Lawmakers pass bills to cap rising property values, give exemption to senior homeowners
Oct. 4—CHEYENNE — Members of the Joint Revenue Committee passed three bills this week that address constituents' struggle with accelerated property tax increases.
Wyoming has the 10th-lowest property tax in the country, but the cowboy state's housing market crisis has driven up property values statewide. Average property tax increases, which are tied with property values, jumped by 10% from 2021 to 2022, according to data provided by the Wyoming Department of Revenue.
Seven Wyoming counties recorded a 20% residential value increase or higher in 2023, according to the same data.
Several bills were reviewed by committee members during their two-day meeting in Casper, and lawmakers passed three bills that would provide some relief to residential property owners.
Property tax-inflation cap
The inflation of property values across the state have resulted in accelerated property taxes, and residents in a handful of counties have struggled to keep up with rising costs — especially older folks with a fixed income.
To fight this increase, lawmakers passed bill draft 184 to propose a 6% property tax-inflation cap for residential owners, since there is no inflation cap on property taxes in current Wyoming statute.
Co-Chair Rep. Steve Harshman, R-Casper, said the bill would give property owners predictability over their property tax costs. However, in order to make this constitutional, the cap requires the passage of bill draft 185, which amends the state constitution to make "residential property a separate class for purposes of property taxation."
Legislators voted to amend the constitution to separate not only residential properties, but commercial, agriculture and personal property classes as well, which was brought up at co-Chair Sen. Bo Biteman's suggestion.
"Why not just pull them all out and create all these separate categories, so we can save our future legislators the headache?" Biteman, R-Ranchester, said.
The fiscal impact of the cap is projected to cost the state $8 million for the 2025 tax year, with an increase of a little over $10 million for each additional year. Dean Temte, senior fiscal analyst, said these fiscal impact numbers will be revised later this month, during the October future property value growth forecast.
The increases, he said, are likely to be more than 3.5%, resulting in a greater fiscal impact.
Tax exemptions for older homeowners
Another bill passed this week, which Harshman said was a victory for senior Wyomingites, was bill draft 188, a property exemption for older, long-term homeowners.
If enacted into law, this bill would create a property tax exemption for homeowners aged 65 and over who've paid residential property tax for at least 35 years. The tax exemption applies to couples as long as the property owner or their spouse meets the required qualifications outlined in the bill.
The exemption reduces residential property taxes by 50% for those who qualify.
Jerimiah Reitman, a representative from the Wyoming County Commissioners Association, said there were several counties in the state that "have indicated a desire" for a tax relief program targeted towards older residents. However, Reitman said there were other alternatives.
"On the books in Wyoming, we have an elderly and disabled property tax refund program," Reitman said, which he noted hadn't been funded for a while. "Providing those options at the local level is also helpful."
Tom Lacock, a representative from {span}American Association of Retired Persons{/span} Wyoming, said he was thankful on behalf of AARP members for the relief this bill would propose.
"I very much appreciate you guys for looking at this, considering our members," Lacock said. "Thank you for the statement you are making with the bill."
Hannah Shields is the Wyoming Tribune Eagle's state government reporter. She can be reached at 307-633-3167 or hshields@wyomingnews.com. You can follow her on X @happyfeet004.
