5-2-204(1), MCA, provides for a stipend for legislators and/or allows reimbursement of constituent services expenses not paid from a constituent services account or otherwise reimbursed. The statute provides a primary $3,000 stipend or allowance for each legislator and a secondary amount of between $1,000 and $4,000 depending on the square mileage of a legislator’s district, for districts over 100 square miles.
This gives legislators the option to choose how the primary $3,000 is distributed.
Taxation: this information is provided for discussion purposes only. A legislator should consult with their personal taxation specialist for the appropriate option for their purposes.
The Internal Revenue Service requires an employee (legislator) to account for items of expense reimbursed by an employer to avoid the employee having to take the amounts as income on the employee’s income tax return. By adopting an accountable plan, legislators may be reimbursed for certain expenses incurred in performing legislative duties regarding providing services for constituents.
The employer may elect to treat taxable fringe benefits as paid in a pay period, or on a quarterly, semiannual, or annual basis, but no less frequently than annually. IRS Ann. 85-113 The employer may elect to add taxable fringe benefits to employee regular wages and withhold on the total or may withhold on the benefit at the supplemental wage flat rate of 25%. There may be additional state taxes. Reg. §31.3402(g)-1; Reg. §31.3501(a)-1T.
If a legislator elects to receive an “allowance,” the legislator shall apply for reimbursement to the legislative services division by submitting written documentation (claim form, required receipts, etc.). While some of the reimbursements may still be taxed, certain reimbursements are not taxable with proper documentation and certain requirements met.
NOTE: the statute requires legislators to submit this form once per interim before payment under either election can be made.
The primary $3,000 may be used for unreimbursed expenses for providing constituent services which include, but are not limited to:
The law specifies that legislators must apply for reimbursement to the Legislative Services Division by submitting written documentation that satisfies applicable requirements of 2-18-5, MCA which apply to meals, lodging, and transportation for otherwise unreimbursed expenses related to the legislator’s expenses incurred for providing constituent services. The secondary amount is a variable amount that is determined by square mileage of district. Please click Constituent Services Secondary Reimbursement Amount by District to see if your district is eligible for a secondary amount (and applicable amount).
At the June 10, 2025, the Legislative Council determined that reimbursement requests from the secondary constituent services account as provided for in 5-2-204(3), MCA, be restricted to in-district travel which occurred between 6/10/2025 through 12/31/2026. Legislators shall submit claim forms within three months of incurring the expense per the State of Montana travel policy.
For more information about salary and compensation, contact Legislative Financial Services.
