diff --git a/changelog.d/mt-property-tax-rebate.fixed.md b/changelog.d/mt-property-tax-rebate.fixed.md new file mode 100644 index 00000000000..9f3214451af --- /dev/null +++ b/changelog.d/mt-property-tax-rebate.fixed.md @@ -0,0 +1 @@ +Removed the Montana property tax rebate from the state non-refundable credit list so it no longer reduces Montana income tax. diff --git a/policyengine_us/parameters/gov/states/mt/tax/income/credits/non_refundable.yaml b/policyengine_us/parameters/gov/states/mt/tax/income/credits/non_refundable.yaml index 8c79519aa4c..bbd61f3ed1e 100644 --- a/policyengine_us/parameters/gov/states/mt/tax/income/credits/non_refundable.yaml +++ b/policyengine_us/parameters/gov/states/mt/tax/income/credits/non_refundable.yaml @@ -5,7 +5,6 @@ values: - mt_income_tax_rebate 2022-01-01: - mt_capital_gain_credit - - mt_property_tax_rebate 2024-01-01: [] metadata: unit: list diff --git a/policyengine_us/tests/policy/baseline/gov/states/mt/tax/income/integration.yaml b/policyengine_us/tests/policy/baseline/gov/states/mt/tax/income/integration.yaml index 83209df9ad4..9b610d880c9 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/mt/tax/income/integration.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/mt/tax/income/integration.yaml @@ -567,3 +567,39 @@ # Files separately: 5,099.51 - 1,250 + 3,719.51 - 1,250 = 6,319.02 # (old double-count subtracted $2,500 per column, understating tax by $2,500) mt_income_tax: 6_319.02 + +- name: MT property tax rebate is not a Form 2 credit and is not tripled (issue 9347) + absolute_error_margin: 0.01 + period: 2023 + input: + people: + person1: + is_tax_unit_head: true + age: 26 + employment_income: 110_625.07 + taxable_interest_income: 204.41 + real_estate_taxes: 2_754.52 + person2: + is_tax_unit_spouse: true + age: 25 + employment_income: 3_414.32 + person3: + is_tax_unit_dependent: true + age: 10 + tax_units: + tax_unit: + members: [person1, person2, person3] + spm_units: + spm_unit: + members: [person1, person2, person3] + households: + household: + members: [person1, person2, person3] + state_fips: 30 + output: + # The $675 standalone property tax rebate is still computed as its own variable + mt_property_tax_rebate: 675 + # but it is not a Form 2 non-refundable credit. Before the fix it was booked + # as a credit and projected onto every household member (675 x 3 = 2,025), + # understating Montana income tax; it must contribute 0 to each person. + mt_non_refundable_credits: [0, 0, 0]