The Montana Department of Revenue has countered Lake County’s claims that the Selis Ksanka Qlispe Dam should be placed back on the tax roles, stating that the argument lacks a legal basis.

In a motion filed on Nov. 2 in Lake County District Court, the department stated that the county’s petition is “riddled with defects” and should be dismissed. 

On Oct. 2, the county filed a lawsuit seeking a court order mandating the department reassess the property surrounding the dam. The county argued that the property was never put in trust for the Confederated Salish and Kootenai Tribes, and therefore not exempt from state and local taxes.  

Ownership of the formerly named Kerr Dam was transferred to the tribes last September as part of an agreement drafted in 1985. County officials have stated that the transfer resulted in a $2-million loss in revenue, which the county plans to fill through property tax hikes.

While land held in federal trust for a tribe is undeniably exempt from state and local taxes, the county maintained that the dam location was set aside for power generation rather than for the Flathead Indian Reservation.

The Department of Revenue’s has challenged this, however, stating in its response that the land beneath the Flathead River “appears to have been always in trust status.” 

The motion goes on to dissect the county’s legal basis as well.

The department argued that Lake County District Court does not have jurisdiction over the matter as it involves federal Indian law. The motion also states that the county’s request for a writ of mandamus, or court-ordered action, only applies to future situations, and cannot be used to undo or correct a decision that has already been made.

In a phone interview on Monday, Lake County Attorney Steve Eschenbacher said the matter, including the issue of jurisdiction, revolves around whether the location of the dam was held in trust or not. 

“They say it was, and we have evidence that it was not,” he said. “That’s where it will go from here.”

Due to the fact that both Lake County District Court judges are taxpayers and therefore are included as plaintiffs in the case, Judge Blair Jones of the Judicial District 22 has been invited to assume jurisdiction.