Montana

Key takeaways from our investigation of Montana’s agricultural tax code

Published

1 year ago

January 9, 2025

Key takeaways from our investigation of Montana’s agricultural tax code

Montana’s property tax system is a complicated thing, involving mind-boggling math and a bewildering array of rules aimed at fairly dividing the bill for public services like schools and police departments between hundreds of thousands of properties.

It’s a tricky task, of course, to agree on what exactly fair means when it comes to taxes — and a trickier one for lawmakers to write a tax code that implements a fair framework without loopholes. Earlier this week, Montana Free Press and High Country News published a lengthy investigation into a facet of the state’s tax code that has been a perennial concern on the loophole front for decades: whether a property tax break intended for farms and ranches is being abused by people who own luxury homes on rural parcels.

Our full story, which you can read here, runs more than 3,400 words. If you’re looking for something briefer, here are some of the key takeaways:

1. Agricultural tax status offers farm and ranch properties a discount relative to residential properties by marking down the value of the underlying land.

If you own a Montana home in an urban or suburban neighborhood, it’s almost certainly classified as a residential property. For those, both the house structure and the home lot beneath it are valued and taxed based on their market value — how much the Montana Department of Revenue thinks they would sell for.

Structures on agricultural properties are also valued and taxed based on their market value, but the underlying land is not. Instead, agricultural land is valued for tax purposes based on its production value — how much money the revenue department thinks its owner could make growing crops or grazing livestock.

That’s a significant difference. Home lot prices vary from place to place across Montana, but the average residential property had a land value of about $127,000 in 2023. Production values are much, much lower. Some of the properties we looked at, for example, had grazing land valued at less than $50 an acre.

Montana’s agricultural tax rules slash bills for thousands of million-dollar homes

Montana’s property tax code is designed to offer working farms and ranches lower land taxes than those paid on residential properties. An analysis by HCN and MTFP indicates there are thousands of high-end houses benefitting from ag treatment, paying reduced property taxes with the offset landing on other taxpayers. While some lawmakers want to tighten the qualification requirements during the 2025 Legislature, those measures face tough odds because stripping agriculture tax status from current beneficiaries would mean forcing them to pay more.

2. The agricultural discount can translate into hundreds or thousands of dollars in annual tax savings.

One example we looked at was a property on the Flathead River near Kalispell, described in a Zillow listing as a “gorgeous Montana river estate” with a putting green and orchard. Classified as agricultural land, the 10-acre property paid about $7,000 in property taxes in 2023, all but $20 of that based on the value of the property’s structures, according to our analysis.

A 10-acre residential property next door, including a slightly less valuable home, paid about $9,100 in taxes in 2023, including about $3,300 in land taxes.

That sort of disparity is typical. For parcels smaller than 20 acres, we found that residential properties paid a median effective land tax of $1,609 an acre in 2023, compared to only $6.61 for agricultural parcels.

3. Critics worry that it’s too easy for high-end real estate to qualify for agricultural tax benefits.

Unlike most western states, larger Montana properties automatically qualify for agricultural tax treatment without being required to document that the land is being used for agriculture. Properties of 160 acres or more are automatically granted a full agricultural designation, while properties bigger than 20 acres automatically qualify for a partial agricultural designation that offers slightly reduced tax benefits regardless of whether the land is being put to significant agricultural use.

Smaller properties can qualify for the full designation by reporting at least $1,500 a year in agricultural income. Critics say that threshold, which hasn’t been updated since 1986, is low enough that savvy property owners can reach it with relatively little effort.

4. Thousands of million-dollar Montana homes are benefiting from the ag tax treatment. Gov. Greg Gianforte’s Bozeman home is one of them.

Looking at state property data for 2023, MTFP and HCN found more than 3,000 properties with million-dollar structure values that qualify for the full or partial agricultural tax benefit. In some cases, like the Flathead River example, those properties are adjacent to otherwise comparable residential properties, resulting in stark tax disparities.

Another example is Gianforte’s home on an 11-acre parcel with an agricultural designation on the outskirts of Bozeman. According to our calculations, the governor and his wife, Susan, paid about $5.75 an acre in land taxes on it in 2023 while a neighbor with a residential parcel across the street paid $826 per acre. (The governor’s office said that the Gianfortes’ property, which also includes additional parcels, is used for barley and alfalfa production and is also used to board horses and mules.)

The governor’s $66 land tax bill for the 11-acre parcel is also less than what the vast majority of urban homeowners in Montana pay each year for the lots beneath their homes.

Montana homeowners see higher property taxes as some big businesses pay less

Higher property tax bills are hitting homeowners across Montana this year as the state’s tax system shudders into a new alignment following the first reappraisal cycle using tax appraisals reflecting the explosive growth in Montana home values during and after the COVID-19 pandemic. Those higher bills for residential properties appear to be the result of higher local and state-level tax collections, as well as how the Montana Department of Revenue’s valuations for residential properties have spiked while its valuations for some industrial and utility properties have declined, a dynamic that pushes more tax burden onto homeowners.

5. Lawmakers could change the tax code as the Montana Legislature meets this year.

As the session opened in early January, there were two bills under consideration that would tighten qualification standards for the agricultural designations (House Bill 27) and increase taxes on homesite portions of high-value ag properties (Senate Bill 4).

Similar measures have floundered in the past, in part because of opposition from people who would face higher tax bills. The sponsors of both measures told MTFP this week that they are working on revisions to their proposals in an effort to make the bills politically viable.

READ MORE: Montana’s agricultural tax rules slash bills for thousands of million-dollar homes.

LATEST STORIES

Montana Senate works to get back on track

The Montana Senate Republicans fighting over rules has led to delays in the chamber’s operations just days into the session.

Grizzly bears to remain protected under Endangered Species Act

All grizzly bears in the Lower 48 United States would be federally managed as a single population under a proposed U.S Fish and Wildlife Service rule. That DPS, or distinct population segment, would retain the grizzly’s threatened status under the Endangered Species Act and reject petitions from the states of Montana, Idaho and Wyoming to delist the bears.

Former judge-elect pleads not guilty to drug charges in Lake County

An investigation by the Montana Department of Justice’s Division of Criminal Investigation found that Kenneth Britton “Britt” Cotter, 48, had tried to purchase cocaine on multiple occasions between March 2022 and May 2023.

Source link

Montana

Montana Lottery Powerball, Lotto America results for March 4, 2026

Published

2 hours ago

March 5, 2026

Press Room

The Montana Lottery offers multiple draw games for those aiming to win big.

Here’s a look at March 4, 2026, results for each game:

Winning Powerball numbers from March 4 drawing

07-14-42-47-56, Powerball: 06, Power Play: 4

Check Powerball payouts and previous drawings here.

Winning Lotto America numbers from March 4 drawing

33-38-39-47-51, Star Ball: 07, ASB: 02

Check Lotto America payouts and previous drawings here.

Winning Big Sky Bonus numbers from March 4 drawing

01-07-08-27, Bonus: 12

Check Big Sky Bonus payouts and previous drawings here.

Winning Powerball Double Play numbers from March 4 drawing

05-10-26-53-59, Powerball: 06

Check Powerball Double Play payouts and previous drawings here.

Winning Montana Cash numbers from March 4 drawing

03-04-06-08-10

Check Montana Cash payouts and previous drawings here.

Winning Millionaire for Life numbers from March 4 drawing

12-13-36-39-58, Bonus: 03

Check Millionaire for Life payouts and previous drawings here.

Feeling lucky? Explore the latest lottery news & results

When are the Montana Lottery drawings held?

Powerball: 8:59 p.m. MT on Monday, Wednesday, and Saturday.
Mega Millions: 9 p.m. MT on Tuesday and Friday.
Lucky For Life: 8:38 p.m. MT daily.
Lotto America: 9 p.m. MT on Monday, Wednesday and Saturday.
Big Sky Bonus: 7:30 p.m. MT daily.
Powerball Double Play: 8:59 p.m. MT on Monday, Wednesday, and Saturday.
Montana Cash: 8 p.m. MT on Wednesday and Saturday.
Millionaire for Life: 9:15 p.m. MT daily.

Missed a draw? Peek at the past week’s winning numbers.

This results page was generated automatically using information from TinBu and a template written and reviewed by a Great Falls Tribune editor. You can send feedback using this form.

Source link

Montana

University of Montana president job draws high interest • Daily Montanan

Published

14 hours ago

March 4, 2026

Press Room

University of Montana president job draws high interest • Daily Montanan

The search for a new University of Montana president has drawn more than 60 applicants, according to a spokesperson for the Office of the Commissioner of Higher Education.

“We do not have an exact count at this time, as several applications are still being completed and additional submissions are expected,” said spokesperson and Deputy Commissioner Galen Hollenbaugh in an email earlier this week.

In January, then-UM-President Seth Bodnar announced his resignation to pursue other public service. Wednesday, the final day of filing, he announced he was running as an independent for the U.S. Senate to try to unseat Republican incumbent Steve Daines.

Commissioner of Higher Education Clayton Christian earlier said that with the advice of AGB Search, a firm that’s helped the Montana University System conduct other executive searches, he would undertake an expedited process to appoint a new president.

Christian has been providing brief updates on a website dedicated to the search. Last week, he said he and AGB Search are reviewing applications, and the pool of candidates was “strong and diverse.”

The commissioner also announced he was convening a small working group to assist in the search, members who “represent a variety of perspectives to assist in vetting and narrowing this field of exceptional candidates.”

In an email this week, Hollenbaugh identified the members of the working group who are assisting Christian with application review as:

Community member and former Regent Joyce Dombrouski
Faculty Senate Chairperson Valerie Moody
Staff Senate President Dominic Beccari
Administration Representative John DeBoer (Vice President of Academic Affairs)
ASUM (Associated Students of the University of Montana) President Buddy Wilson

Hollenbaugh declined to comment on the way the rest of the process would unfold or the role the working group members would play.

Christian earlier said he anticipated an appointment within one to three months, or as soon as early this month.

Source link

Montana

Montana Supreme Court allows ballot measure on initiative process to move forward

Published

1 day ago

March 4, 2026

Press Room

Montana Supreme Court allows ballot measure on initiative process to move forward

HELENA — The Montana Supreme Court has ruled in favor of a proposed ballot measure intended to simplify the process for introducing ballot measures in the future.

Justices ruled 5-2 that the measure, currently called Ballot Issue #8, did not violate state requirements that a single constitutional amendment can’t make multiple separate changes to the Montana Constitution.

“We’re very grateful to the Montana Supreme Court for agreeing with us that the attorney general’s finding of legal insufficiency for Ballot Issue #8 was incorrect,” said SK Rossi, a spokesperson for Montanans Decide, the group sponsoring the measure.

Montanans Decide argues the Montana Legislature has passed laws making it harder for the public to propose and pass ballot issues. The Montana Constitution already guarantees the people the right to pass laws and amendments through ballot measures, but Ballot Issue #8 would expand that to include a right to “impartial, predictable, transparent, and expeditious processes” for proposing those measures. It would seek to prevent “interference from the government or the use of government resources to support or oppose the ballot issue.”

Attorney General Austin Knudsen’s office argued the measure “implicitly amended” multiple provisions in the state constitution, including by limiting the “power and authority of public officials to speak officially on ballot issues that affect those officials’ public duties” and by putting restrictions on judges and on the Legislature. Montanans Decide, the group sponsoring Ballot Issue #8, disagreed – and the majority of justices sided with them.

“Its provisions operate together to define and protect a single constitutional right—the people’s exercise of initiative and referendum,” wrote Justice Katherine Bidegaray in the majority opinion. “They are closely related components of one constitutional design.”

Bidegaray’s majority opinion was joined by Justices Jim Shea, Laurie McKinnon, Beth Baker and Ingrid Gustafson.

Chief Justice Cory Swanson and Justice Jim Rice each wrote dissenting opinions, saying they would have upheld Knudsen’s decision to disallow Ballot Issue #8. Rice said the language restricting government interference with a ballot issue was not closely related and should have been a separate vote. Swanson agreed with Rice and said the measure’s attempt to fix a timeline for legal cases surrounding ballot measures was also a separate substantial change.

In a statement, Chase Scheuer, a spokesperson for Knudsen’s office, reacted to the decision.

“This decision only further muddies the courts’ jurisprudence on ballot issue questions,” he said. “This initiative would violate the separate vote requirement by amending multiple parts of the Montana Constitution, but the court contradicted its prior rulings. Attorney General Knudsen will continue to neutrally apply the separate vote requirement in his review of ballot initiatives.”

The court’s decision means that Knudsen’s office will now need to approve ballot language for Ballot Issue #8. Once that language is finalized, Montanans Decide could begin gathering signatures to qualify the measure for the November ballot.

However, last year, sponsors of another initiative went to the Supreme Court to argue that the ballot statements Knudsen prepared were misleading. If Montanans Decide object to their ballot statements, that could further delay signature gathering while the case plays out in court.

“Regardless, we’re going to push as hard as we can to get those petitions into the hands of voters and let them sign and support if they so choose,” said Rossi.

Rossi said the legal battle this measure has gone through – and the possibility of more to come – shows why Ballot Issue #8 is needed.

“The state Legislature, and also statewide elected officials, have taken every opportunity to create burdens and hurdles and rigamarole for campaigns to get through in order to just get to the signature gathering phase, and then to get through the signature gathering phase onto the ballot, and then get through the election phase,” said Rossi. “The reason we filed this initiative is just to make sure that the process is simple, that the timeline is clear, and that Montanans can have their will heard when they want to propose and pass laws that they deem worthy.”

Source link