Sen. Hertz said the lawsuit is about more than property taxes, needs a fair hearing
By Keila Szpaller DAILY MONTANAN
Gov. Greg Gianforte is asking the Montana Supreme Court to take over a lawsuit challenging the constitutionality of a property tax bill passed by the 2025 Montana Legislature.
In a news release Monday, the governor, a Republican, said he was asking for the state high court to take over in order to expedite the case against Senate Bill 542.
If the lawsuit succeeds in the lower courts, the governor said “it could potentially invalidate the tax rates applied in the 2025 tax year and roll back about $95 million in property tax rebates claimed by Montanans last year, resulting in higher property taxes for Montanans.”
But Republican Sen. Greg Hertz of Polson said Monday the lawsuit does not ask for a rollback of the property tax rebates.
Hertz, Majority Leader Tom McGillvray, R-Billings, and former legislator Keith Regier filed the lawsuit in January, alleging SB 542 doesn’t adhere to the state Constitution.
The plaintiffs allege it unfairly raised taxes on multigenerational properties in Montana, and that it was “cobbled together behind closed doors.”
Hertz said Monday it’s too early to state whether he supports or opposes the petition from the governor. However, he said the lawsuit needs a full hearing, and it’s not only about property taxes.
Hertz said the case also is about ensuring legislators can’t change a bill from its original intent, as provided for in Article 5 Section 11 of the Montana Constitution, which says, in part, “A law shall be passed by bill which shall not be so altered or amended on its passage through the legislature as to change its original purpose.”
But Hertz said the Legislature has interpreted that a broad bill title that includes the term “generally revise” can effectively make Article 5 Section 11 “null and void.”
He said that lawmakers’ use of the phrase — generally revise — can result in a more closed process, which means less communication about a bill and more confusion around it. He also said the public loses out on a more robust debate.
“It puts the lobbyists and the executive branch in charge of writing bills, and it does not allow the public to provide input or to follow the process,” Hertz said.
The lawsuit says that 10 days before SB 542 had a hearing in the Senate’s Taxation committee, Appropriations Chairperson and Rep. Llew Jones, R-Conrad, had already decided to gut the original three-page bill, and by the end, it was a 40-page behemoth nicknamed “Frankenstein” that included none of the original wording.
Monday, Hertz said it is time for the courts to rule on the “generally revise” portion of the case and if it meets the Constitutional requirement that a bill is not changed beyond its original meaning.
“This scheme has been used to pass incredibly complex legislation governing taxation, state finances, and more,” Hertz said in an email. “Professional lobbyists, legislative staff, and even many legislators have been confused and blindsided by aspects of these bills.
“It’s all but impossible for the general public to keep up, making a mockery of Montanans’ constitutional Right to Know and Right to Participate.”
Hertz also said most of the time, the Supreme Court does not take up cases early and lets them play out in district courts.
Taxes are part of the lawsuit too, and residential property taxes generally have increased significantly in Montana in recent years.
Reducing them was a priority for the 2025 Montana Legislature.
Lawmakers debated the best way to lower those bills up until the end of the session. Gianforte estimated the key property tax reduction bills he signed cut taxes for 80% of homeowners.
When it comes to property taxes, Hertz earlier said taxes aren’t actually going down, they’re just shifting to other payers within a jurisdiction.
Hertz has said those picking up the tab aren’t the mansion owners at the Yellowstone Club who were targeted, but likely other Montana residents and small business owners (Hertz himself is a business owner).
But in the news release, Gianforte said the bills met the goal to reduce property taxes for homeowners, and he wants the fix to stick.
“I’m now asking the Supreme Court to step in to ensure the relief provided to Montanans remains intact,” Gianforte said in a statement.
The lawsuit alleges that SB 542 violates the Montana Constitution’s “single subject” and “original purpose” provisions, but the governor argues the bill does not violate the state Constitution and was lawfully passed, the news release said.
“However, (Gianforte) states that he and the Legislature need confirmation of that before the 2027 legislative session gavels in,” the news release said.
The Montana Legislature generally convenes every other year for 90 days is set to meet again in January 2027.
