The Wyoming Senate has revised its proposal for statewide property tax relief, reducing the cut from 50% to 25% after extensive debate on the financial implications for local services and government budgets, Casper Star-Tribune reports.
The change was approved through an amendment to Senate File 69, “Homeowner Property Tax Exemption,” during a second reading on Friday.
The decision followed earlier deliberations where lawmakers initially supported a 50% tax cut without a mechanism to compensate local governments for lost revenue. However, concerns quickly emerged about the potential impact on essential services such as police, fire departments, and hospitals.
Sen. Evie Brennan, R-Cheyenne, who sponsored the amendment to restore the original 25% reduction, stressed the importance of providing some relief to struggling residents while preserving public services.
“We can’t afford to lose another hospital,” Brennan emphasized.
She pointed out the importance of maintaining critical medical services in the state.
Some lawmakers opposed the reduction. Sen. Troy McKeown, R-Gillette, argued that local governments should manage their budgets more efficiently. He cited a Campbell County hospital operating at a deficit while funding high-cost projects, stating:
“They will just spend it. It is time that some of the special districts became efficient.”
Others, such as Sen. John Kolb, R-Rock Springs, supported the amendment, acknowledging that Sweetwater County had already made budget cuts and would face service challenges under a 50% reduction.
Senators noted significant differences in property tax increases across Wyoming. According to recent data:
- Teton County experienced the highest increase at 111%, amounting to $103.7 million in additional collections between 2019 and 2023.
- Laramie County saw a 53.7% increase, equating to $28.9 million.
- Sweetwater County had the lowest increase at 19.5%, representing $3.6 million in additional collections.
To address this disparity, Sen. Cheri Steinmetz, R-Torrington, proposed treating counties differently based on an $850 million collection threshold. However, the amendment failed after questions arose about its fairness and effectiveness.
The amendment to reduce the tax cut to 25% passed by a 19-12 vote. Sen. Stacy Jones, R-Rock Springs, argued that the revised approach strikes a balance, helping taxpayers without unduly burdening certain counties.
“Twenty-five percent is responsible, and it still helps out every single citizen in this state that pays property taxes,” Jones stated.
SF 69 now moves to a third reading in the Senate next week. If approved, it will be sent to the House of Representatives for further consideration.
