Bill > HB27

This bill proposes significant changes to agricultural property classification and taxation in Montana, introducing several key provisions. The legislation creates a new "sustenance use land" classification for small parcels (less than 640 acres) used primarily for personal food production, with specific requirements such as growing fruits, vegetables, and grains for household consumption, having an owner-occupied residential dwelling, and cultivating at least 60% of the land for food production. To qualify, landowners must submit an annual attestation form detailing crop inventories, food preservation documentation, and confirming at least 100 hours of active cultivation. The bill removes automatic agricultural classification for certain parcels, establishes new rules for agricultural land classification, and introduces an "idle land" classification. It revises income requirements for agricultural property, with different thresholds for smaller and larger parcels, and expands the definition of agricultural use while excluding activities like hobby farming, agritourism, and recreational uses. The bill also modifies tax rates and valuation methods for different types of land, including creating a specific classification and tax rate for nonproductive forest land. Landowners will now need to periodically reapply for agricultural classification and provide more detailed documentation about their land use, with the goal of ensuring that agricultural tax benefits are applied more precisely and to genuinely agricultural operations.

Budget and Finance

https://bills.legmt.gov/#/laws/bill/20251/LC0086