HB0290

Establishes a property tax exemption for single-family residential properties and creates an additional sales and use tax to fund local government revenue replacement.

• Creates a property tax exemption for single-family residential properties where the owner resides at least six months per year. The exemption covers the first $200,000 of fair market value in tax year 2025, and the first $1,000,000 thereafter, with annual inflation adjustments beginning in 2027 using the consumer price index or 2%, whichever is less. (W.S. 39-11-105(a)(xlvi), Sec. 1)
• Imposes an additional 2% sales tax on most sales, effective July 1, 2025, with the rate potentially reducible in 0.25% intervals if the governor certifies sufficient funds exist or reduced to zero if the residential property tax exemption becomes unavailable. (W.S. 39-15-104(j), Sec. 1)
• Imposes an additional 2% use tax on purchases, effective July 1, 2025, with the same reduction provisions as the sales tax and exempting purchases by industrial facilities during permitting and construction periods. (W.S. 39-16-104(g), Sec. 1)
• Exempts sales and purchases by industrial facilities subject to industrial siting council permitting from the additional sales and use taxes during the permitting and construction periods. (W.S. 39-15-104(j), W.S. 39-16-104(g), W.S. 35-12-102(a)(vii))
• Creates the property tax reduction and replacement account to receive revenue from the additional sales and use taxes, with funds distributed to counties to reimburse revenue losses from the residential property tax exemption. (W.S. 39-15-111(r), Sec. 1)
• Requires counties to distribute reimbursement funds from the property tax reduction and replacement account in the same manner property taxes are distributed, with distributions calculated by February 15 each year based on prior-year revenue losses and excluding losses from bond repayment mills. (W.S. 39-15-111(r)(i), Sec. 1)
• Directs the Department of Revenue to determine revenue reductions to local governments if Senate File 48 or Senate File 49 are enacted, and to recommend statutory changes and reporting requirements to incorporate those reductions into county reimbursements by August 1, 2025.