This bill proposes significant changes to Wyoming's taxation and revenue laws, primarily focusing on property tax exemptions and adjustments to various tax rates. It establishes a property tax exemption for single-family residential properties, starting with an exemption on the first $200,000 of fair market value in 2025, which will increase to $1 million in subsequent years, adjusted for inflation. The bill also raises the tax exemption threshold for business property from $2,400 to $50,000 and lowers the tax assessment rate for industrial properties from 11.5% to 9.5%. Additionally, the severance tax rate for surface coal is reduced from 6.5% to 6%. A new renter's refund program is introduced, allowing eligible residents to receive refunds based on their gross rent paid, with limits tied to household income.

To finance these tax reductions, the bill introduces an additional sales tax of 2% effective July 1, 2025, which will be allocated to a newly created property tax reduction and replacement account. It also repeals the existing property tax refund program and mandates rulemaking for the new provisions. The bill includes a study requirement by the joint revenue interim committee and an appropriation for implementation. Furthermore, it allows for the continuation of a general purpose tax of 1% in counties, contingent upon local approval, and repeals certain provisions related to property tax refunds and exemptions. The property tax exemption will first apply to the tax year beginning January 1, 2025, and the Department of Revenue is tasked with adopting necessary rules by January 1, 2026.

Statutes affected:
25LSO-0173 v0.7: 39-13-109