HB0073

Establishes a new method for determining the fair market value of residential real property for ad valorem taxation purposes, using base year values adjusted annually by inflation or market decline.

• Defines 'fair market value' of residential real property to be determined under the new valuation method in W.S. 39-13-103(b)(xviii), rather than the standard fair market value definition. (W.S. 39-11-101(a)(vi), Sec. 1)
• For residential property acquired on or before December 31, 2019, establishes the base year value as the fair market value on January 1, 2019. (W.S. 39-13-103(b)(xviii)(A)(I), Sec. 1)
• For residential property acquired between January 1, 2020 and December 31, 2027, establishes the base year value as the fair market value on January 1 of the year the property was acquired. (W.S. 39-13-103(b)(xviii)(A)(II), Sec. 1)
• For residential property acquired on or after January 1, 2028, presumes that the price paid to acquire the property equals fair market value, unless rebutted by evidence of undue influence, non-arm's-length terms, or insufficient owner documentation. (W.S. 39-13-103(b)(xviii)(A)(III) and (IV), Sec. 1)
• Requires annual adjustment of base year value by the lesser of 2% or the consumer price index when residential property values are increasing, and by the actual market decline rate when values are decreasing, based on a state index created by the Department of Revenue. (W.S. 39-13-103(b)(xviii)(B)(I), Sec. 1)
• Requires adjustment of base year value to account for new construction or significant additions, using actual construction costs if submitted or average state construction costs if not submitted or if costs do not represent fair market value. (W.S. 39-13-103(b)(xviii)(B)(II), Sec. 1)
• Resets the base year value to the transfer price whenever residential real property is transferred to a new owner, except for specified transfers between family members, by inheritance, pursuant to court orders, to trusts, to related business entities, and charitable donations. (W.S. 39-13-103(b)(xviii)(C) and (E)(IV), Sec. 1)
• Defines 'residential real property' as dwellings designed to house not more than three families, including single-family homes and individual condominium units used as primary residences, along with associated residential land.