This bill establishes a property tax exemption for single-family residential properties in Wyoming, allowing for an exemption on the first $200,000 of fair market value in tax year 2024, and increasing to $1,000,000 in subsequent years. The bill also mandates the Department of Revenue to adopt rules for administering this exemption. To offset the revenue loss from the property tax exemption, a new sales and use tax of 2% will be imposed starting July 1, 2024, effectively raising the total sales tax rate from 4% to 6%. The revenue generated from this tax will be distributed to local governments to compensate for the decrease in property tax revenue.

Additionally, the bill revises provisions related to local optional sales and use taxes, allowing for more flexibility in how these taxes can be continued or established. It specifies that if county commissioners and a majority of municipalities do not agree on tax continuation, individual municipalities or the county can still propose a tax to their voters. The bill also creates a property tax reduction and replacement account to manage the funds collected from the new sales tax, ensuring that local governments are reimbursed for the revenue lost due to the property tax exemption. The act is set to take effect immediately upon completion of legislative processes, with the property tax exemption first applying to the tax year beginning January 1, 2024.

Statutes affected:
Introduced: 39-11-105, 39-15-104, 39-15-111, 39-15-203, 39-16-104, 39-16-111, 39-16-203