Gov. Mark Gordon directed the State Board of Equalization not to file a lawsuit challenging a tax cap on residential property, he announced Thursday.
“It is clear to me that the mere filing of such a suit at this time will only be more confusing to taxpayers and cause concern with the county assessor’s process,” Gordon said in a statement. “Assessors already have a complicated enough task with the array of tax exemptions passed each year.”
WyoFile reported Wednesday that the board was preparing to file a lawsuit against the Department of Revenue in which it would argue the law was unconstitutional.
WyoFile obtained documents on Thursday indicating how close the board was to filing a suit, including a 21-page legal complaint and a drafted press release dated Jan. 20. The documents also indicated that attorneys Catherine Young and Amanda Esch of Davis and Cannon had been hired to represent the board.
“Because of its constitutional and statutory duties, the State Board was compelled to act,” the draft press release states in part. “It filed this action to ensure that property taxation is administered in a uniform, equal, and lawful manner for all taxpayers across the state.”
With near-unanimous support in both the House and Senate, lawmakers passed the measure in 2024 as part of a slate of bills intended to provide tax relief to homeowners. Structured as an exemption, the law caps annual residential property tax increases at 4%, even if the real estate’s value grows at a higher rate.
“I and many others remain confident that the 4% cap passed by the legislature and signed by me in 2024 is constitutional,” Gordon wrote. “I believe this is the right decision for the people of Wyoming.”
In 2024, Wyoming voters approved a constitutional amendment to separate residential property into its own tax class. Gordon encouraged lawmakers to “craft legislation” around the amendment.
He also encouraged eligible homeowners to apply for “all property tax exemptions,” including a 25% exemption, which has an application window closing March 1.
The State Board of Equalization is in the Wyoming Constitution, which tasks the three-person body with the responsibility “to equalize the valuation on all property in several counties and such other duties as may be prescribed by law.”
Most of the board’s time is devoted to resolving disputes between taxpayers and the Department of Revenue, and reviewing appeals from decisions of county boards of equalization that adjudicate disputes between taxpayers and their county assessors, according to its website. Members of the board are appointed by the governor and confirmed by the Senate.
Board Vice-Chairman Marty Hardsocg told WyoFile Thursday that the problem that prompted a drafted complaint remains and needs to be resolved.
The drafted complaint sheds light on the difficulty the tax cap has placed on the board when it comes to ensuring uniformity.
“These tax caps unfairly (and non-uniformly) shift the tax burden from owners of property whose values are rapidly increasing to other taxpayers not experiencing large value increases,” the complaint alleges.
“Said differently, owners of residential real property who are experiencing slow or no property value growth — or, indeed, even those experiencing valuation decreases — are penalized with a disproportionate tax burden, while other owners of rapidly appreciating residential real property pay a lower amount of tax per dollar of actual value.”
This is a breaking news story and may be updated.
To clarify for Tax Year 2026, the 4% cap is applied within the appraisal software your local county Assessor is using to value your property for tax purposes. No application needed. However, the 50% Long Term Homeowner’s exemption does require an application and you should reach out to your local Assessor to confirm they have your application. If you have not applied they can help you through the application process. Deadline to apply is the 4th Monday in May.
The 25% Home Owner exemption has an online application that can be found here: https://ptd.wyo.gov/OWNEROCC/pages/home
The deadline for this application is March 1st. Please reach out to your local Assessor for any questions on the available exemptions.
Subsidizing nuclear energy and gill bates and the data centers and other corporations is Gordon’s top priorities. A central banker knows nothing else.
Thanks Maggie and WyoFile for covering this important story. The Governor’s decision is regrettable, but in keeping with his lack of willingness to defend our long standing tax system. The issues of the unconstitutionality of these changes to the fundamental aspects of our property taxes won’t go away. The problems that the Governor and the Legislature have created will just be magnified by the passage of time. WyoFile has done the State a great service by bringing this dispute to light.
If I’m understanding things correctly it sounds like it’s a problem because you have to apply for the 4% cap instead of it being an automatic for everyone. Which yeah sounds kind of bad because it wasn’t really explained well to everyone that if you want this cap you need to apply for it. I’m willing to bet that a lot of people, especially elderly, don’t understand that and have not applied for the exemption. So only those that knew that are getting the break. I know that I didn’t know I needed to apply for the exemption, I thought it was an automatic thing. So yeah, I can see the problem.
To say…. our instance as residential property owners is we were clearly notified via the County Assessor’s office of needing to apply for the exemption.