4.14.601    TAX DEDUCTION

(1) The authority will follow rules of the Montana department of revenue implementing the tax deduction provided in 80-12-211 , MCA, for the sale of qualifying land on a long term contract to a beginning farmer/rancher. The repayment period (term) of the long term contract must extend for a period of 10 years or more. In addition, the dollar amount of the long term contract must be 51% or more of the total purchase price of the land. The transaction must be approved by the authority. The appropriate application for tax deduction must be received by the authority within one year of closing on the respective sale and contract transaction. Applications for sale transactions closed prior to the April 18, 1985 effective date of the law are not eligible for the tax deduction.

(2) Basic authority eligibility requirements for a beginning farmer/rancher are:

(a) The beginning farmer/rancher may not have a net worth in excess of $250,000;

(b) The beginning farmer/rancher must be a minimum of 18 years of age;

(c) The beginning farmer/rancher must be a resident of Montana at the time the loan is closed;

(d) The beginning farmer/rancher must have documented, to the satisfaction of the authority , sufficient education, training and experience for the anticipated farming/ranching operations; and

(e) The authority may require certain documents to determine eligibility.

(3) The authority may conduct additional inquiries or investigations as necessary to determine the accuracy and completeness of an application.

(4) The beginning farmer/rancher need not be a recipient of an authority loan.

(5) A non-refundable $25 application fee will be charged by the authority and must accompany the appropriate application form (obtainable from the authority) to cover administrative costs.

History: Sec. 80-12-103, MCA; IMP, 80-12-211, MCA; NEW, 1984 MAR p. 363, Eff. 3/1/84; AMD, 1984 MAR p. 1752, Eff. 11/30/84; AMD, 1985 MAR p. 1016, Eff. 7/26/85; AMD, 2001 MAR p. 1723, Eff. 9/7/01.