One former, and two current state senators are challenging a new property tax policy in court.
The three GOP legislators argue that Senate Bill 542 violated constitutional requirements for lawmaking. They say the original bill’s intent was warped by amendments, and the final product logrolls too many subjects together.
The bill originally proposed freezing property values for two years. It was later amended to create a tiered property tax system, imposing higher rates on higher-value homes. It also authorized one-time tax rebates.
The plaintiffs, Sen. Greg Hertz of Polson, Sen. Tom McGillvray of Billings and former Sen. Keith Regier of Kalispell cite Hertz speaking on the Senate floor about the bill last spring.
“So it’s completely turned upside down, and I believe violates Article 5, Section 11 of the Montana Constitution,” Hertz told the Senate.
In November, data showed that 80% of residential property owners saw tax relief last year under the bill. But Hertz told an interim committee that it came at too high a cost to the 20% of property owners who paid for the shift in tax burden.
The bill was one of two high-profile property tax policies that headlined the session. They were backed by moderate Republicans and Democrats. The other bill created the “homestead” tax exemption for primary Montana residences, which Gov. Greg Gianforte championed. The legislation passed in the final hours of the session.
Gianforte’s office said the governor cannot comment on pending litigation, but that he was proud to sign the bill into law. He said property taxes will increase significantly if the lawsuit is successful.
