Other tax 'refunds' or limits may be considered
JOAN BARRON Star-Tribune capital bureau | Posted: Saturday, February 16, 2008 12:00 am
CHEYENNE - Gov. Dave Freudenthal's property tax relief package to help homeowners more than 65 years old was one of the casualties of House Revenue Committee action Friday morning.
The bills, House Bill 37 and House Joint Resolution 2, sponsored by Rep. Debbie Hammons, D-Worland, would have exempted half the market value of homes valued up to $200,000 for an average savings of $638 per year for eligible seniors.
The Joint Interim Revenue Committee had rejected the bills earlier on grounds they help only seniors and don't require any means or asset test to quality.
Rep. Rodney "Pete" Anderson, R-Pine Bluffs, the committee chairman, said the majority of committee members want a broader bill with means testing.
"The governor's bill didn't take care of young people," Anderson said.
Freudenthal's only comment about the committee action, issued by his office, was "We'll continue to watch it with interest."
Hammons said later Friday that there will be no parliamentary attempt to revive the bills.
Instead, she said, she will be working on the existing property tax relief program to make the formula more understandable to people.
"The price tag is very significant but they're not quoting the price tag yet," Hammons said.
She was referring to House Bill 92, which was adopted by the committee Friday.
Anderson said the bill has the best chance of getting through the Legislature.
House Bill 92, he said, 'improves" an existing underused tax relief program and requires means or asset testing.
The committee renamed the program a property tax "refund" to remove the connotation of welfare that some people associate with the word "relief."
Applicants qualify if they have lived in the state for five years and their total household income does not exceed two-thirds of the median gross household income for their resident county or for the state.
Qualifying applicants must also have total household assets of no more than $25,000 per adult member of the household, excluding the value of their home and certain other assets.
The average refund is estimated at $250 per year.
About 29,000 households would have been eligible for the refund as of 2006, but the household assets are unknown, according to a fiscal note attached to the bill.
During the committee meeting, Erin Taylor, director of the Wyoming Taxpayers Association, cautioned against endorsing constitutional property tax limits such as the ones adopted by California and Colorado voters.
Wyoming needs flexibility because the state has no personal income tax. If property taxes are limited, the state would have to turn to the sales tax to raise money, Taylor said.
The committee nevertheless adopted one proposed constitutional amendment, House Joint Resolution 3, sponsored by Rep. Monte Olsen, R-Jackson, that would allow the Legislature to limit the amount of property taxes that can be collected and the amount of tax increases.
Rep. Tom Lubnau, R-Gillette, noted that Wyoming has been called "the most conservative socialist state."
The out-of-state utilities and oil and gas companies pay Wyoming's taxes, he said.
Lubnau cautioned that the state could be back looking for money as it was in 1999 and 2000 if these companies leave.
Other bills that now go to the House floor for debate include:
-House Bill 162, sponsored by Majority Floor Leader Colin Simpson, R-Cody, would put into effect the provisions in Olsen's constitutonal amendment if it goes through.
-House Bill 33, sponsored by Rep. Pete Illoway, R-Cheyenne, to confirm the service dates for the veterans' property tax exemption to conform to federal dates.