Real estate transfer tax to offset property tax.

24LSO-0321
2024
STATE OF WYOMING
24LSO-0321
Numbered
2.0

HOUSE BILL NO. HB0112

Real estate transfer tax to offset property tax.

Sponsored by: Representative(s) Yin and Storer and Senator(s) Gierau

A BILL

for

AN ACT relating to taxation and revenue; providing for an excise tax on the sale of real property as specified; providing for distribution of the tax; requiring rulemaking; imposing criminal penalties; providing for a reduction in the property tax assessment ratio; making conforming amendments; 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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101 through 39
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111 are created to read:

CHAPTER 24
REAL ESTATE TRANSFER TAX

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101.

Definitions.

(a)

As used in this chapter:

(i)

"Agricultural land" means land which meets the requirements of W.S. 39
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13
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103(b)(x) for the purpose of tax assessment;

(ii)

"Consideration" means any property or thing of legal value whether delivered in the past, present or to be delivered in the future and includes like kind exchanges of property;

(iii)

"Conveyance" means as defined by W.S. 34
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1
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102;

(iv)

"Deed" means a conveyance of real property, in writing signed by the grantor, whereby the interest held by the grantor to real property is transferred from a grantor to a grantee;

(v)

"Real property" means as defined by W.S. 39
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11
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l0l(a)(xv).

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102.

Administration.

The department shall enforce the provisions of this chapter. The department shall promulgate rules necessary for the implementation and enforcement of this chapter.

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103.

Imposition.

(a)

Taxable event. An excise tax is imposed on the conveyance of real property under W.S. 39
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104.

(b)

Basis of tax.

The tax shall be collected based on the full actual consideration paid for the legal title or beneficial interest conveyed, including any lien assumed, using the best available information. For a gift or any deed transferred with nominal consideration or without stated consideration, the tax shall be collected based on the most recent fair market value of the real property as determined by the county assessor.

(c)

Taxpayer. The grantee shall be liable for the tax under this chapter.

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104.

Taxation rate.

(a)

The tax shall be based on the total value of the real property conveyance in the following percentages:

(i)

Up to one million dollars ($1,000,000.00): zero percent (0%);

(ii)

Any amount of a real property conveyance in excess of one million dollars ($1,000,000.00): one percent (1%).

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105.

Exemptions.

(a)

The tax under this chapter shall not be imposed upon any conveyance of legal title to or beneficial interest in real property that is recorded:

(i)

Prior to January 1, 2025, including any deed recorded as the result of any transfer of real property that is completed pursuant to a contract that was executed prior to January 1, 2025 even if the deed is recorded after that date or payments continue after that date;

(ii)

To confirm, correct, modify or supplement a previously recorded instrument without added consideration;

(iii)

For any transfer without consideration from one (1) joint tenant or tenant in common to one (1) or more remaining joint tenants or tenants in common;

(iv)

For any transfer without consideration when the deed is held in the name of one (1) spouse and the transfer is to both spouses as joint tenants, tenants in common, tenants by the entirety or as community property;

(v)

For any transfer between spouses, including any gift between spouses;

(vi)

For any transfer pursuant to a court order or decree including any transfer of legal title to or beneficial interest in real property between spouses to effect a property settlement agreement or between former spouses in compliance with a decree of divorce or judicial separation;

(vii)

For any transfer without consideration to or from a trust;

(viii)

For any transfer between a parent and child, including a gift;

(ix)

For any transfer to make effective any plan of reorganization or adjustment under which a mere change in identity, form or place of organization is affected, including a transfer between a corporation and its parent corporation or a subsidiary corporation;

(x)

For any transfer due to the sale of the property for delinquent taxes or assessments or due to a sale or transfer pursuant to foreclosure;

(xi)

For any transfer conducted through a county certificate of purchase or a sheriff's deed;

(xii)

For any transfer of agricultural land;

(xiii)

For any exchange of real property, except to the extent that the fair market value of one (1) of the properties being exchanged exceeds the fair market value of the other property being exchanged, as determined by the county assessor for the previous calendar year;

(xiv)

For any transfer of real property exempted from property taxation under W.S. 39
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105(a)(i) through (viii) and any property protected from taxation under the Wyoming constitution;

(xv)

For any transfer of real property interests constituting a mineral estate;

(xvi)

For any transfer of real property used for industrial purposes as defined by W.S. 39
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101(a)(xiv)(B);

(xvii)

For a lease;

(xviii)

For an easement;

(xix)

For any transfer of real property located within the boundaries of the Wind River Indian Reservation if the grantor or grantee is a member of the Eastern Shoshone or Northern Arapaho tribes;

(xx)

For any transfer of real property without consideration to a nonprofit organization that is exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code and that is not a private foundation as defined in section 509(a) of the Internal Revenue Code;

(xxi)

Any other transfer which the department exempts by rule upon a finding that the transfer does not represent a taxable conveyance of property due to the relationship of the parties or the nature of the real property.

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106.

Licensing; permits.

There are no specific applicable provisions for licenses and permits for this chapter.

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107.

Compliance; collection procedures.

(a)

Returns and reports. Taxes imposed by this chapter are due and payable at the office of the county treasurer of the county in which the real property is located on the date of recordation of the deed or other instrument. The tax shall be collected on the full actual consideration paid for the conveyance of real property, provided that if the property is transferred with nominal consideration or without stated consideration, the tax shall be collected based on the most recently determined fair market value of the real property that is transferred, as determined by the county assessor. The county clerk shall not record a document transferring legal title to or beneficial interest in real property until all taxes due under this chapter have been paid to the county treasurer. The grantor and grantee shall sign, on a form prescribed by the department, a statement eliciting the information necessary for the assessment of the tax. The statement is not a public record and shall be held confidential by the county clerk, county assessor, county treasurer, county board of equalization, state board of equalization and by the department.

(b)

It is a misdemeanor for a person to willfully disclose, except as specifically authorized by law, any information on the statement required by subsection (a) of this section. A violation of this section is punishable by a fine of not more than seven hundred fifty dollars ($750.00), imprisonment for not more than six (6) months, or both.

(c)

Payment. The grantee shall be liable for the tax under this chapter. Payment of the tax shall be collected at the time of recording the deed or other instrument in the form prescribed by the department. The grantee shall sign under penalty of perjury on a form prescribed by the department that the tax required under this chapter has been paid.

(d)

Timelines. There are no specific applicable provisions for timelines for this chapter.

(e)

If the property being transferred is located in more than one (1) county and the value has not been determined by the grantor and grantee as to each county, the value and resulting taxes due under this chapter shall be established by applying the ratio of the assessed valuation in each county to the assessed valuation of all property being transferred.

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108.

Enforcement.

There are no specific applicable provisions for enforcement for this chapter.

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109.

Taxpayer remedies.

There are no specific applicable provisions for taxpayer remedies for this chapter.

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110.

Statute of limitations.

There are no specific applicable provisions for a statute of limitations for this chapter.

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111.

Distribution.

(a)

Taxes collected by the county treasurer under this chapter shall be distributed as follows:

(i)

Fifty percent (50%) shall be retained by the county treasurer and distributed as provided in W.S. 39
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111(a)(i);

(ii)

Fifty percent (50%) shall be remitted to the department of revenue to be distributed January 1 of each year to the county treasurers of each county based on the proportion of the reduction in taxes in that county in that fiscal year compared to the total statewide reduction in taxes caused by the reduction of the taxable value percentage from nine and one
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half percent (9.5%) to nine and thirty
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eight hundredths percent (9.38%). Amounts distributed to a county treasurer under this paragraph shall be distributed as provided in W.S. 39
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111(a)(i).

Section 2.

W.S. 34
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119(a), 39
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101(a)(xvii)(C) and (xviii) and 39
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103(b)(iii)(C) are amended to read:

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119.

Duties of county clerk generally.

(a)

The county clerk of each county within this state shall receive and record at length all deeds, mortgages, conveyances, patents, certificates and instruments left with him for that purpose, and he shall endorse on every such instrument the day and hour on which it was filed for record.
The county clerk shall not record any document until the clerk receives documentation that the tax required by W.S. 39
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103 has been paid to the county treasurer.
The county clerk shall not record any document until the address of the grantee, mortgagee or assignee of the mortgagee is furnished to the county clerk, but this requirement shall not affect the validity of the recording of any instrument except to the extent provided in W.S. 34
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142(b). Only instruments which are the originally signed documents, including electronic documents recorded pursuant to the Uniform Real Property Electronic Recording Act, W.S. 34
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401 through 34
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407, or properly certified or authenticated copies thereof may be properly recorded. A document is properly certified if in compliance with Rule 902 of the Wyoming Rules of Evidence or other applicable rule or statute.

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101.

Definitions.

(a)

As used in this act unless otherwise specifically provided:

(xvii)

"Taxable value" means a percent of the fair market value of property in a particular class as follows:

(C)

All other property, real and personal, including property valued and assessed under W.S. 39
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102(m)(vi) and (ix),
nine and one
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half percent (9.5%)
nine and thirty
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eight hundredths percent (9.38%)
.

(xviii)

"This act" means W.S. 39
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101 through
39
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111
39
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111
.

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103.

Imposition.

(b)

Basis of tax.

The following shall apply:

(iii)

Beginning January 1, 1989, "taxable value" means a percent of the fair market value of property in a particular class as follows:

(C)

All other property, real and personal,
nine and one
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half percent (9.5%)
nine and thirty
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eight hundredths percent (9.38%)
.

Section 3.

The department of revenue shall adopt rules necessary to implement the real estate transfer tax created by this act not later than January 1, 2025.

Section 4
.

(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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HB0112