As week two of the budget session gets underway, tax bills are taking center stage.
One such bill would codify in state law the practice of distributing a portion of sales and use tax revenue to cities, towns and counties.
Currently, Wyoming has a 4% sales tax that applies statewide. The state gets 69% of the tax it collects, which amounted to more than $671.4 million in 2024. The remaining 31% is distributed to local governments.
HB 107 - Local government distributions would add an additional 7% to that 31% that cities, towns and counties receive, but it would be distributed by what’s known as the Madden Formula, which is intended to provide added relief for the smallest or poorest jurisdictions. The current 31% would continue to be distributed using criteria that emphasize the place of collection – in other words, if sales tax is collected in Cheyenne, it stays in Cheyenne.
Direct distribution revenue has become even more important for local governments in recent years as the Legislature has been cutting property taxes. Property tax revenue funds the operations of local governments, not the state.
Lawmakers slashed property taxes through a number of measures in recent years to help Wyomingites struggling with high rates in some parts of the state.
But those policy moves have had real impacts. Wyoming Public Radio previously reported on special districts and county-level firefighters who have had to reduce their budgets due to the new laws, as well as county-level library systems that are struggling.
“I represent two hardship counties, one of which is significantly under the hardship standard,” said Rep. Martha Lawley (R-Worland) during debate on the bill. A county earns “hardship” designation when it levies one mill countywide that brings in less than $300,000 in revenue in a year. “I speak out for those people, and how these tax cuts have affected them not only in our counties, but our municipalities and the special districts. They're in dire straits in some cases.”
Rep. Mike Yin (D-Jackson) spoke in favor of the bill as well. He said it represented a chance for lawmakers to recognize they’re not just representatives of their districts, but of the entire state, too.
“I know that a lot of the sales tax money comes out of my neck of the woods. I get that. I understand,” said Yin. “So maybe I could care more about having more of that sales tax come back, but what I actually care more about is making sure that [a] law enforcement officer in Carbon County doesn't have to run an ultramarathon to pay for his tools or his staff, to make sure that folks in Natrona County can do something without having to raise a new tax levy.”
Rep. Tony Locke (R-Casper) argued the health of local governments shouldn’t be the Legislature’s only consideration.
“I understand that we definitely have to worry about government operating,” said Locke. “Keep in mind, we need our families operating, too. … I think we need to consider both in this process, and that includes our people at home and in our budgets and other things we're doing here.”
The bill passed third reading in the House on Feb. 16 and will now cross over to the Senate to be debated and possibly amended by that chamber.
If it passes the Senate with no amendments, it’ll head to Gov. Mark Gordon’s desk.
Firefighter weighs in
Ryan Grigg, an engineer for the Natrona County Fire District, went to the state Capitol building along with his coworkers on Feb. 11 to voice his support for a bill to raise the amount of property tax revenue fire districts can collect. He added he was skeptical about further property tax cuts.
“ Our fire department is funded mostly by property taxes,” Grigg told WPR. “So any cut to those, any decrease in those directly affects us and our response [times] to our citizens.”
There needs to be a balance between appropriate taxation and government overreach, Grigg said, especially when the entity depending on taxes is charged with responding to emergencies.
“ My personal opinion on it is that a decrease in property taxes reduces first responder service,” he said. “It reduces your fire departments, your police departments, your EMS services in those areas of the county that don't have any other revenue coming in, such as sales tax or any of the other special taxes that we have.”
HB 144 - Fire protection districts mill levies-amendments passed the House Corporations, Elections and Political Subdivisions Committee on Feb. 13 by a vote of 8 to 1 and was forwarded to the full House for consideration.
How have other property tax bills fared?
SJ 3 - Residential property tax-constitutional amendment - Dead
This bill would’ve eliminated residential property tax collection in Wyoming entirely. Similarly sweeping efforts are becoming more common in other states.
“Residential property tax is immoral,” said Sen. Troy McKeown (R-Gillette) about the bill during debate. “It's unconstitutional, and we need to get rid of it.”
After McKeown finished speaking, the bill failed to pass introduction by a vote of 7 to 24.
SF 39 - Long-term homeowner tax exemption-sunset repeal - Alive
This bill would repeal the end date for the state’s long-term homeowners' property tax exemption. That measure exempts 50% of a property’s value for homeowners at least 65 years old who’ve paid property taxes in Wyoming for at least 25 years and live in the home at least eight months out of the year.
As it stands, the exemption is set to end on July 1, 2027.
The bill passed out of the Senate Revenue Committee by a vote of 4 to 1 on Feb. 11. It now heads to the full chamber for further debate and amendments.
HB 45 - Long-term homeowner tax exemption-revisions - Alive
This bill amends the state’s long-term homeowners' property tax exemption so that the cut applies to 50% of a home’s fair market value, not its assessed value, as the law establishing the program currently states. The exemption only applies to the first $3 million of the home’s fair market value.
The bill passed the House on Feb. 13 by a vote of 56 to 4. It now heads to the Senate.
HB 58 - Voter approval for mill levy imposition - Dead, but a cousin lives
This bill would’ve required an election when a local government wants to institute a recreational mill levy.
Mill levies are a tax rate that local governments use to raise money for public services, like weed and pest control. One mill represents $1 a taxpayer must pay for every $1,000 worth of the assessed value of their property. Mill levies help pay for things like airports, hospitals, public schools and cemeteries.
In April 2025, Crook County School District No. 1 proposed an increase to their recreational mill levy. That’s according to an open letter penned by House Speaker Rep. Chip Neiman (R-Hulett) on social media. Neiman is a member of the Wyoming Freedom Caucus, which pushed for a series of property tax relief and reform measures during the last session. He also sponsored several mill levy bills this session.
In his letter, Neiman asked the school board a series of questions about the proposal.
“Have all efficiencies been found and utilized?” he wrote at the time. “Are we so busy figuring out [if] we can increase taxes did we stop to think about whether or not we should increase taxes, especially considering the increased amounts our citizens have been paying for the last several years?”
In a report by The Sundance Times, school board officials said they were following most Wyoming counties’ leads by raising the mill, and that it would fund public projects that benefit students and the general public. According to The Sundance Times, the mill levy passed.
While this mill levy bill died on Feb. 13 after it failed to be introduced before a key deadline, a similar bill, also sponsored by Neiman, was introduced and referred to the House Revenue Committee on Feb. 10. That still-living bill is titled, HB - 127 Voter approval for recreation mill levy.
If it passes that committee, it’ll head back to the full House for further debate and amendments.
This reporting was made possible by a grant from the Corporation for Public Broadcasting, supporting state government coverage in the state. Wyoming Public Media and Jackson Hole Community Radio are partnering to cover state issues both on air and online.
