by Ken Toole | Oct 11, 2026 | Appraisal, Corporations, Taxes
This post is from WTF406.com’s archives. You can see other archived posts by searching on a name or topic on WTF406.com’s landing page. Please hit the subscribe button if you are not already a subscriber. This post ran on May 16, 2025.
In this post we are focusing on the games large corporations play on property taxes and “appraised values.” We’ve already written about Calumet’s shenanigans in receiving reductions in property taxes with the help and support of local Republican legislator Steve Fitzpatrick and Attorney Kim Beatty, wife of the Director of the Department of Revenue. https://wtf406.com/2025/04/calumets-got-lawyers-and-politicians/
The Goal of All Property Appraisal is to Establish the Market Value Of The Property
The first step in determining how much you will owe in property taxes is determined by the appraised value of your home, land, business, or rental. That value is determined by the Montana Department of Revenue’s appraisal process. The most common way the Department of Revenue determines the value of your home is to identify comparable property in your area that has sold. It is determining the “market value” by looking at sales of similar property.
Three Methods of Appraisal to Determine How Much a Property Is Worth
It is harder to find “comparable sales” for large industrial facilities like Calumet, because they do not sell as often and there are far fewer of them to use as comparisons. There are other ways to establish the market value. In addition to the comparable sales method, there is also the “cost approach” which adds the cost of land, buildings and other improvements and adjusts for condition of facilities to determine the total value. The third method is the “income approach.” In this system the appraiser looks at the income and expenses generated by the property. Calumet and other refineries are generally appraised using the “cost approach.”
Here’s The Game They Play. . .
If a property owner does not agree with the Department of Revenue’s appraisal, there is an appeal process through the Montana Tax Appeals Board. That process allows the Department of Revenue and the appellant (say, Calumet) to negotiate a voluntary settlement. Calumet and other refineries in Montana routinely appeal their valuations and routinely enter settlements with the Department of Revenue which result in lowering their taxes. None of the negotiation meetings are public. And when their taxes are lowered, your taxes go up. For a complete explanation of how this works, follow the link below. https://dailymontanan.com/2023/07/26/big-corporations-get-tax-benefits-while-montana-resident-get-higher-property-taxes/
2012 Showdown In A Legislative Committee
Dan Bucks, the Department of Revenue Director under former Governor Brian Schweitzer, refused to play this game. Instead, he defended the appraised values by the Department of Revenue rather than entering settlements. Not surprisingly, big corporate taxpayers, like refineries, didn’t like Buck’s approach. In September 2012, three refineries attempted to set him up in front of the legislative interim committee on Revenue and Transportation in a failed attempt to apply political pressure.
At the same time, Connacher Oil and Gas Limited, the previous owners of the Great Falls refinery, reached a deal with Calumet to sell the refinery for $120 million. That purchase established the actual market value of the refinery. The Department of Revenue had appraised the value of the refinery at $70 million, and Connacher Oil had appealed that appraisal, arguing it was too high even though it was $50 million below the actual purchase price paid by Calumet. Below is an audio clip of Bucks explaining the issue to the legislative committee.
https://sg001-harmony.sliq.net/00309/Harmony/en/PowerBrowser/PowerBrowserV2/20120914/-1/20693?startposition=20120914072325&mediaEndTime=20120914072507&viewMode=3&globalStreamId=4
Our Local Elected Officials Need to Represent Us, not Big Corporations
Too often local elected officials pander to these big corporations. Beware of politicians who talk about the economic benefits of “industrial development.” Too often we get taxes shifting more and more to residential and small business and underfunded public services. We need more people in government like Dan Bucks. We won’t get them if we (the public) don’t demand that the tax system is equitable and transparent and companies like Calumet pay their fair share.
by Ken Toole | Sep 23, 2026 | Corruption, Legislature, Taxes
This post is from WTF406.com’s archives. You can see other archived posts by searching on a name or topic on WTF406.com’s landing page. Please hit the subscribe button if you are not already a subscriber. This post ran on April 1, 2025.
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. . . .
