Wyoming House Narrowly Rejects Sweeping Property Tax Bill Amid School Funding Fears

The Wyoming House of Representatives narrowly defeated a major property tax reform bill Thursday, with lawmakers voicing concerns about moving too fast and potentially draining the state’s rainy day fund.

Senate File 110 failed 31-30 after roughly 75 minutes of debate. The bill would have created a new two-tier assessment system—8.3% on the first $3 million of owner-occupied homes and 9.5% above that—while removing the 25 mills assessed statewide for education on the first $3 million and repealing the current 25% exemption on the first $1 million of value.

Supporters argued the measure would give legislators “additional tools in the toolbox” while restoring revenue streams to local governments strained by previous tax relief efforts. Rep. Tony Locke, R-Casper, noted the onus for covering lost school funding would fall on the state, not local entities.

But opponents warned the bill would likely result in higher taxes for most Wyomingites while threatening education funding. The Legislative Stabilization Reserve Account—the state’s rainy day fund—currently holds about $832.6 million and is required to backfill K-12 schools as long as it maintains at least $500 million. Projections show it dipping below that threshold in 2029.

“We keep jerking the wheel,” said Rep. Cody Wylie, R-Rock Springs. “We don’t let it break over and turn and see how we can do this correctly.”

Rep. Steve Harshman, R-Casper, framed the vote as a choice for working families. “Your no vote, you’ll stand with the farmers and ranchers, teachers and public employees, the construction workers, the oil field workers and people who are buying diapers today trying to figure it all out,” he said. “That’s the 99% of Wyomingites.”

Rep. Karlee Provenza, D-Laramie, warned of future cuts if the bill passed, envisioning a scenario where lawmakers would be forced to slash health care, developmental disabilities and nursing home funding to pay for education. “The most vulnerable of our people, we can’t take care of them anymore as we are commanded,” she said.

The bill’s defeat comes after the Legislature has already passed several property tax relief measures since 2023, including a 25% exemption, a 4% cap on annual increases, expanded veterans’ exemptions and a long-term homeowner exemption.