Bill
SF 49
Wyoming now values locally assessed tangible personal property using DOR depreciation schedules with a 20% depreciation floor, likely lowering property tax values and revenues.
Status and key dates
- Enacted as Enrolled Act No. 0008, Assigned Chapter Number 20; Governor signed February 24, 2025.
- Effective date: generally January 1, 2026. Section 2 (rulemaking) and Section 3 (effective date provision) take effect immediately upon completion of all acts necessary for the bill to become law.
Purpose
- Modify how locally assessed tangible personal property is valued for ad valorem (property) tax purposes by requiring valuation using valuation indexes and depreciation schedules established by the Wyoming Department of Revenue (DOR), and by setting a minimum depreciation floor for such property.
Key substantive provisions
- Amends W.S. 39-13-103(b)(ii) to require that fair market value for tangible personal property be determined using valuation indexes and depreciation schedules prescribed by DOR rule.
- Defines “depreciation floor” as 20% of the reported installed cost of the property. Once an item reaches that depreciation floor, the “trending factor” shall remain constant in subsequent years until the property is removed from service.
- Clarifies that valuation indexes or depreciation schedules may not be used to increase a property’s value above its depreciation floor.
- Exclusions: tangible personal property valued under W.S. 39-13-102(m) and titled mobile homes required to be titled under W.S. 31-2-501 through 31-2-508 are excluded from this provision.
- Requires the Department of Revenue to promulgate all rules necessary to implement the changes.
Who is affected
- Primary: businesses and other owners of locally assessed tangible personal property (equipment, fixtures, etc.) — their assessed values will follow DOR’s indexes and depreciation schedules with a 20% floor of reported installed cost.
- Local taxing entities (counties, school districts, municipalities) and the School Foundation Program (SFP) — potential reductions in property tax revenue.
- Department of Revenue — required to adopt implementing rules and administer new valuation methodology.
- Not affected: state-assessed property (valued as integrated company valuation) and mobile homes titled under the specified statutes.
Fiscal and administrative impact
- Fiscal Note estimate (based on 2024 CAMA data): approximate annual property tax revenue decrease of $33.6 million in tax years 2026–2027 (FY 2027–FY 2028).
- Estimated decrease to the School Foundation Program (43 mills supporting K‑12) ≈ $21.0–$21.1 million per year.
- Estimated decrease to other local taxing entities ≈ $12.5 million per year.
- The fiscal note flags that the Legislature may need to appropriate additional SFP funds to offset reduced local levy revenue and requests agency estimates of administrative impact (DOR).
- DOR indicated the methodology cannot be applied to state‑assessed property due to integrated company valuations; mobile homes excluded because acquisition/installed cost data are not available.
Additional legislative history/details
- Sponsor/Primary: Senator Reichman (and Joint Revenue Interim Committee involvement).
- Multiple committee amendments during floor consideration refined language (changed “acquisition value” to “reported installed cost,” added the constant trending factor when floor is reached, and finalized the 20% floor). A proposal to set the floor at 0% failed.
- Passed both chambers (Senate and House) with recorded votes and concurrence prior to enrollment and signing.
Practical effect
- Moves Wyoming to a rule-driven, index-and-depreciation-based system for valuing locally assessed business personal property with a statutory lower bound at 20% of installed cost, likely lowering assessed values (and property tax revenue) for older business equipment and increasing DOR rulemaking and administrative duties.
Compiled from official sources — confirm details with the bill’s official record.
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