Class-action lawsuit alleges illegal property assessments across Montana

Class-action lawsuit claims Montana Department of Revenue illegally inflated property values statewide, overcharging taxpayers.

HELENA, MT, UNITED STATES, February 2, 2026 /EINPresswire.com/ -- A class-action lawsuit filed by two Montana property owners accuses the Montana Department of Revenue of using illegal methods to artificially inflate property valuations across the state, causing many people to pay more in taxes than required.

Attorneys from Silverman Law Office and Edwards & Culver filed the lawsuit Feb. 2 in Madison County’s Fifth Judicial District Court. Plaintiffs Lance and Lorissa Coyle and Homestead YC, LLC allege they are among many Montana property owners affected by the DOR’s unlawful appraisal practices.

Montana law requires the Department of Revenue to appraise properties every two years using comparable sales from the six months before or after a set assessment date when using the sales comparison approach to market value.

For the 2025–2026 appraisal cycle, Jan. 1, 2024 was designated as the assessment date. The lawsuit alleges the department violated this requirement by using sales data outside the 12-month window and applying the rule inconsistently, in some cases using data spanning up to five years.

For the Coyles’ property in Belgrade and Homestead YC, LLC’s property in Big Sky, the department relied on sales spanning from 2019 to 2023.

An independent appraiser licensed by the Montana Board of Real Estate Appraisers determined the Belgrade property should have been assessed at $2,296,000, but the DOR valued it at $3,833,800, causing an estimated tax overpayment of $12,285.

An independent appraiser concluded the Big Sky property should have been assessed at $17,509,024, but the DOR assigned a value of $33,578,400, resulting in an estimated tax overpayment of $55,804.

Although Montana law allows property owners to provide independent appraisals as evidence when appealing the state’s valuations, those appraisals are not taken into consideration unless they adhere to the same 12-month valuation window the department itself violated.

“The Department of Revenue’s conduct is outside their legal authority,” said Joel Silverman, one of the plaintiffs’ attorneys. “Taxpayers are confined to a strict 12-month valuation period while the department fails to follow its own rules, effectively stripping many Montanans of any meaningful ability to challenge inaccurate property valuations.”

The complaint asks the court to order the DOR to reassess properties statewide using correct data, refund any overpaid taxes to taxpayers, allow taxpayers the opportunity to appeal the corrected reappraisals, and stop using unlawful appraisal practices. If certified, the class would include all affected Montana property owners unless they opt out.

Property owners with questions may contact Silverman Law Office at 406-449-4829, mtclass@mttaxlaw.com, or https://mttaxlaw.com/.

Case number: DV‑29‑2026‑0000013‑TX

Jesse Chaney
Silverman Law Office
+1 406-603-4235
email us here
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