Judge dismisses lawsuit against measure to cap Montana property taxes

HELENA — A choose in Helena has dismissed a lawsuit that sought to dam signature gathering for a proposed constitutional modification capping residential property taxes.

District Courtroom Choose Chris Abbott dominated Wednesday that the state did comply with correct process when clearing Constitutional Initiative 121 for signature gathering. Advocates are presently making an attempt to get the measure on the November poll.

Plaintiffs – together with the Montana Federation of Public Workers, Montana Farmer’s Union, Montana Cattlemen’s Affiliation and several other people – sued the state of Montana and CI-121 co-sponsors Troy Downing and Matthew Monforton. They argued supporters shouldn’t have been capable of acquire signatures for CI-121 till the Montana Lawyer Common’s Workplace dominated on whether or not it could trigger vital hurt to companies and a legislative committee voted on whether or not to assist or oppose it.

Final 12 months, the Montana Legislature authorized Home Invoice 651, which revised guidelines for poll initiatives. It required the Lawyer Common’s Workplace to assessment proposed poll points for whether or not they would create “vital materials hurt” for enterprise pursuits or create a “regulatory taking.” It additionally requires an applicable legislative interim committee to carry a listening to on a proposed poll challenge and vote to assist or not assist its placement on the poll. Details about these selections would then must be included on the petition types individuals signed.

Within the case of CI-121, Lawyer Common Austin Knudsen declined to assessment the measure for vital materials hurt. He argued HB 651’s new necessities solely utilized to statutory initiatives, to not makes an attempt to amend the structure. Secretary of State Christi Jacobsen then cleared CI-121 for signature gathering, earlier than any interim committee listening to.

The plaintiffs then filed swimsuit, arguing HB 651 ought to apply to constitutional initiatives as nicely. The court docket granted a brief restraining order delaying signature gathering, however dissolved it weeks later.

In his resolution, Abbott mentioned each side had cheap arguments – the plaintiffs as a result of the time period “poll challenge” incessantly consists of constitutional initiatives in different elements of state regulation, and the defendants as a result of HB 651 particularly modified the petition types for statutory initiatives, however not for different varieties of poll points.

In the long run, nonetheless, Abbott sided with the defendants.

“To learn subsection (9)(b) to incorporate something aside from statutory initiatives can be to render the statute nonsensical and to violate the dictate that the Courtroom not insert what has been omitted,” he mentioned.

Monforton advised MTN he was happy with the choice.

“The liberal particular pursuits that sued us knew they have been by no means going to win; they have been simply making an attempt to disrupt our signature-gathering efforts,” he mentioned. “So this resolution comes as no shock.”

Knudsen’s workplace additionally launched a press release.

“In passing HB 651, the Legislature tasked the lawyer basic with warning Montanans about statutory initiatives that would significantly hurt companies in our state or create unconstitutional regulatory takings of personal property,” mentioned spokesperson Emilee Cantrell in a press release. “As we have now mentioned from the start of this case, a plain studying of the brand new regulation makes clear that the Legislature gave the lawyer basic energy to make these findings for statutory initiatives however not initiatives that might amend the Montana Structure. The Courtroom reached the identical conclusion. Lawyer Common Knudsen is dedicated to the rule of regulation and can proceed to train the numerous, however restricted, authority that the Legislature has given him in reviewing proposed statutory initiatives for hurt to companies in Montana.”

Abbott additionally dismissed the plaintiffs’ request that the court docket discover Monforton in contempt for not doing sufficient to cease signature gathering whereas the non permanent restraining order was in place. A committee backing CI-121 stored its web site up throughout that point and allowed individuals to obtain petition types, although Monforton famous he put up a publish telling individuals they weren’t allowed to collect signatures.

Abbott mentioned within the resolution he was “troubled” by the web site remaining up and that the efforts to cease signature gathering have been “underwhelming,” however he didn’t consider the court docket had the authority at this level to seek out Monforton in contempt.

Monforton advised MTN the non permanent restraining order didn’t ask him to shut down CI-121’s web site, and he complied totally with the order as written.

CI-121 would base residential property’s assessed worth on what it was in 2019, then restrict any will increase in worth to not more than 2% per 12 months, based mostly on the speed of inflation. Property might be reassessed to its new market worth solely after it’s offered or considerably improved. The measure would additionally restrict whole residential property taxes to 1% of the assessed worth.

The Montana Legislature’s Income Interim Committee voted unanimously final week to oppose CI-121, although that call is not going to have any impact on signature gathering due to the court docket’s ruling.