10% tax cut will mean a reduction of $66 million in state income taxes each year. ///
While economic growth and more tax revenue will be the long-term benefits of this reduction, in the short-term, we will need to find another source of revenue.
That source is non-resident tourists. ///
Montana has the lowest taxes on tourists in the entire Rocky Mountain region. Currently, our tax burden is on the shoulders of the hard-working citizens of this state – our workers and our investors.
That must change.
Millions of visitors come to Montana every year to enjoy our pristine streams and lakes, breathtaking mountain ranges, and all the wonderful recreational activities that come with them.
The tax dollars of all Montanans provide services to those welcome visitors such as infrastructure and services such as law enforcement. It is now time for Montana’s visitors to support those necessary services.
By exporting tax and importing revenue, we are shifting our tax burden off the shoulders of Montanans. This shift will put more money into the pockets of Montanans to spend and invest, and into Montana businesses to expand and create new jobs.
Based on estimates of increased tourist traffic expected in Montana for the Lewis and Clark bicentennial celebration, more services will be demanded. With our current tax structure, tourists will receive the benefits of services, but the citizens of Montana will continue to foot the bill.
We want to welcome the world to Montana to celebrate our great heritage – but that celebration should not be borne entirely on the backs of Montana taxpayers.
It is time for tourists to pay their fair share of the services we provide for them through the implementation of a local option tourist tax on the goods and services they most predominantly purchase. ///
A tax aimed at services provided to tourists could also benefit local communities.
Communities must be given the flexibility to address local economic development needs and property tax reductions, and for that reason I am also proposing a study of a local option tourist tax. Such a tax would have to be approved by the voters of the local community. ///
In the next week, we will be inviting Montanans to join us in developing this plan.
One committee will develop a specific proposal for a 10% income tax reduction for all Montanans and a reduction in the effective capital gains rate.
A second committee will develop recommendations of items that should be taxed under a statewide tourist tax to ensure tourists pay their fair share.
And a third committee will make recommendations on a local option tourist tax that would need to be approved by the voters of each community. ///
In preparation for the upcoming legislative session, we want input from Montanans on this plan. We would like to hear from legislators, business leaders and all citizens on how we can make this plan a reality and bring true economic stimulus to this great state.
We are confident that this plan will put money in the pockets of Montanans, bring in much-needed capital, and create and retain good paying jobs.
We are committed to bringing true tax reform to the people of Montana.
An income tax cut for all Montanans of 10% will be the largest income tax cut in over 30 years.
A tourist tax will ensure that tourists pay their fair share of the services we provide for them.
And a local option tourist tax could give communities the ability to respond to local needs.
Through this tax plan, we will continue to work to strengthen every Montana community and every Montana family.
Now I would like to turn the podium over to Kurt Alme and Dave Gibson to provide details of the plan and how this plan fits into the larger economic development framework. Thank you.
-end-
