Montana (Summary)
Last Updated: March 2020
Tax Type: Current Use
Description: Forest land is assessed at its forest productivity value for assessment purposes, which is determined only on the basis of its potential to produce timber, other forest products, and associated agricultural products through an income approach. There is no severance tax in Montana. There is a forest fire hazard reduction fee in $0.15/MBF.
Law MCA. §§15-44-101 to 106; 15-6-223; ARM §§ 42.20.158 to 169
Objective: In order to encourage landowners of private forest lands to retain and improve their holdings of forest lands, to promote better forest practices, and to encourage the investment of capital in reforestation
Principal Forest Property Tax Incentive Program:
Program legal-common name: General property tax program (Forest Lands Tax)
Program Requirements
Min/Max Acreage: at least 15 or more adjoining acres
Min. Stocking Growth: The annual net wood production equals or exceeds 25 cubic feet an acre at the culmination of mean annual increment.
Forest Management Plan: N/A
Duration of Enrollment: Automatic annual renewal of initial application
Evidence of Use:
Penalties for Use Change: N/A
Program Administration
State: State Department of Revenue administers the program.
County Tax Assessor and Commissioner: N/A
University: N/A
Landowners: File application. The owner of the land bears the burden of demonstrating that the use of the land is primarily agricultural.
For a more in depth discussion of Montana property taxes click here!