Summary of a Blueprint for Eliminating Property Taxes in Wyoming

Property taxes in Wyoming have increased dramatically, placing a substantial burden on taxpayers. This proposal outlines a bold, practical plan to eliminate property taxes through disciplined government spending and targeted surplus distribution to reduce school district property taxes.
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Property Taxes are Growing Too Fast:

• Total property taxes increased by $1.7 billion from 2000 to 2023, a 316% increase. Property tax growth significantly outpaced both personal income growth (+206%) and the rate of population growth plus inflation (+91%) over the same period.
• The sharpest increases were recorded from 2021 to 2023, with a 71% rise in property taxes. In contrast, population growth plus inflation increased by +17%, and personal income grew by +9% during this period.
• The disproportionate increase has made property taxes unaffordable for many, influencing Wyoming's cost of living and business operations.

Process for Eliminating Property Taxes: The proposed process involves three critical steps aimed at systematically reducing and eventually eliminating property taxes while fully funding state government operations and school districts:

• Spend Less:
  • ​Implement a strong state spending limit, capping budget increases to a maximum rate of population growth plus inflation (PGI). This is the same discipline you use in your family’s budget; governments should follow the same rules, if not more conservatively, as your family because it is not their money.
  • Pass a new state law and propose a constitutional amendment to enforce this spending cap, with provisions for exceptions through a two-thirds legislative vote by each chamber.
• Tax Less:
  • Dedicate 90% of state budget surpluses from the spending cap to reduce school district property tax rates, representing the largest share (73%) of property taxes.
  • Retain 10% of surpluses to address revenue volatility and use reserve balances if necessary, with no rate reduction without surplus.
• Limit Government:
  • Encourage local governments to adopt similar fiscal constraints and require voter approval for property tax increases, promoting transparency and accountability while allowing them to reduce and eliminate their property taxes.

Expected Outcomes

• Direct Benefits: Property owners will see a gradual reduction in property taxes, moving towards complete elimination.
• Indirect Benefits: Renters and businesses will benefit from lower property-related costs, contributing to an improved standard of living and economic competitiveness.

Economic Gains

• From 2021 to 2023, inflation-adjusted personal income declined by 8%. Despite this loss in purchasing power, property taxes were up an average of 71%, proving that property taxes are a crushing, unsustainable burden.
• Implementing these reforms would position Wyoming as a national leader in fiscal responsibility and taxpayer fairness.
• Bold reforms are necessary to restrain government spending at the state and local levels and use the resulting surplus taxpayer money to reduce property taxes until they are zero. 
• These are similar reforms to what has been worked on in Texas, but Wyoming can be the national leader in helping people stop paying rent to the government forever through property taxes and instead begin to own their property

Conclusion
This proposal seeks to relieve Wyoming residents of the oppressive property tax burden. The discipline it imposes on state spending directly benefits all Wyoming taxpayers – surplus money flows back into their pockets, not into government accounts to be spent by politicians. Achieving this bold reform will allow Wyoming to flourish now and for future generations. 

Full research paper here.