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Proposed property tax initiative in hands of Montana Supreme Court

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Proposed property tax initiative in hands of Montana Supreme Court


HELENA — In 2022, a proposed ballot measure that would have capped Montana property taxes fell short of the more than 60,000 signatures it needed to go before voters. Now, with many more Montanans raising concerns about the impact of rising property values, advocates are attempting to place a similar measure on the 2024 ballot – but it will have to clear some legal hurdles if it’s going to qualify.

“The future of Montana belongs to those who can afford to live here – and without a change in our property tax system, that future won’t include many of us,” said Matthew Monforton, a Bozeman attorney and one of the main sponsors of last year’s Constitutional Initiative 121.

CI-121 would have based residential property’s assessed value on what it was in 2019, then limited any increases in value to no more than 2% per year. Property could only be reassessed to its new market value after it was sold or substantially improved. CI-121 would also have limited total residential property taxes to 1% of the assessed value.

Matthew Monforton, a Bozeman attorney and one of the main sponsors of CI-121, is now backing a proposed measure that’s currently designated as Ballot Issue 2. It would make broadly the same changes as CI-121, but its cap would apply to all real property – not just residential properties. He said they made the change in response to concerns that the previous proposal would have shifted the tax burden from homeowners to other property owners.

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“The rallying cry that we heard last year was, ‘Oh, there’s no need for a ballot initiative. Let the Legislature do its job. Let the legislature fix the problem with property taxes,’” Monforton said. “The problem, as we saw in this latest session, just like the session before that, is that the Legislature refuses to enact any kind of meaningful reform of property taxes because they like the system as it is.”

However, last month, Attorney General Austin Knudsen’s office ruled Ballot Issue 2 was “legally insufficient” and could not go forward for signature gathering. They argued it violated a rule that a single constitutional amendment can’t make more than one substantive change, and that it was “ambiguous in its terms, and its application, thereby making it impossible for voters to understand the Measure, and what they are voting for or against.”

The attorney general’s office said the limit on property valuations and the overall cap on property taxes are related, but that their vastly different fiscal impacts point to them not being closely related enough to count as a single subject. In a legal brief to the Montana Supreme Court, they argued the proposal should instead be submitted as multiple separate initiatives.

“For example, a citizen could reasonably decide to limit the State’s ability to increase property values by more than 2% per appraisal cycle, but not support a 1% tax cap that results in a revenue loss to their local school district, county, and rural fire district,” they said. “Those present distinct political decisions for citizens.”

Knudsen’s office also said the language of the measure needed clearer definitions for terms like “real property” and “significantly improved,” and that it wasn’t clear whether “special assessments” would count against the tax cap.

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Monforton challenged the attorney general’s decision to the Supreme Court. He noted that CI-121 was very similar and cleared the review for legal sufficiency. He accused the attorney general of overstepping his authority and questioned the Department of Justice’s response to his petition, in which they said Ballot Issue 2 also “implicitly amends” four other constitutional provisions – though they said that wasn’t the only reason it violated the separate-vote rule.

Monforton also objected to the state’s proposed statement on Ballot Issue 2’s fiscal impact, prepared in accordance with Montana law. That fiscal analysis said that, without further changes to the tax system, the measure could reduce the amount of property taxes the state can collect by up to $459 million in the first year – and reduce revenues to counties, cities, school districts and other local authorities by well over $1 billion.

Monforton argued that the law allowing the state to put a fiscal statement on petitions for a ballot measure isn’t constitutional, and that if they did have the authority to add it, it should only cover impacts on the state, not local governments.

Knudsen’s office said not including the fiscal statement – for both the state and local level – would be denying voters the information they need to make a fully-informed decision.

A number of organizations filed amicus briefs with the Supreme Court, raising concerns about Ballot Issue 2 and supporting either the attorney general’s decision to find it insufficient or to provide the fiscal statement. They included the Montana League of Cities and Towns, the Montana Association of Counties, the Montana Federation of Public Employees, the Montana Bankers Association, the Montana Association of Realtors, the Montana Building Industry Association and the Montana Chamber of Commerce. Many of those organizations were also involved with the campaign against CI-121 last year.

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“Petitioner’s proposed ballot issue threatens the very fabric of local government,” said an amicus brief from the League, MACO and the Montana Quality Education Coalition. “It does so without giving voters the information needed to understand the broad effects of the ballot issue, by violating constitutional requirements, and rendering a vote on the ballot issue as destructive as it would be pointless.”

Monforton said the opposition comes from “special interests” that benefit from the current system.

“They’re trying to use the courts to stall our signature-gathering process as much as possible to keep this petition out of the hands of Montana voters and Montana homeowners – because they know that if Montana voters get a chance to sign this, they will sign it and they will vote for it,” he said.

He argued opponents have overstated the impact the measure would have on governments.

“The kind of initiative that we’re trying to bring forth, the kind of property tax reform that we’re trying to bring forth, has been done in state after state after state – and in every one of those states, the same kind of groups said that the sky would fall, there would be a financial collapse of local governments,” he said. “That never happens, because local governments learn to manage when there is true property tax reform.”

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Monforton says he expects it will be at least several weeks before the Supreme Court rules in this case.





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Montana Supreme Court backs youth plaintiffs in groundbreaking climate trial

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Montana Supreme Court backs youth plaintiffs in groundbreaking climate trial


The Montana Supreme Court voted 6 to 1, affirming a lower court ruling that said the state’s fossil fuel friendly policies, along with a lack of action to address climate change, has violated the young people’s constitutional right to a clean environment. The decision means that state agencies must now consider the greenhouse gas emissions and climate impacts of any proposed development project.

Olivia Vesovich is one of the youth plaintiffs. She’s been involved with this case for the last 5 years.

“Hope is something we work towards, and that is what this case has been,” said Vesovich. “We have fought to have our voices heard. We have fought to have our case in the state and now that we got our voices heard by the Montana Supreme Court.”

Statements from the Governor and Attorney General’s spokespeople reiterated their arguments from the appeal that the young people lacked standing to bring this case and that climate change is beyond the scope of the courts.

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Republican lawmakers called the decision an overstep from the court into the legislature’s role. Democratic leadership praised the decision. Environmental groups heralded the decision as a critical victory in the fight against climate change.

Montana is one of 6 states with environmental protections enshrined in its constitution.

Columbia University climate change law professor Michael Gerrard says although this ruling is specific to Montana, it sets an important precedent for other climate litigation.

“I think this kind of victory will embolden youth plaintiffs and others to bring similar cases in other parts of the country, and here the trial court, now referred by the state Supreme Court, upheld all the findings of the climate scientists. It’s going to be increasingly hard for anyone to challenge those scientific findings,” said Gerrard.

Given that the case is predicated on Montana’s Constitution, this ruling is the final decision. It cannot be appealed to a federal court.

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Montana Supreme Court upholds landmark youth climate ruling

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Montana Supreme Court upholds landmark youth climate ruling


Montana’s Supreme Court has upheld a lower court’s decision that had sided with 16 young activists who argued that the state violated their right to a clean environment.

The lawsuit was brought by students arguing that a state law banning the consideration of climate when choosing energy policy was unconstitutional.

In a 6-to-1 ruling, the top court found that the plaintiffs, between ages five and 22, had a “fundamental constitutional right to a clean and healthful environment”.

Wednesday’s ruling came after a district court’s decision last year was appealed by the state. Similar climate lawsuits are ongoing across the US but this is first of its kind a from a state supreme court.

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The lawsuit targeted a 2011 state law that made it illegal for environmental reviews to consider climate impacts when deciding on new projects, like building new power plants.

It cited a 50-year-old constitutional clause that guaranteed the “state and each person shall maintain and improve a clean and healthful environment in Montana for present and future generations”.

The ruling on Wednesday stated that the “plaintiffs showed at trial – without dispute – that climate change is harming Montana’s environmental life support system now and with increasing severity for the foreseeable future” .

Rikki Held, the lead plaintiff in the lawsuit, said in a statement that “this ruling is a victory not just for us, but for every young person whose future is threatened by climate change”.

Montana state officials expressed disappointment with the court’s decision.

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Governor Greg Gianforte said his office was still assessing the ruling, but predicted the impact would be “perpetual lawsuits that will waste taxpayer dollars and drive up energy bills for hardworking Montanans”.

Western Environmental Law Center, which represented the young plaintiffs, said in a statement that the decision marks “a turning point in Montana’s energy policy”.

It said plaintiffs and their legal team “are committed to ensuring the full implementation of the ruling”.

Similar cases are scheduled to be heard in several other states, including Hawaii, Utah and Alaska, as well as in countries like Australia, New Zealand, Pakistan, Colombia and Uganda.



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Montana Supreme Court affirms decision in landmark youth climate case

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Montana Supreme Court affirms decision in landmark youth climate case


What’s New

The Montana Supreme Court on Wednesday affirmed a landmark climate decision that declared the state was violating residents’ constitutional right to a clean environment by allowing oil, gas and coal projects without regard for global warming.

Why It Matters

The decision reinforces an August 2023 ruling by District Court Judge Kathy Seeley, who found that Montana’s practices violated its residents’ constitutional right to a “clean and healthful environment.”

This pivotal case, spearheaded by a group of young plaintiffs aged 6 to 23, represented a milestone for climate advocates seeking judicial intervention to compel governmental action on climate change.

What To Know

On Wednesday in a 6-1 ruling, the Montana Supreme Court upheld the August 2023 decision.

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The court’s decision strikes down a state policy that prohibited the consideration of greenhouse gas emissions in granting permits for fossil fuel development.

The state had previously appealed the ruling by Seeley, and arguments were heard in July, in which the state argued that greenhouse gases released from Montana fossil fuel projects are minuscule on a global scale and reducing them would have no effect on climate change.

Dale Schowengerdt, representing Montana Governor Greg Gianforte and state environmental agencies, argues before the Montana Supreme Court on July 10, 2024, in Helena, Montana, in the youth climate lawsuit Held v. Montana. The Montana Supreme…


Thom Bridge/Independent Record/ AP

Chief Justice Mike McGrath dismissed the state’s argument that Montana’s emissions are insignificant on a global scale, likening the defense to an “everyone else is doing it” excuse.

McGrath wrote, “The right to a clean and healthful environment is meaningless if the State abdicates its responsibility to protect it.”

What Are People Saying

Melissa Hornbein, an attorney with the Western Environmental Law Center and attorney for the plaintiffs said, “With the ruling now in place, the Montana Supreme Court’s decision compels the state to carefully assess the greenhouse gas emissions and climate impacts of all future fossil fuel permits.”

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Chief Justice Mike McGrath wrote for the majority: “Plaintiffs may enforce their constitutional right to a clean and healthful environment against the State, which owes them that affirmative duty, without requiring everyone else to stop jumping off bridges or adding fuel to the fire. Otherwise the right to a clean and healthful environment is meaningless.”

Republican Governor Greg Gianforte said in a statement that the state was still reviewing the decision, but said it will lead to “perpetual lawsuits that will waste taxpayer dollars and drive up energy bills for hardworking Montanans.

Pushback From State Leadership

The ruling has sparked a backlash from Gianforte, who criticized the court for what he described as judicial overreach. He warned the decision could invite an onslaught of lawsuits, increase energy costs for Montanans and hinder the state’s “all-of-the-above” energy strategy.

“This Court continues to step outside of its lane to tread on the right of the Legislature, the elected representatives of the people, to make policy,” he said in a statement. “This decision does nothing more than declare open season on Montana’s all-of-the-above approach to energy, which is key to providing affordable and reliable energy to homes, schools, and businesses across our state.”

Gianforte also convened energy stakeholders earlier this week to discuss boosting production to meet rising demand, emphasizing the need for “unleashing American energy” to maintain grid stability.

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The Plaintiffs’ Perspective

For the 16 young plaintiffs, the court’s decision validates their personal struggles with the tangible effects of climate change. In a Wednesday statement, lead plaintiff Rikki Held called the ruling “a victory not just for us, but for every young person whose future is threatened by climate change.”

During the trial, the plaintiffs described how worsening wildfires, droughts and diminishing snowpack have disrupted their lives, polluted the air and depleted vital natural resources. They argued that the state’s failure to address these challenges imperils their future and violates their constitutional rights.

What Happens Next

The ruling has positioned Montana as a flashpoint in the national debate over climate accountability, potentially inspiring similar legal challenges across the United States.

This article includes reporting from The Associated Press.

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