Groups file suit against Gallatin County over vacation rental ban

(Missoula Current) A number of property owners and owner groups in Gallatin County on Thursday filed a motion seeking a restraining order against Gallatin County for what they deem as a “sudden and unconstitutional” change in zoning to prohibit short-term rentals.

Gallatin County has long interpreted its zoning regulations to allow for short-term rentals in the same locations that it permits long-term rentals.

But recently, according to Morrison v Gallatin County, the county recently changed its interpretation and began issuing violation notices to existing short-term rental operators. The plaintiffs said the county did so without utilizing its own established rule-making process or seeking text amendments to zoning.

“For most Montanans, their home is their most valuable asset, and many are struggling to pay for rising property taxes,” the groups said in a statement. “For a county to take away a fundamental property right to rent the home for any duration, while Montana property owners face skyrocketing taxes, is not just bad law, it is also bad public policy.”

Gallatin County declined to comment on active litigation. The groups filing the suit include individual property owners and larger property groups including Bridger Canyon Property Rights Coalition, the Montana Landlords Association and Mountain Home Montana Vacation Rentals.

Cities across Montana are being challenged by rising housing costs. Some believe those rising costs are due in part to vacation rentals. In Missoula, opponents of vacation rentals have pushed to change city zoning, saying vacation rentals take viable housing away from potential long-term renters.

But some opponents have overstated the impact that vacation rentals are having on the local housing market. According to the City of Missoula, the number of vacation rentals in Missoula hasn't changed much over the past three years and remains at around 550 unique rentals, or roughly 1% of the city's housing stock.

In Bozeman, according to the city, vacation rentals represent around 3% of the housing stock. Opponents of the change in Gallatin County contend that private property is protected by law, including the “right to live in, rent, or sell” as desired.

“Short-term rentals have provided homeowners with a valuable source of income to help offset high mortgage rates, taxes, and inflated costs of living for decades, but the county has now decided that short-term renting is not allowed,” Bozeman property owner Cindy Morrison said in a statement. “For many Montanans like us, the opportunity to rent their home on a short-term basis is not just a luxury, but a necessity to make ends meet and afford the upkeep of their property.”