BLOG ARCHIVESBLOG ARCHIVES
VIEW OUR APPSVIEW OUR APPS

Montana has the Eighteenth Lowest Tax Burden in the Nation for 2013

Apr 13, 2015


In Fiscal Year (FY) 2013, Montana collected $3.8 billion in state and local taxes. While this is an impressive sum of money, it tells us little about whether or not the average Montana taxpayer can afford this level of taxation.


As shown in Chart 1 below, Montana’s state and local tax burden (tax collections divided by personal income) was the eighteenth lowest in the nation for FY 2013 at 9.7 percent—this is -6 percent below the national average of 10.3 percent. As shown in Chart 2, Montana’s tax burden has increased over time by 24 percent to 9.7 percent in FY 2013 from 7.8 percent in FY 1950.


Montana State and Local Tax Burden Rank 2013.jpg




Montana’s low state and local tax burden is driven by the fact that it does not have a state sales tax.  Of course, Montana can essentially pay for not having the sales tax because of money stemming from natural resource extraction—all other taxes are significantly higher than the national average (3.2 percent, 7th highest).


Montana levies a coal severance tax (pdf) which raised $56.6 million in FY 2013—half of the revenue goes into the General Fund and other funds while the other half goes into the Coal Severance Tax Trust Fund. In FY 2012, the Trust Fund had assets worth nearly $900 million. The interest on the Trust Fund goes to fund numerous programs in education, infrastructure, and economic development.


#Montana #taxburden has grown 24% between FY 1950 to 2013 to 9.7% from 7.8%. (click to tweet)


Of course, the tax burdens for local government can vary just as much as they do among the 50 states. As such, we have also calculated the local government tax burden for every county in Montana—this includes every taxing jurisdiction within the geographic county borders whether it is a city, a special district, or county government itself.




The Montana counties with the highest local government tax burden include: Carter County, MT (6.8 percent), McCone County, MT (6.6 percent), and Powder River County, MT (6.5 percent). The Montana counties with the lowest local government tax burden include: Richland County, MT (1.4 percent), Jefferson County, MT (2.2 percent), and Custer County, MT (2.2 percent).


Click here to view tax burden data by state, county, type of tax, and for years 1950 to 2013.


Montana State and Local Tax Burden 1950 to 2013.jpg



Category: Tax Burdens

J. Scott Moody

Scott has nearly 20 years of experience as a public policy economist. He is the author, co-author and editor of over 180 studies and books. His professional experience also includes positions at the American Conservative Union Foundation, Granite Institute, Federalism In Action, Maine Heritage Policy Center, Tax Foundation, and Heritage Foundation.


blog comments powered by Disqus

Check Out Our Unique Apps:

U.S. Capitol.jpg

Government Workforce

Tax Squeeze.jpg

Tax Burden

Strings Attached to Federal Dollars.jpg

Federal Tax and Spend

Hundred Dollar Bill.jpg

Cost of Living (COLI)

Baby.JPG

Demographic

Measuring a Dollar.jpg

Federal Tax & COLI

Retired.jpg

Federal Pension

United States Office of Personnel Management Seal.jpg

Federal Payroll

Check Out All Posts For Your State:

Alabama.jpg  Alabama

Alaska.jpg  Alaska   

Arizona.jpg   Arizona 

Arkansas.jpg  Arkansas

California.jpg  California

Colorado.jpg  Colorado

Connecticut.jpg  Connecticut

 Delaware.jpg  Delaware

Florida.jpg  Florida

 Georgia.jpg  Georgia

Hawaii.jpg  Hawaii

  Idaho.jpg  Idaho

   Illinois.jpg  Illinois

   Indiana.jpg  Indiana

  Iowa.jpg  Iowa

  Kansas.jpg  Kansas

  Kentucky.jpg  Kentucky

   Louisiana.jpg  Louisiana

   Maine.jpg  Maine

  Maryland.jpg  Maryland

Massachusetts.jpg  Massachusetts

Michigan.jpg  Michigan

Minnesota.jpg  Minnesota

  Mississippi.jpg  Mississippi

Missouri.jpg  Missouri

Montana.jpg  Montana

Nebraska.jpg  Nebraska

Nevada.jpg  Nevada

New Hampshire.jpg  New Hampshire

New Jersey.jpg  New Jersey

New Mexico.jpg  New Mexico

New York.jpg  New York

North Carolina.jpg  North Carolina

North Dakota.jpg  North Dakota

Ohio.jpg  Ohio

Oklahoma.jpg  Oklahoma

Oregon.jpg  Oregon

Pennsylvania.jpg  Pennsylvania

Rhode Island.jpg  Rhode Island

South Carolina.jpg  South Carolina

South Dakota.jpg  South Dakota

Tennessee.jpg  Tennessee

Texas.jpg  Texas

Utah.jpg  Utah

Vermont.jpg  Vermont

Virginia.jpg  Virginia

Washington.jpg  Washington

West Virginia.jpg  West Virginia

Wisconsin.jpg  Wisconsin

Wyoming.jpg  Wyoming