Property tax deferral program-amendments.

23LSO-0422
2023
STATE OF WYOMING
23LSO-0422
ENGROSSED
3.0

HOUSE BILL NO. HB0121

Property tax deferral program-amendments.

Sponsored by: Representative(s) Lawley, Harshman, Sommers and Zwonitzer, Dn and Senator(s) Case, Cooper, Rothfuss and Steinmetz

A BILL

for

AN ACT relating to property taxes; providing that the property tax deferral program shall be administered by the department of revenue; revising the amount of taxes that can be deferred; revising the calculation of interest; making deferral of taxes contingent on the availability of funds; clarifying eligibility; making conforming changes; requiring rulemaking; repealing a conflicting provision; providing an appropriation; specifying applicability; requiring a report; and providing for effective dates.

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

Section 1.

W.S. 39
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13
‑
107(b)(iii)(A), (B), (D) through (F), (H) and (K) through (N) is amended to read:

39
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13
‑
107.

Compliance; collection procedures.

(b)

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

(iii)

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
he
the applicant
is qualified under subparagraph (N) of this paragraph and if
his
the
principal residence
of the applicant
is located on a parcel of land not more than forty (40) acres, any person may apply to the
board of county commissioners
department
for deferral of the collection of not to exceed one
‑
half (1/2) of any real estate ad valorem taxes owed by the property owner on
his
the
principal residence
of the applicant
. The
board of county commissioners of each county may
department shall
promulgate rules and regulations necessary to administer the provisions of this paragraph
;

including guidelines for a taxpayer to demonstrate qualification and provisions allowing or requiring annual payment of a portion of the taxes or interest on deferred taxes. All rules, regulations, guidelines, forms and other program information shall be submitted to the department prior to July 1 of the year the deferral program is implemented in the county. The board of county commissioners may implement the program unless disapproved in writing by the department within forty
‑
five (45) days of submission. If at least ten (10) residents of a county who are qualified under subparagraph (N) of this paragraph submit a petition to the board of county commissioners, the board of county commissioners shall hold a hearing within thirty (30) days on the issue of whether to promulgate rules to enable the qualified residents of the county to participate in the tax deferral program authorized under this paragraph;

(B)

Any deferral of
the
collection of taxes granted by the
board of county commissioners
department
shall constitute a perpetual tax lien
in favor of the state
against the property pursuant to W.S. 39
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13
‑
108(d)(i) with priority over any other lien.
The taxpayer shall file an affidavit each year demonstrating qualification including any significant change to his financial status. If the board of county commissioners finds that the taxpayer's financial status to qualify under subdivision (N)(I) of this paragraph has significantly changed, the board of county commissioners shall, by written order, declare any taxes deferred due and payable on an earlier date.
Unless declared to be due earlier, any taxes deferred shall be due and payable upon
a significant change in the taxpayer's financial status as determined by the board of county commissioners,
abandonment of the property,
failure to file annually the affidavit required by this paragraph,
the death of the property owner or the sale or transfer of the property, whichever occurs first. If the
board of county commissioners
department
finds at any time that the total taxes deferred exceeds one
‑
half (1/2) of the fair market value of the property as estimated by the
board of county commissioners
department
, the
board of county commissioners
department
may declare, by written order, that all deferred taxes are immediately due and payable;

(D)

Notwithstanding W.S. 39
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13
‑
108(b)(ii), interest shall accrue on any tax collection deferral granted by the
board of county commissioners at a compounded rate of four percent (4%) per annum, except for persons who qualify solely under subdivision (N)(III) of this paragraph interest shall accrue
department
at a rate equal to the average yield on ten (10) year United States treasury bonds for the previous three (3) calendar years, plus one and one
‑
half percent (1.5%) as determined by the state treasurer for the calendar year preceding the year in which application is made. Any tax collection deferral may be prepaid at any time without prepayment penalty;

(E)

Each year the
department and each
county assessor shall publicize in a manner reasonably designed to notify all residents of
the county
the provisions of this
section
paragraph
and the method by which eligible persons may obtain a deferral;

(F)

The department shall provide payment not later than December 31 each year to the county treasurer of any amount of property taxes deferred under this section from funds appropriated for that purpose. The department shall not authorize any deferral under this paragraph if the department determines that funds appropriated for that purpose are insufficient to make payment to the county treasurer as provided in this subparagraph.
Payment of deferred taxes shall be
distributed pursuant to W.S. 39
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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
made to the department and deposited in the property tax deferral account which is hereby created. Amounts in the account shall not revert and shall be continuously appropriated to the department for purposes of providing payments to county treasurers for deferrals as provided in this subparagraph. Any earnings on the account shall be deposited in the account
;

(H)

If any residence 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 owner may apply for the deferral provided that
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;

(K)

Consistent with generally accepted fiscal accounting standards,
each county implementing the deferral program
the department
shall maintain adequate records pertaining to the deferral program, by legal description, owner, taxpayer, if different from owner, deferred taxes and interest, payments made against deferred taxes and interest, and any other information necessary to document and determine the status of deferred taxes and interest
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
under this paragraph
;

(M)

As used in this paragraph, "limited income" means not to exceed a maximum gross monthly household income at or below two hundred fifty percent (250%) of the federal poverty level for a household of four (4) as adjusted annually by the comparative cost
‑
of
‑
living index for the
respective
county
where the property is located
as determined by the division of economic analysis, department of administration and information;

(N)

An owner
A taxpayer
is qualified under this subparagraph for his primary residence if
the taxpayer demonstrates any one (1) of the following conditions
:

(I)

The
owner's

affidavit
application
adequately demonstrates limited income as defined in subparagraph (M) of this paragraph;

(II)

The
owner
applicant
is a person over the age of sixty
‑
two (62) years;

(III)

The
owner
applicant
is a person with a disability as determined by the social security administration;
or

(IV)

The
owner
applicant
purchased the property at least ten (10) years prior to the beginning of the tax year for which he is applying for deferral of taxes
;
.

(V)

The applicant is an honorably discharged, disabled veteran with a compensable service connected disability certified by the veterans administration or a branch of the armed forces of the United States.

Section 2.

W.S. 39
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107(b)(iii)(G) is repealed.

Section 3.

There is appropriated two hundred thousand dollars ($200,000.00) from the general fund to the department of revenue for the period beginning January 1, 2024 and ending June 30, 2026 to be expended only for property tax deferral payments as provided in W.S. 39
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107(b)(iii)(F). This appropriation shall not be transferred or expended for any other purpose and any unexpended, unobligated funds remaining from this appropriation shall revert as provided by law on June 30, 2026. It is the intent of the legislature that this appropriation be included in the department of revenue's standard budget request for the immediately succeeding fiscal biennium.

Section 4.

The department of revenue shall adopt rules necessary to implement this act not later than December 31, 2024.

Section 5.

Nothing in this act shall be construed to alter or change any deferral of taxes approved prior to January 1, 2025 and shall not be construed to release or diminish any obligation of a taxpayer to pay any taxes that were deferred prior to January 1, 2025.

Section 6.

The department of revenue shall report to the joint revenue interim committee on the implementation of this act and any additional statutory changes not later than November 1, 2023.

Section 7.

(a)

Except as provided in subsection (b) of this section, this act is effective immediately upon completion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constitution.

(b)

Sections 1 and 2 of this act are effective January 1, 2025.

(END)

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HB0121