A Second Lawsuit Has Been Filed Over Montana's Property Tax Increase

By The Hollinger Team

Diana, Kellie, Dane, Drew and I have over 85 years of experience in Montana real estate, specializing in waterfront properties. Let’s see what we can find for you.

If you’ve been following the Montana property tax situation, I wanted to give you a quick update because there’s been a new development.

I keep getting asked the same question: what in the world did our legislature and our governor do with what was supposed to be property tax relief? And the honest answer is they didn’t reduce taxes. They shifted them. Homeowners on lower-valued properties got their taxes lowered, and the difference was made up by raising taxes on homeowners with higher-valued properties. There was no net reduction. The burden just moved from one group to another.

The Impact Is Real

I recently heard from a friend and long-time client who purchased property from his parents. The property had been in his family for several generations, and he built a home there. His property taxes have gone up 400%. His parents have passed away, and he joked that when the estate gets settled, he could use the money to pay the taxes on his home. It’s the kind of thing you laugh at because the alternative is too frustrating.

And he’s not alone. Across Montana, long-time property owners who worked hard for what they have are now being punished for it. The bill was sold as a property tax reduction, but if you look at the math, it never was one. They just shifted the burden from one group of people to another.

Where the Legal Fight Stands

In a previous video, I introduced Greg Hertz, a state legislator who filed a lawsuit to repeal the tax bill. That original lawsuit challenged the way the bill was put together during the legislative process, arguing that it was rushed through and fundamentally changed from its original purpose.

Now, a second lawsuit has been filed. This one challenges the constitutionality of the unequal treatment of taxpayers. The argument is that the bill created new rules that effectively punish property owners with higher-valued homes, many of whom have owned those properties for decades. These are people who worked a long time for what they have, and the new tax structure is treating them differently than everyone else.

The lawsuits have been joined by other organizations that are helping to push this forward, and I think they have a real strong chance of winning. This was a bill that was hurried through the legislature and signed on the last day of the session. It wasn’t thought through, and the consequences weren’t fully considered.

What You Can Do

I would encourage every property owner in Montana to look at what your taxes have changed to and consider supporting these lawsuits. This needs to be fought in court, and if it’s successful, it could lead to a repeal of the bill and get us back to a point where we can have real, fair tax reductions for everyone.

If you have questions about how this is affecting property values or what it means for buying or selling in the Bigfork area, I’m always happy to talk it through. Call or text me at (406) 837-5531 or email me at ScottHollingerMT@gmail.com.