Property tax bills continue to move through the legislature

A number of property tax measures are currently navigating the legislative process as Wyoming lawmakers thoughtfully consider options to address the high property tax rates affecting specific regions of the state.

In 2024, several important property tax relief bills were enacted in response to notable increases in residential taxes. 

Nevertheless, many legislators feel additional measures may still be necessary to adequately address the concerns of constituents.

Two significant property tax bills are currently advancing with noteworthy support, as they have successfully passed through each vote held.

Homeowner tax exemption

House Bill (HB) 169, sponsored by Rep. Tony Locke (R-H35) would impose a 50 percent exemption on all residential property values up to $1 million and is forecast to generate $197 million less in revenue for the state.

Property taxes play a crucial role in funding local governments and schools in Wyoming, and with HB169, these entities would benefit from a 50 percent reimbursement to offset any revenue reductions caused by the proposed exemption which would only be in effect for the next two tax years and expire by 2027.

This reimbursement would be supported by a $125 million allocation from the state, ensuring vital services and programs can continue to thrive.

The bill received support in the House last week, passing with a vote of 40 to 20 – two members were absent – and now has been introduced in the Senate for the first reading.

Its favorable margin is noteworthy, especially considering Gov. Mark Gordon vetoed a similar bill in 2024. 

Should Gordon choose to veto this legislation as well, it would require a two-thirds majority in both houses to successfully override the veto, assuming the Senate also approves the bill.

“A large number of us were sent here to deliver property tax relief and ultimately tax reform to Wyoming families,” states Locke on the House floor on Jan. 21. “This bill is short-term relief for a large swath of our residential taxpayers to fix excessive increases to property tax burdens our families have seen in the last several years. The people have been very clear it is a priority, evidenced by their initiative to get tax relief and reform in place.”

However, a number of organizations have expressed their concerns regarding the bill, highlighting the potential challenges it may pose to their operations as a result of the anticipated shortfall it could create.

Rep. Lloyd Larsen (R-H17) echoed those concerns about backfills when the House of Representatives debated the amendment last week.

Homeowner property tax exemption

Senate File (SF) 69 is another bill making significant progress through the legislature and is currently being discussed in the Senate.

The proposed bill aims to alleviate the financial burden of property taxes by offering a 25 percent reduction on the first $2 million of a single-family residence’s fair market value.

While this initiative aims to benefit homeowners, it is important to note it goes beyond the provisions outlined in HB169, as this bill does not include an expiration date or provisions for backfill funding to support local governments and schools in addressing the anticipated loss of tax revenue. 

Initial estimates suggest this exemption could lead to a reduction of approximately $142.6 million in tax revenue annually.

According to reports, SF069 would require each county treasurer to carefully document any reductions in local tax revenues which may occur as a result of its implementation.

In response, the state government’s Legislative Stabilization Reserve Account will be allocated to help offset these losses for local entities, ensuring the compensation remains within a cap of $100 million.

Property tax refund program-revision

Sponsored by the Joint Revenue Interim Committee, HB039, Property Tax Refund Program-Revisions, is aimed at enhancing accessibility for Wyoming residents to qualify for the property tax refund program and successfully passed its third reading in the House on Jan. 28.

This bill seeks to adjust the maximum income threshold for property tax refunds from 165 percent to 145 percent of the median household income within the homeowner’s county. 

These proposed changes would modify the property tax refund program established by the state legislature in 2023. However, the measure is now poised for further discussion in the Senate.

Melissa Anderson is the editor of the Wyoming Livestock Roundup. Send comments on this article to roundup@wylr.net.