Bill Summary – FastDemocracy

                                                            24LSO-0191
                               STATE OF WYOMING
                              HOUSE BILL NO. HB0134
     Property tax deferral program-amendments.
     Sponsored by: Representative(s) Lawley, Clouston, Conrad,
                   Crago, Harshman, Larson, JT, Olsen and Sommers and Senator(s) Cooper and Rothfuss
                                       A BILL
                                         for
 AN    ACT   relating to   property taxes;   providing that the
 property tax deferral program shall be administered by the
 department of revenue; revising the amount of taxes that
 can be   deferred;    revising the calculation of   interest;
 making deferral of taxes contingent on the availability of
 funds;      clarifying eligibility;     modifying record keeping
 requirements;       making conforming changes;       requiring
 rulemaking; repealing a conflicting provision; providing an
 appropriation;         specifying applicability;       requiring         a
 report; and providing for effective dates.
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 Be It Enacted by the Legislature of the State of Wyoming:
13
        Section    1.     W.S.    39-13-107(b)(iii)(A),            (B),    (D)
 through (F), (H) and (K) through (N) is amended to read:
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                         STATE OF WYOMING                             24LSO-0191
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        39-13-107.       Compliance; collection procedures.
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        (b)     The following provisions shall apply to    the
 payment of taxes, distraint of property and deferral:
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                (iii)    The following shall apply to the deferral
 of tax collection:
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                      (A)      On or before November 10 of the year
 taxes are levied and upon the filing of    an affidavit
 demonstrating an adequate showing that he the applicant is
 qualified under subparagraph (N) of this paragraph and if
 his the principal residence of the applicant is located on
 a parcel of land not more than forty (40) acres, any person
 may apply to the board of county commissioners department
 for deferral of the collection of not to exceed one-half
 (1/2)    of any real estate ad      valorem taxes owed by   the
 property owner on     his the principal residence of   the
 applicant. The board of county commissioners of each county
 may department shall promulgate rules and regulations
 necessary to administer the provisions of this paragraph;
 including guidelines for       a taxpayer to     demonstrate
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 qualification and provisions allowing or requiring annual
 payment of a portion of the taxes or interest on deferred
 taxes. All rules, regulations, guidelines, forms and other
 program information shall be submitted to the department
 prior to    July     1   of the year the deferral program is
 implemented in       the county.      The board of     county
 commissioners may implement the program unless disapproved
 in writing by the department within forty-five (45) days of
 submission. If at least ten (10) residents of a county who
 are qualified under subparagraph     (N)    of this paragraph
 submit a petition to the board of county commissioners, the
 board of county commissioners shall hold a hearing within
 thirty (30) days on the issue of whether to promulgate
 rules to enable the qualified residents of the county to
 participate in the tax deferral program authorized under
 this paragraph;
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                       (B)    Any deferral of the collection of taxes
 granted by    the board of   county commissioners department
 shall constitute a perpetual tax lien in favor of the state
 against the property pursuant to W.S. 39-13-108(d)(i) with
 priority over any other lien. The taxpayer shall file an
 affidavit each year demonstrating qualification including
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 any significant change to        his financial status.      If the
 board of    county commissioners finds that the taxpayer's
 financial status to   qualify under subdivision      (N)(I)     of
 this paragraph has significantly changed,       the board of
 county commissioners shall, by written order, declare any
 taxes deferred due and payable on an earlier date. Unless
 declared to be due earlier, any taxes deferred shall be due
 and payable upon a significant change in the taxpayer's
 financial status as    determined by     the board of   county
 commissioners, abandonment of the property, failure to file
 annually the affidavit required by    this paragraph,         the
 death of the property owner or the sale or transfer of the
 property, whichever occurs first. If the board of county
 commissioners department finds at any time that the total
 taxes deferred exceeds one-half (1/2) of the fair market
 value of the property as estimated by the board of county
 commissioners department, the board of county commissioners
 department may declare, by written order, that all deferred
 taxes are immediately due and payable;
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                     (D)      Notwithstanding            W.S.    39-13-108(b)(ii),
 interest shall accrue on       any tax collection deferral
 granted by    the board of       county commissioners at    a
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                         STATE OF WYOMING                             24LSO-0191
 compounded rate of four percent (4%) per annum, except for
 persons who qualify solely under subdivision (N)(III) of
 this paragraph interest shall accrue department at a rate
 equal to the average yield on ten (10) year United States
 treasury bonds for the previous three (3) calendar years,
 plus one and one-half percent (1.5%) as determined by the
 state treasurer for the calendar year preceding the year in
 which application is made. Any tax collection deferral may
 be prepaid at any time without prepayment penalty;
10
                       (E)    Each year the department and each
 county assessor shall publicize in     a manner reasonably
 designed to    notify all residents of    the county the
 provisions of    this section paragraph and the method by
 which eligible persons may obtain a deferral;
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                       (F)    The department shall provide payment
 not later than December       31   each year to     the county
 treasurer of any amount of property taxes deferred under
 this section from funds appropriated for that purpose. The
 department shall not authorize any deferral under this
 paragraph if     the department determines that funds
 appropriated for that purpose are insufficient to    make
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                            STATE OF WYOMING                               24LSO-0191
 payment to    the county treasurer as    provided in    this
 subparagraph.             Payment of        deferred taxes shall be
 distributed pursuant to                  W.S. 39-13-111(a)(ii). Any taxes
 deferred under this paragraph which would be distributed
 pursuant to W.S. 39-13-111(a)(ii)(A) shall be paid from the
 county general fund subject to       reimbursement when the
 deferred taxes are paid by    the taxpayer or    otherwise
 collected by     the county made to     the department and
 deposited in the property tax deferral account which is
 hereby created. Amounts in the account shall not revert and
 shall be continuously appropriated to the department for
 purposes of        providing payments to    county treasurers for
 deferrals as provided in this subparagraph. Any earnings on
 the account shall be deposited in the account;
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                          (H)     If any residence is    under mortgage,
 deed of trust or purchase contract whereby the explicit
 terms of    the mortgage,       deed or       contract requires the
 accumulation of reserves out of which the holder of the
 mortgage, deed or contract is required to pay real property
 taxes, the owner may apply for the deferral provided that
 the holder or     his authorized agent shall cosign the
 affidavit to defer either before a notarial officer or the
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                         STATE OF WYOMING                              24LSO-0191
 county assessor or deputy in the county in which the real
 property is located;
 3
                     (K)     Consistent with generally accepted
 fiscal accounting standards, each county implementing the
 deferral program the department shall maintain adequate
 records pertaining to     the deferral program,    by legal
 description,     owner,         taxpayer,            if different from owner,
 deferred taxes and interest, payments made against deferred
 taxes and interest, and any other information necessary to
 document and determine the status of deferred taxes and
 interest in   the county.       These records shall be    updated
 annually or   as needed,         and       a summary thereof shall be
 submitted annually to     the department of   revenue on   or
 before August 10 under this paragraph;
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                     (M)     As used in    this paragraph,          "limited
 income"     means not to     exceed         a maximum gross monthly
 household income at     or below two hundred fifty percent
 (250%) of the federal poverty level for a household of four
 (4) as adjusted annually by the comparative cost-of-living
 index for the respective county where the property is
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                     STATE OF WYOMING                     24LSO-0191
 located as determined by the division of economic analysis,
 department of administration and information;
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                     (N)   An owner A taxpayer is qualified under
 this subparagraph for his primary residence if the taxpayer
 demonstrates any one (1) of the following conditions:
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                           (I)     The owner's affidavit application
 adequately demonstrates limited income as    defined in
 subparagraph (M) of this paragraph;
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                           (II)    The owner applicant is a person
 over the age of sixty-two (62) years;
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                           (III)    The owner applicant is a person
 with    a disability as    determined by   the social security
 administration; or
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                           (IV)    The owner applicant purchased the
 property at least ten (10) years prior to the beginning of
 the tax year for which he   is applying for deferral of
 taxes;.
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                             STATE OF WYOMING                             24LSO-0191
                                  (V)    The applicant is      a disabled
 veteran with    a compensable service connected disability
 certified by the veterans administration or a branch of the
 armed forces of the United States.
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        Section 2.           W.S. 39-13-107(b)(iii)(G) is repealed.
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        Section 3.           There is appropriated two hundred thousand
 dollars       ($200,000.00)             from the general fund to    the
 department of revenue for the period beginning January 1,
 2025    and ending June   30,    2026    to be    expended only for
 property tax deferral payments as      provided in     W.S.
 39-13-107(b)(iii)(F).                  This appropriation shall not be
 transferred or    expended for any other purpose and any
 unexpended,           unobligated funds remaining from this
 appropriation shall revert as provided by law on June 30,
 2026.    It is        the intent of    the legislature that this
 appropriation be included in the department of revenue's
 standard budget request for the immediately succeeding
 fiscal biennium.
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                       STATE OF WYOMING                24LSO-0191
         Section   4.   The department of   revenue shall adopt
 rules necessary to    implement this act not later than
 December 31, 2024.
 4
         Section 5.     Nothing in this act shall be construed to
 alter or change any deferral of taxes approved prior to
 January 1, 2025 and shall not be construed to release or
 diminish any obligation of a taxpayer to pay any taxes that
 were deferred prior to January 1, 2025.
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        Section 6.      The department of revenue shall report to
 the joint revenue interim committee on the implementation
 of this act and any additional statutory changes not later
 than November 1, 2024.
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                         STATE OF WYOMING                    24LSO-0191
        Section 7.
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        (a)   Except as       provided in   subsection      (b)    of this
 section, 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.
 7
        (b)   Sections      1    and   2    of this act are effective
 January 1, 2025.
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                                       (END)
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Statutes affected: 
Introduced: 39-13-107