This bill establishes a property tax exemption for residential real property in Wyoming, specifically exempting a portion of the fair market value of such properties. Under the new provision, the exemption will cover the first $200,000 of fair market value for the tax year 2026, increasing to $2 million for tax year 2027 and thereafter, with annual inflation adjustments starting in 2028. The bill also defines "residential real property" and mandates the Department of Revenue to adopt necessary rules for administering this exemption.

To offset the revenue loss from the property tax exemptions, the bill introduces an additional sales and use tax of 2%, effective July 1, 2026, which will not apply to industrial facilities during their permitting and construction phases. The revenue generated from this tax will be distributed to local governments to compensate for the lost property tax revenue, with specific provisions for distribution outlined in the bill. The Department of Revenue is tasked with implementing the necessary rules by July 1, 2026, and the property tax exemption will first apply to the tax year beginning January 1, 2026.

Statutes affected:
26LSO-0282 v0.3: 39-11-105, 39-15-104, 39-15-111, 39-16-104, 39-16-111