This bill proposes significant changes to Wyoming's taxation and revenue laws, including the introduction of a property tax exemption for single-family residential properties, which will exempt the first $200,000 of fair market value in 2025, increasing to $1 million in subsequent years and adjusted annually for inflation. Additionally, the tax exemption for business property is raised from $2,400 to $50,000, and the tax assessment rate for industrial properties is reduced from 11.5% to 9.5%. The severance tax rate for surface coal is also lowered from 6.5% to 6%. To compensate for the anticipated revenue loss from these tax reductions, a new 2% sales and use tax will be implemented starting July 1, 2025, alongside the establishment of a property tax reduction and replacement account.

Moreover, the bill amends existing tax laws regarding general purpose taxes at the county level, instituting a one percent (1%) general purpose tax that can only be terminated through an election. This tax can be made permanent through either an election or a resolution, requiring approval from county commissioners and at least fifty percent of municipalities. The bill also repeals certain provisions related to property tax refunds and exemptions, specifically those in W.S. 39-13-109(c)(v) and (vi), and mandates that the property tax exemption will first apply to the tax year beginning January 1, 2025. The Department of Revenue is tasked with adopting necessary rules for implementation by January 1, 2026, and the bill includes provisions for a renter's refund program, appropriating funds for it while ensuring that previously imposed optional taxes remain effective until their next renewal date. A study of the act's impacts is also required during the 2025 interim by the joint revenue interim committee.

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