The Montana Senate has given initial approval to a bill that would reduce state income taxes by more than $200 million a year one of several active pieces of legislation that lay out different options for how to offer an income tax cut.(Watch the video for a closer look at the income tax cut proposals.) Montana Senate backs bill to cut income taxesCurrently, Montana has two income tax brackets. An individual pays 4.7% on the first $20,500 of their income and 5.9% on everything above that. For married couples filing jointly, the brackets are below and above $41,000.Senate Bill 203, from Sen. Mike Yakawich, R-Billings, would raise the threshold, so the lower bracket would cover the first $100,000 of income for an individual and the first $200,000 for those filing jointly. On Monday, the Senate endorsed the bill on a 47-3 vote.Yakawich has touted his bill as an income tax cut that will target Montanas middle class.We want to thank them, he said. That money that they save and you'll see how much they save as a married couple or as an individual will come back into the community, stay in our state.Last week, Gov. Greg Gianforte touted his own plan for lowering income taxes: Senate Bill 323, sponsored by Sen. Josh Kassmier, R-Fort Benton. That bill would reduce the tax rate for the higher income bracket to 5.4% in 2026 and 4.9% starting in 2027 and it would increase the earned income tax credit. SB 323 had a hearing in the Senate Taxation Committee on Friday.House Speaker Rep. Brandon Ler, R-Savage, has another bill, House Bill 337, which shares elements with SB 203 and SB 323. It would raise the threshold between the tax brackets to $47,500 for individuals and $95,000 for joint filers, it would reduce the top tax rate to 5.4% by 2027, and it would increase the earned income tax credit. HB 337 is set for a vote on the House floor Tuesday.According to fiscal analysis from the governors budget office, each of the three bills would reduce annual state tax collections by between $247 million and $317 million by 2029. During Mondays debate, Yakawich said the Senate should move SB 203 forward and let the Senate Finance and Claims Committee keep fine-tuning the details of it and the other income tax proposals.This is really a nonpartisan bill; you can see all the people who signed on it, he said. Again, we're going to get some great income tax bills coming along here I'm just saying this is one of a couple.Also on Monday, the Senate also advanced Senate Bill 434, which would create a one-time property tax refund of up to $400 for Montana homeowners primary residence. Sen. Wylie Galt, R-Martinsdale, called it Plan C, to make sure theres some property tax relief for Montanans regardless of what the Legislature ends up doing with long-term property tax cuts.We are getting close to the end of the session, we haven't had any property tax cross the finish line yet, so this is a backup plan, he said. If nothing else comes, we at least have something that we can give out to the people of Montana. ...read more read less