In a recent column, former Wyoming House Speaker Tom Lubnau voiced concern over a growing movement to eliminate property taxes in the state, warning that such a shift could lead to serious financial consequences for Wyoming residents, Cowboy State Daily reports.
Lubnau emphasized the need for thoughtful, informed legislative action rather than what he described as “knee-jerk, uninformed reactions” to tax reform. He argued that Wyoming’s current system, which relies heavily on out-of-state payers—particularly through mineral extraction taxes—helps reduce the direct burden on local taxpayers.
According to Lubnau, mineral companies contribute nearly half of all property tax revenue in Wyoming, or approximately $1 billion annually. These taxes are largely passed on to out-of-state consumers who use Wyoming’s mineral resources. If the state were to eliminate property taxes and shift to a sales tax-based model, he warned, this out-of-state contribution would vanish, resulting in a significant tax increase for Wyomingites.
Lubnau cited estimates that replacing the lost revenue with a sales tax could push the rate as high as 14%, with Wyoming residents picking up about 75% of the total tax burden. He also noted that such a change could jeopardize federal Payments in Lieu of Taxes (PILT), which provide compensation to local governments for nontaxable federal lands.
In contrast to full property tax elimination, Lubnau highlighted a proposal by Rep. Steve Harshman (R-Casper) that would use sales tax revenue to offset property taxes for residential properties valued up to $1 million. He suggested this approach would preserve the balance of the current system while offering relief to property owners—an option that was rejected by the state’s Freedom Caucus.
Lubnau concluded by calling for a more engaged and informed legislature, one willing to confront the complexities of Wyoming’s tax structure rather than opting for oversimplified solutions. He warned that failing to do so could lead the state down a path toward financial instability and increased tax burdens for its residents.
