Rob Natelson points to Montana's income tax history in warning on Amendment 87
Oct 20, 2026 · 8 min · 7 segments
- Speakers
Kim MonsonHost
Oct 20, 2026 · 8 min · 7 segments
Kim MonsonHost
Rate records compiled by the Institute on Taxation and Economic Policy put its top rate at 4% until 1958, when it rose to 5%, followed by 7% in 1960, 7.9% in 1965, and 10% in 1967.
In the late 1950s and early 1960s, they started jacking that rate up to make it more progressive, Natoulson said.
Montana's 11% rate was the highest statutory top income tax rate among the states from 1988 through 1990, and from 1996 through 2004, according to the Institute's records, and California matched it in 1991, 1992, 1994, and 1995.
Montana legislators met in special sessions to balance the state budget or cover revenue shortfalls twice in 1992 and again in 1993 and 2002, according to the Montana Legislature's record of special sessions.
Montana ranked 15th among today's 50 states in per capita personal income in 1950 and no lower than 23rd through 1958, according to figures from the U.S. Bureau of Economic Analysis.
It ranked 29th in 1965, 33rd in 1971 and 1981, and 48th, its lowest ranking, in 1996 and 1997, before ranking 47th in 2000.
Natoulson said he urged Montana to adopt a flat tax while he was politically active in the state.
Senate Bill 407 passed in 2003, cut the top rate from 11% to 6.9% and the bottom rate from 2% to 1%, effective with the 2005 tax year.
Senate Bill 159 of 2021 then lowered the top rate to 6.75%, and Senate Bill 121 of 2023 set it at 5.9% beginning in tax year 2024, according to the Montana Legislative Fiscal Division.
Under House Bill 337 of 2025, the Montana Department of Revenue lists a top rate of 5.65% for 2026 and 5.4% for 2027, above a 4.7% bottom rate.
Ney-Tulson credits the rate cuts with Montana's recovery in per capita personal income.
The Bureau of Economic Analysis ranks Montana 41st in 2005, 27th in 2022, and 26th in each year from 2023 through 2025.
Rate records compiled by the Institute on Taxation and Economic Policy put its top rate at 4% until 1958, when it rose to 5%, followed by 7% in 1960, 7.9% in 1965, and 10% in 1967.
In the late 1950s and early 1960s, they started jacking that rate up to make it more progressive, Natoulson said.
Montana's 11% rate was the highest statutory top income tax rate among the states from 1988 through 1990, and from 1996 through 2004, according to the Institute's records, and California matched it in 1991, 1992, 1994, and 1995.
Montana legislators met in special sessions to balance the state budget or cover revenue shortfalls twice in 1992 and again in 1993 and 2002, according to the Montana Legislature's record of special sessions.
Montana ranked 15th among today's 50 states in per capita personal income in 1950 and no lower than 23rd through 1958, according to figures from the U.S. Bureau of Economic Analysis.
It ranked 29th in 1965, 33rd in 1971 and 1981, and 48th, its lowest ranking, in 1996 and 1997, before ranking 47th in 2000.
Natoulson said he urged Montana to adopt a flat tax while he was politically active in the state.
Senate Bill 407 passed in 2003, cut the top rate from 11% to 6.9% and the bottom rate from 2% to 1%, effective with the 2005 tax year.
Senate Bill 159 of 2021 then lowered the top rate to 6.75%, and Senate Bill 121 of 2023 set it at 5.9% beginning in tax year 2024, according to the Montana Legislative Fiscal Division.
Under House Bill 337 of 2025, the Montana Department of Revenue lists a top rate of 5.65% for 2026 and 5.4% for 2027, above a 4.7% bottom rate.
Ney-Tulson credits the rate cuts with Montana's recovery in per capita personal income.
The Bureau of Economic Analysis ranks Montana 41st in 2005, 27th in 2022, and 26th in each year from 2023 through 2025.
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