At the bottom of your 2024 Wyoming General Election ballot, you’ll find “Constitutional Amendment A,” a proposition involving property taxes. The terse description of the item will read, “The adoption of this amendment would separate residential real property into its own class of property for purposes of property tax assessments. The amendment would authorize the legislature to create a subclass of owner occupied primary residences.”
Opinion
OK. Clear as mud. What does this amendment do, and what are its implications? Should you vote for it?
To understand the amendment, you must first understand the way things are now. Currently, property that’s subject to taxation in Wyoming is divided into three classes: mine and mineral products that are extracted from the ground, property used for industrial purposes, and all other real and personal property. Therefore, your house, a ranch, a farm, and an apartment building are all taxed at the same percentage of their value.
During the 2024 legislative session, lawmakers wanted to give a special tax break to owners of single-family homes. But Gov. Mark Gordon vetoed the bill, stating that the tax break was unfair, was not means-tested and violated the Wyoming Constitution because it taxed properties in the same class differently.
Amendment A would modify the Constitution in two ways. Firstly, it would allow a separate rate of taxation to be created for residential properties of all kinds — single family, multi-family, ranch houses, etc. Secondly, it would allow the Legislature to single out a “subclass” of this class of property — owner-occupied primary residences — for special tax breaks.
Unfortunately, this amendment could raise many thorny questions and potentially lead to highly discriminatory taxation. For example, suppose you have a home-based business. Is your property still considered “residential?” If the Legislature passes a special exemption for owner-occupied homes, do you lose it if you rent your basement out to a student? To a family member? What if you have an ADU (accessory dwelling unit) on the property? What if you live in your house for only part of the year and rent it out at other times? Is a ranch house located on an agricultural property eligible? Is it fair or wise to deny the benefits of a property tax break to tenants of apartment buildings and rental houses — our young people and our valuable, scarce workforce — causing their rents to be higher than they would be otherwise? Should we place an extra tax burden on Wyoming businesses, hindering greatly needed economic development?
For all of these reasons, it is best not to enable the Legislature to discriminate in favor of a select group of taxpayers — ones who are actually likely to be better off than the rest — and against others. A vote against Amendment A is a signal to the Legislature that if it reduces property taxes, it should do so across the board — not just for a privileged few — and not introduce unnecessary complexity into our simple, fair system of property taxation.
Everyone is entitled to their own opinion, I just hope voters will see this amendment for what it is. Simply a separation of real property from commercial (by definition property that is income producing) and residential (property that is used for living purposes).
People can put any spin they want on it, but bottom line you got to start somewhere, and this is a logical separation point. Yes, more work to follow.
All negative, nothing positive. Property taxes for primary residences should not even exist! For any real estate for that matter. After 30+ years of selling real estate, it never ceases to amaze me most peoples’ lack of understanding of taxation of real estate! First off, real estate, like other assets, 401K’s and IRA’s are “Capital Assets”. Will you pay capital gains tax on selling a certain asset? Yes? Then it’s a capital asset. But, unlike stock portfolios, 401K’s and IRA’s, you pay additional taxes on real estate the entire time you own that asset. But, alas, don’t fret that because certain people have proposed taxing “Unrealized Capital Gains”, like the substantial increases in the values of your crypto, 401K and IRA assets as well as your real estate holdings! So, you see how I have convinced you that property taxes are illegal taxes on unrealized capital gains? That have increased 75%-120% in the last 5 years alone! Does the government really expect us to believe that they “need” that huge of an increase in their budgets to function? They are completely incapable of self-restraint. So, we must restrain them ourselves. This amendment is step one. At some point, ALL property taxes will be eliminated, to be replaced by a modest sales tax increase, 1%-1.5%. This will require streamlined and efficient reallocation of the school budgets first. 70% of my property tax goes to schools! 70%! That’s egregious and an onerous burden on all property owners! With the new sales tax funding the schools, many more people will be scrutinizing the tax that they pay! Without the burden of property taxes, you will one day truly own your property “Free and Clear”, FOREVER. Is this amendment perfect? Of course not, nothing man made is perfect. Our elected representatives are truly “Thinking Outside The Box” to come up with a new perspective on funding government and schools, instead of continually increasing the burden on property owners. Stuff rolls downhill, and so does property tax increases in the form of increased rents for renters, who may be least able to pay higher rents! Please consider voting “FOR” the Amendment “A”. Thanks, signed a Wyoming property owner
Not enough pelicans to kill?
This is a good explanation and a thoughtful conclusion. I have not voted yet, and will also be listening to the Equality State Policy Center’s Tax Facts webinar next Tuesday, October 29. After that, I will make a decision and vote.
Give it a break will you? Most other US states define single family residences in their tax codes and they don’t niggle over whether or not you have a home business, border or ADU. Don’t tell me how to vote.
Bills brought by legislators in the most recent session DID disqualify properties with “mother-in-law” apartments and ADUs, as well as mixed-use buildings. One also increased sales taxes, shifting tax burdens even more toward lower income strata. And not a single one gave a break to renters or small Wyoming businesses.
We all have the right to advise one another as to how to vote. That’s what the First Amendment is about. Want to read an opposing viewpoint? See Mike Yin’s op-ed, also on this site.
Why does everything have to be so complicated. It very simple for legislative committee to put forth a bill to drop the property taxes. Of course all that means all state/local budgets need to stay in line. Or be frozen as only so much money available. Suck up belts and trim. That has to be done in tough times. But all these Green energy projects should make up for taxes lost from coal/gas/oil they are replacing.
Great article, I own a business in my home, My only home and primary residence. How will I be taxed?