SF0177

Creates a residential property tax reduction account funded by budget surplus transfers and mineral trust earnings, and establishes a property tax refund program for primary residence owners.

• Creates the residential property tax reduction account and provides for continuous appropriation of funds to the department of revenue for residential property tax refunds, with investment earnings credited back to the account. (W.S. 9-4-227)
• Requires transfer of any budget reserve account funds exceeding five percent of estimated general fund receipts to the residential property tax reduction account, calculated on June 30 of each even-numbered year. (W.S. 9-2-1012(j))
• Directs permanent Wyoming mineral trust fund earnings in excess of 2.5% of the five-year average market value to be credited entirely to the residential property tax reduction account beginning July 1, 2026; prior to that date, such earnings are split equally between this account and the strategic investments and projects account. (W.S. 9-4-719(q)(i))
• Establishes the surplus reform residential property tax refund program requiring the department of revenue to provide annual property tax refunds to primary residence owners on or before the second Monday in November, with refunds applied to property taxes paid in the preceding calendar year. (W.S. 39-13-109(c)(vii)(A))
• Sets the maximum refund amount at the property taxes paid on a primary residence in the preceding calendar year, not to exceed $13,300. (W.S. 39-13-109(c)(vii)(B))
• Limits refund payouts to one-half of the residential property tax reduction account balance in even-numbered years and the full balance in odd-numbered years, and requires proportional reduction of refunds if insufficient funds exist to pay all eligible claims. (W.S. 39-13-109(c)(vii)(C))
• Defines 'primary residence' as residential property where the owner actually resided for at least six months of the applicable tax year, and 'residential property' as dwellings housing no more than four families with associated land up to 35 acres. (W.S. 39-13-109(c)(vii)(D))
• Specifies that the property tax refund program first applies in tax year 2026 to provide refunds for property taxes paid in tax year 2025.