Legislation that would alter different elements of the state’s property tax system is winding its way through the hallways and committee rooms of the Capitol building in Cheyenne.
One bill sponsored by House Speaker Rep. Chip Neiman (R-Hulett), HB 127 - Voter approval for recreation mill levy, would require an election when a local government wants to institute a new recreational mill levy.
Mill levies are a tax rate that local governments use to raise money for public services. 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, sometimes, recreational facilities like pools.
“The issue that I'm trying to address here is the fact that these [recreational] mills are not allowed to be voted on by the people that are going to be paying the bill, the constituents,” Neiman told the House Revenue Committee on Feb. 17. “These mills can be brought and voted on by a school board.”
That was the case in his House district, Neiman said. The local school board in Crook County voted to create one new mill levy that will be used for “uniforms, sports equipment, facility upgrades and additional recreation space” for students, according to a report in The Sundance Times.
“These mills are consistent,” he said. “They're ongoing. So they don't have a sunset. They never have to have the opportunity to go back before the voters … to see if they're doing what they're supposed to be doing. And my position is that I would love to be able to have the voters in these situations have the ability to be able to opine on this decision, and see if that's something that they support as taxpayers.”
Under his bill, once a community votes to create a recreational mill levy, that mill would be reassessed by voters every four years until they vote the mill down.
Wyoming lawmakers have been cutting residential property taxes in recent legislative sessions. That’s drained the budgets of local governments, which rely on residential property tax revenue for services like roads, schools and trash collection. Residential property taxes do not go to the state, they stay local.
Former state Sen. Jeff Wasserburger spoke to the committee after Neiman. He argued the bill erodes local control for school districts that need every penny they can get, especially those in poorer counties.
“I worry about where we're headed in allowing our local school districts to have local control,” said Wasserburger. “And Mr. Chairman, my particular district – as you all know, you've looked at assessed valuations across the state, all the differences that we have, the disparities from say Niobrara County, where I grew up, that had no money. [That’s] in comparison to, say, Campbell County.”
Mark Christensen, a Campbell County School District board member, told lawmakers he opposed the bill, too. In his county, recreational mill levies go toward both construction and after-school programs for kids, he said.
“Where I'm going with this is there's also a number of needs in the school construction, for example, that aren't covered [by the state],” said Christensen. “So with the new CCHS [Campbell County High School] construction, what you find is the state will pay for a football field, but the state will not pay for a concession or the grand stands that support that field. And what districts end up doing is we end up making up the gap for those monies through the rec mill.”
Others who spoke at the meeting said school boards’ ability to create mill levies without voter input equates to “taxation without representation.”
Some recreational facilities funded by school board mill levies are speaking out against the bill, including the Pinedale Aquatic Center in Sublette County. It’s funded by a recreational mill from Sublette County School District No. 1. If the bill passes, the aquatic center predicted a range of services could be in jeopardy.
“Funding for operations would only be secured four years at a time,” a social media post by the center states. “This uncertainty could impact operating, programming, and maintenance decisions. Major maintenance or repairs (like the recent leisure pool leak repair) could potentially be postponed or not completed in fear of those dollars being needed for basic operations in future years.”
Neiman’s bill, HB 127, crossed over from the House to the Senate on Feb. 23, which referred it to that chamber’s revenue committee for debate and possible amendments. If it passes the full Senate with no amendments, it will head to Gov. Mark Gordon’s desk.
Other property tax bills move
HB 107 - Local government distributions - House to Senate
This 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.
As amended by the Senate, the bill would add an additional 8% 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 Sheridan, it stays in Sheridan.
The bill moved from the House to the Senate, where it passed second reading on Feb. 25. The Senate Appropriations Committee successfully passed the amendment to the bill that raised the additional percent localities get from 7% in its House version, to 8%. The bill could be amended once more during third reading. The House and Senate might need to find an agreement about whether to add 7% or 8%.
SF 39 - Long-term homeowner tax exemption-sunset repeal - Senate to House
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 the House Revenue Committee by a unanimous vote on Feb. 24. It will now be considered by the full House.
HB 45 - Long-term homeowner tax exemption-revisions - House to Senate
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 legislation passed the Senate Revenue Committee by a unanimous vote on Feb. 23. It will now be considered by the full Senate.
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.
