November 26, 2025 |
Photo – Wyoming Seal – State of Wyoming
The other shoe dropped. Wyoming lawmakers have advanced a bill at the legislature that would raise the state sales tax if residential property taxes are repealed completely.
In 2026, Wyoming voters will decide on a constitutional amendment to assess all residential property at zero percent of its value, effectively eliminating taxation on homes statewide. Should the measure succeed, state lawmakers are set to institute a two percent sales tax increase to address the revenue shortfall.
On November 19th, the Joint Revenue Committee met in Cheyenne to consider how to back fill the state’s funding loss if the constitutional amendment passes. In response, Committee Chairman Troy McKeown introduced draft bill 282, a measure aimed at replacing residential property tax collections with a two percent increase to the state’s sales and use taxes.
Wyoming Legislative Service Office Senior Staff Attorney Josh Anderson explained that the bill begins by exempting the first $200,000 of a home’s assessed value from property taxes.
Then, in the following year, the cap rises to $2 million, with incremental increases in subsequent years.
To offset the lost residential tax revenue for the state, Anderson said draft bill 282 would raise the statewide sales tax from four to six percent. The proceeds would go into a new account and be redistributed to counties using the same formula as property taxes. McKeown said that if the bill passes, it is unlikely to reduce the state’s overall tax revenue. Chairman McKeown said the legislation will change how revenue is collected.
Wyoming Department of Revenue Director Bret Fanning was asked how much additional revenue the higher state sales tax would generate. Fanning replied that the Legislative Service Office forecasts the increase is expected to bring in more than $470 million.
Fanning added that a recent one‑percent sales tax hike in Casper raised $1 million during the first month.
Natrona County Representative J.R. Riggins noted that the proposed bill could let out‑of‑state buyers use Wyoming properties as tax shelters, holding the tax-free land until values increased before selling.
After the Committee discussed the bill, Chairman McKeown opened the floor to public comments. A Cheyenne resident, Ted Hamlin, asked why the Committee was choosing a sales tax increase to make up the lost property tax revenue. Chairman McKeown responded that residential property taxes may be unconstitutional under both the United States and Wyoming constitutions. To address this concern, the Joint Revenue Committee is seeking an equitable way to raise revenue from citizens.
Another Cheyenne resident Josephine Carlson spoke against the proposed legislation, saying that counties and municipalities rely on property taxes to fund essential services such as police and fire protection.
Carlson argued that sales taxes are less stable and equitable than property taxes.
Representatives J.R. Riggins and Kevin Campbell explained that mass migration into Wyoming during the COVID pandemic has upset the traditionally stable housing market in the state. Representative Campbell said Wyoming lawmakers must rethink the way it generates money.
Natrona County Senator Bob Ide said figures from the Legislative Service Office and Department of Revenue show the average property tax bill in Wyoming is $1,750. If those taxes are repealed, Senator Ide said the average household would need to spend roughly $87,000 a year to match that amount.
The director of the Wyoming County Commissioners Association, Jerimiah Rieman, said he is concerned about how a statewide sales tax increase could affect the optional fifth and sixth penny taxes that counties and municipalities use to fund local governments and infrastructure projects. Rieman noted that until 2024, when Teton County residents approved a seventh penny tax, Wyoming voters had never supported a seven percent sales tax. He cautioned that raising the rate might prompt voters to repeal the fifth and sixth pennies, leaving counties to ask the state to cover those projects.
Rieman also said the state will have to fund special districts that typically rely on property taxes, such as fire protection districts.
Wyoming Farm Bureau Policy Advocacy Director Brett Moline cautioned lawmakers that raising the state sales tax could drive residents to shop outside the state and prove to be counterproductive. Many residents already flee Wyoming for shopping trips in neighboring states.
62 Representative Kevin Campbell, a Republican who represents Natrona and Converse County, said that every surrounding state, except Montana, already has sales taxes equal to or higher than the proposed rate.
Additional public comments mostly opposed to the measure.
Joint Revenue Committee Chairman Troy McKeown called for a vote on draft bill 282, with an amendment specifying that it would take effect only if the constitutional amendment to eliminate residential property taxes passed. The Committee voted eight to four to advance the bill for consideration in next year’s legislative session.
Its language could go through changes before being introduced. If the bill passes as written, the sales tax increase is set to go into effect on April 1st, 2027.
