People who rent rather than own their homes in Montana haven't been forgotten, after all, and they have a House Republican and a House Democrat working together to thank.
Last year, Democratic Gov. Brian Schweitzer and state Republican leaders each issued property-tax relief plans that, one way or another, would return some of the state's projected budget surplus to homeowners. But neither party had anything to say about renters.
That changed when House Majority Leader Michael Lange, R-Billings, and Rep. Kendall Van Dyk, D-Billings, separately introduced bills to let renters into the party via a new tax credit. Lange's bill was amended to include some of Van Dyk's ideas, and this week the House gave the measure preliminary approval by an overwhelming 90-9 vote.
The rebate for renters earning below an individual's gross adjusted household income of $45,000 a year would be equal to 3 percent of the gross rent paid by the renter. (If your rent was $500 a month, your credit would be $15 a month, or $180 a year in credit subtracted dollar for dollar from your income tax bill.)
In cases where roommates share the rent, the credits would be divided among all the payers proportionately to the amount each of them pays.
We hope the renters' benefit gets an equally warm reception when it moves on to the Senate. It certainly is the right thing to do.
Posted in Opinion on Wednesday, February 14, 2007 12:00 am
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