Catch Title: Residential real property-fair market value on transfer

Sponsor: Joint Interim Revenue Committee

Effective Date: January 1, 2028 (Contingent upon constitutional amendment/HJ0004)

Bill URL: https://www.wyoleg.gov/Legislation/2026/HB0073

Overview This draft bill proposes a fundamental shift in property tax assessment, moving from a market-value-based system to a hybrid acquisition-based system. It aims to limit annual property value increases to a fixed percentage (2%) or the National Consumer Price Index (CPI), whichever is lower, until a change in ownership occurs. The bill is explicitly contingent upon the passage of a constitutional amendment (2026 HJ0004) by two-thirds of both legislative chambers and subsequent voter approval in the November 2026 General Election.

Key Provisions

• Establishes property valuation based on the “acquisition value” rather than annual market reassessments.
• Limits the annual increase in assessed value to a maximum of 2% or the rate of the National CPI, whichever is lower.
• Resets property assessment to current fair market value only upon “change in ownership” or new construction.
• Defines the base year value for properties acquired between January 1, 2020, and December 31, 2027, as the value on January 1 of the year last acquired.
• Delegates rulemaking authority to the Department of Revenue for documentation requirements (emphasizing legal closing statements over simple affidavits).
• Requires the use of statewide construction costs for expansion valuations if actual costs are unavailable.

Implications

• Fiscal Gap: The bill lacks a fiscal note to fund the extensive software development required for the statewide County Assessor systems to accommodate the new valuation logic.
• Implementation Timeline: The 2028 effective date is considered aggressive; software requirement definitions cannot realistically begin until the constitutional amendment passes in late 2026.
• Valuation Ambiguity: [Ambiguous] Properties acquired prior to the 2020–2027 window lack clear parameters. A property last acquired in 2009, for example, could be valued at its 2009 level, creating significant equity issues and revenue volatility.
• Area of Concern (Metrics): The use of the National CPI is not a valid local economic indicator, and the 2% cap is arbitrarily lower than recent inflation trends (~4%).
• Area of Concern (Costs): Pegging expansion costs to statewide averages ignores significant geographical variations in construction costs between counties.
• Procedural Risk: The bill is entirely invalid if HJ0004 fails to secure a 2/3 majority in both chambers during the 2026 session.
• Operational Redundancy: Many provisions regarding procedures are already addressed in current Department of Revenue and County Assessor rules.