Senate hearing on bill to reclassify 1‑acre farm home sites draws divided testimony

HELENA — The Senate Taxation Committee heard testimony on Senate Bill 4 on Monday, a proposal from Sen. Becky Beard to change how one‑acre home sites on qualified agricultural land are valued for property tax purposes.

Sen. Becky Beard, sponsor of SB 4, told the committee the bill would “revis[e] taxation of ag property home sites from class 3 ag property to class 4 residential property,” shifting the valuation of the acre under farm residences toward market value and adding a statewide exemption to reflect lack of marketability on some farmsteads.

The change, supporters said, would reduce large disparities between otherwise similar parcels by treating a residence’s one‑acre site consistently whether the owner farms or does not. “Most of these aren’t surveyed out. They’re not tradable,” said Bridal Beatty, director of the Montana Department of Revenue, arguing that the 1‑acre home site under a residence typically is a home site rather than productive acreage and is treated differently by current law.

Proponents described long study and stakeholder discussion. Bryce Kotz, bureau chief with the Department’s Property Assessment Division, walked the…