Mary Whittinghill - May 11, 2006
Montana Taxpayers Association
Tax Records
Today, Montana’s economy is stronger then ever. Corporation and income taxes in Montana have exceeded all expectations and they are at an all time high.
Over the course of the next year, different businesses and industry leaders will be taking this opportunity to talk about what is driving our economy and making our communities vibrant!
To set the stage, just a few short years ago, Montana had sunk to 47th place in per capita income in the nation. Today we have climbed to 39th. In addition, a recent article in USA today shows Montana 2nd in the nation in the percent change in personal income since 2000. Only Wyoming ranks higher.
This is great news and worthy of celebration. The growth can be attributed to many industries growing their businesses, hiring employees, and investing in technology. For the first time in years, there is a boom in the oil and gas industry and positive farm incomes. Construction is occurring across Montana and we are experiencing stronger than ever tourism revenues.
Yet while our economy is strong and Montana has a sense of great vitality, we do face many challenges and obstacles.
For example, if you own a business or are part of a partnership in Montana, a case currently in front of the Supreme Court could allow any person or competitor to look at your tax records. While we hope the court will uphold the confidentiality of all tax records, we find it frustrating that some people in Montana believe they should have the right to examine your businesses tax records and determine if you are paying the appropriate level of taxes.
We thought this was the job of the IRS, the department of revenue and the legislative Audit division. In fact, just last session, the legislature gave the Department of Revenue an additional $1 million for extra audits.
Tax information has always been provided to the legislature in aggregate in order to make policy decisions and ensure the tax policy they are setting is fair and equal. Tax policy should be based on a broad perspective, not that Dianne’s Flower Shop is taking too many deductions for soil compared to her sales of potted plants.
Businesses have a long term commitment too – they must be compliant or they risk or damage their investment. I encourage you to look at business development favorably and embrace an attitude that encourages and fosters more growth and more income to fund our state’s infrastructure and strengthen the fabric of our communities.
Mary Whittinghill, is president of the Montana Taxpayers Association. To learn more about the association visit their website at www.montax.org.
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