Wyoming property tax cuts could have unintended consequences

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(Wyoming News Service)
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Wyoming voters will decide whether people who own their homes should see their property taxes cut in half, a move projected to reduce state revenues by as much as $125 million per year.

Proponents of Proposition 1 on the November ballot said it is a necessary reset after real estate prices and tax burdens skyrocketed when the pandemic created a spike in demand for homes in rural areas.

Kim Amen, president of the Wyoming Education Association, which opposes the measure, said the state’s constitution requires lawmakers to fully fund public education but other services could be at risk.

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“Because the state has to fund public schools, a whole bunch of other services could be cut. Like road repairs, and fire and 911 services and libraries, and snow removal and weed and pest control, and things like that. Because none of those services are free.” Amen pointed out.

Some 70% of Wyoming’s property taxes pay for public education but a recent Supreme Court decision found the state was still behind in funding schools. Amen argued the situation will only get worse under Proposition 1.

The citizen-led ballot campaign collected more than 30,000 signatures, according to a Wyofile report, marking the first time a grassroots effort made a statewide ballot in three decades. It is backed by Wyoming’s Republican Party, which argued residents deserve meaningful and lasting property tax relief.

Homeowners who reside in the state at least six months per year could get the 50% tax cut regardless of age or income. Amen noted lawmakers have already helped the state’s most vulnerable residents without cutting essential services.

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“We already provide targeted property tax exemptions for seniors, for veterans and long-term homeowners. A 50% cut for everyone does little more for those people that we've already said are struggling and instead benefits a lot of the wealthiest homeowners.” Amen contended.

Wyoming has one of the lowest tax burdens in the nation and Amen said many born and raised here love the state because they do not have to pay a lot for essential services. She stressed if her neighbor’s house is on fire, she wants a fire department able to respond.

“Nobody really wants to pay a bunch of taxes but if we want services, we have to pay for them one way or another. If we don't pay for them in property taxes, they have to be paid for in another way or else we just won't have them.” Amen emphasized.