Like most large corporations, Calumet/Montana Renewables hires law firms with well-connected lawyers. Here in Montana, it is Browning, Kaleczyc, Berry and Hoven (BKBH), a Helena-based “silk stocking” law firm. Their attorneys use law and politics to help the corporation comply with the law, maximize profits, and avoid paying taxes.
Calumet Gets Property Tax Breaks Every Year
A prime example is Calumet/Montana Renewables’ repeated appeals of their property tax valuations. They have appealed their property valuations every single year since 2017. These appeals have resulted in significant reductions to their valuations resulting in lower property taxes in every case. In five separate appeals between 2017 and 2021, the average valuation reduction Calumet/Montana Renewables received each year was $107,123,622. There are currently appeals still pending for the last three years.
When a large business like Calumet/Montana Renewables, the largest property taxpayer in Cascade County, files a property tax appeal, local governments are forced to delay adopting budgets. They cannot be sure how much revenue will come in based on new valuations. But when an appeal is settled through negotiation, as these have been, there is no complete record of findings. The parties (Department of Revenue and Calumet/Montana Renewables) simply agree on a number.
Fitzpatrick’s Special Tax Legislation
More concerning is the activity of a BKBH attorney and Republican state Senator representing Great Falls, Steve Fitzpatrick. To our knowledge, Fitzpatrick is not directly employed by Calumet. But he is a “shareholder ” in the firm, which derives significant revenue from Calumet.
In the 2023 legislative session, Fitzpatrick introduced Senate Bill 510, titled “Provide Property tax incentives for alternative fuel production.” This new law changed the process for receiving tax “abatement” for Calumet/Montana Renewables. Now only the county has the authority to approve forgiving property taxes. But requests for abatement cannot be denied by the county commissioners. The county can only decide to give up 80%, 90% or 100%. In March, the county commission voted to give Calumet/Montana Renewables the minimum, 80%. The abatement phases out after five years.
https://theelectricgf.com/2025/03/11/county-approves-80-percent-tax-abatement-for-calumet/
This year’s action comes on top of a 50% abatement Montana Renewables is already receiving. The city estimates that the previous abatement cost the city $2.77 million in lost revenue. No figures were available from the county for the same period.
https://montanafreepress.org/2024/10/21/a-closer-look-at-calumets-tax-benefits/
The Whole Plant is Air Pollution Control Equipment?
Fitzpatrick’s bill also added language which defined virtually all of Montana Renewables’ plant as tax-exempt “air pollution control equipment.” Naturally, Montana Renewables then applied to the Department of Environmental Quality (DEQ) for the exemption of the $430 million plant. DEQ denied the application, approving only 8% of their request. Calumet/Montana Renewables appealed DEQ’s decision to the Montana Tax Appeals Board. A decision is pending.
These Special Breaks Cost The Rest Of US
The stakes in this game are very high. A full tax exemption for Montana Renewables could erase more than $1.5 million in proceeds to schools, $1.8 million for the City of Great Falls, and $1.1 million for Cascade County. If this case is resolved by “negotiated settlement,” we may never know what justifies this huge tax give away.
https://montanafreepress.org/2025/02/10/calumet-applies-for-new-tax-benefit/
The Law Firm’s Influence For Calumet
As mentioned before, Fitzpatrick is a “shareholder” in (BKBH). Many of the principals in this firm are well established figures in the legal community with numerous connections in both political parties. BKBH provides lobbying services to clients as well as legal representation.
One of Calumet’s attorneys at BKBH is Kimberly Beatty, the wife of the current director of the Montana Department of Revenue, Brendan Beatty. The Department of Revenue website says he operates the family ranch as well. Brendan Beatty filed a potential conflict of interest disclosure with the Montana Commissioner of Political Practices as required by administrative rules.
It Should Make You Go, “Hmmm”
Beatty certainly is paid for her work for Calumet/Montana Renewables. We can’t say if Fitzpatrick has ever received direct payment from Calumet/Montana Renewables. Even if he did, it likely would not be illegal. Fitzpatrick and Beatty are “shareholders” in BKBH. In theory both benefit from the firm’s work for Calumet/Montana Renewables. In these times of political influence peddling and big corporations dodging taxes, it’s just one of those things that makes you go hmmm. . . .