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AARP AARP States Wyoming Money


PROPERTY TAX RELIEF: WHERE WE ARE AND WHAT COMES NEXT

 * 
 * 
 * 
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Scott Rothstein

With the housing market continuing to stay hot and property taxes rising (by an
average of 17% statewide in 2022 and 2023). Let’s talk about what property tax
pays for, how to make sure you are receiving any relief from property tax, and
what the Legislature is considering for the 2024 session regarding property tax.

Where does the money go?
Property tax overwhelmingly funds local efforts, especially education. Roughly
72% of all property tax goes to fund education in the local area. The rest of
our tax dollars go to fund cities, towns (1.8%), and counties (18%) for things
like local hospitals, libraries and even fairs. Depending on how a locality has
chosen to tax itself through special districts (7.8%), or the facilities in
their region, Community Colleges are funded in part through property tax, as are
special districts like fire districts, weed and pest districts. None of your
property tax goes to the state. In fact, the state hasn’t levied a property tax
to fill state coffers since 1969.

Property Tax Relief Programs
Wyoming Property Tax Refund Program
Here’s what to know about the Property Tax Refund Program: It is incredibly
popular for the program that wasn’t well funded until two years ago, thanks in
part to AARP’s support of the appropriation. Last year 9,717 citizens applied
for refunds, and 8,813 refunds were approved totalling $8.2M. The average refund
was $937. To apply for the refund, you need to have paid tax in a timely manner
and with a receipt before. Also:


 * Applications are due the first Monday in June and refunds are issued no later
   than Sept. 30.
 * A household income of equal or less than 125% of the median household in your
   county. 
 * No assets such as bank accounts, real estate, or investments of more than
   $150,000 per household member. If your total property tax bill exceeds more
   than 10% of your total reported income, the asset limit does not apply.
 * You may exclude the value of one car for each adult household member and
   retirement accounts.
 * Governor’s proposed budget for ‘25-26, which would provide funds for 2023-24
   tax years recommends $20M for the program.

County Option Property Tax Refund Program


 * 2022 tax year refunds - the first year in statute available in Albany,
   Converse, Lincoln, Sublette, and Teton Counties.
 * Similar to the statewide program
 * Each county must fund and administer the program should they wish to offer
 * Applications due by the first Monday in September.
 * Total refund from state program and county program cannot exceed the amount
   of taxes paid.

Veterans Property Tax Exemption Program
Here’s what to know about the Veterans Tax Exemption Program: If you are an
honorably discharged veteran or the surviving spouse of a military combat
veteran, you might be eligible for the Veterans Property Tax Exemption. The
refund is $3,000 in assessed value against real or personal property.


 * To apply for the program, check with your county tax assessor.
 * Must have been a Wyoming resident for 3 years.
 * Application deadline is the Fourth Monday in May.
 * Governor’s proposed ‘25-26” biennium budget proposes $11.5M for the program.

County Option Property Tax Deferral Program (currently only available in Teton
County)
Here’s what to know about the Property Tax Deferral Program: This allows you to
defer half of your property taxes without interest. The amount deferred will
have to be paid back at a later date.


 * Application deadline is Nov. 10 at your county assessor’s office.
 * You must have had the property for 10 years or longer.
 * You must be age 62 or older or handicapped
 * Principal residence has to be on less than 40 acres of land
 * This is for low-income residents.

Changes Being Considered to Wyoming’s Property Tax System
The Wyoming Legislature has spent the last two years asking how its citizens can
find tax relief if they cannot pay their property tax bill. During the 2024
Legislative session, there are a number of bills coming before lawmakers to
continue that conversation. Here is what lawmakers will be considering this
session.

While no one likes paying property tax, it is important to remember each dollar
of property tax relief is a dollar less in education, or county funding. That
said, it is important that those who cannot afford their property tax have ways
to stay in their homes.

2024 Legislation sponsored by Legislative Committees to be considered includes:
New Legislation - Changes to the Property Tax Refund Program:  The bill
increases the amount of money you can make from 125% of the county’s medicine
income to 175%. It also offers 6 tiers (with the percent refund reducing for
each tier) to determine how much you can apply for based on income presently.
Reasons to move forward - This program is the most targeted property tax relief.
Those who need it the most, get it. The bill also opens the program up to others
who were on the fringe of qualifying for the program.
Possible concerns with the bill - It is a little difficult to determine the
impact to schools, counties and others that depend on property tax. The tiers
could add some confusion for taxpayers. Increased usage of the program could
involve another budget ask by the Wyoming Revenue Department.

New Legislation - Homeowner’s Tax Exemption: The bill would exempt 25.6% of fair
market value of residential real estate up to $200,000. The exemption would go
to everyone in Wyoming.
Reasons to move forward - Everyone gets roughly ¼ of the value of their home
exempted from tax.
Possible concerns with the bill - It would cost counties, schools, and other
groups supported by property tax a total of $84.6M in 2025, and $87.1M in 2026.

New Legislation - Property Tax - Homestead Exemption: This would offer an
exemption against the value of your home depending on your age. For those 64 and
under, it exempts the first $50K from the value of your home for property tax
purposes. For those, 65-74, it exempts the first $100K; and for those 75 and
older, it exempts the first $150K from home value.
Reasons to move the bill forward: It would offer some relief to all, though more
to older adults.
Possible concerns with the bill: It does come with a fiscal note, costing the
state over $88 million between now and 2030.

New Legislation - Property tax Exemption - Residential Structures: This would
allow you to exempt all of your home's value above 5% of the amount that it was
valued at a year ago.
Reasons to move the bill forward: The measure would allow for some certainty for
taxpayers year-over-year.
Possible concerns with the bill: Thus far the state is not able to determine the
impact financially of this measure.

New Legislation - Property Tax Exemption For Long Term Homeowners: If you are 65
and over and have paid property tax in Wyoming for 30 years or more, you would
receive a 50% exemption on the value of your home.
Reasons to move this bill forward - Through the property tax conversation, it's
clear the legislature wants to help homeowners who bought a house years ago,
paid for it, and are now struggling on a fixed income after their working years.
This may do that.
Possible concerns with the bill - It would cost schools, counties, and other
groups supported by property tax $10.6M in 2025, and $11.3M in 2026.

New Legislation - Property Tax Inflation Cap
This would cap the amount of increase you could have on your home’s value each
year. In other words, your home’s taxable value could never rise by more than 5%
versus what it was valued at a year ago.
Reasons to move this bill forward - The bill offers a level of certainty for
homeowners who have been seeing double-digit percentage increases in the amount
of property tax they are paying over the last four years.
Possible Reasons of concern for the bill - This would reduce revenue to those
who rely on property tax. It’s difficult to see right now, but the Legislative
Service Office suggests a 5% cap on property tax between 1993-2021 would have
cost the state $3.88 billion. There is a concern by the Legislative Service
Office that this may take a constitutional amendment to implement. There are
also concerns from cities and towns that if property values decrease, followed
by an increase, the cap may limit the amount of services an area can offer its
citizens.

Non-Legislative Committee sponsored property tax efforts
While there are a few bills that have received the blessing of Legislative
committees, there are a few other proposals that may be considered this winter.

“The People’s Initiative to Limit Property Tax in Wyoming through a Homeowner’s
Exemption”
While the Initiative isn’t necessarily a legislative effort, but a statewide
ballot initiative. If voters approved, a homeowner could deduct a full 50% of
their home’s assessed value from their property tax. For the initiative to make
the ballot, there need to be 29,730 petition signatures before Feb. 12, 2024.
Reasons to move the effort forward: Your property tax would be cut by half.
Possible concerns with the bill:  Your schools, community college, counties, and
special districts would see half their funding dry up. This may lead to the
state needing to backfill these organizations, one lawmaker estimated this could
cost the state’s general fund over $200 million per year.

Changing the State’s Property Tax System’s basis from market value to
acquisition value
In short, this change would mean you no longer pay your property tax based on
what you could get if you sold your home. Instead, you would base your tax on
what it cost to originally buy your home, plus a few percentage points each
year. This concept was brought before the Revenue Committee, which chose not to
make it a committee bill, but it will likely re-appear in the 2024 Legislative
Session.
Reasons to move this effort forward: For some, this would be a dramatic drop in
property taxes and offer some stability in what citizens would pay
year-over-year.
Possible concerns with the bill:  Consultants told the Revenue Committee this
summer that only one state (California) has such a system and it has been
recognized as creating huge inequity among taxpayers. In other words, two people
with similar homes could be taxed much differently, depending on when they
bought that home. Idaho tried to move to this style of taxation 30 years ago and
decided it was too tough to implement. Wyoming would also have to be a
disclosure state, which means the price you paid for your home would be public
record. It also seems there are concerns regarding the constitutionality of such
a move, according to the Legislative Service Office.

Property Tax Wonk? Keep reading these reports and sleep well
The basics of Property Tax


 * The Legislative Service Office put together a property tax relief matrix this
   summer. It lays out needed changes to laws/constitution and financial impacts
   to state funds for a number of property tax relief methods.
 * Property Tax 101 by the Wyoming Department of Revenue. Ever wonder how
   property tax is charged, home values are charged, or where the money goes?
   This is your presentation.
 * Mill Levy Information. What on earth is a mill? Click here to find out what
   it is and why it costs taxpayers money.
 * Wyoming Taxpayers Association’s Property Taxation 2023 book. This explains by
   industry, by county and more who pays property taxes and where those dollars
   go. This gives you a 10-year look back, a comparison of year’s past taxes
   levied. If you dig the menusia of tax policy, give this a read.
 * Wyoming Taxpayers Association’s 2023 Tax Book and Comparison. If you ever
   wondered how the taxes you pay in Wyoming would compare to another state,
   this is your read. If you wonder how much money the state takes in and sends
   out, this should be your read.
 * This is a link to the Department of Revenue Methodology for Assessments. 
 * Cost of Acquisition Study performed by TEAM consulting and presented by TEAM
   to the State Revenue Committee during its October meeting. This talks about
   the impacts and requirements from a legislative and constitutional standpoint
   to set up a property tax system in Wyoming based on the cost of acquisition.
 * Property Tax Systems - Budget based rates vs. fixed rates. This was presented
   by Pat Meyer, Park County Assessor, during the Revenue Committee’s October
   meeting
 * Johnson County Resident Cindy Barlow offered her thoughts on basing the
   state’s property tax system on acquisition value. She delivered this to the
   Revenue Committee during the committee’s October meeting.

About AARP Wyoming
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