HELENA - A Missoula accountant has asked a federal judge to stop the state from issuing property tax notices based on the latest reappraisal, contending that officials intentionally manipulated property values to deceive and defraud property owners.

Patty Lovaas, a certified public accountant, filed the legal proceeding Wednesday against Gov. Brian Schweitzer and state Revenue Director Dan Bucks before U.S. District Judge Donald Molloy in Missoula. Lovaas is representing herself in the case.

She asked Molloy to declare that the Montana's "property appraisal scheme" violates her federal constitutional rights. Lovaas is seeking a temporary injunction to stop Schweitzer and Bucks from enforcing "the unlawful reappraisal" and an order to prevent them from issuing property tax bills based on the appraisal.

In response, C.A. Daw, chief legal counsel for the Revenue Department, said Thursday the department will defend itself in the lawsuit.

"Ms. Lovaas has alleged a fantastic web of conspiracy involving all 56 county commissions (Republican as well as Democrat), all county tax appeal boards, the State Tax Appeal Board, the director of Revenue and the governor," Daw said. "Ms. Lovaas has asked the federal court to enjoin property tax bills statewide from being issued. No facts backing these allegations are given and Ms. Lovaas' similar allegations in state courts have not fared well."

The Revenue Department, under the Montana Constitution, does periodic statewide reappraisals of property in the state. Property values are used to calculate property taxes.

"Great sadness and disgust came over me today when I filed the above action in federal district court in Missoula against Montana public officials who betrayed the public trust when they intentionally deceived the people and manipulated the current property appraisals to raise taxes without enabling legislation," Lovaas said statement.

Lovaas contended that the acts by the state officials "certainly contain criminal elements," but said she was powerless as a "mere individual" to correct them. Her only option was a civil case, she said.

She accused Schweitzer and Bucks of manipulating the market values of her property in Beaverhead and Missoula counties after passage of House Bill 658 by the 2009 Legislature. Schweitzer criticized the bill, but let it take law without his signature.

The governor and director used what Lovaas called unlawful procedures in violation of constitutional and statutory authority, resulting in unequal taxation" of property she owned.

Lovaas accused Schweitzer and Bucks of failing to adhere to the "uniformity standards of cost, sales comparison and income" in valuing her property.

"Using unequal 'economic condition factors,' improper classification of properties, selective sales values and duplicating taxable values, defendants arbitrarily and capriciously inflated plaintiff's property values, more than doubling the previous values, misrepresenting the increases presenting in the fiscal report provided to the Legislature in Montana HB658," Lovaas said.

Lovaas called the appeal process in Beaverhead County biased because the three county commissioners sit as the county tax appeal board, creating a conflict of interest.

Likewise, she said appealing to the State Tax Appeal Board is biased because the three members are appointed by the governor.

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