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25LSO-0626
2025
STATE OF WYOMING
25LSO-0626
Numbered
2.0
HOUSE BILL NO. HB0290
Property tax reduction and replacement act.
Sponsored by: Representative(s) Harshman, Larsen, L and Nicholas and Senator(s) Barlow
A BILL
for
AN ACT relating to taxation and revenue; establishing a property tax exemption for single family residential properties; providing a sales and use tax to provide funding to local governments due to the decrease in revenue from property tax exemptions; providing an exemption to the additional sales and use tax as specified; providing for the distribution of the sales and use tax; making conforming amendments; providing rulemaking authority; specifying applicability; authorizing reimbursement for other tax reductions; requiring a report; and providing for an effective date.
Be It Enacted by the Legislature of the State of Wyoming:
Section 1
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W.S. 39
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105(a) by creating a new paragraph (xlvi), 39
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104 by creating a new subsection (j), 39
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111(b)(intro) and by creating a new subsection (r), 39
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104 by creating a new subsection (g) and 39
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111(b)(intro) are amended to read:
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105.
Exemptions.
(a)
The following property is exempt from property taxation:
(xlvi)
A portion of the fair market value of single family residential properties. This exemption shall only apply to property owners that reside in the single family residential property not less than six (6) months of the year for which the exemption is claimed. The following shall apply to the exemption under this paragraph:
(A)
The amount of the exemption under this paragraph shall be the first two hundred thousand dollars ($200,000.00) of fair market value of the single family residential property in tax year 2025 and the first one million dollars ($1,000,000.00) of fair market value of the single family residential property for each tax year thereafter. The amount of the exemption under this subparagraph shall be inflated on an annual basis beginning in tax year 2027 from one million dollars ($1,000,000.00) by the rate of inflation determined by the department using the consumer price index or its successor index of the United States department of labor, bureau of labor statistics or two percent (2%), whichever is less;
(B)
The department shall adopt rules necessary to administer the exemption under this paragraph;
(C)
As used in this paragraph, "single family residential property" means a structure intended for human habitation, including a house, modular home, mobile home, townhouse or condominium that is a privately owned single family dwelling unit and includes a detached garage and the associated residential improved land if the land is owned by the owner of the dwelling.
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104.
Taxation rate.
(j)
In addition to the sales tax under subsections (a) and (b) of this section, and subject to the provisions of W.S. 39
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111(r)(ii), beginning July 1, 2025 there is imposed an additional sales tax as provided in this subsection. The additional sales tax imposed under this subsection shall not apply to sales to industrial facilities as defined by W.S. 35
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102(a)(vii) that are subject to permitting by the industrial siting council under W.S. 35
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101 through 35
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119 during the period of permitting and construction of the industrial facility. The revenue from the tax under this subsection shall be distributed as provided in W.S. 39
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111(r). The rate of the sales tax under this subsection shall be determined as follows:
(i)
Except as provided in paragraph (ii) or (iii) of this subsection, the rate of the additional tax shall be two percent (2%), which shall be administered as if the sales tax rate under subsections (a) and (b) of this section was increased from four percent (4%) to six percent (6%);
(ii)
The additional rate specified under paragraph (i) of this subsection may be reduced in intervals of one quarter of one percent (0.25%) if the governor certifies to the department that the amount of the tax together with funds in the property tax reduction and replacement account are sufficient to provide all payments under W.S. 39
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111(r)(i);
(iii)
The additional rate specified under paragraph (i) of this subsection shall be reduced by the department to zero percent (0%) if for any reason the exemption under W.S. 39
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105(a)(xlvi) is unavailable for that tax year.
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111.
Distribution.
(b)
Revenues earned under W.S. 39
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104 during each fiscal year shall be recognized as revenue during that fiscal year for accounting purposes. Except as otherwise provided in
subsection
subsections
(p)
and (r)
of this section, for all revenue collected by the department under W.S. 39
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104 the department shall:
(r)
An amount equal to the tax revenue collected that is attributable to the tax under W.S. 39
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104(j) and 39
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104(g) shall be transferred to the property tax reduction and replacement account, which is hereby created. All funds within the account shall be invested by the state treasurer as provided by law and all investment earnings from the account shall be credited to the account. An amount in the account equal to the tax revenue collected that is attributable to the tax under W.S. 39
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104(j) and 39
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104(g) from January 1 of each year through December 31 of each year shall be distributed as follows:
(i)
An amount determined under this paragraph to each county, to be distributed by county treasurers in the same manner property taxes are distributed as provided in W.S. 39
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111(a)(i). On or before September 1, county treasurers shall certify to the department the exemptions granted under W.S. 39
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105(a)(xlvi). If the amount available to distribute under this subsection is insufficient to fully reimburse each county and governmental entity in the county as provided in this paragraph, the amount provided to each county shall be proportionally reduced based on the amount of revenue available. The amount calculated for each county shall be determined and distributed not later than February 15 of each year based on the amount of revenue that the county and each governmental entity within the county lost in the immediately preceding year as a result of the property tax exemption under W.S. 39
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105(a)(xlvi). Beginning January 1, 2026, the amount calculated for a county under this paragraph shall not include any amount for mills that are assessed for the repayment of bonds;
(ii)
Any amount remaining after the distributions in paragraph (i) of this subsection shall remain in the property tax reduction and replacement account. The legislature shall annually review the amounts in the account and shall consider using any funds in the account for direct distributions to local governments.
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104.
Taxation rate.
(g)
In addition to the use tax under subsections (a) and (b) of this section, and subject to the provisions of W.S. 39
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111(r), beginning July 1, 2025 there is imposed an additional use tax as provided in this subsection. The additional use tax imposed under this subsection shall not apply to purchases by industrial facilities as defined by W.S. 35
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102(a)(vii) that are subject to permitting by the industrial siting council under W.S. 35
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101 through 35
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119 during the period of permitting and construction of the industrial facility. The revenue from the tax under this subsection shall be distributed as provided in W.S. 39
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111(r). The rate of the use tax under this subsection shall be determined as follows:
(i)
Except as provided in paragraph (ii) or (iii) of this subsection, the rate of the additional tax shall be two percent (2%), which shall be administered as if the use tax rate under subsections (a) and (b) of this section was increased from four percent (4%) to six percent (6%);
(ii)
The additional rate specified under paragraph (i) of this subsection may be reduced in intervals of one quarter of one percent (0.25%) if the governor certifies to the department that the amount of the tax together with funds in the property tax reduction and replacement account are sufficient to provide all payments under W.S. 39
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111(r)(i);
(iii)
The additional rate specified under paragraph (i) of this subsection shall be reduced by the department to zero percent (0%) if for any reason the exemption under W.S. 39
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105(a)(xlvi) is unavailable for any tax year.
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111.
Distribution.
(b)
Revenues earned under this article during each fiscal year shall be recognized as revenue during that fiscal year for accounting purposes.
Except as provided in W.S. 39
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111(r) for revenue attributable to the tax under W.S. 39
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104(g), r
evenue collected by the department from the taxes imposed by this article shall be transferred to the state treasurer who shall, as specified by the department:
Section 2
.
The department of revenue shall adopt rules necessary to implement this act not later than July 1, 2025.
Section 3.
The property tax exemption provided by W.S. 39
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105(a)(xlvi), as created by section 1 of this act, shall first apply to the tax year beginning January 1, 2025.
Section 4.
(a)
If 2025 Senate File 48, 2025 Senate file 49 or both are enacted into law, the department of revenue shall:
(i)
In consultation with the county treasurers, determine, to the extent practicable, the reduction in revenues to local governments as a result of the tax exemption that is amended in 2025 Senate File 48 and the revision to the valuation of personal property in 2025 Senate File 49. Any reduction in revenues determined under this paragraph shall, to the extent funds are available, be reimbursed to counties in the same manner as provided in W.S. 39
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111(r)(i), as created by section 1 of this act;
(ii)
Report to the joint revenue interim committee any recommended statutory changes necessary to include any revenue reductions as a result of 2025 Senate File 48 or 2025 Senate File 49 in the reimbursement to counties under W.S. 39
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111(r)(i). The recommendations shall include any necessary reporting requirements from counties or taxpayers to enable the calculation of revenue reductions. The report under this paragraph shall be provided not later than August 1, 2025.
Section 5.
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.
(END)
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HB0290