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 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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BOZEMAN — Aaron Flint and Al Olszewski, Republican candidates for Montana’s Western District U.S. House race, squared off Tuesday in their party’s only scheduled debate before the party primary.
The two debated for about 90 minutes at Bozeman’s Calvary Chapel before an audience of about 120 people. Bozeman anchors Gallatin County, which is second in Republican votes only to Flathead County within the 18-county district.
Natural resource jobs, affordable housing and U.S. military attacks on Iran dominated the discussion. Each question drew 12 minutes of response. Both men called for an end to stock trading by members of Congress, and for federal budgets to be passed on time through regular procedures.
The Montana GOP sponsored the debate. Candidate Christi Jacobsen, Montana’s secretary of state, was unable to attend, according to state Republican Party Chair Art Wittich. State Senate President Matt Regier moderated.
Among the highlights: Flint mentioned no fewer than eight times that he is endorsed by President Donald Trump. Olszewski mentioned Trump by name only a couple of times.
Never too far from Flint’s talking points were “far-left socialists,” whom he credited for “gerrymandering” the Western House District (which has delivered comfortable wins for Republicans since first appearing on the ballot in 2022). The 2026 election cycle was the target of Democrats on the state’s districting commission, Flint said. (Both Democrats on the commission that drew the district in 2021 voted against its current configuration.)
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The near faux pas of the night came during Olszewski’s discussion of good-paying jobs in trades and natural resources: “Trades jobs, natural resource jobs, you know, high-dollar, white-collar jobs, our remote workers who have moved into Montana, and we’ve adapted an economy around them. You know, these are the people, and those are the jobs that will bring our kids home, those high-paying white-collar jobs, or a good natural resource job in western Montana, in one of those mines, or, you know, you know, a sawyer or a hooker” — big pause — “as in timber, not the other way around.”
The line that didn’t land: Flint tried and failed to get audience applause for the 2024 defeat of Democratic U.S. Sen. Jon Tester by Republican Sen. Tim Sheehy — an unseating Flint campaigned for.
“How many of you out there are so glad that we finally got rid of the flip-flop, flat-top liberal senator, Jon Tester? How many of you are so glad we finally did that?”
After a silence, Flint explained to people watching the debate on Facebook that the audience was just being polite.
“They’re waving because we can’t have disruptions. See, they’re good rule followers here in the Republican Party,” Flint said.
Asked how to alleviate Montana’s housing affordability crisis:
Olszewski: “The only way you can afford an expensive house is you’ve got to have a job that pays good money. Tourist jobs provide rent and roommates. Trades jobs, natural resource jobs, high‑dollar white‑collar jobs … those are the jobs that will bring our kids home.” Dr. Al, as Olszewski is widely known, said Wall Street investment buyers are distorting housing prices and the federal government has weakened the dollar.
Flint: “Thirty percent of the cost of a home is all due to red tape and regulations … It costs $100,000 to build a home before you even put a hole in the ground.”
Flint said reviving Montana’s timber industry would lower home values and added, “I support President Trump’s ban on these big Wall Street firms buying single-family homes. I think that’s something that we’ve got to get across the finish line.”
“We can deliver when it comes to making the Montana dream affordable again by delivering affordable housing. But another piece is promoting trades and trades education to build up our workforce.”
Asked how Congress should respond to the Iran conflict:
Olszewski: “I supported our president with what happened in Venezuela. There’s a $25 million bounty on basically someone that was killing our people through drugs, right? I’m not so happy with what’s going on in the Iran war. I’m not a warrior. I’m a physician from the military that fixed military people … What my perspective is, is that countries can win wars, but people do not. They don’t come back.” Olszewski said Congress will have to decide whether to authorize further use of military force and set terms in about 10 days.
Flint: “Let me just say this. We are sick and tired of these forever wars, and we do not want to see a long-term boots-on-the-ground Iraq-style nation-building exercise, and I think President Trump shares that mission as well. Let me also say this about Iran. First off, [former Venezuelan President Nicolás] Maduro is behind bars. [Iran’s Supreme Leader Ayatollah Ali] Khamenei is dead, but the far-left socialists are on the march in Montana.”
Asked about reforming Congress:
Olszewski: “What our congressmen and congresswomen have to understand is that if you’re in the House, the House belongs to the people, and they need to, first and foremost, represent you, not themselves, not special interests. It’s not about sound-bites. It’s about actually getting work done and governing.” Olszewski said the House needs to pass a budget based on 12 agency appropriations bills before the end of each federal fiscal year, a process known as “regular order.”
Flint: “We need to return to regular order and get single-subject bills and get these appropriations bills done one by one. If they can’t get a budget done, they shouldn’t get paid. And we need a ban on congressional stock trading. Because I think part of the reason why the American people are so frustrated with Congress right now is because … they believe that Congress is so useless, because we’ve got some of these politicians back there that are getting rich off the backs of taxpayers.”
Neither candidate offered a plan for cutting taxes, once a staple of Republican platforms. Both supported reductions in federal spending without identifying particular cuts.
Voting in Montana’s 2026 primary election begins May 4 and ends June 2.
POLSON, Mont. — Two motorcyclists crashed on Highway 35 near Polson after failing to negotiate a left-hand curve, leaving one man dead and another hospitalized, according to the Montana Highway Patrol.
Two motorcycles were traveling southbound on Highway 35 when both drifted into a guardrail. Both drivers were separated from their motorcycles and ended up on the other side of the guardrail.
A 58-year-old Polson man was confirmed dead at the scene. The second driver, a 45-year-old man, also from Polson, was taken to the hospital with injuries.
Alcohol is a suspected factor in the crash, according to the Montana Highway Patrol.
The crash is under investigation.
KALISPELL — A Flathead County man is turning a personal rock bottom into a lifeline for his community by starting a free, late-night ride service to keep drunk drivers off the roads.
Adam Bruzza started Big Sky Sobriety Shuttle LLC, a free ride share service for people who have been drinking, after realizing he was struggling with addiction.
Maddie Keifer reports – watch the video here:
MT man starts free, late-night ride service to keep drunk drivers off the roads
“I just wanted to give people who do still drink the option for a safe, sober ride home,” Bruzza said.
Bruzza said a devastating mistake behind the wheel became a turning point where he decided enough was enough.
“I was charged with a DUI October 22 of 2024,” Bruzza said.
After a few months focused on his sobriety, Bruzza channeled his energy into his community by starting the shuttle service.
He operates the shuttle in his personal pickup truck. Riders can reach him by phone, text or social media at any time of day or night at no cost.
“I just wanted to give others the opportunity to not get a life changing charge,” Bruzza said.
Bruzza works with bars to connect riders with his service. Although the Big Sky Sobriety Shuttle is a new endeavor, he has already seen a big impact.
“The community response without a doubt has been unconditional love and support that makes my heart all warm and fuzzy,” Bruzza said.
Bruzza also shared a message for others who may be struggling with addiction.
“Your life is worth it, there are people that care out there and it is okay to ask for help,” Bruzza said.
To learn more, click here to visit the Facebook page.
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