Gordon signs four property tax relief bills, vetoes one

CHEYENNE — Gov. Mark Gordon signed four bills Thursday that will reduce property taxes for those Wyoming residents who need it most, a news release from his office said.

The governor signed HB 3, “Property tax exemption for long-term homeowners;” HB 45, “Property tax exemption- residential structures and land;” and SF 89, “Veterans ad valorem exemption- amount.”

HB 3 provides an exemption of 50% of a property’s value for primary residence homeowners if the primary owner of the residence or their spouse is 65 or older and has paid property taxes in the state for 25 years or more. HB 45 puts a 4% cap on year-to-year property tax increases on residential structures and land, while SF 89 doubles the veterans tax exemption from $3,000 to $6,000 of assessed value.

“I am happy to sign this package of legislation, which provides targeted relief to taxpayers most impacted by increasing valuations, while ensuring our counties and schools are able to continue to provide the services our residents rely on,” Gordon said in the release, which was sent out after 7:30 p.m. “There was an identified need, and this legislature responded to that.”

Gordon exercised his line-item veto authority on HB 4, “Property tax refund program,” removing the highest income category from the program. In his letter explaining the line-item, the governor said the bill brings expanded and needed relief, but he expressed concern that the $20 million appropriated by the Legislature would be insufficient to fund the program if that highest income category was included.

“I want to thank the Legislature for answering the call and funding an expansion of this program, which helped more than 9,000 Wyoming families last year,” Gordon said in the release.

In his line-item veto letter, however, the governor said he couldn’t support extending the refund program to those earning up to 165% of county median income.

“This would have made Wyoming residents with incomes approaching $100,000 per year eligible for a tax refund,” he wrote. “In the county with the lowest median income, that would be about $90,000 per year. In the county with the highest median income, that would be in excess of $200,000 per year. I believe that exceeds the original intent of the program, which was to provide a hand up, not a handout.”

The governor vetoed a fifth property tax relief bill, SF 54, “Homeowner tax exemption,” expressing concern that the exemption wasn’t targeted and jeopardized the financial stability of the state and counties. He said it represented “a socialistic type of wealth transfer, mostly from the energy sector, to Wyoming homeowners.”

As passed, the bill would have given a 25% exemption on up to the first $2 million worth of fair market value of a single-family residential structure. It was due to sunset on July 1, 2026.

The backfill of lost tax revenue to local school districts, cities, towns, counties and special districts would likely cost the state more than $220 million for the biennium, Gordon wrote.

“The Bidenomic-type of ‘tax relief ’ in this bill is what I would expect from Washington, D.C. liberals, not conservative Wyoming legislators,” he added. “It is a temporary relief measure that could lead to budget shortfalls, and will ultimately be paid for by raising taxes on our children.”

Action on other bills

Also Thursday, Gordon issued a line item veto to HB 166, “Education savings accounts-1,” to address constitutional concerns over the use of state funds. The bill establishes an education savings account program that provides funding to parents for their children’s education expenses, ranging from pre-kindergarten through age 21. The governor’s line item veto preserves funding for those students whose household income is at or below 150% of the federal poverty level.

“While the intent to support education and parent choice is commendable, my analysis revealed practical and constitutional complications within the bill’s provisions,” Gordon wrote in his letter. Citing his desire to see the program ultimately succeed, the governor said he was prepared to press these issues as they relate to religious societies or institutions.

“By proceeding carefully, with a clear understanding of both the benefits and challenges associated with education savings accounts, we can work towards a system that enhances parental choice while maintaining the integrity and effectiveness of our public education system,” he wrote.

Gordon also vetoed SF 67, “Public employee retirement plan-contributions.” The governor said the bill’s effect would be to reduce the take-home pay of state employees at a time when inflation eats away at the purchasing power of all Wyoming families.

Gordon allowed the following bills to go into law without his signature:

• HB 92, “Protection of parental rights.”
• SF 6, “Nursing home administrators- temporary licenses.”

This story was published on March 22, 2024.