In 2024, Wyoming homeowners saw significant property tax relief, driven by the implementation of a 4% property tax increase cap under House Bill 45, Billings Gazette reports.
However, this measure, along with other recently enacted property tax exemptions, has raised concerns about its impact on public education funding, with the Wyoming Department of Revenue reporting a $13 million shortfall.
Republican-led efforts to provide relief to property owners have been central to addressing the financial strain caused by soaring property tax increases in recent years. Beginning in 2021, Wyoming counties experienced double-digit hikes in residential property taxes, with some counties reporting increases as high as 28%. These rising costs prompted a push for reform, resulting in four key bills aimed at mitigating the burden on property owners:
- House Bill 4: Expanded Governor Mark Gordon’s property tax relief program.
- House Bill 45: Introduced the 4% cap on property tax increases.
- Senate File 89: Doubled the veterans’ tax exemption from $3,000 to $6,000.
- House Bill 3: Offered a 50% tax exemption for long-term homeowners.
Director of Revenue Brenda Henson highlighted that the relief measures succeeded in stabilizing property tax increases. For the first time in three years, most Wyoming counties saw property tax increases below 6%, with some experiencing reductions.
While homeowners benefited from these measures, public education faced financial repercussions. Of the $19 million exempted under the 4% cap in 2024, approximately $7.5 million was lost to school districts, $3.6 million to the School Foundation Program account, and $1.8 million to county school funds.
Despite these challenges, lawmakers and officials emphasized the importance of the measures in addressing property tax volatility. Senator Bob Ide (R-Casper) and other Republican legislators underscored the need for ongoing assessment to ensure relief efforts align with intended outcomes.
Additional exemptions, such as the long-term homeowner tax exemption, have also gained traction. This program allows qualified residents to exempt 50% of their property’s assessed value, and 14,500 homeowners have already applied, potentially resulting in up to $17 million in lost revenue. Similarly, the enhanced veterans’ exemption is expected to provide meaningful relief to those who have served.
The implementation of multiple tax relief programs has added complexity to property tax calculations. Henson acknowledged the administrative challenges, particularly for homeowners eligible for multiple exemptions, noting that the process now involves sequencing various relief measures.
Republicans have prioritized ensuring these programs serve their purpose without overburdening local governments or compromising essential services. Lawmakers are exploring ways to optimize relief mechanisms while addressing concerns raised by education stakeholders.
