Gianforte told the high court that as much as $95 million in tax rebates could be at stake
By Keila Szpaller DAILY MONTANAN
The Montana Supreme Court dismissed Tuesday a petition from Gov. Greg Gianforte that it take control of a property tax lawsuit over Senate Bill 542.
An order signed by all justices said Gianforte had not demonstrated why the matter was so urgent that it needed to bypass the district court and normal appeals process.
Senate Bill 542 was one of the property tax relief bills of 2025.
In the lawsuit, Republican Sens. Greg Hertz and Tom McGillvray and former legislator Keith Regier allege SB 542 doesn’t adhere to the state Constitution, it unfairly raises taxes on multigenerational properties in Montana, and it was an illegal backroom deal that cut out the public.
The plaintiffs filed the lawsuit in Gallatin County District Court, but Gianforte asked the state Supreme Court to take over the case to expedite it.
The governor, a Republican, argued in part that if the lawsuit succeeded, it could invalidate tax rates and roll back $95 million in rebates — and lead to higher property taxes.
Gianforte has pointed out that the property tax bills he signed in 2025 resulted in relief for 80% of Montana homeowners, and striking down SB 542 would reverse those gains.
Hertz earlier said the lawsuit doesn’t ask for a rebate rollback, but Gianforte also argued the decision on SB 542 could have implications for tax legislation in 2027.
In the order, the justices said the rules permit the Supreme Court to take control of a case in an emergency, when the normal process isn’t adequate, and they have done so in the past, but wouldn’t here.
“We are confident that the district court, which is well-equipped to consider the legal questions Governor Gianforte posits, may resolve the legal issues in a timely fashion and provide opportunity for appeal so long as the parties diligently litigate the case,” the order said.
The order also said nothing prevents the Legislature from considering the issues raised in district court litigation to guide its bill process in 2027.
In a statement, lawyer Matthew Monforton, representing the plaintiffs, said the order reflects on the legislation.
“This wasn’t tax reform — it was a rushed rewrite of a bill that couldn’t survive normal scrutiny,” Monforton said. “The Supreme Court’s decision not to step in early speaks volumes.”
In an email, the Governor’s Office said the Supreme Court decision means laws in 2027 are “at risk of further potential lengthy litigation,” and Montanans could end up with higher property taxes.
“The governor is disappointed the Supreme Court is refusing to step in to ensure the significant property tax relief provided to Montanans remains intact,” said spokesperson Kaitlin Timken in an email.
