"The American West is synonymous with a rugged free spirit that permeates both the landscape and its people, influencing even the tax code. In Western states, agricultural properties receive preferential tax treatment to support generational farmers and ranchers. However, the surge of wealthy buyers attracted by the allure of owning vast ranches has brought attention to the tax breaks, raising questions about whether these laws are preserving a way of life or subsidizing luxury real estate for billionaires."
"Ranches and farmlands benefit from lower property tax rates due to agricultural tax treatment, assessed based on their productivity to sustain working lands. The "Yellowstone effect," driven by the popularity of Western ranching lifestyle portrayed in TV shows like "Yellowstone," has fueled demand for ranch properties among high-net-worth individuals seeking legacy assets or retreats. Agricultural tax breaks in states like Montana can result in multimillion-dollar estates receiving substantial tax discounts, shielding them from their full tax burden, highlighting dispa"
Agricultural property tax codes in many Western states assess ranches and farms on agricultural productivity rather than market value, producing substantially lower property tax bills. Those preferential assessments aim to sustain working lands and generational farming and ranching by reducing fiscal pressure on operations. Rising demand for large Western ranches from wealthy buyers—fueled partly by popular culture portrayals—has led to upscale estates receiving the same agricultural valuations. As a result, multimillion-dollar properties can pay taxes far below market-based levels, prompting debate about whether the policies preserve rural livelihoods or subsidize luxury real estate.
Read at SFGATE
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