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+++ version:(document, no version)
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-2026 STATE OF WYOMING 26LSO-0402
+Property tax exemptions-effect of people's
+initiative.
+26LSO-0402, 1.0
 
- 1 HB0147
+   HB0147
+FISCAL NOTE
 
-HOUSE BILL NO. HB0147
+ FY 2027 FY 2028 FY 2029
+NON-ADMINISTRATIVE IMPACT
+Anticipated Revenue (decrease)
+SCHOOL FOUNDATION FUND $0  ($29,400,000) ($30,000,000)
+Ad Valorem (Local Entity Share) $0  ($13,600,000) ($13,900,000)
 
-Property tax exemptions-effect of people's initiative.
+This legislation would repeal the 25% Homeowner’s Property Tax Exemption if the
+People’s Initiative on property tax passes the November 2026 General Election.
+The People’s Initiative would exempt 50% of the assessed value of a property on
+the dwelling only. Generally speaking, the 25% Homeowner’s Property Tax Exemption
+is a 25% reduction of the fair market value of a single-family residential
+structure and the associated improved land.
 
-Sponsored by: Representative(s) Locke, Allemand, Campbell,
-K, Erickson and Haroldson
+The repeal of the 25% Homeowner’s Property Tax Exemption would be an increase in
+residential property tax revenue. However, it is only repealed if the People’s
+Initiative with the 50% residential property tax exemption on the dwelling is
+passed by the voters. The overall result of the property tax revenue addition
+from the repeal of the 25% Homeowner’s Property Tax Exemption and the property
+tax revenue reduction from the 50% People’s Initiative on property tax is an
+overall reduction in residential property taxes paid. The reduction is estimated
+at $43 million for FY2028 and an estimated $43.9 million for FY29.
 
-A BILL
+The estimated decreases in property tax revenues to the School Foundation Program
+(SFP) and to other local taxing entities are provided in the above table.
 
-for
+The SFP will experience an estimated revenue decrease from the 43 mills
+supporting K-12 public education, which include the statewide 12 mill levy, the
+school district 25 mill levy, and the countywide 6 mill levy. For purposes of
+this analysis, the decrease in property tax revenues to the SFP is shown as an
+absolute revenue decrease in lieu of estimating the school district recapture
+revenue decrease and school district entitlement expenditure increase separately.
 
-1 AN ACT relating to property taxation; repealing the
-2 homeowner tax exemption if the people's initiative to limit
-3 property tax in Wyoming through a homeowner's property
-4 exemption is enacted into law; specifying applicability;
-5 and providing for an effective date.
-6
-7 Be It Enacted by the Legislature of the State of Wyoming:
-8
-9 Section 1.  W.S. 39-11-105(a)(xlvi) by creating a new
-10 subparagraph (D) is amended to read:
-11
-12 39-11-105.  Exemptions.
-13
-14 (a)  The following property is exempt from property
-15 taxation:
-2026 STATE OF WYOMING 26LSO-0402
+The Ad Valorem (Local Entity Share) consists of the county, municipal, and
+special district mill levies. In FY 2025, the county levy accounted for 17.2
+percent of total property tax collections, the municipal levy accounted for 2.0
+percent, and special district levies collectively accounted for 8.5 percent.
+Total property taxes for education, discussed above, accounted for 72.2% in FY25.
 
- 2 HB0147
+Special districts vary widely in both purpose and structure, resulting in
+differing levels of reliance on property tax mill levy revenue. For example,
+hospital districts and airports are funded primarily through service charges,
+while senior citizen centers and cemetery districts rely more heavily on property
+tax revenues.
 
-1
-2 (xlvi)  A portion of a single family residential
-3 structure and the associated improved land as a homeowner
-4 tax exemption as provided in this paragraph. The following
-5 shall apply to this exemption:
-6
-7 (D)  This paragraph is repealed on the date
-8 the secretary of state certifies to the department of
-9 revenue that the voters have approved an initiative
-10 implementing a homeowner's property tax exemption and the
-11 exemption is enacted into law.
-12
-13 Section 2.  If the secretary of state certifies that
-14 the voters have approved an initiative implementing a
-15 homeowner's property tax exemption and that exemption is
-16 effective for the tax year beginning January 1, 2027, the
-17 exemption under W.S. 39-11-105(a)(xlvi) shall not apply for
-18 the tax year beginning January 1, 2027.
-19
-20 Section 3.  This act is effective July 1, 2026.
-21
-22 (END)
+Assumptions:
+
+Based on the information above, this bill would decrease total property taxes by
+approximately $43 million in tax year 2027 (FY 2028) and approximately $43.9
+million in tax year 2028 (FY 2029). Of the estimated total impact, the decreased
+Property tax exemptions-effect of people's
+initiative.
+26LSO-0402, 1.0
+
+   HB0147
+revenue from the 43 mills supporting the SFP is approximately $29.4 million in
+tax year 2027 (FY 2028) and approximately $30 million in tax year 2028 (FY 2029).
+
+The property tax estimate provided above was prepared using current law and 2025
+tax year data from the CAMA system. The estimate started with the adjusted
+valuation from all exemptions and the 25% Homeowner’s Property Tax Exemption was
+re-applied to the calculation. Then, the impact of the People’s Initiative on
+residential property tax revenues was estimated by reducing the new dwelling
+assessed valuations by 50 percent. The estimate was also adjusted by the
+projected two percent non-mineral property assessed value growth from the October
+2025 Consensus Revenue Estimating Group (CREG) forecast. The estimates used the
+average mill levy by county as opposed to using the statewide average mill levy.
+
+This bill may require the Legislature to appropriate additional funds from the
+SFP for increased entitlement payments to ensure sufficient funding is available
+to offset the reduction in revenue generated by the school district 25 mill levy
+and countywide 6 mill levy.
+
+Prepared by:   Matt Sackett, LSO  Phone: 777-7881
+(Information provided by Ken Guille, Department of Revenue, 777-5235)