Key facts
- Wyoming's State Board of Equalization cannot certify residential property and improvement values due to a 4% tax cap.
- This non-certification could prevent local governments from collecting 2026 property taxes.
- The 4% cap, enacted in 2024, has created 'inversions' where higher market value properties have lower taxable values.
- The Wyoming Constitution requires taxation to be 'equal and uniform'.
- The board warned lawmakers and the governor's office about the cap's constitutional implications.
- Governor Mark Gordon directed the board not to challenge the cap legally.
Wyoming's local governments face uncertainty over collecting property taxes for 2026 due to a recently enacted 4% cap on residential property tax increases. The State Board of Equalization has concluded that the cap creates unconstitutional disparities in assessed property values, preventing them from certifying these values. This inability to certify could halt property tax collection for local governments, which rely on this revenue for essential public services like education, roads, and law enforcement.
The board's report highlights thousands of 'inversions' in each county, where properties with higher market values are assessed at lower taxable values, leading to arbitrary tax burdens. The board's vice chairman, Martin Hardsocg, described the situation as unprecedented.
Local assessors, like Dixie Huxtable of Converse County, are in a difficult position, caught between their oath to follow state law, including the 4% cap, and their duty to honor the State Board of Equalization's orders regarding property tax valuation. The potential consequences for local services remain unclear.
Lawmakers and Governor Mark Gordon's office were reportedly warned about the cap's potential constitutional issues. The board had previously testified about the unconstitutional shift the cap would cause and met with the governor's staff to express concerns. Despite the board preparing a legal challenge, Governor Gordon directed them not to file a lawsuit. His office stated they are reviewing the board's decision.
The 4% cap was part of a legislative effort in 2024 to provide immediate tax relief to homeowners struggling with rising property values. Lawmakers structured it as an exemption, believing it would comply with the state constitution. However, the State Board of Equalization argued that other methods, such as refunds, could have achieved relief without creating constitutional conflicts. The bill, sponsored by Sen. Barry Crago, passed with broad support in both legislative chambers. Rep. Liz Storer indicated the cap was intended as a temporary measure, noting that a subsequent constitutional amendment may offer a more permanent solution.