Bill
SF 61
Wyoming narrows the pollution-control property tax exemption by excluding CO2 from pollution and barring exemptions for CO2-capture-only facilities or portions producing marketable
Status and sponsor
- Bill number: SF 61 (Enrolled Act No. 25, Chapter 55)
- Sponsors: Senators Sinclair and Case (primary); cosponsors: Harshman, Dockstader, Larsen (L), Wylie, Ottman, Anderson
- Companion: HF 513
- Key dates: Introduced Jan 16, 2025; passed both chambers (Senate 30–0–1; House 57–3–2); Governor signed Feb 27, 2025.
- Effective dates: Generally effective Jan 1, 2026. Sections addressing rulemaking and the act’s finalization (Sections 2 and 3 in the enrolled bill) are effective immediately upon completion of the acts necessary for a bill to become law.
Purpose and intent
- Clarify and narrow the applicability of Wyoming’s pollution-control property tax exemption by specifying that carbon dioxide (CO2) is not to be treated as air, water or land “pollution” for purposes of that exemption, and by excluding certain CO2-capture facilities and portions of facilities that produce marketable byproducts from exemption.
Key provisions
- Statutory amendment: W.S. 35-11-1103 (property exempt from ad valorem taxation) is amended to:
- Continue to exempt property (facilities, installations, machinery, equipment) designed and used primarily to eliminate, control or prevent air, water or land pollution, but
- Explicitly exclude from exemption:
- Any portion of facilities that have value as the specific source of marketable byproducts; and
- Facilities constructed for the sole purpose of capturing nonpoint-source carbon dioxide.
- The statute, as amended, specifies that carbon dioxide shall not be considered air, water, or land pollution for purposes of the exemption.
- Rulemaking: Directs the Wyoming Department of Revenue to promulgate any rules necessary to implement the change.
Who is affected
- Property owners/operators currently claiming the pollution-control exemption (industries, utilities, other facilities with pollution-control equipment).
- Specifically affected: facilities built solely to capture nonpoint-source CO2 (e.g., some carbon capture projects) which would be ineligible for exemption; portions of facilities that function as sources of marketable byproducts (those portions no longer exempt).
- County assessors and the Department of Revenue (must determine exempt portions and adopt implementing rules). Local taxing jurisdictions could see changes in taxable values.
Fiscal impact
- Department of Revenue fiscal note: Potential for increased property tax revenue, but the amount is indeterminable. The state’s CAMA system lacks the detailed equipment-level data needed to quantify how much exempted property would be reclassified; any fiscal effects would likely begin in the 2026 tax year.
Procedural notes / amendments
- A standing-committee amendment (SF0061SS001) clarified language and inserted the exclusion for facilities constructed solely to capture nonpoint-source CO2.
- The bill passed both houses with committee recommendations and was enacted as Chapter 55 of the 2025 Session Laws.
Bottom line
- SF 61 narrows the scope of Wyoming’s pollution-control property tax exemption by excluding CO2 from the statutory definition of “pollution” for exemption purposes and by barring exemptions for CO2-capture-only facilities and portions of facilities that generate marketable byproducts. The Department of Revenue must adopt implementing rules; the revenue effect is expected to be positive but is not quantifiable with available data.
Compiled from official sources — confirm details with the bill’s official record.
Sign in to ask a question.
