Gov. Gianforte Pushes Tax Relief for Farmers & Ranchers

March 19, 2025

Governor Greg Gianforte, Senator Josh Kassmier, R-Fort Benton, and local ag producers today urged support for reforms to the business equipment tax. Gov. Gianforte and Sen. Kassmier support a reform to permanently eliminate the tax’s burden for an additional 700 small businesses, family farms, and family ranches.

“With hardworking Montanans in mind, we’re once again prioritizing historic business equipment tax relief, eliminating this tax burden for more Montana small businesses and family farms and ranches,” Gov. Gianforte said. “Taxing critical business equipment makes it harder to grow a small business and is a wet blanket on job creation. Let’s continue our progress to eliminate the burden.”

Since 2021, Sen. Kassmier has led the charge in the Legislature to ease the burden of the business equipment tax for small businesses and family farms and ranches. Between 2021 and 2023, then-Rep. Kassmier sponsored bills, which the governor signed into law, that expanded the business equipment tax exemption from $100,000 to $1,000,000, eliminating the business equipment tax burden for more than 5,000 small businesses, farms, and ranches.

“This is important because inflation keeps hitting these farms and ranches, the price of equipment keeps rising, and it doesn’t take long to get to $1 million with just a couple pieces of equipment. Raising the exemption to $3 million will help get another 700 farmers and ranchers off this tax roll and allow them to be able to invest in their operations and employees,” Sen. Kassmier said. “I appreciate the governor’s work and leadership on this, and I look forward to raising the exemption.”

During a visit to Circle View Farms in Fort Benton, Gov. Gianforte and Sen. Kassmier met with fourth-generation owner Brent Hanford on the importance of raising the exemption to take more farms and ranches off the business equipment tax roll.

“The business equipment tax is taxing equipment you bought with money that was already taxed. It shouldn’t be happening in the first place, but raising it from $1 million to $3 million would greatly help, especially small farms and ranches and businesses – to keep that money to put back into the business to keep it going,” Hanford said.

The governor and senator also heard from Eric Gray, owner of Heartland Seed and farmer in Highwood.

“I’ve been really lucky. As I’ve gotten into farming over the last few years here, and back helping my dad on his operation, I’ve been able to start accumulating my own equipment line and the business equipment tax has been stepped up, so I haven’t had to worry about it. So, increasing the exemption will only continue to help,” Gray said.

Gray continued, “When you start looking at $500,000 to $1 million for a combine, depending on what you’re buying, $1 million for the exemption doesn’t go very far – you can tie that up in a hurry.”

Montana’s business equipment tax requires small businesses and family farms and ranches to reallocate resources, which they would otherwise use to invest in their operation and create jobs, to pay a tax on the equipment and machinery they need to operate.

The business equipment tax also imposes a costly compliance burden, with businesses required to inventory and report their equipment to the state each year.

Reducing the burden of the business equipment tax on Montanans, Sen. Kassmier’s Senate Bill 322 continues to encourage business investment and promote job creation. The bill is scheduled to be heard in the Senate Taxation Committee on March 27.

Source: Office of Gov. Gianforte