Gold Creek Cellular of Mont. Ltd. P'ship v. Dep't of RevenueAnnotate this Case
Mont. Code Ann. 15-6-218 grants tax exemption to intangible personal property and defines intangible personal property. The statute lists "goodwill" as the one non-exhaustive example of intangible property that lacks physical existence. The Department of Revenue implements the statute with Mont. Admin. R. 42.22.110. In 2010, the Department amended its definitions of intangible personal property and goodwill. The district court found that the new definitions of intangibles and goodwill imposed additional and contradictory requirements on state law and that the valuation manuals adopted by the Department were invalid to the extent they supported the Department's new rules. The Supreme Court affirmed, holding that the district court correctly concluded (1) the Department's regulation defining goodwill was invalid because it conflicted with section 15-6-218(2)(b); (2) the Department's regulation defining intangible personal property was invalid because it conflicted with section 15-6-218(2)(a); and (3) the valuation manuals adopted by the Department were invalid to the extent they supported its new rules.