Revenue Committee advances six property tax bills; Case votes ‘no’

(Cheyenne, WY) – Wyoming Sen. Cale Case, R-Lander, didn’t vote in favor of any of the six property tax measures the legislature’s Revenue Committee approved last month during a meeting in Cheyenne.

The bills that were approved would:

• eliminate the 2027 sunset date attached to the new property tax exemption for long-term homeowners
• propose a constitutional amendment to eliminate the assessment of property taxes on residential property in Wyoming
• provide a property tax exemption for residential real property and raise the statewide sales tax from 4 percent to 6 percent
• propose a constitutional amendment authorizing the legislature to provide for the valuation of residential property for purposes of taxation
• establish the value of residential real property for purposes of taxation
• specify property tax assessment rates for residential real property

All six proposals will now progress to the 2026 legislative session for further consideration.

Long-term homeowners

Wyoming Property Tax Division Administrator Ken Guille said the long-term homeowners property tax exemption that was approved in 2024 removed about $680 million in assessed value from the tax rolls in 2025, reducing revenues by roughly $47 million statewide.

If the sunset date is removed from the exemption, the impact will likely remain the same moving forward, Guille guessed, though there could be a “slight” uptick in applications in 2026 as more people learn about the opportunity for relief. 

Converse County Assessor Dixie Huxtable estimated that the increase would be more “significant,” however, noting that, after approving about 700 applications for the exemption last year, she has already received 50 “brand new” applications from residents who either weren’t previously aware of the program or have only recently become eligible.

Asked whether she felt the new exemption was working as it was intended – to help older residents on limited incomes cover their rising property tax bills and stay in their homes – Huxtable pointed out that there were no income restrictions tied to the legislation, so a certain portion of people who received the exemption didn’t necessarily need it.

Further, Huxtable said, in her 25 years with the Converse County Assessor’s Office, she has never seen anybody lose their house because they couldn’t pay their taxes.

She has noticed that it’s been challenging for younger families to find homes in the community, though, Huxtable said, responding to a question from Case. 

“We have a housing shortage,” she explained. “So there’s a demand for houses, and right now in my market, all of the lower-valued (homes) – and by lower I mean less than $300,000 – are just not available. They’ve been picked up and refurbished or flipped.”

Prices are high in Lander too, Case said – but the “tax situation” is also affecting the housing market by prompting older residents to remain in their homes longer, reducing the number of properties available for young families.

Huxtable said she has seen that scenario play out in her county as well, where there are older homeowners who “maybe could downsize to make their life a little easier,” but who can’t find any affordable homes to purchase “because the values have just increased.” 

“That’s causing some problems for our older folks that really would like to downsize and get into something smaller that’s not an assisted living scenario,” she said. 

The bill draft removing the sunset date from the long-term homeowners property tax exemption passed, with Case offering the lone “nay” vote.

Residential property tax

Case also offered the only “no” vote when the committee approved a bill draft proposing a constitutional amendment that would eliminate property tax assessments on residential property in Wyoming.

Another bill draft, raising the statewide sales tax by 2 percent, would only take effect if the proposed constitutional amendment passed the legislature and was approved by Wyoming voters, the committee decided last month.

That 2 percent sales tax increase would generate about $475 million, Wyoming Department of Revenue Director Brett Fanning estimated.

Lawmakers said that money could be used to support local communities that have lost funding due to recent property tax cuts – but Wyoming Association of Municipalities Legislative Director Bob McLaurin expressed concern that statewide sales tax increase could actually hurt smaller governments by prompting voters to reject the optional sales tax measures that many cities and counties currently rely on to support operations and capital projects.

“We very much appreciate the legislature’s attempt to try to help backfill some of the lost revenues from property taxes,” McLaurin said. “But at this point we’re opposed to the bill because we’re concerned about the impact that it would have on those optional fifth and six pennies.”

Case opposed the measure, too, calling it “bad policy” to replace a “progressive” and “stable” property tax with an “erratic” sales tax.

“(Sales taxes) are the most erratic of your tax forms,” Case said. “(And) we already have a problem with erratic revenue streams from our minerals.”

Valuation

The Revenue Committee approved another proposed constitutional amendment last month that would let the legislature provide for the valuation for residential properties for purposes of taxation. 

Legislative staffers said the change would give lawmakers more flexibility in determining how residential properties are valued – unlike another bill draft that the committee also approved last month, which specifies that residential properties would be taxed based on their fair market value. 

Case voted against both proposals.

He was not present for the vote on the final property tax bill draft the committee approved last month, which would set property tax assessment rates for residential real property in accordance with the constitutional amendment Wyoming voters approved last year creating a separate residential property class.