Mountain Water Co. v. State, Department of Revenue

Summary

The Montana Supreme Court reviewed whether Montana Code Annotated § 70-30-315 requires a condemnor to be assessed for property taxes beginning on the date a condemnation summons is served. The court held that the statute prorates taxes for property actually taken but does not transfer the obligation to pay taxes before a taking occurs. Because Mountain Water continued to possess and own the property pending a final condemnation order, it remained responsible for the taxes and was not entitled to a refund at that time.

Holdings

1. Section 70-30-315 establishes the date for prorating property taxes between a condemnor and condemnee, but it does not transfer the obligation to pay taxes before the condemnor has taken the property.
2. Because Mountain Water continued to own and possess the property and no taking had occurred, Mountain Water remained responsible for paying the property taxes and was not entitled to an immediate refund.
3. The district court erred by ordering the Department to assess the City and refund Mountain Water's property taxes before a taking occurred.

Questions Presented

1. Whether Montana Code Annotated § 70-30-315 requires property taxes accruing after service of a condemnation summons to be assessed against the condemnor before a taking has occurred.
2. Whether Mountain Water was entitled to a refund of property taxes paid during the condemnation proceeding while it retained title and possession of the property.

Disposition

reversed