Forest Land

  • Montana has approximately 14.6 million acres of privately owned forest land that make up Class 10 property.
  • We value Class 10 property every two years.

Classifying Forest Land

We classify forest land based on ownership, timber acreage size, and timber productivity. (15-44-102, MCA, ARM 42.20.705)

Requirements for Forest Land Classification

To be classified as forest land, a parcel must:

  • Have 15 or more contiguous timber acres
  • Be under one ownership
  • Be capable of producing at least 100 board feet per-acre

Determining Property Values

We value forest land by dividing the net income per acre by the capitalization rate. (15-44-103, MCA)

Formula:

Net Income per Acre = (Productivity × Stumpage Value) + Income − Costs

Determining Net Income Per Acre

We determine net income per acre using:

  • Productivity of the forest land;
  • Stumpage value;
  • The agricultural income; and
  • The forest and agricultural production costs.

See 15-44-103, MCA.

How Values Are Determined

Stumpage value, agricultural income, and forest and agricultural production costs are based on forest zones.

The Forest Land Taxation Advisory Committee provides the forest zones and the department's Tax Policy and Research Division determines the stumpage value for each zone.

We gather forest cost data from the Montana Department of Natural Resources and Conservation (DNRC).

Additional Resources

For more information on Forest Land Classification and Valuation, please refer to the 2025-2026 Forest Land Classification and Valuation Manual (PDF, 607 KB).