A bill that would cut residential property taxes by 25% is now headed to Governor Mark Gordon’s desk after Wyoming lawmakers reached an agreement following days of negotiations, Wyo File reports.
Both chambers are expected to approve the measure, despite concerns from local governments about the financial impact.
The legislation, known as Senate File 69, provides a 25% exemption on the first $1 million of a single-family home’s fair market value. It does not include a provision to replace lost revenue for local governments, nor does it set an expiration date for the tax break. The exemption would take effect immediately, with an owner-occupied requirement beginning in the second year, along with special considerations for deployed military homeowners.
Negotiations initially stalled earlier in the week, with Senate and House members at odds over how to proceed. However, following further discussions within the House Republican caucus and with members of the minority party, lawmakers agreed to accept the Senate’s position.
“This is probably one of the most important issues facing the state Legislature,” said Senate Vice President Tim Salazar, R-Riverton. “I want to compliment the House, because I know that they also wanted proper tax relief.”
House Majority Floor Leader Scott Heiner, R-Green River, said legislators reviewed financial data before making their decision.
“We ran a bunch of numbers on the Senate’s compromise,” Heiner said. “We would like to accept the Senate’s position that was offered on Tuesday morning.”
While lawmakers supporting the measure view it as much-needed tax relief for homeowners, local government officials have voiced strong concerns about the financial implications. Property taxes do not fund the state government but instead support public services such as law enforcement, education, emergency services, roads, and libraries.
Jerimiah Rieman, executive director of the Wyoming County Commissioners Association, warned that the reduction in tax revenue would be significant.
“A 25% exemption is neither negligible nor would a 25% reduction of any major state funding source,” Rieman said. “This bill will diminish county government services and will make counties more reliant on state revenues and Wyoming’s mineral industry.”
Local leaders have also pointed out that property tax increases have been concentrated in specific regions, meaning some counties will be affected more than others. An analysis by the Wyoming Taxpayers Association found that eight counties currently collect less in property taxes than they did in 2015.
Laramie Mayor Sharon Cumbie emphasized the challenge of adjusting to sudden revenue reductions.
“Long-range planning and fiscal responsibility are core values of both the city and the city council,” Cumbie said. “To suddenly have a dramatic shift is quite an interruption.”
Although some lawmakers attempted to include $15 million in funding for special districts providing emergency and health services, the Senate rejected the proposal. Without additional financial support, local governments will need to adjust their budgets accordingly.
Governor Gordon now has the option to sign the bill into law, veto it, or allow it to become law without his signature.
