Posted: Jan 3, 2013 8:28 AM by MTN News
HELENA - Montana farmers and ranchers are greatly impacted by the passage of the fiscal cliff bill, with the Montana Stockgrowers Association saying that are pleased with the deal Congress made on the estate tax.
The plan calls for farmers and ranchers with estates totaling $5 million or less, not to be taxed when they pass their farm onto the next generation. However, after the $5 million threshold estates and inheritances will be taxed at 40%.
"The rate of 40% is a little higher than where we would have liked it, but I think it's a fair compromise. If anything it gives us some permanency and gives our farmers and ranchers something to plan for," Montana Stockgrowers Association CEO Errol Rice said.
He added that with all the discussion of cutting federal spending, the stockgrowers understand everyone will need to share in the burden of budget cuts.