TORRINGTON – Among the ballot measures in this year’s general election, Wyoming voters will find a proposed constitutional amendment that would separate residential property from the current property tax classifications.

 Supporters argue that, if the amendment passes, legislators could lower the tax rate for residential properties without affecting rates for other property types. Opponents, however, warn this could just as easily lead to tax hikes on residential homes, and they argue that more effective avenues exist for delivering tax relief to homeowners.

The proposed measure states, “The adoption of this amendment would separate residential real property into its own class of property for purposes of property tax assessments. The amendment would authorize the legislature to create a subclass of owner occupied primary residences.” 

Currently, Wyoming has three classifications of property for tax purposes: minerals and mining, industrial, and “all other property.” 

The amendment would separate residential real property from “all other property.” 

The tax rate set by the legislature is currently 11.5% for industrial property and 9.5% for other properties. That rate is multiplied by the property’s market value, as determined by the County Assessor, and the mill levy to determine annual tax amounts. 

Property taxes have increased significantly over the past few years due to increases in market value. The state legislature in 2023 passed a series of measures that provided tax relief to certain classes of residents, including seniors and veterans. 

They also passed a measure that would exempt property tax increases over 4% year over year. While these measures significantly reduced the tax burdens on some, other residents did not feel any effect. Additionally, the tax exemptions are temporary and would require the legislature to vote on extensions. 

According to Goshen County Assessor Debbi Surratt, there are also questions regarding whether the exemptions are even allowable under the state constitution.

The proposed amendment seeks to overhaul the current patchwork of exemptions and establish a systematic approach to property taxation. If passed, legislators could set a lower tax rate for residential real property than for industrial properties or non-residential real property. 

Still, many voters are wary; the amendment could allow for increases in residential property taxes while maintaining the status quo for other types of properties. 

Some, including Surratt, are concerned about lack of certainty in the provision for a subclassification for owner-occupied properties. 

The proposed amendment and corresponding legislation fail to clarify how the subclassification would be defined, identified, or treated differently than other types of property. 

For instance, there is no requirement for disclosure of owner-occupied status or of rental occupancy which would allow for abuses in the system. There is also no clarity on what legislation would be proposed for rentals or for out-of-state owners.

To pass, the amendment would need a “yes” vote from a simple majority of voters. If voters reject the amendment, the legislature could still provide tax relief by reducing the property tax rate. It could also pass legislation making the calculation of assessed value less contingent on market value and more on a less volatile valuation. With an unpredictable and increasingly unattainable housing market, homeowners need stability and predictability in property taxes to make choices that work for them in the long run. 

The proposed constitutional amendment only provides for possible future legislative action and offers little concrete relief to current or future homeowners.