Broad property tax exemption could be 'devastating,' assessors say

SHERIDAN — A bill to offer broadscale property tax relief could have adverse impacts on local governments and tax authorities, according to various organizations.

House Bill 169 — Homeowner tax exemption — 2025 and 2026 — would exempt 50% of a home’s first $1 million in fair market value from property tax assessment. In Sheridan County, that would mean the median home would be assessed for a fair market value of $143,241.50, rather than an estimated value for 2024 of $386,483.

The bill includes a provision that the exemption would only apply in tax years 2025 and 2026; it would no longer be in effect in 2027 and beyond. Rep. Tony Locke, R-Casper — the bill’s primary sponsor — said the bill would apply to all residential structures in Wyoming, in part because it’s a short-term effort.

“Wyoming residents are pushing for tax relief, for sure, and this is really just short-term relief in a bigger picture where we’re trying to give initial tax relief and ultimately look at tax relief to avoid the bubble,” Locke said.

Gov. Mark Gordon vetoed a similar bill following the Wyoming Legislature’s 2024 budget session.

The bill also includes a $225 million appropriation to replace up to 50% of the revenue lost as a result of the exemption. Even with a backfill, many of Wyoming’s 603 entities with taxing authority could be adversely impacted.

“The effect this could have to some of the smaller counties and the smaller districts [and] communities could be devastating,” Converse County Assessor Dixie Huxtable said. “We acknowledge there’s a backfill of 50% of the exempted revenue, but even a 25% reduction to some of these special districts and smaller communities could be devastating.”

Wyoming County Commissioners Association Executive Director Jerimiah Rieman shared a similar sentiment, adding it would likely force counties to become more reliant on state funding.

“If we don’t make some fundamental changes to this legislation…this will have some serious consequences at the local level,” Rieman said. “You will see a reduction or elimination of certain services, you will see that there are jobs lost in some jurisdictions if we don’t make some changes.”

Should the exemption be signed into law, Wyoming Association of Community College Trustees Executive Director Erin Taylor said it would likely place more of an onus on the students of Wyoming’s community colleges.

“Right now that’s a harder place to be, especially when we’re trying to train the workforce across the state,” Taylor said.

Locke, who also serves as chair of the House Revenue Committee, said he’d like the committee to break from its schedule to help push the bill through the legislative process.

The bill is similar to a priority in the Wyoming Freedom Caucus’ “Five and Dime Plan” — a slate of five bills the caucus hopes to pass through the House in the session’s first ten days — which aims to provide Wyomingites with a 25% residential property tax cut with a backfill to local governments. Locke was endorsed by the caucus in the 2024 election.

“We’ll probably shoot for [meeting upon adjournment Friday] to try to make sure we get this through the process and moving forward,” Locke said. “That way, we can give it the attention it needs.”

The legislature began its 37-day general session Tuesday and it is currently slated to end March 6.