HB0118

Eliminates residential property taxation by reducing the taxable value of residential real property to zero percent and creates a new two percent sales and use tax with revenue deposited into a property tax reduction and replacement account to reimburse local governments for lost tax revenue.

• Defines residential real property as real property improved by a dwelling designed to house not more than three families, including associated residential land, and specifies that the dwelling may be any type of residence including single family homes or individual condominium units if used as a primary residence. (W.S. 39-11-101(a)(xix))
• Sets the taxable value of residential real property to zero percent, reducing it from the previous nine and one-half percent applied to other property classes. (W.S. 39-11-101(a)(xvii)(C), W.S. 39-13-103(b)(iii)(C))
• Imposes an additional two percent sales tax beginning April 1, 2027, administered as if the existing four percent sales tax was increased to six percent, with revenue directed to the property tax reduction and replacement account. (W.S. 39-15-104(j))
• Imposes an additional two percent use tax beginning April 1, 2027, administered as if the existing four percent use tax was increased to six percent, with revenue directed to the property tax reduction and replacement account. (W.S. 39-16-104(g))
• Exempts industrial facilities subject to industrial siting council permitting from the additional sales and use taxes during the period of permitting and construction. (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, which receives all revenue from the additional sales and use taxes, and provides that investment earnings from the account shall be credited back to the account. (W.S. 39-15-111(s))
• Requires each county assessor to annually certify to the department the amount of tax reduction in the county due to residential property valuation at zero percent taxable value, calculated by determining the difference between taxes owed at nine and one-half percent versus zero percent. (W.S. 39-15-111(s)(i))