Require certain tax payments to be made electronically
Summary
SB 54 revises Montana’s electronic funds transfer (EFT) tax payment requirements. The bill lowers the threshold for mandatory electronic payment of taxes from $500,000 to $50,000, meaning taxpayers who owe at least that amount must pay by EFT rather than by paper or other non-electronic methods. It also preserves the existing rule that if the due date falls on a Saturday, Sunday, or legal holiday, payment may be made on the next business day.
The bill also updates the Department of Revenue’s rulemaking authority for administering the EFT program. It directs the department to adopt rules coordinating tax return filing with EFT payments, specifying acceptable electronic payment methods, defining the form and content of EFT messages to ensure proper crediting, and providing an alternative payment method when required electronic payments are not available to a taxpayer. The act applies to taxes paid by EFT after December 31, 2025.
Impact
SB 54 amends sections 15-1-802 and 15-1-803 of the Montana Code Annotated, expanding the number of taxpayers subject to mandatory electronic tax payments and giving the Department of Revenue clearer authority to implement and administer the program. The practical effect is to increase electronic compliance for larger tax payments, streamline processing and crediting of payments, and reduce the use of non-electronic payment methods for qualifying taxpayers.
Sentiment
The bill appears to have been broadly supported and moved through the Legislature with strong margins. It passed the Senate committee unanimously, then cleared the Senate and House with only a small number of dissenting votes, and the House Taxation Committee recommended concurrence without opposition. The available voting history suggests general agreement with the administrative and modernization goals of the measure.
Contention
There is little evidence of major controversy in the available record. The only notable point of potential concern is the lower EFT threshold, which could impose additional compliance obligations on taxpayers who previously were not required to pay electronically at that level. The bill’s rulemaking provisions also give the Department of Revenue discretion over implementation details, though no specific objections are reflected in the provided transcripts or votes.