Senate leadership appears likely to kill broad property tax cut
CHEYENNE - Wyoming's county assessors are hoping a bill to expand an existing property tax relief program will pass the Legislature - and that certain other proposals won't.
House Bill 92, sponsored by the House Revenue Committee, comes up for third and final vote in the House today.
Unlike some other property tax relief bills being considered this legislative session, HB 92 simply calls for expanding a tax break for low-income homeowners. The program has drawn little interest in the past: In 2006, a total of 604 homeowners received $144,925 in refunds, or an average of nearly $240 each.
Washakie County Assessor Kathy Treanor and Laramie County Assessor Brenda Arnold said Thursday the reason the program drew so few applicants is that the income and asset thresholds were too low.
Arnold noted that a Laramie County resident with an income of less than $25,000 a year can't afford to buy a home. The current law allows assets of $25,000 per person, excluding the value of a house, or car or retirement pay.
HB 92 would increase the threshold to $50,000.
"That will help seniors, because they are more likely to have assets," Treanor said.
The House also gave a nod to the argument that citizens don't like to disclose their incomes to a government entity. The bill now allows a person initially qualifying for the tax break to file an affidavit certifying there has been no substantial change in his or her financial circumstances.
The Wyoming Association of County Assessors also likes the bill because money to reimburse the counties for lost property tax revenue is in place in the Department of Revenue budget.
"We are worried about the counties losing revenue," Treanor said.
The assessors also support House Bill 33, which would expand the veterans' tax exemption program, and House Bill 151, to change the eligibility standards for the tax rebate program for low-income elderly and disabled.
Another tax rebate bill has been changed to allow up to an $800 rebate for an eligible single person with an income of less than $17,500 per year. An eligible married couple with an income of less than $28,500 per year could collect $900.
Those three bills are moving through the House. It's possible they may be the only tax relief proposals to get through the Legislature this year.
Today is the last day to debate bills in the house of origin.
Senate File 79, a broad-based property tax cut sponsored by Sen. Charles Scott, R-Casper, is not on the list for debate in the Senate. Senate Majority Leader John Hines, R-Gillette, said Thursday that the bill is too expensive.
It would cost local governments $80 million a year in lost tax revenue.
Hines said such bills are destroying the tax base through tax decreases and exemptions "at a time when we are trying to diversify."
House Majority Floor Leader Colin Simpson, R-Cody, said House Joint Resolution 3 will be up for debate today. Sponsored by Rep. Monte Olsen, R-Daniel, the proposed constitutional amendment would create a separate class of property for residential property.
If adopted by voters, it would allow the Legislature to determine the amount of property tax that can be collected and to restrict increases on property taxes or assessments.
Supporters say an amendment to the constitution such as this one is the only way the Legislature can single out homeowners for significant property tax relief.
Opponents said expanding the number of property classes is bad public policy.
Simpson's own bill, House Bill 162, to tie property tax increases to the inflation rate, may or may not be on the debate list today.
The county assessors said they have a number of questions about the potential impacts of HB 162 that could be the basis for a legislative interim committee study.
Contact Joan Barron at joan.barron@trib.com or by phone at 307-632-1244.
Posted in State-and-regional on Friday, February 22, 2008 12:00 am
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