The Montana Republican Party has requested a District Court in Gallatin County to invalidate a comprehensive property tax law enacted last year. The party joined three Republican legislators, arguing that the law, created by the Gianforte administration, contains unconstitutional elements and lacks any salvageable constitutional provisions.
The property tax increases that followed Montana’s real estate boom have financially strained many homeowners, prompting lawmakers in their 2025 session to address property tax reform. The reform was implemented through Senate Bill 542. However, three Republican legislators sued, claiming the process, rather than the tax changes, was unconstitutional. They argued lawmakers violated procedural rules by incorporating provisions from other bills into SB 542.
SB 542 introduced changes for the 2025 tax year, including a tiered rate system taxing higher-value homes more, and providing $400 rebates to primary residents. The Gianforte administration has warned that a ruling against the law may lead to confusion among taxpayers. Attorney Joel Silverman suggests the court could rule in various ways, including striking the law entirely or invalidating parts of it.
Republican Gov. Greg Gianforte defends SB 542, stating it offers relief to 400,000 Montanans. The Montana Supreme Court was asked to review its constitutionality but declined, keeping the case in District Court. The debate on property tax reform continues amid internal GOP disagreements, with Rep. Llew Jones heavily criticized for his role in the reform process.
Jones contends that the $400 rebate was crucial for policy success, as 80% of homeowners saw a tax reduction in 2025. The ongoing case, expected to reach the Montana Supreme Court, could take years to resolve. As the 2027 legislative session approaches, further tax reforms are anticipated, depending on the outcome of this legal battle.
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