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Butte’s Tax Laws are Great for Business

Montana is a state full of opportunities for entrepreneurs and business developers. And Butte’s tax laws make it an excellent place to conduct business. According to the 2021 State Business Tax Climate Index, Montana’s pro-business culture and tax-friendly laws place it well above average for quality of tax climate.

The Climate Index is organized by nationally acclaimed tax experts and researchers of the national nonprofit The Tax Foundation. Montana’s tax system is ranked 5th in the nation.

Montana’s Tax Climate

For over 80 years, the Tax Foundation has been working and researching in the US. Its goal is to inform policymakers, business leaders, and citizens of how different states’ tax systems compare to one another. The State Business Tax Climate Index displays how well a state’s tax system is structured as a whole and it provides annual guidelines for improvement. 

In addition, the Tax Climate Index evaluates how well each state’s tax system is designed. It also shows how well it functions day-to-day for both established business owners and entrepreneurs. Montana consistently ranks in the top ten best state tax climates for property, income, and sales tax laws.

No Sales Tax

Montana does not have a general sales, use, or transaction tax. This makes it easier for Butte business owners to afford necessary equipment and supplies.

No Inventory Tax

So, you’ve purchased the necessary machinery and supplies for your business– tax-free, of course! Your inventory will not be taxed in any way by the state of Montana. Money saved here can be used for other essential business needs.

Corporate License Tax

According to the Butte Local Development Corporation (BLDC), “Montana ranks third for mature corporate headquarters with a tax burden nearly 40% below the national average.”

With a relatively low corporate tax rate (just under 7%), the Montana Department of Revenue ensures current corporate entities flourish and new corporate entities find success.

Tax Incentives

There are plenty of tax incentives for those looking to start new businesses in Montana. Especially those that value environmental sustainability.

Montana is a state known for beautiful and wild landscapes and because of this, businesses that protect the natural state of their operational surroundings tend to be supported with greater intensity. According to the BLDC, businesses that operate using the following systems or policies often enjoy fewer taxes:

  • Alternative Energy Production
  • Biodiesel/Bio-lubricant Production Facilities
  • Biodiesel Blending and Storage
  • Capital Gains and Dividends from Small Business Investment Company
  • Contractors’ Gross Receipts
  • Empowerment Zone
  • Corporate Energy Conservation Investments
  • Film Employment Production and Film Qualified Expenditures
  • Geothermal Systems
  • Historic Building Preservation
  • Research and Development Activities
  • Infrastructure User Fees
  • Mineral and Coal Exploration
  • New and/or Expanded Manufacturing Industry
  • Oil Seed Crushing Facility
  • Recycling
  • Research and Development Firms Tax Exemption

It’s best to take advantage of these incentives and Butte’s tax laws. Entrepreneurs can curb start-up costs and get their businesses running smoothly quicker than ever before. Looking for more information about tax incentives? Visit the Montana Department of Revenue website.

The Butte Difference

While most tax climate evaluations happen at the state level, there are several factors that set Butte apart as a pro-business city. For instance, take Tax Increment Financing.

Local governments may use property taxes to supplement infrastructure costs for new and expanding businesses within established local districts. These are known as Tax Increment Districts and Butte has three of them. One of which is within the Montana Connections Business Development Park.

There are several Butte-based organizations that provide business planning assistance and this may include anything from securing capital from public funding sources to real estate and relocation. And this applies to both small and large businesses.

Final Notes

Butte’s tax laws are business-friendly and offer advantages for business owners and corporate site selectors. Butte, Montana, is undoubtedly one of the best places in the country to start a new business or settle a new corporate site. Built by and for the working class, Butte appreciates and supports its many local businesses.  

Given generous state laws as well as regional tax support, it seems obvious why many corporations are attracted to pioneering their businesses in Butte – the city already boasts some great examples of highly successful businesses. Don’t wait any longer. Bring your business to Butte! 

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