This bill introduces significant changes to the taxation and revenue framework in Wyoming, particularly concerning the valuation of residential property. It establishes that the taxable value of residential real property will be set at zero percent, while all other property will maintain a taxable value of nine and one-half percent (9.5%). Additionally, the bill creates a new definition for "residential real property," which includes dwellings designed for up to three families and associated land owned by the dwelling's owner. To address the revenue shortfall resulting from this change, the bill imposes an additional sales and use tax of two percent (2%) starting April 1, 2027, with specific exemptions for industrial facilities during their permitting and construction phases.

Furthermore, the bill outlines the distribution of the revenue generated from the new sales and use tax, directing funds to a newly created property tax reduction and replacement account. This account will be used to reimburse counties for tax reductions resulting from the new valuation of residential properties. The bill also includes provisions for the annual review of the account's funds, with the potential for direct distributions to local governments. Importantly, the enactment of this bill is contingent upon the passage of a constitutional amendment in the 2026 general election, with certain sections set to take effect on January 1, 2027.

Statutes affected:
Introduced: 39-11-101, 39-13-103, 39-15-104, 39-15-111, 39-16-104, 39-16-111