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House bill 27 would change how Montana taxes agricultural land; supporters say fairness, opponents warn of harm to small farms
Summary
House Bill 27 would end many automatic, size-based agricultural property classifications, require applicants to demonstrate bona fide agricultural use (including a $1,500 annual gross-income threshold for smaller parcels), create an "idle land" class taxed at seven times the agricultural rate for certain large parcels, and establish application and periodic-review processes. Supporters highlighted fairness and production incentives; opponents — including small farmers, outfitters and land trusts — warned the changes could burden subsistence and small operators and increase administrative costs.
Representative Esman opened the House Taxation Committee hearing on House Bill 27, describing the measure as a working-group-driven cleanup that would tie preferential agricultural tax treatment to demonstrable, bona fide agricultural production rather than parcel size. "What this bill does do is it eliminates the automatic ag classification based on parcel size and requires all those who wish to take advantage of the ag classification to apply to the Department of Revenue and to prove they earn at least $1,500 gross income per year in bonafide ag production," Esman said.
Department of Revenue Director Bridal Beatty and other executive-branch witnesses said the bill reflects the working group's consensus and aims to align tax treatment with legislative intent. Lieutenant Governor Kristin Juras, who attended working-group meetings, said the intent was to ensure fairness across taxpayers:…
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