A Bozeman attorney is behind two lawsuits challenging Montana’s property tax system. One has failed, but the other is advancing.
Attorney Matthew Monforton filed a suit on behalf of state Sen. Brad Molnar of Laurel Tuesday, arguing the state is overcharging property owners in taxes this year.
The debate over the 95 mills the state collects to equalize funding among public schools began earlier this summer. Some county officials argued that a decades-old law limits the amount counties and the state can levy on property owners when their taxable values increase. But, they contended, the state has illegally exempted itself from the cap.
That’s the basis of the lawsuit filed in Yellowstone County District Court. Monforton said the suit is seeking class action status on behalf of Montana taxpayers.
“Taxpayers like Sen. Molnar and most of the rest of us have no choice but to seek justice in the courts,” Monforton said.
Gov. Greg Gianforte, other lawmakers and public school advocates push back against that argument, saying the state has a long precedent of assessing the tax to comply with the state’s Constitution mandating equal access to the public education system.
Monforton said the Constitution does not require the system be funded with a statewide property tax.
While the suit isn’t likely to be resolved for some time, Montanans’ tax bills are due soon. Monforton said property owners should still pay their bills under protest if they’re hoping for a rebate on appeal.
Monforton also filed a separate lawsuit related to property taxes earlier this year. He revived and expanded a ballot initiative from 2022 to cap property assessments, but it was blocked from advancing by Attorney General Austin Knudsen.
The state’s top attorney said the proposal addressed two constitutional issues that require two separate initiatives. Monforton sued, saying Knudsen had overstepped his authority and had allowed a similar proposal to advance two years ago.
The Montana Supreme Court Tuesday unanimously agreed with Knudsen’s assessment and upheld his decision.
Monforton said supporters of the property tax proposal may revise the language of the initiative to resubmit.
