Property tax-acquisition value.25LSO-0305, 1.0
HB0282
FISCAL NOTE
The fiscal impact, in the form of property tax revenue decreases to the School
Foundation Program (SFP), school districts and local governments, is
indeterminable.
This bill reduces the assessment rate of residential real property from the
current 9.5 percent to a proposed 8.3 percent.
This bill also establishes the fair market value of residential properties in
accordance with the following:
•
for the property is the fair market value on January 1, 2019.
•
31, 2025, the base year value for the property is the fair market value of
the property on January 1 of the year the property was last acquired.
•
shall be used as the base year value for the property, except as provided in
the proposed W.S. 39-13-103(b)(xviii)(IV).
•
lesser of 2 percent or the annual rate of the Consumer Price Index.
The proposed changes described above are effective January 1, 2026 (tax year
2026), reducing property taxes in paid in fiscal year (FY) 2027.
A similar bill, 2024 HB 0127 (Property tax exemption-specified real property),
established a property tax exemption to residential and commercial property in
the amount of the assessed value over the property’s 2019 assessed value,
increased each year by the lesser of 3 percent or the change in county median
incomes. The exemption was reset when the property was acquired by a new owner.
2024 HB 0127 was estimated to reduce residential and commercial property taxes
statewide by approximately $260 million in the first tax year. While
indeterminable, the decrease in the assessment rate from 9.5 percent to 8.3
percent would make the revenue decrease from this bill larger in comparison,
while its applicability to residential property only would make the revenue
decrease from this bill less in comparison.
The State Board of Equalization (Board) indicates it will almost certainly incur
increased expenditures related to increased litigation from this bill. The Board
indicates this fiscal impact is indeterminable. The Department of Revenue also
indicates there will be additional programming expenditures required to modify
the statewide Computer Assisted Mass Appraisal (CAMA) System to implement the
bill. These increased expenditures are also indeterminable at this time.
This bill may require the Legislature to appropriate additional funds from the
SFP for increased entitlement payments to ensure sufficient funding is available
to offset the reduction in revenue generated by the school district 25 mill levy
and countywide 6 mill levy.
Prepared by: Dean Temte, LSO Phone: 777-7881
(Information provided by Kenneth Guille, Department of Revenue, 777-5235;
Martin L. Hardsocg, Board of Equalization, 777-5284)