The proposed shift to an acquisition value-based system could significantly impact property tax assessments statewide. By reviewing and relying on the purchase price paid for properties as the basis for taxation, the legislation might lead to more consistent property valuations. The Department of Revenue is tasked with consulting interested stakeholders in the study, ensuring that input from various community members and local governments is taken into account. However, agricultural land and commercial properties are specifically excluded from these changes, which may mitigate some anticipated impacts on certain sectors of the economy.
Summary
House Bill 0109 focuses on a comprehensive study regarding the potential transition of Wyoming's property tax system to one based on the acquisition value of properties. This bill mandates the Department of Revenue to assess the statutory, regulatory, and procedural changes necessary for such a conversion. The aim is to analyze how this transition could affect both state and local revenue, particularly focusing on ensuring that implementation remains revenue neutral in its first year. Notably, the bill specifies that changes should not retroactively apply to property values determined prior to the system's implementation, thereby safeguarding existing valuations.
Contention
Opposition to HB 0109 centers around concerns regarding how such a change could affect local governments’ revenue streams. Opposition lawmakers and entities may argue that this shift could inadvertently shift the tax burden onto individuals or smaller property owners, thus undermining local control over property tax assessments. Additionally, stakeholders may express apprehensions about potential adverse effects on local funding for educational and community services, given that property taxes often constitute a significant revenue source for these sectors.
Voting_history
The bill faced a challenging vote during its consideration in the House, specifically on February 24, 2022. It did not pass the appropriations committee, receiving zero 'yeas' and seven 'nays', which indicates a clear lack of support in its initial stages. The committee's rejection suggests significant reservations among lawmakers regarding the bill's proposed alterations to the property tax framework.