Threats and dire predictions are coming fast and furious these days, with just two weeks left before we vote on Prop 1, the property tax reduction referendum.
I expect to hear any day now that there will be a plague of locusts if voters pass Prop 1. Frogs will drop out of the sky. Dogs will start walking around on their hind legs.
Or it will rain for 40 days and 40 nights if we cut property tax revenues going to local governments by an average of 4%. In two years.
Not about to wait around for the actual vote on Prop 1, a rural fire authority here in Laramie County announced Friday that it has canceled its “Trunk-Or-Treat” Halloween event, “largely resulting from reductions in property tax revenue.” But, once again, that would be POTENTIAL property tax reductions of 4 percent, in 2028, if Prop 1 passes.
“But Dave,” you may be crying out, “it's a 50% cut in property taxes, not 4%! How could our local entities survive such DRACONIAN cuts?”
And therein lies the misnomer that is being foisted on Wyoming voters – the suggestion that far more of the money local governments get would be cut in half. Opponents of Prop 1 are spending $1 million on misleading ads which have, in the words of Big Daddy in “Cat On A Hot Tin Roof, “the powerful and obnoxious odor of mendacity.”
Don't believe 'em, folks.
According to B. Alfred Marshall, who writes “Wyoming By The Numbers,” only about 8% of the tax revenue going to local governments and entities would be affected by passage of Prop 1, which is focused only on the primary residence, not including the land. And since Prop 1 would cut property taxes on primary residences by 50%, what we're really talking about is half that, 4%.
In other words: Not much.
Those numbers are based on the state average, but vary according to the county. Teton County gets around 14 percent from primary residences, because of the fancy homes and high assessments up there. But again, the cut would be half of that, or 7%. Again, not much. (Bear in mind that many of us have seen our property taxes double since about 2019.)
The state Consensus Revenue Estimating Group has estimated that if passed, Prop 1 would cut a mere 1.8% of total state revenues, per year.
But to listen to the ads against Prop 1, the other 92 percent of money coming in to local governments would also be cut by 50%. Not true.
If you're concerned about trick or treaters being deprived of candy at the now-canceled “Trunk Or Treat” event, you might want to consider some more stats from B. Alfred Marshall.
Revenues to Wyoming counties, according to “Wyoming By The Numbers,” are up 52% in the last seven years. Cash reserves are up 49% during those seven years. And we have a $13.8 billion surplus built up over those seven years.
Here in Laramie County we currently have $147 million in fund balances, including a recent single-year windfall of $37 million. Our county paid $5 million for a nine-story office building in downtown Cheyenne recently, so it's hard to imagine that some Snickers bars and candy corn for trick or treaters would crater the budget.
(Rep. Ann Lucas, on the other hand, welcomes cancellation of the Halloween event here, saying, “Every Tootsie Roll they buy is from YOUR money.”)
You'll recall that we've also been told that voter approval of Prop 1 could strap the state – which has total reserves exceeding $40 billion – to such an extent that a state income tax would be necessary. Now there's a genuine whopper for you.
And just this past week it was suggested that since Teton County residents would get much of the tax savings from Prop 1 – having paid stunningly high property taxes in recent years – voters elsewhere should vote against the referendum.
Of course the people who paid most dearly should be in line for their share of the relief. Spare us the class envy.
Don't buy the bull, folks. Government just wants all the money it can get. This is a rare, grass roots, citizen-petition-inspired opportunity for the people to get some much-needed relief. No wonder the powers that be – who let property taxes get so out of control in recent years - oppose it.
Let's vote “Yes.”
And dogs won't start walking around on their hind legs if we pass Prop 1.
I promise.
Dave Simpson can be contacted at DaveSimpson145@hotmail.com
