Property tax deferrals.

21LSO-0650
2021
STATE OF WYOMING
21LSO-0650
Numbered
2.0

HOUSE BILL NO. HB0180

Property tax deferrals.

Sponsored by: Representative(s) Yin, Harshman, Schwartz and Sweeney

A BILL

for

AN ACT relating to ad valorem taxation; providing for a process to defer payment of property taxes as specified; providing for rulemaking; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1.

W.S. 39
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13
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107(b) by creating a new paragraph (iv) is amended to read:

39
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13
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107.

Compliance; collection procedures.

(b)

The following provisions shall apply to the payment of taxes, distraint of property and deferral:

(iv)

The following shall apply to the deferral of tax collection:

(A)

On or before November 10 of the year taxes are levied and upon the filing of an affidavit demonstrating an adequate showing that the person is qualified under subparagraph (B) of this paragraph, any person may apply to the board of county commissioners for deferral of the collection of any real estate ad valorem taxes owed by the property owner on the owner's principal residence or commercial property in accordance with this paragraph;

(B)

A person may apply to defer collection of property taxes if:

(I)

The taxable value of property increased by more than fifty percent (50%) compared to the prior tax year; and

(II)

The increase is not attributable to changes, additions, reductions or improvements to the property made in the prior year.

(C)

Taxes may be deferred each year for four (4) tax years under the following schedule:

(I)

The first tax year, calculate the difference between the taxes due for the first tax year minus the taxes due for the prior tax year. That difference times eight
‑
tenths (0.8) equals the amount of taxes for the first tax year that may be deferred that tax year;

(II)

The second tax year, calculate the difference between the taxes due for the second tax year minus the taxes due for the tax year prior to the first tax year. That difference times six
‑
tenths (0.6) equals the amount of taxes for the second tax year that may be deferred that tax year;

(III)

The third tax year, calculate the difference between the taxes due for the third tax year minus the taxes due for the tax year prior to the first tax year. That difference times four
‑
tenths (0.4) equals the amount of taxes for the third tax year that may be deferred that tax year; and

(IV)

The fourth tax year, calculate the difference between the taxes due for the fourth tax year minus the taxes due for the tax year prior to the first tax year. That difference times two
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tenths (0.2) equals the amount of taxes for the fourth tax year that may be deferred that tax year.

(D)

To pay the deferred taxes, the person shall pay ten percent (10%) of the total deferred amount under subparagraph (C) of this paragraph each year for ten (10) tax years, in equal installments starting in the sixth tax year and ending in the fifteenth tax year;

(E)

The board of county commissioners of each county shall promulgate rules and regulations
necessary to administer the provisions of this paragraph. All rules, regulations, guidelines, forms and other program information shall be submitted to the department prior to July 1, 2022;

(F)

Any deferral of collection of taxes granted by the board of county commissioners shall constitute a perpetual tax lien against the property pursuant to W.S. 39
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108(d)(i) with priority over any other lien;

(G)

Nothing in this paragraph shall be construed to prohibit or affect requirements for property to be listed, valued and assessed by the county assessor pursuant to law;

(H)

Notwithstanding W.S. 39
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13
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108(b)(ii), interest shall not accrue on any tax collection deferral granted by the board of county commissioners;

(J)

Payment of deferred taxes shall be distributed pursuant to W.S. 39
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13
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111(a)(ii). Any taxes
deferred under this paragraph which would be distributed pursuant to W.S. 39
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111(a)(ii)(A) shall be paid from the county general fund subject to reimbursement when the deferred taxes are paid by the taxpayer or otherwise collected by the county;

(K)

If any property is under mortgage, deed of trust or purchase contract whereby the explicit terms of the mortgage, deed or contract requires the accumulation of reserves out of which the holder of the mortgage, deed or contract is required to pay real property taxes, the holder or his authorized agent shall cosign the affidavit to defer either before a notarial officer or the county assessor or deputy in the county in which the real property is located;

(M)

If any property is under rental and the terms of the rental contract require the payment of taxes by the renter, the renter may apply for the deferral provided the property owner or authorized agent also cosigns the affidavit to defer either before a notarial officer or the county assessor or deputy in the county in which the real property is located;

(N)

Consistent with generally accepted fiscal accounting standards, each county shall maintain adequate records pertaining to the deferral program, by legal description, owner, taxpayer, if different from owner, deferred taxes, payments made against deferred taxes, and any other information necessary to document and determine the status of deferred taxes in the county. These records shall be updated annually or as needed, and a summary thereof shall be submitted annually to the department of revenue on or before August 10;

(O)

No person shall defer taxes under this paragraph and paragraph (iii) of this subsection for taxes due in the same tax year.

Section 2
.

This act is effective January 1, 2022
.

(END)

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HB0180