Montana House Bill HB960

Montana 2023 Regular Session

• Introduced: 3/28/23
• Refer: 3/28/23

Caption

Revise property tax laws to provide for recreational land classification

Impact

The bill is designed to reshape how recreational and agricultural lands are valued and taxed in Montana. By establishing higher tax rates for recreational land—classified as class nineteen—the bill aims to increase local or state revenue from land that, according to the sponsors, offers fewer community benefits as opposed to actively farmed agricultural land. The classification is particularly crucial for large land holdings, signaling a significant shift in property tax revenue sources and how entities may manage their expansive land holdings.

Summary

House Bill 960 seeks to modify the classification and taxation of specific land parcels, particularly targeting those not qualifying as agricultural land. The bill introduces a new category, termed 'class nineteen property', which includes contiguous land parcels of at least 640 acres owned by a single entity. This classification mandates that such land be taxed at a rate higher than that applied to agricultural property unless the owner opts to classify it as agricultural by demonstrating applicable use and meeting certain income criteria.

Contention

Critics of HB 960 are likely to argue about the implications of reclassifying such large land parcels as recreational land, emphasizing concerns regarding local land use and community autonomy. Property owners and agricultural parties may resist the imposed taxation on their land that fails to meet a prescribed income threshold, leading to potential disputes about rightful usage classifications and tax burdens. Additionally, local farmers arguing for consistency in agricultural tax rates might see this bill as an unfair disadvantage, especially if they believe the tax structure does not benefit sustainable agricultural practices or local community needs.