Gov. Mark Gordon on Thursday signed into law a package of property tax relief bills approved by legislators during Wyoming’s 2024 budget session.
Collectively, the legislation creates new exemptions for certain homeowners, doubles an existing exemption for veterans, caps annual increases and expands eligibility for a state refund program.
“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 provide the services our residents rely on,” Gordon wrote in a press release.
As property values rose in Wyoming in recent years, so did property taxes. That prompted an outcry from homeowners for relief and made reform a key focus when the Legislature convened in February. In his State of the State at the onset of the session, Gordon called on lawmakers to address rising property taxes but to “seek a balance.” Property taxes fund local services, so Gordon cautioned lawmakers against “leaving counties or schools high and dry.”
While the governor approved most of the package, he struck language from one bill before signing it and vetoed another altogether. Lawmakers cannot override either action since they are no longer in session.
Exemptions
Most of the bills Gordon signed create property tax exemptions.
House Bill 3 – Property tax exemption for long-term homeowners establishes a 50% exemption for homeowners — or their spouses — who are at least 65 years old and have paid Wyoming property taxes for at least 25 years. The exemption will apply to the assessed value of a home. Military personnel who “declare Wyoming as their domicile” will also qualify. The bill goes into effect Jan. 1 and will sunset on July 1, 2027.
Brought by Rep. Barry Crago (R-Buffalo), House Bill 45 – property tax exemption-residential structures and land, is a tax cap structured as an exemption. More specifically, it will exempt annual property tax increases over 4%. Since it’s effective immediately, qualified homeowners will be able to apply the exemption to the 2024 tax year.
Senate File 89 – Veterans ad valorem exemption-amount, brought by Sen. Ed Cooper (R-Ten Sleep), updates an existing exemption. It doubles the exemption for certain veterans from $3,000 of the assessed value of a home to $6,000. The bill includes about $8 million to reimburse county treasurers for lost revenue.
But not all property tax bills found favor with the governor. Senate File 54 – Homeowner tax exemption would have applied a 25% exemption to the first $2 million of a home’s fair market value. The governor, however, vetoed the bill since it “would have only provided a temporary and very expensive tax exemption to all Wyoming homeowners at the expense of other taxpayers in our energy industries, retail and manufacturing sectors,” Gordon wrote in his veto letter.
The governor in his letter had some strong words for the legislative branch.
“This bill could be considered an example of the electioneering exuberance of the recent legislative session,” he wrote. “Feel good policy that overcomes common sense. A sober assessment of what is Wyoming’s best overall interest is called for. One which recognizes future generations should never have to pay for our own self-indulgence.”
While the bill included $220 million to reimburse local governments for lost revenue, that funding would have come up short, Gordon wrote.
“Importantly, the state backfill would be of no relief to the taxpayers who paid them, but instead would go to property owners generally,” Gordon wrote. “Such a wealth redistribution scheme would be a socialistic-type of wealth transfer, mostly from the energy sector, to Wyoming homeowners. The Bidenomic-type of ‘tax relief’ in this bill is what I would expect from Washington, D.C. liberals, not conservative Wyoming legislators.”
Refund program
In his earlier request to lawmakers for property tax relief, Gordon asked for $20 million for an existing refund program. He got that much, but lawmakers took things too far in his view with a bill to broaden the program.
“The bill that came to my desk starts to move beyond the goal of targeted relief perhaps in a sign of election year exuberance,” Gordon wrote in his line-item veto letter.
House Bill 4 – Property tax refund program creates a tiered system for eligibility requirements. More specifically it establishes three different tiers for different income brackets. While Gordon signed the bill, he struck the top income tier.
“I believe that exceeds the original intent of the program, which was to provide a hand up, not a handout,” Gordon wrote.
What’s next?
The Legislature’s Management Council meets April 1 to decide what topics standing committees will tackle in the lawmaking offseason known as the interim.
Most of the requests to the Joint Revenue Committee relate to property taxes, so lawmakers are not likely to be done with the topic. Gordon let lawmakers know in one of his letters that there may still be work to be done.
“I am committed to working with the Legislature to redress any areas where collectively we may have missed the mark, understanding none of us appreciate paying taxes,” Gordon wrote.
Once again, middle class families with 2 incomes are screwed. We have 2 incomes to survive: groceries, housing, gas, utilities. We don’t have a fancy house or a boat, yet we make too much (barely) to get the tax refund. Can’t afford food. Trying to put 2 kids through college and they can’t even get help because we “make too much”. We still pay 1000s out of pocket when they take the maximum loan amount offered to them and even that only covers tuition, not living expenses. I would be better off to quit working.
SAD… Florida Legislature did not take up our ‘trifecta’ this year either = 6% Sales Tax on 85% of gross receipts, rather than current 35% (food, medical, legal not taxed).
Then FL House Speaker warned the 3% property tax cap of FL Save our Homes would simply double property taxes in 20 years. He offered 4% Sales Tax With No Exemptions to eliminate all property taxes. NOW, upping to 6% allows same elimination of property taxes / local assessments… AND, leaves $20 BN to cover Named Storms including surges not currently covered thru our existing FL Hurricane CAT Fund = we estimate $8 BN on average is needed to cover Named Storms!!
Consider the REAL = yes, Marco was right those of us living on our street saw our property taxes double in past 20 years, to over $3,000. BUT, the new starter home at 2/3 size of ours has a new young family = $50,000 annual mortgage payments PLUS $14,000 property taxes and $7,500 HomeOwners!!
Our small street property taxes did not just double… the total is now 5 times that Marco Rubio warned about!
Sadly, Wyoming had the answer: FLAT Sales Tax to extent possible on all gross receipts. This assures equitable payment by citizens and visitors. We were sure hoping we could point to that simple solution to urge our own GOV RON to call a Special Session to take up our 6% Trifecta… many of us are dropping WIND to save that $5,000 in Homeowners’ renewals!!
So whose going to be the watch dog on HB 3?
I agree with Governor Gordon. Feel good bills designed to appeal to voters in a election year.
IMHO residential property over the years was undervalued, for whatever reason. Then the great influx of deep pockets led to a huge increase in valuations. I don’t know about your counties, but mine didn’t say “hey. We got all this xtra money let’s decrease our mill levy” Nope, they just increased spending.
Let’s get our ducks in a roll first. The ballot measure this fall should be the first horse out a the gate. Then someone who knows how to work a calculator can work up appropriate numbers. Oh. And lastly. Divide classifications into resident and nonresident. Individuals that just park their money here in the form of real estate to avoid taxation elsewhere aren’t contributing to the state coffers with sales tax, etc….
In Florida we call all these special tax gimmicks “dancing around the silly frilly fringe” … see my simple FLAT TAX solution I call Trifecta!!
Vets do not need nor demand ‘special treatment’ … as a group we are as financially independent as any other group of Americans!!
Seniors also do not need nor demand ‘special treatment’… less than 9% of today’s Seniors are below the artificial Fed definition of ‘poverty level’.
Shoving all these ‘specials’ onto our grandkids is the real crime!!
FLAT TAX rates at the state level assures equitable distribution for now and the future!!
Very obvious that Gordon represents Corporations not Citizens. A tax cut is not socialistic in any way, shape, or form. Is he high or just stupid for thinking that? The middle class is getting screwed over by the Government once again.
HB 203 was a divine intervention. A 2% sales tax will more than compensate for the change. This will develop a grassroots, groundswell movement. The special interest lobbyists for the county commissioner’s association and the multinational mining industry coerced legislators who absolutely betrayed their constituents! The spineless allowed poison pill amendments to corrupt the original bill. This is not over by a long shot. Neither is the initiative to reclassify residential property by itself. It is currently grouped with commercial and agriculture. Standby.
“A hand up, not a hand out”. Like the $6 million he handed out to a billion dollar oil company, or the boondoggle dam projects that will benefit a very small number of people.