Property tax-acquisition value.

25LSO-0305
2025
STATE OF WYOMING
25LSO-0305
ENGROSSED
3.0

HOUSE BILL NO. HB0282

Property tax-acquisition value.

Sponsored by: Representative(s) Locke, Allemand, Banks, Bear, Brady, Guggenmos, Heiner, Johnson, Knapp, Lien, Lucas, Pendergraft, Rodriguez-Williams, Smith, S, Styvar, Tarver and Wharff and Senator(s) Ide, Laursen, D and Smith, D

A BILL

for

AN ACT relating to ad valorem taxation; establishing a rebuttable presumption in favor of acquisition value for specified real property; clarifying the use, disclosure and confidentiality of sworn statements for specified real property; providing definitions; making conforming amendments; requiring rulemaking; and providing for effective dates.

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

Section 1.

W.S. 34
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142(d), (e) and by creating a new subsection (j), 39
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101(a)(vi), (xvii)(intro) and (C), 39
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102(c)(xv) and (d)(i), 39
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109(b)(iv), 39
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102(n), 39
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103(b)(ii), (iii)(intro), (C), (vi) through (viii) and by creating a new paragraph (xviii) and 39
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109(b)(i) are amended to read:

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142.

Instrument transferring title to real property; procedure; exceptions; confidentiality.

(d)

Except as provided in subsection (j) of this section, t
he sworn statements shall be used by the county assessors and the state board of equalization and the department of revenue along with other statements filed only as data in a collection of statistics which shall be used collectively in determining sales
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price ratios by county. An individual statement shall not, by itself, be used by the county assessor to adjust the assessed value of any individual property.

(e)

Except as provided in subsection (j) of this section, t
he statement is not a public record and shall be held confidential by the county clerk, county assessor, county board of equalization, the state board of equalization and the department of revenue. A statement may be disclosed pursuant to W.S. 39
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109(a)(i) to any person wishing to review or contest his property tax assessment or valuation. The statement shall not be subject to discovery in any other county or state proceeding.

(j)

Sworn statements regarding real property taxable under W.S. 39
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103(b)(iii)(C) shall be available to a county assessor, a county board of equalization, the department of revenue and the state board of equalization for purposes of determining the value of property for purposes of property taxation. Nothing in this subsection shall waive the confidentiality requirements as specified in subsection (e) of this section.

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101.

Definitions.

(a)

As used in this act unless otherwise specifically provided:

(vi)

"Fair market value" means the amount in cash, or terms reasonably equivalent to cash, a well informed buyer is justified in paying for a property and a well informed seller is justified in accepting, assuming neither party to the transaction is acting under undue compulsion, and assuming the property has been offered in the open market for a reasonable time, except, fair market value of agricultural land shall be determined as provided by W.S. 39
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103(b)(x)
, fair market value of residential real property shall be determined as provided in W.S. 39
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103(b)(xviii)
and fair market value of mine products shall be determined as provided by W.S. 39
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103(b), 39
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203(b), 39
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303(b), 39
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403(b), 39
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503(b), 39
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603(b) and 39
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703(b);

(xvii)

"Taxable value" means a percent of the fair market value
or other value required by law
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%)
, provided that the value of residential real property shall be determined as provided in W.S. 39
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103(b)(xviii)
.

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102.

Administration; confidentiality; department of revenue.

(c)

In addition to the other powers and duties imposed by law, the department shall:

(xv)

Prescribe the system of establishing the fair market value
or other value required by law
of all property valued for property taxation to ensure that all property within a class is uniformly valued. The county assessor and the facilities of his office, together with the deputy assessors and clerical assistants in each county, at the direction of the department, shall give full aid in the installation of the prescribed system in the county. The county shall also furnish the necessary supplies and records for installing the system;

(d)

The following shall be adopted in accordance with the requirements and procedures of the Wyoming Administrative Procedure Act:

(i)

Adoption of any manual, formula, method or system to be used to determine the fair market value
or other value required by law
of property for tax purposes;

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109.

Taxpayer remedies.

(b)

Appeals.

The following shall apply:

(iv)

In any appeal to the board authorized by this section, the taxpayer may present any credible evidence, including expert opinion testimony, to rebut the presumption in favor of a valuation asserted by the department.
The rebuttable presumption in favor of a valuation asserted by the department shall not apply to the extent the rebuttable presumption conflicts with the rebuttable presumption in W.S. 39
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103(b)(xviii)(A)(III).
The board shall make specific findings and conclusions as to the evidence presented.

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102.

Administration; confidentiality.

(n)

Following determination of the fair market value
or other value required by law
of property the department shall notify the taxpayer by mail or, if offered by the department and upon request of the taxpayer, by electronic transmission of the assessed value. The person assessed may file written objections to the assessment with the board within thirty (30) days of the date of postmark or the date of electronic transmission, whichever is earlier, and appear before the board at a time specified by the board. For purposes of this subsection, if a written objection is mailed or sent by electronic transmission by the person assessed, it shall be deemed timely filed if it is postmarked or transmitted not later than thirty (30) days after the mailing or electronic transmission of the notification of the assessed value. The person assessed shall also file a copy of the written objections with the county treasurer of the county in which the property is located, who shall notify the county assessor and the board of county commissioners, with an estimate of the tax amount under appeal based upon the previous year's tax levy.

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103.

Imposition.

(b)

Basis of tax.

The following shall apply:

(ii)

All taxable property shall be annually valued at its fair market value

or other value required by law
. Except as otherwise provided by law for specific property, the department shall prescribe by rule and regulation the appraisal methods and systems for determining fair market value using generally accepted appraisal standards;

(iii)

Beginning January 1, 1989,
"
T
axable value" means a percent of the fair market value
or other value required by law
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%)
, provided that the value of residential real property shall be determined as provided in paragraph (xviii) of this subsection
.

(vi)

Each deputy county assessor upon completing the assessment of property within the district assigned to him shall immediately deliver all books, records, schedules and lists to the county assessor and make and subscribe the following oath: "I, ...., deputy assessor in and for district No. ...., county of ...., State of Wyoming, do solemnly swear (or affirm), that I have obtained from every person within the district, the lists and schedules required by law, and have received the lists and schedules according to law, from every person in the district; that I have carefully examined each of the lists and schedules, and have revised and corrected the lists when necessary; that I have to the best of my knowledge and ability valued the property in the lists and schedules at its fair market value
or other value
as required by law; that in no case have I knowingly omitted to perform any duty required of me by law and have not, in any way, connived at any evasion or violation of any of the requirements of law in relation to the listing and valuation of property.";

(vii)

The county assessor shall enter in books furnished for that purpose, from the tax schedule, the enumeration and fair market value
or other value as required by law
of all taxable property assessed by him or his deputies. The county assessor shall enter the names of persons against whom property is assessed in the county assessment roll in alphabetical order. On or before the fourth Monday in April, or as soon thereafter as is practicable, the county assessor shall send all assessment schedules to taxpayers by mail at their last known address or, if offered by the county and upon request of the taxpayer, by electronic transmission, and return the county assessment roll enumerating the property and value assessed by him or his deputies to the board of county commissioners together with a list stating the assessed value of taxable property within each school district, municipality or special district in the county;

(viii)

Every assessment schedule sent to a taxpayer shall contain the property's estimated fair market value
or other value required by law
for the current and previous year, or, productive value in the case of agricultural property. The schedule shall also contain the assessment ratio as provided by paragraph (b)(iii) of this section for the taxable property, the amount of taxes assessed on the taxable property from the previous year, and an estimate of the taxes which will be due and payable for the current year based on the previous year's mill levies. The schedule shall contain a statement of the process to contest assessments as prescribed by W.S. 39
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109(b)(i);

(xviii)

The following shall apply to the valuation of residential real property, as made subject to taxation in subparagraph (iii)(C) of this subsection:

(A)

Beginning January 1, 2026, the fair market value of residential real property shall be determined as follows:

(I)

For any residential real property that was last acquired on or before December 31, 2019, the base year value for the residential real property shall be equal to the fair market value of the property on January 1, 2019;

(II)

For any residential real property that was last acquired on or after January 1, 2020 and on or before December 31, 2025, the base year value for the residential real property shall be equal to the fair market value of the property on January 1 of the year the property was last acquired;

(III)

For any residential real property that was acquired on or after January 1, 2026, there shall be a rebuttable presumption that the acquisition value of the property is the fair market value of the property and the acquisition value shall be used as the base year value for the property except as provided in subdivision (IV) of this subparagraph;

(IV)

Notwithstanding subdivision (III) of this subparagraph, for any residential real property that was acquired on or after January 1, 2026, the fair market value of the property on January 1 of the year the property was acquired shall be used as the base year value of the property if:

(1)

The presumption under subdivision (III) of this subparagraph is rebutted by a preponderance of the evidence showing that the acquisition price paid to acquire the property was not fair market value because a party to the transaction was acting under undue influence or the terms of the transaction were not negotiated at arms
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length between an informed buyer and seller; or

(2)

The owner of the residential real property does not submit information that is sufficient to establish the acquisition value of the residential real property under subdivision (III) of this subparagraph. The department shall promulgate rules regarding the documentation and procedures required to establish acquisition value under this paragraph.

(B)

The base year value determined under subparagraph (A) of this paragraph shall be adjusted as follows:

(I)

The base year value shall be adjusted by an inflation factor that compounds annually each year beginning in the first year after the base year value is determined under subparagraph (A) of this paragraph. The inflation factor shall be the lesser of two percent (2%) or the rate of the consumer price index or its successor index of the United States department of labor, bureau of labor statistics, for the applicable year;

(II)

The base year value shall be adjusted as necessary to account for increases in the value of the property caused by new construction or significant additions to the residential real property. The value of the new construction or significant additions shall be added to the base year value of the residential real property. The value of the new construction or significant additions shall be determined by the construction costs. The department shall adopt rules specifying how construction costs are determined. Actual costs may be submitted to determine construction costs. If actual costs are not submitted or if the construction costs do not represent fair value because a party to the transaction was acting under undue influence or the terms of the transaction were not negotiated at arms
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length, the construction costs shall be determined based on average construction costs in the state for the applicable tax year. The department shall adopt rules specifying how significant additions to residential real property and construction costs are reported. As used in this subdivision, "significant addition" means any construction of real property that adds habitable square feet to the residential real property and includes construction where all or a portion of the residential real property is demolished and reconstructed. "Significant addition" shall not include finishing an unfinished portion of the existing residential real property.

(C)

The amount determined pursuant to subparagraphs (A) and (B) of this paragraph shall be the fair market value of the residential real property until ownership of the property is transferred to a new person. Each time residential real property is transferred to a new person, the property shall be valued as provided in subparagraph (A) of this paragraph to determine the new base year value of the property. The new base year value of the property shall be subject to the inflation factor provided in subparagraph (B) of this paragraph in subsequent tax years;

(D)

As used in this paragraph:

(I)

"Acquisition value," as used in this subparagraph, means the actual full amount paid or to be paid to acquire residential real property;

(II)

"Residential real property" means real property improved by a dwelling designed to house not more than four (4) families and includes a detached garage owned by the owner of the dwelling and any associated residential land up to thirty
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five (35) acres where the dwelling is located if the land is owned by the owner of the dwelling. The dwelling may include any type of residence including a single family home, an individual condominium unit, a mobile home or a trailer if the dwelling is used as a primary residence;

(III)

"Transfer" or "acquisition" of residential real property does not include:

(1)

A transfer of property between spouses or between a parent and their child;

(2)

A transfer of property pursuant to a court order including to effectuate a settlement agreement or in compliance with a decree of divorce or judicial separation;

(3)

A transfer of property to a trust established for the benefit of the prior owner;

(4)

A transfer of property to a corporation, partnership or limited liability company if the prior owner of the property is a shareholder or owner of the corporation, partnership or limited liability company;

(5)

A donation of residential real property to a religious or charitable organization including a nonprofit organization;

(6)

Any other transfer of property that the department determines by rule should not be an acquisition of property due to the relationship of the parties or other factors.

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109.

Taxpayer remedies.

(b)

Appeals.

The following shall apply:

(i)

Any person wishing to contest an assessment of his property shall file not later than thirty (30) days after the date of the assessment schedule properly sent pursuant to W.S. 39
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103(b)(vii), a statement with the county assessor specifying the reasons why the assessment is incorrect. For purposes of this paragraph, if a statement of reasons is mailed or sent by electronic transmission by the person assessed, it shall be deemed timely filed if it is postmarked or transmitted not later than thirty (30) days after the mailing or the electronic transmission of the notification of the assessment schedule. The county assessor shall provide a copy to the county clerk as clerk of the county board of equalization. The county assessor and the person contesting the assessment, or his agent, shall disclose witnesses and exchange information, evidence and documents relevant to the appeal, including sales information from relevant statements of consideration if requested, no later than thirty (30) days prior to the scheduled county board of equalization hearing. The assessor shall specifically identify the sales information used to determine market value of the property under appeal. A county board of equalization may receive evidence relative to any assessment and may require the person assessed or his agent or attorney to appear before it, be examined and produce any documents relating to the assessment. The appeal may be dismissed if any person willfully neglects or refuses to attend a meeting of a county board of equalization and be examined or answer any material question upon the board's request. The state board of equalization shall adopt rules to be followed by any county board of equalization when conducting appeals under this subsection. All hearings shall be conducted in accordance with the rules adopted by the state board of equalization. Each hearing shall be recorded electronically or by a court reporter or a qualified stenographer or transcriptionist. The taxpayer may present any evidence that is relevant, material or not repetitious, including expert opinion testimony, to rebut the presumption in favor of a valuation asserted by the county assessor
or related to the presumption in W.S. 39
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103(b)(xviii)(A)(III)
. The county attorney or his designee may represent the county board or the assessor, but not both. The assessor may be represented by an attorney and the board may hire a hearing officer. All deliberations of the board shall be in public. The county board of equalization may affirm the assessor's valuation or find in favor of the taxpayer and remand the case back to the assessor. The board shall make specific written findings and conclusions as to the evidence presented not later than October 1 of each year;

Section 2.

The state board of equalization and the department of revenue shall promulgate all rules necessary to implement this act not later than January 1, 2026.

Section 3
.

(a)

Except as otherwise 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)

Section 1 of this act is effective January 1, 2026.

(END)

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HB0282