I read Upton Mayor Paul Trandahl’s recent guest column with great interest. As Mayor of the Town of Star Valley Ranch in Lincoln County, Wyoming, I too am decidedly interested in the outcome of property tax relief bills currently wending their way through the Wyoming Legislature.
I appreciate Mayor Trandahl’s concerns about the impact of revenue reduction on municipalities as an outcome of ongoing legislative efforts.
However, the point not made in his column is that the effect of these proposed property tax reductions is not equal across Wyoming’s 99 currently incorporated municipalities.
In Lincoln County, locally assessed residential valuations have increased 122% over the past 5 years (based on annual report data from the Wyoming Department of Revenue).
This increase has had a devastating impact on many in our local community especially for retirees on fixed incomes, as well as low-income and long-time residents who are buckling under the weight of a tax burden that has doubled and, in some cases, tripled since 2019.
Weston County, where Upton is located, has not seen the same explosion of real estate values as has occurred here in Lincoln County. That said, locally assessed residential valuations in Weston County are still up 44% over the same 5-year period.
Certainly, there are varying economic realities across the Cowboy State. And, compounding the predicament is the reality that Wyoming wages have not kept pace with out-of-control property taxes.
For many families who want to stay and raise their children in Lincoln County they simply can no longer afford to do so.
Per Wyoming Statute residential property tax is an ad valorem tax bucketed under “all other property” (ad valorem meaning “according to value”).
Statute further prescribes the level of residential property assessment at a rate of 9.5% on the fair market value. Thus, we are not taxed on the full 100% value of our property but rather we are taxed on 9.5% of the property's value.
The root of this dilemma is in this rate-based approach which leads to higher tax bills for residents as assessed property values increase. This rate-based approach is a serious problem in the runaway real estate market that has dominated some areas of the state in recent years.
One possible solution could be to slash the rate of assessment; however, the latter fails to take into account the impact on counties where market values have remained more stable. It is the same essential quagmire of trying to implement a one-size-fits-all property-tax relief solution (which goes to the heart of Mayor Trandahl’s concerns).
So, what is the answer here? It would seem there is no simple fix, however, I believe our legislature is on the right track (albeit a slow-paced one).
Currently, we have a variety of tax refund bills and programs (for those who qualify) and as of last year’s legislative session a 4% cap on year-to-year property tax increases.
A rewickered homeowner property tax exemption bill (SF0069) is also in the mix and with the passage of Constitutional Amendment A last fall, the legislature finally has the greenlight to separate residential property from other tax classes.
All of this helps, but we are a long way from winning this property tax relief war. My message to our legislators, despite the din you may hear from various quarters, please don’t quit the breach until this work is finished. Lincoln County residents are hurting and we need your help.
Ruzena Rok is the Mayor of Star Valley Ranch, Wyoming.
