A property tax relief bill vetoed by Wyoming Governor Mark Gordon earlier this year is set to make a return in the 2025 legislative session, Gillette News Record reports.
The proposal, now titled “Homeowner Property Tax Exemption,” closely resembles Senate File 54, which the governor vetoed during the 2024 budget session.
Senate File 54 was the only property tax relief bill out of five passed in 2024 to receive a veto. Governor Gordon expressed concerns that the broad exemption outlined in the bill could jeopardize Wyoming’s financial stability. He estimated the measure would cost the state over $220 million during the biennium to reimburse local governments for lost revenue.
In his veto message, Gordon likened the bill’s approach to “Bidenomics” and criticized it as a temporary fix with long-term consequences.
“It is a temporary relief measure that could lead to budget shortfalls and will ultimately be paid for by raising taxes on our children,” he wrote.
The new draft, approved by the Joint Revenue Committee with an 11-3 vote, proposes a 25% property tax exemption for homeowners on the first $2 million of their property’s fair market value.
To ensure local governments are not financially impacted, the bill includes a $125 million appropriation from the state’s general fund to cover revenue losses. If that amount proves insufficient, up to $100 million may be transferred from Wyoming’s Legislative Stabilization Reserve Account, the state’s “rainy day fund.”
This tax exemption would be temporary, spanning two years and ending in the 2027 tax season. The Revenue Department estimates the fiscal impact to be $108.3 million annually, totaling approximately $216.65 million over two years.
Supporters of the bill argue it addresses escalating property taxes, which have become a significant burden for Wyoming homeowners. Co-Chairman Sen. Bo Biteman, R-Ranchester, emphasized that the bill is intended to counteract steep increases in property valuations, which have doubled since 2019 in many counties.
“This bill was a way to take away most of that inflationary pressure that they were feeling… Inflation is real,” Biteman said.
On the other hand, critics, including Rep. Dan Zwonitzer, R-Cheyenne, expressed concerns that the bill does not address the governor’s objections or account for the broader impact of inflation on county budgets, including education and employee salaries.
“We didn’t answer any of the questions or problems [Gordon] posed… We’re just going to try to have the committee respond to the exact same veto bill,” Zwonitzer said.
Rep. John Bear, R-Gillette, countered that the state’s growing savings account demonstrates its ability to provide relief.
“Our constituents have suffered as they paid into that tax… So, I think it’s appropriate to revisit it,” Bear said.
With property taxes rising sharply—by 11% or more in nearly all counties since 2023—and residential property valuations increasing from $5.8 billion in 2019 to $10.1 billion in 2023, the debate over tax relief is likely to remain a contentious issue.
