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.
RELATED
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.
RELATED
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.
Although newly minted GOP candidates for the U.S. House and U.S. Senate have garnered heavyweight endorsements, the Montana Republican Party said Thursday it won’t throw its support behind any candidates for federal office in the primary.
“The Montana Republican Party (MTGOP) stands behind its deep bench of qualified candidates seeking to represent Montanans and supports a competitive primary process to let voters pick their preferred candidates,” the Montana GOP said in a news release Thursday.
Monday, U.S. Rep. Ryan Zinke announced he was retiring due to health concerns once his term ends, and he immediately tapped talk-show host Aaron Flint as his preferred successor in Congress.
Secretary of State Christi Jacobsen and Flathead County Republican Central Committee Chairperson Al Olszewski also filed for the U.S. House as Republicans, as did Ray Curtis of Bonner.
Wednesday, U.S. Sen. Steve Daines withdrew, and in a statement the same night, announced an endorsement of former U.S. Attorney Kurt Alme, who had filed the same day.
In the Senate, Lee Calhoun and Charles Walking Child also filed to run in the Republican primary.
Endorsements for Flint and Alme cascaded. U.S. President Donald Trump endorsed both candidates, and U.S. Sen. Tim Sheehy and Gov. Greg Gianforte threw their weight behind Flint and Alme.
Late on Wednesday, the Montana GOP did not immediately have comment on the news Daines, Montana’s senior U.S. senator, had resigned, but Thursday, the party thanked Zinke and Daines for their service.
A news release said the party would not endorse any candidates in the federal primary and would leave the job in the hands of voters.
“The party hopes every candidate will make their case to the public, contrasting their Republican policies and principles with those of Democrats — as well as phony ‘Independents,’” the news release said.
Former University of Montana President Seth Bodnar announced a run for the U.S. Senate as an independent this week.
A tension within the Republican party has emerged in recent years between hardline conservatives and more moderate members, and some legislative primaries illustrate the split.
This week, the state GOP said the number of primaries for state legislative seats shows a high interest from Montanans who want to serve the state and pass Republican policy, and the MTGOP “is glad to see so many Republicans being called to public service.”
In a brief call, MTGOP spokesperson Ethan Holmes said the party had not ruled out endorsements in legislative primaries.
In the news release, however, the MTGOP offered its view of the larger political debate.
“Montana voters know that beyond the primaries, there is a clear choice between Republican and Democratic governance; one path leads to lower taxes, less crime and stronger families, and the other leads to higher taxes, more crime, and social decay,” MTGOP Chairperson Art Wittich said in a statement.
The news release also said the state GOP is working “tirelessly to deliver a Bright Red Future” at both the state and federal level and looks forward to help candidates whom voters select win in November.
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.
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.
Anxiety grows among California Democrats as gubernatorial candidates rebuff calls to drop out
Owners of fire-destroyed Palisades mobile home park seek to displace residents for development deal
Fatigue a factor as early matches begin at Indian Wells
Fact check: Did French border guards mock influencers returning from Dubai amid Iran war?
Iran’s fight for survival / The widening war / Trump’s nebulous goals : Sources & Methods
Florida High School Football Rankings: Top 25 teams – Oct. 21
Cleary's 21 help Le Moyne down Central Connecticut State 69-64 in OT
How old is Bo Nix? What to know about Oregon quarterback ahead of 2024 NFL Draft
99th annual Pony Swim held in Virginia
Indiana Members Credit Union announced as new anchor tenant at Bottleworks District
Fact check: Did French border guards mock influencers returning from Dubai amid Iran war?
Iran’s fight for survival / The widening war / Trump’s nebulous goals : Sources & Methods
Map: 4.9-Magnitude Earthquake Shakes Louisiana
Paxton vows he’s ‘staying in this race’ even if Trump backs Cornyn in Texas GOP clash
Which Kurdish groups is the US rallying to fight Iran?
-
World1 week agoExclusive: DeepSeek withholds latest AI model from US chipmakers including Nvidia, sources say
-
Wisconsin4 days agoSetting sail on iceboats across a frozen lake in Wisconsin
-
Massachusetts1 week agoMother and daughter injured in Taunton house explosion
-
Maryland5 days agoAM showers Sunday in Maryland
-
Massachusetts3 days agoMassachusetts man awaits word from family in Iran after attacks
-
Florida5 days agoFlorida man rescued after being stuck in shoulder-deep mud for days
-
Denver, CO1 week ago10 acres charred, 5 injured in Thornton grass fire, evacuation orders lifted
-
Oregon6 days ago2026 OSAA Oregon Wrestling State Championship Results And Brackets – FloWrestling