HELENA, Mont. – Residents of Silver Bow and Gallatin counties have filed a lawsuit against the Montana Department of Revenue and the Gianforte administration. They claim the state violated the Montana Constitution by not adjusting residential property taxes.
The lawsuit was filed last week and stems from the 2023 legislative session. During this session, the Montana Department of Revenue reassessed property taxes, increasing the burden on residents.
According to Article 8, Section 3 of the Montana Constitution, “The State shall assess, value, and equalize the valuation of all property taxed in the manner prescribed by law.” , argues that the nation must maintain a fair tax system.
The law also emphasizes the need for “fair, just, and unbiased valuation of all taxable property across counties, among different asset classes, and among individual taxpayers.”
A memorandum submitted to the 2023 Legislature proposed lowering property tax rates to maintain a neutral tax value. Proposed changes include reducing the residential real estate tax from 1.35% to 0.94% and adjusting the commercial real estate tax from 1.89% to 1.62%. According to the complaint, Governor Gianforte was aware of the memorandum but did not act on it with the Legislature.
In response, the governor’s office announced its position on property taxes. “While the Governor’s Office typically does not comment on ongoing litigation, the Governor has been clear that property taxes are too high and need to be reined in,” the statement said. “The Governor supports the Homestead Exemption, which reduces taxes for Montanans with a primary residence while ensuring that people from out of state pay their fair share of social services,” said Sean, the Governor’s spokesperson. Southard said.
The case will proceed in Montana’s Second Judicial District Court.
