Legislators provide some relief for Wyoming property taxpayers

As Wyoming homeowners face rising property taxes, the Wyoming Legislature recognized the pressing issue during the 2024 Budget Session and worked hard to pass a suite of bills aiming to provide residents with relief.

Wyoming Governor Mark Gordon in a letter released on March 21 said, “Nearly every Wyoming citizen has experienced the pinch of inflation and rising market values of our homes. Because Wyoming is seen to be a desirable place to live, people from around the county are buying property here. Appreciation of our homes has brought with it higher assessed valuations — valuations which for some of our residents they can no longer afford to pay.”

“Over the past few years, I have asked for the Legislature to consider sensible and durable approaches to fixing this lingering concern […] Heading my call for considered tax relief, the 67th legislature took up nearly two dozen bills aimed at varying forms and types of property tax relief,” said Gordon.

On Thursday, March 21, Gordon signed three bills into law, line item vetoed one bill before signing and vetoed one bill entirely, all related to providing relief for property taxpayers.

EXEMPTION FOR

LONG-TERM HOMEOWNERS

House Bill 03, Property tax exemption for long-term homeowners, was signed into law and provides a 50% exemption of a property’s value for owners or spouses ages 65 or older that have paid property taxes in Wyoming for 25 years or more. HB 03 was a Revenue committee bill.

Qualified properties include dwellings that house no more than four families, up to 35 acres and mobile homes. The exemption for long-term homeowners cannot be combined with other exemptions.

To claim an exemption, property owners must submit a claim to their county assessor by the fourth Monday in May each year. The bill will be effective Jan. 1, 2025, and is repealed in 2027.

VETERANS EXEMPTION

Sponsored by Senator Ed Cooper (R-SD20, Ten Sleep), Senate File 89 raises the limit from $3,000 to $6,000 for veterans’ annual exemptions on assessed values.

The bill will be effective on Jan. 1, 2025. The Department of Revenue will create and implement necessary rules for the bill.

Cooper in a previous interview with the Northern Wyoming News, said, “I’m very satisfied with what we did with tax relief; it’s equitable, it’s constitutional, and it’s significant to everybody in the state.”

EXEMPTION FOR RESIDENTIAL STRUCTURES AND LAND

HB 45, a personal bill from Representative Barry Crago (R-HD 40, Buffalo), was a widely supported bill that caps increases on property taxes.

With HB 45, a 4% cap on year-to-year property taxes increases will be in place. In 2024, the cap will be applied to single family residential structures and in 2025, the cap will include associated residential land.

According to Representative Martha Lawley (R-HD27, Worland), HB 45 is the only bill that will impact 2024 property taxes. Lawley was a co-sponsor of this bill.

No application is required for HB 45.

In a press release, Gordon addressed these three bills he signed, saying, “I am happy to sign this package of legislation, which provides targeted relief to taxpayers most impacted by increasing valuations, while ensuring our counties and schools are able to continue to provide the services our residents rely on.”

“There was an identified need, and this legislature responded to that,” he said.

PROPERTY TAX

REFUND

According to the press release from Gordon’s office, the governor line-item vetoed a portion of HB 04, which made amendments to the property tax refund program.

According to Lawley, the refund program was, “wildly popular and really gave immediate relief to taxpayers.”

In his line-item veto letter, Gordon said, “[HB 04] expands on the previous good work of the Legislature to achieve that worthy policy goal and will quality thousands of additional Wyoming homeowners for the property tax refund program, bringing expanded and needed relief.”

However, Gordon, using his line-item veto power, removed the highest income category from the program, which would have raised the qualifying percentage to 165% instead of 145%.

“This would have made Wyoming residents with incomes approaching $100,000 per year eligible for a tax refund […] I believe that exceeds the original intent of the program, which was to provide a hand up, not a handout,” said Gordon.

If the highest category had been included, Gordon additionally expressed concerns that funding would run out for the program without a significant additional appropriation.

To qualify for relief on primary residence only, the owner’s income must be below 145% of the county’s median gross household income. The owner’s assets cannot exceed $150,000 unless their tax liability is greater than 10% of their annual income.

Qualified owners could receive 25% to 100% of their entire property tax bill refunded, depending on income.

Owners must apply for the refund program by the second Monday of October at their county treasurer’s office, or by the first Monday in June for the preceding calendar year.

HOMEOWNER TAX

EXEMPTION VETOED

Revenue committee bill SF 54 was vetoed by Gordon on Thursday, March 21.

SF 54 would have provided a 25% exemption of the fair market value of a single-family residential structure, up to $2 million per exemption.

Gordon went on to say the bill would have provided only temporary relief at the expense of energy industries and manufacturing sectors.

“[The bill] puts far more dependence on statewide collections from minerals and sales tax at a time when they need all the help they can get. Commodity and sales tax revenue streams are both inherently volatile,” he said.

Lawley on the veto said, “I am greatly disappointed in the Governor’s veto of so many important bills, including one of my bills. However, I’m most concerned about the veto of the important property taxpayer relief bill, SF 54.”

Having a special session to override the governor’s vetoes has been considered and supported by some members of legislation.

Lawley said, “We were initially informed that it was too late to provide 2024 taxpayer relief in a special session, However, I learned last evening that the Wyoming Department of Revenue had found a way for us to resurrect this taxpayer relief for 2024.

Therefore, I would support a short special session to pass this vital property taxpayer relief. I believe the other bills vetoed by the Governor can be taken up early next session, passed and any veto overridden. To save taxpayers money, I will propose that we focus a special session on the most urgent matter, taxpayer relief through SF 54,” said Lawley. “Furthermore, as I read the many letters coming from the Governor, I have a growing concern about Executive branch overreach into both the Legislative and Judicial branches.”

AMENDMENT ON 2024 BALLOT

According to Lawley, Wyoming voters will have the option to vote for an amendment to the Wyoming State Constitution on their 2024 ballot that would put residential property in its own category.

“That is going to open up a lot of options for property tax reform, if that passes,” said Lawley.

“We’re not done yet […] We will be looking in the future at some reforms, especially if we can get that constitutional amendment passed, so I’ll be encouraging people to pass that and vote in favor of that,” said Lawley.