Montana
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.
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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.
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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.
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GREAT FALLS — Blowing dust is becoming a major issue again on the Hi-Line as winds gust to 60–70+ mph, especially from Phillips County eastward.
Visibility has dropped to very low to near zero at times, and there have already been several crashes east of Glasgow near Nashua and Frazer. People are urged to avoid unnecessary travel in these areas if possible.
This is a very dangerous situation for travelers across northeast Montana. Blowing dust is causing near-zero visibility in many locations.
WATCH:
Hazardous driving along the Hi-Line
Highway 2 from Dodson to Wolf Point is closed until further notice, with only emergency travel allowed in these areas.
All red- and black-shaded roads and highways are experiencing severe driving conditions because of the low visibility.
MDT
Click here to visit the MDT 511 site.
(WEDNESDAY, MAY 13) A fast-moving front rolled through north-central Montana on Wednesday, May 13, 2026. The powerful winds gusted to more than 80 miles per hour in some areas.
Shaylan Verploegen shared video from north of Havre, showing a huge “wall” of dirt and dust in a unique weather phenomenon known as a haboob; watch the video and see other viewer photos here:
Fast-moving front kicks up walls of dust
The strong winds caused some damage. There were trees blown over in Havre, Great Falls, and Helena. Part of a roof was blown off in Box Elder, and there were several carports that were destroyed in Havre. There were also numerous power outages reported across the area, some of which lasted for several hours.
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The Montana Lottery offers multiple draw games for those aiming to win big.
Here’s a look at May 13, 2026, results for each game:
Winning Powerball numbers from May 13 drawing
22-31-52-56-67, Powerball: 15, Power Play: 2
Check Powerball payouts and previous drawings here.
Winning Lotto America numbers from May 13 drawing
17-18-28-37-42, Star Ball: 04, ASB: 02
Check Lotto America payouts and previous drawings here.
Winning Big Sky Bonus numbers from May 13 drawing
02-06-10-16, Bonus: 16
Check Big Sky Bonus payouts and previous drawings here.
Winning Powerball Double Play numbers from May 13 drawing
08-13-39-63-66, Powerball: 02
Check Powerball Double Play payouts and previous drawings here.
Winning Montana Cash numbers from May 13 drawing
02-04-13-17-32
Check Montana Cash payouts and previous drawings here.
Winning Millionaire for Life numbers from May 13 drawing
21-24-29-42-49, Bonus: 01
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.
Montana
Public Meeting at Hub on Smith Concerning Montana Water Call Prompting Priority Administration in Tongue Basin
Wyoming State Engineer Brandon Gebhart announced that on May 5, 2026, the State of Montana placed a call under Article V(A) of the Yellowstone River Compact to fill Tongue River Reservoir in Montana. As a result, priority administration is in effect on post-1950 water rights in Wyoming that divert water from the Tongue River and its tributaries and are not excluded from the compact.
A public meeting will be held from 5:30 to 6:30 p.m. Monday, May 18, in the dining room of The Hub on Smith. Attendees are asked to enter on the north side of the building.
The Tongue River Basin has been experiencing drought conditions over the past year with historically low winter snowpack and streamflow conditions. According to the release, those conditions led to Montana’s interstate call and prompted the administration of the Tongue River Basin in Wyoming.
The priority administration will affect post-1950 water rights within the Tongue River Basin, including reservoir storage, stream diversions and groundwater withdrawals, all of which affect river flows. Post-1950 water rights will be regulated off or prevented from turning on. Wyoming hydrographer-commissioners will continue to administer reservoir storage and post-1950 diversions throughout the spring and work with affected water users until the administration is lifted.
As provided in the compact, domestic uses less than one-half acre in area and livestock uses, including stock reservoirs less than 20 acre-feet in capacity, are excluded from this administration. The release noted these excluded rights could be subject to future regulation to satisfy priority calls by senior Wyoming water rights.
Beginning May 5, 2026, Wyoming hydrographer-commissioners have worked to record the current storage levels of reservoirs with post-1950 water rights. Going forward, those reservoirs can continue to accrue storage so long as post-1950 storage gained after the interstate call on May 5 remains in storage until either the water is released to satisfy the Montana call or Montana lifts the call because Tongue River Reservoir will fill.
Reservoirs with unfulfilled pre-1950 water rights can continue to store water and that storage will not be subject to release to satisfy Montana’s call. However, that storage and other direct flow rights could be subject to regulation to satisfy priority calls by senior Wyoming water rights.
The priority administration will be carried out pursuant to state law by hydrographer-commissioners assigned to various portions of the Tongue River Basin, working under the direction of Division II Superintendent David Schroeder.
The Wyoming State Engineer’s Office can be contacted at:
Jack Morey, deputy state engineer, 307-777-5032, jack.morey2@wyo.gov
David Schroeder, Division II superintendent, 307-674-7012, d.schroeder@wyo.gov
Jeff Cowley, interstate streams administrator, 307-777-1942, jeff.cowley@wyo.gov
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