HB 118

 2026  26LSO-0282
                         STATE OF WYOMING
                         HOUSE BILL NO. HB0118
 Residential property tax replacement.
 Sponsored by: Joint Revenue Interim Committee
                                 A BILL
                                     for
1 AN ACT relating to taxation and revenue; providing for the
2 valuation of residential property; providing a sales and
3 use tax to provide funding to local governments due to the
4 decrease    in   revenue     from   the   valuation   of     residential
5 property; providing an exemption to the additional sales
6 and use tax as specified; creating an account; providing
7 for    distribution     of    the    sales   and    use     tax;   making
8 conforming amendments; making the act contingent on passage
9 of a constitutional amendment; and providing for effective
10 dates.
11
12 Be It Enacted by the Legislature of the State of Wyoming:
13
14Section 1.   W.S. 39-11-101(a)(xvii) by creating a new
15 subparagraph (C), by renumbering (C) as (D) and by creating
16 a     new   paragraph      (xix),    39-13-103(b)(iii)(intro),  by
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1 creating a new subparagraph (C) and by renumbering (C) as
2 (D),     39-15-104  by     creating       a     new    subsection      (j),
3 39-15-111(b)(intro) and by creating a new subsection (s),
4 39-16-104        by     creating  a     new      subsection       (g)     and
5 39-16-111(b)(intro) are amended to read:
6
739-11-101.       Definitions.
8
9(a)   As used in this act unless otherwise specifically
10 provided:
11
12(xvii)  "Taxable     value"       means   a percent of the
13 fair    market    value      of     property     in    a particular      class    as
14 follows:
15
16(C)    Residential real property, zero percent
17 (0%);
18
19(C)(D)       All       other      property,     real       and
20 personal, including property valued and assessed under W.S.
21 39-13-102(m)(vi)  and     (ix),     nine     and    one-half    percent
22 (9.5%).
23
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1(xix)    "Residential        real   property"  means   real
2 property improved by a dwelling designed to house not more
3 than three (3) families and includes associated residential
4 land where the dwelling is located if the land is owned by
5 the owner of the dwelling. The dwelling may be any type of
6 residence including a single family home or an individual
7 condominium    unit     if   the    dwelling     is   used     as    a   primary
8 residence.
9
1039-13-103.     Imposition.
11
12(b)   Basis of tax.      The following shall apply:
13
14(iii)    Beginning January 1, 1989, "Taxable value"
15 means a percent of the fair market value of property in a
16 particular class as follows:
17
18(C)    Residential real property, zero percent
19 (0%);
20
21(C)(D)      All       other    property,  real    and
22 personal, nine and one-half percent (9.5%).
23
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139-15-104.       Taxation rate.
2
3(j)    In addition to the sales tax under subsections
4 (a) and (b) of this section, beginning April 1, 2027 there
5 is   imposed      an additional        sales       tax    as   provided    in this
6 subsection.       The   additional  sales    tax    imposed     under      this
7 subsection        shall     not    apply       to        sales   to    industrial
8 facilities as defined by W.S. 35-12-102(a)(vii) that are
9 subject      to   permitting      by   the     industrial        siting     council
10 under W.S. 35-12-101 through 35-12-119 during the period of
11 permitting and construction of the industrial facility. The
12 revenue      from    the    tax    under      this       subsection       shall    be
13 distributed as provided in W.S. 39-15-111(s). The rate of
14 the sales tax under this subsection shall be two percent
15 (2%), which shall be administered as if the sales tax rate
16 under subsections (a) and (b) of this section was increased
17 from four percent (4%) to six percent (6%).
18
1939-15-111.       Distribution.
20
21(b)    Revenues earned under W.S. 39-15-104 during each
22 fiscal    year      shall   be    recognized        as    revenue     during      that
23 fiscal year for accounting purposes. Except as otherwise
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1 provided     in     subsection  subsections  (p)    and       (s)    of    this
2 section, for all revenue collected by the department under
3 W.S. 39-15-104 the department shall:
4
5(s)    An amount equal to the tax revenue collected that
6 is   attributable  to    the    tax       under    W.S.        39-15-104(j)  and
7 39-16-104(g)        shall       be    transferred  by        the    department        of
8 revenue      to    the    property  tax       reduction  and    replacement
9 account,     which       is    hereby       created.  All    funds      within      the
10 account      shall       be    invested  by     the    state        treasurer        as
11 provided      by    law       and    all        investment  earnings  from   the
12 account shall be credited to the account. Funds available
13 in the account shall be distributed as follows:
14
15(i)    Not       later    than       September  1    of    each       year,
16 each county assessor shall certify to the department the
17 amount of tax reduction in the county due to the valuation
18 of        residential  real  property  under  W.S.
19 39-11-101(a)(xvii)(C). The amount of tax reduction shall be
20 calculated as follows:
21
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1(A)   The   county       assessor      shall   assess     all
2 residential real property using a taxable value of nine and
3 one-half percent (9.5%);
4
5(B)   The    county       assessor     shall    apply    any
6 exemptions     applicable      to    the    residential      real     property
7 under W.S. 39-11-105(a)(xliii), (xliv), (xlv) and (xlvi) to
8 determine the reduced taxable value of the residential real
9 property;
10
11(C)   The number of mills applicable to the
12 residential real property shall be applied to the reduced
13 taxable values determined under subparagraph (B) of this
14 paragraph    to    determine    the       total   tax    reductions    in    the
15 county. The county assessor shall report the tax reduction
16 determined under this subparagraph to the county treasurer.
17 Beginning January 1, 2028, the amount calculated under this
18 subparagraph shall not include any amount for mills that
19 are assessed for the repayment of bonds.
20
21(ii)     The tax reductions reported under paragraph
22 (i) of this subsection shall be used by the department of
23 revenue   to      distribute    an       amount   determined      under     this
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1 paragraph       to    each        county,       to    be    distributed       by    county
2 treasurers       in  the     same        manner        property       taxes      are
3 distributed      as     provided        in      W.S.       39-13-111(a)(i).        If   the
4 amount   available  to    distribute  under   this     subsection       is
5 insufficient  to      fully  reimburse  each       county       and
6 governmental  entity        in   the  county    for     tax   reductions
7 reported under paragraph (i) of this subsection, the amount
8 provided    to       each    county     shall  be    proportionally  reduced
9 based on the total tax reductions reported and the amount
10 of revenue available. The amount calculated for each county
11 shall be determined and distributed not later than February
12 15 of each year based on the amount of revenue that the
13 county and each governmental entity within the county lost
14 in the immediately preceding year;
15
16(iii)       Any  amount  remaining  after        the
17 distributions in paragraph (ii) of this subsection shall
18 remain     in    the       property        tax        reduction      and     replacement
19 account. The legislature shall annually review the amounts
20 in the account and shall consider using any funds in the
21 account for direct distributions to local governments.
22
2339-16-104.       Taxation rate.
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1
2(g)    In addition to the use tax under subsections (a)
3 and (b) of this section, beginning April 1, 2027 there is
4 imposed      an     additional       use      tax     as    provided        in   this
5 subsection.       The     additional        use     tax    imposed     under     this
6 subsection        shall     not    apply    to      purchases    by    industrial
7 facilities as defined by W.S. 35-12-102(a)(vii) that are
8 subject      to   permitting       by   the       industrial    siting       council
9 under W.S. 35-12-101 through 35-12-119 during the period of
10 permitting and construction of the industrial facility. The
11 revenue      from    the     tax    under      this       subsection    shall     be
12 distributed as provided in W.S. 39-15-111(s). The rate of
13 the    use tax under this subsection shall be  two    percent
14 (2%), which shall be administered as if the use tax rate
15 under subsections (a) and (b) of this section was increased
16 from four percent (4%) to six percent (6%).
17
1839-16-111.  Distribution.
19
20(b)    Revenues      earned under this  article    during each
21 fiscal    year      shall    be    recognized       as     revenue    during     that
22 fiscal year for accounting purposes.  Except as provided in
23 W.S. 39-15-111(s) for revenue attributable to the tax under
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1 W.S. 39-16-104(g), revenue collected by the department from
2 the taxes imposed by this article shall be transferred to
3 the     state     treasurer       who       shall,    as     specified     by   the
4 department:
5
6Section     2.     This    act    shall       be    effective   only     upon
7 certification by the secretary of state that the electors
8 have adopted the amendment to the Wyoming Constitution at
9 the 2026 general election as provided in 2026 Senate Joint
10 Resolution 0003.
11
12Section 3.
13
14(a)   Except as otherwise provided in subsection (b) of
15 this     section,        this    act    is    effective  immediately     upon
16 completion of all acts necessary for a bill to become law
17 as     provided     by     Article      4,    Section       8   of   the   Wyoming
18 Constitution.
19
20(b)   Subject to section 2 of this act, section 1 of
21 this act is effective January 1, 2027.
22
23(END)
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