HELENA — Over the objections of Democrats, the Republican-controlled House Appropriations Committee pushed out on party-line votes two bills to reduce state taxes by $120 million over the next two years.

House Bills 166 and 169, which the House endorsed on preliminary votes last week, now return to the House for a final vote.

The Appropriations Committee voted 12-8 to endorse both bills, with all Republicans voting for both bills and all Democrats voting against them.

Democrats on the committee and Gov. Steve Bullock’s Revenue Department director argued that passage of these bills was premature.

They said the House has not yet passed a revenue estimate forecasting how much money will be available for this Legislature to spend on appropriations and tax cuts for the rest of fiscal year 2015 and in 2016 and 2017, including leaving a $300 million ending fund balance as Bullock is insisting upon.

Democrats tried without success to find out if Republicans intended to keep passing multiple bills to reduce taxes as part of some larger strategy.

“My concern is we’re moving this too fast and we can’t make an educated vote,” said Rep. Kelly McCarthy, D-Billings. He suggested the two bills were more about “good politics than good policy.”

Republicans countered that it’s time to return some of the state’s excess tax collections to the people who paid the taxes.

“I would say this is good tax policy to give some [money] back to the taxpayers of the state Montana,” said Rep. Carl Glimm, R-Kila. “They have been paying it in. We didn’t make giving some back a priority last session.”

If both houses approve of the two bills, they may hit a roadblock with the Democratic governor whose administration has testified against both of them at every hearing so far.

HB 166, by House Majority Leader Keith Regier, R-Kalispell, would permanently cut income taxes. It would reduce the state income tax rates for each bracket of taxable income by one-tenth of 1 percent.

For example, the tax rate for the top tax bracket of taxable income of more than $13,900 would be cut to 6.8 percent from the current 6.9 percent.

The bill would reduce state income taxes by about $20 million a year permanently, or until a future Legislature changed the rate.

“I do agree it will cost some money,” Regier said. “It will take $20 million annually out of the general fund, and that’s the intent. It will stimulate the economy.”

Revenue Director Mike Kadas opposed the bill, saying: “This is all about the money. The revenue estimate that you are all working on ... is still very much in flux.”

He said the $300 million budget ending fund balance sought by Bullock is the state’s rainy day fund and critical for the state to maintain its fiscal strength and good bond ratings.

The other bill, HB 169, by Rep. Art Wittich, R-Bozeman, is a one-time tax cut. It would save income taxpayers $50 million in tax years 2015 and 2016 combined by reducing the amount of taxable income upon which they are taxed.

In addition, property owners would save $30 million in 2016 through a nonrefundable income tax credit on their property taxes of not more than $100 each.

“The bill is really a short-term, one-time, fiscally responsible tax cut when we know we have the money,” Wittich said. “You have to ask yourself the fundamental question: Do you spend it or give it back?”

The committee rejected along party lines an amendment by Rep. Tom Woods, D-Bozeman, to change Wittich’s bill by giving the tax cuts only to those people with federal adjusted gross income of less than $60,000. His amendment would have paid for the tax cuts by raising the capital gains tax credit by 1 percentage point.

Woods said it would help the lower income brackets and make the bill revenue neutral.

Wittich opposed Woods’ amendment, saying: “It’s class warfare.”