House Bill 440 (HB 440) was introduced earlier this week by Rep. Jane Weber, of House District 19 of Great Falls.
“House Bill 440 is a ‘Montana Food First’ bill and really, it's an incentive to get grocers to make space on their grocery store shelves for Montana produced products,” explained Rep. Weber.
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These tax incentives would be beneficial to Montana farmers and ranchers to get their product into grocery stores. Rep. Weber said it’s very difficult for local producers to compete with large corporate distributors who offer incentives the small businesses can’t.
Under the bill, 50 percent of a grocer’s net income from Montana-produced products would be exempt from state taxes. 'Ready-to-eat' products would not qualify for the exemption.
“Our farmers and ranchers have a tough time making a living, and if they can actually begin to compete with corporate distributors on food and drink, that could be a real game changer for folks in Montana,” said Rep. Weber.
The Montana Food Hub co-op also works to connect local producers with local consumers, which this bill, in part, would help to bridge that gap.
“We obviously are big fans of having Montana food accessible. 2Js does a great job here locally of sourcing Montana-grown produce and regionally grown produce, when he can; we would love to see more producers have direct avenues to sell their products locally, and that's what we're aiming to do is that middle piece for them,” explained Lyndsay Laursen, a commissioner with the Montana Food Hub.
Michael Vetere, owner of 2Js Fresh Market said he has always made it a priority to source local Montana goods to sell in his store, and he said HB 440 could help to incentivize other grocery stores to do the same.
“It’s about helping the economy closest to us, right, the more money we keep closer to us, it circulates, you know, and stays within this community,” said Vetere. “It never really affected my decision anyway. If we had space to spare and there was a good quality Montana product, it was always preference anyway.”
HB 440 aims to give Montana farmers and ranchers a chance to get their product on the market and for consumers to support and shop local year-round.
Rep. Weber added, “We’ve passed the first step, and I’m really excited about that.”
As of Thursday morning, HB 440 was passed through the House Taxation Committee by a vote of 18-3. Next it will go to the House Floor for the representatives to vote on.
