“As always, legislators just cannot help themselves when given an opportunity to propose more policy”
When conversation turns to actions taken by a legislative body, it’s not long before someone cites 19th Century lawyer and politician Gideon J. Tucker, “No man’s life, liberty or property are safe while the Legislature is in session.”
The short Budget Session of the Wyoming Legislature adjourned on March 8, but not without its own drama. As a headline in the Cowboy State Daily put it, quoting Senate President Ogden Driskill, “A Frustrated Driskill Says Wyoming Senate Has Become ‘Divisive, Mean’”
Some legislators have gone as far as calling for a special session to address the bills vetoed by Gov. Mark Gordon that easily passed both houses of the Legislature.
Property Tax
Property tax was said to be the focus of this short session but, as always, legislators just cannot help themselves when given an opportunity to propose more policy. The special session was no exception with over 350 pieces introduced for the 20-day special session.
Governor Gordon issued this statement when signing legislation addressing the rising property assessment rates:
“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.”
The Governor also allowed House Enrolled Act 52 to pass into law, but did so while making a line-item veto to it. As written, this bill would have expanded Wyoming’s property tax refund program to people who make up to 165% of the median income for the state or their local county. Gordon reduced the top qualifying income bracket to 145% of median income.
Governor Gordon also signed House Enrolled Act 44 (HB 003), which provides a 50% tax exemption for people age 65 and older who have paid property taxes in Wyoming for more than 25 years. This bill will go into effect next year and expire in 2027.
Two other property tax bills the governor also signed were:
- House bill 45 puts a permanent 4% cap on all year-to-year property tax increases and will go into effect next year. It is unknown how much this bill will cost the state as it is based on future fluctuations in the market, but if it had been in effect for 2023, it would have reduced property taxes by $49.5 million. In his line-item veto letter, Gordon explained that the legislation goes too far, that people making more than $200,000 a year in Teton County could have qualified for a 25% tax refund, which he believes amounts to a “hand out,” not a “hand up,” as the program originally intended. He also expressed concern that the $20 million he requested in his biennial budget proposal for this program would not be enough money to cover the bill.
- Senate file 0068 on tangible personal property would have raised the allowable exemption from $2,400 to $20,000 failed to pass the Senate Revenue committee on a vote of 4/5. NFIB Wyoming members have always felt the burn of complying with this life-long tax on personal property used in a business. The $2400 exemption was passed in 2021*
Legislation Recap
- HB 0003 Property tax exemption for long-term homeowners
This bill provides a 50% exemption if owner/spouse is 65+ and has paid into the Wyoming property tax system for 25 years as amended. Qualifications also includes residency in Wyoming eight months out of the year. Bill amended to include military and includes associated residential land with the property. Signed by Governor.
- HB 0004 Property tax refund program
This bill expands the current property tax program with six income tiers that is funded by the General Fund. Signed by Governor.
- HB 0018 Property tax-inflation cap
Requires constitutional amendment to separate residential property from “all other” (on the ballot this year). Limits max value of increase by CPI or 5% (whatever is less) Does not include changes, additions, or improvements. Failed in committee.
- HB 0045 Property tax exemption — residential structures
Provides exemption of excess of assessment of 5% of previous year’s taxable value for residential structure. Signed by Governor.
- HB 0052 Property tax — homestead exemption
Primary residences, not more than one residence with exemptions on fair market valuation based on age qualifications. Provides for a sunset of December 31, 2027. Failed in committee.
- HB 0127 Property tax exemption — specified real property
Exempts all real property at 3% and starts at 2019 values. Failed in committee
- HB 0103 Property tax — assessment for residential property
Rate change on residential property from 5 % to 8.3% if constitutional amendment is successful. Failed in committee.
- HB 0133 Property tax – holiday
Provides a property tax reduction for tax year 2024 for industrial and all other property. Failed in committee.
- HB 0134 Property tax deferral program – amendments
Provides for a property tax deferral program administered by the Department of Revenue. Failed on floor.
- HB 0203 Property tax reduction and replacement act
Reduce and replace property tax. Increase of 2 percent in sales tax. Failed in committee.
- SF 0054 Homeowner tax exemption
Establishes a homeowner property tax exemption for primary residences of 25.6% of the fair market value not to exceed $200,000. Vetoed by Governor
* In 2021 the threshold for reporting Personal Property used in Business was raised to $2,400 by Sen. Affie Ellis. Unfortunately, Senator Ellis has announced that she will not be seeking reelection. I will take the liberty to state Senator Ellis has been a friend to Wyoming small businesses and will be sincerely missed by NFIB Wyoming members. We send our thanks and congratulations for a job well done.
