Property owners in Montana file class-action lawsuit over assessment methods

More than 200 property owners in Montana have come together to file a class-action lawsuit against the Montana Department of Revenue (DOR) regarding the assessment methods for property valuations. The lawsuit, led by the Silverman Law Office, asserts that the DOR utilized unlawful techniques to assess property values, particularly within the Big Sky region.

The crux of the complaint lies in the allegation that the DOR based property values on data that fell outside the legal timeframe of sale values between July 1, 2023, and June 30, 2024. According to the plaintiffs, using data that extended beyond these dates led to inflated property valuations, consequently causing an overestimation of their properties’ worth.

Silverman Law Office CEO Joel Silverman shed light on the intricacies of the issue, noting that their independent expert had estimated approximately 90% of the properties had been overvalued in the assessment process. For properties in areas like Big Sky, Whitefish, and other sought-after recreational locations, determining accurate values can be particularly challenging. This challenge arises from the DOR’s perceived need to extract sales data from a broader spectrum to align with the demand and popularity of such areas. However, state law explicitly mandates that data within the stipulated timeframe should be utilized for such assessments, a directive that the Department allegedly disregarded.

Scott Mendenhall, Deputy Director of the Montana Department of Revenue, refrained from commenting on ongoing litigation, opting to not disclose the Department’s official stance regarding the matter in question.

The plaintiffs, consisting of over 200 property owners, resorted to legal action after undergoing the appeal process due to overvaluations in the assessment of their properties. With mounting evidence pointing towards discrepancies in the assessment methods, it is apparent that the issue has affected numerous property owners in the state.

This class-action lawsuit marks a significant step towards addressing the alleged unfair practices in property valuation undertaken by the Montana Department of Revenue, highlighting the importance of adhering to legal requirements to ensure accurate property assessments. As the legal proceedings unfold, it remains to be seen how the case will proceed, and the potential implications it may have on the property valuation process in Montana.