Now that Wyoming has implemented some minor property tax relief for residents, are our property tax issues truly resolved?
The short answer is no.
While these measures provide some relief, they are not a sustainable solution. The real problem lies in the structure of Wyoming’s property tax system itself. Unless we address fundamental flaws through comprehensive property tax reform, these temporary fixes will continue to shift and evolve, never truly resolving the underlying concerns impacting Wyoming families.
Let’s begin by examining the root of the problem: the current property tax system. Wyoming’s tax system relies on a “Fair Market Value” (FMV) approach, as defined by Wyoming Statute 39-11-101 (a)(vi). According to the statute, FMV represents “the amount in cash, or terms reasonably equivalent to cash, a well-informed buyer is justified in paying for a property and a well-informed seller is justified in accepting, assuming neither party to the transaction is acting under undue compulsion, and assuming the property has been offered in the open market for a reasonable time…”. In simpler terms, it’s what a willing buyer and seller agree to in an open market transaction, often based on comparable properties.
Currently, Wyoming uses a system known as Computer-Assisted Mass Appraisal (CAMA) to calculate FMV, which is recalculated every year. The system uses broad market data provided by a vendor, data input by your local assessor, and applies automated formulas to determine property values. While the intention behind this system is to create consistency, it often fails to account for the unique characteristics of individual properties or specific circumstances surrounding property sales. Furthermore, the system incorporates a “replacement cost” component, which has skyrocketed since the COVID-19 pandemic, potentially fueling an unsustainable housing price bubble. With construction materials at record-high costs, most Wyoming families would be hard-pressed to afford replacing their homes at the prices dictated by this inflated “replacement cost.” This begs the question: Is “replacement cost” even a relevant factor in property tax assessments?
The second major flaw in this system is the annual recalculation of FMV. If a new neighbor moves into your community and purchases a home for $100,000 above market value, this new data, a replacement cost factor, and a set of calculations in CAMA that few can explain or easily verify, impacts your new assessment. Your property tax may now be assessed based on this new, inflated price, even if you recently purchased your home at a much lower price. Many residents have experienced the shock of purchasing a home only to see their tax assessment increase dramatically within a matter of months due to a reassessment. The result? Homeowners are taxed on valuations they might never see—if they even decide to sell at all. This situation leaves Wyoming families paying taxes on “unrealized” capital gains, a situation that doesn’t seem particularly fair.
In considering property tax reform, a shift from the current FMV system to an ‘Acquisition Value’ approach would base assessments on the property’s purchase price and cap annual changes at a small percentage, up or down. Acquisition Value is a far more stable, predictable basis for tax assessment.
Under this system, the property tax would be directly tied to the actual value agreed upon by the buyer and seller at the time of purchase, providing a clearer and more reliable assessment. This removes the uncertainty that comes with market fluctuations each year and eliminates the possibility of unexpected tax increases caused by random shifts in the market.
Critics of Acquisition Value might argue that this caps the counties’ and cities’ ability to generate revenue. In actuality, it would allow a more predictable expense for the homeowner and a predictable income stream for the counties and cities. In short, we all have to work to our budget.
Another argument is that this holds property tax assessments in place, even if the property’s market value falls. If we allow a minor percentage change cap, we can easily allow the change up or down, but–let’s face it—how many of us have actually seen a significant decrease in our property tax assessments in recent years? More often than not, property taxes only seem to rise, leaving homeowners with a sense of vulnerability and no real protection against these random spikes.
For these reasons, and many others, acquisition value is the fairest approach for property tax reform. It allows for a more predictable and transparent process for homeowners, offering them the certainty that when they purchase a property, the property taxes they pay will align with the value they agreed to at the time of purchase—without the specter of unexpected increases.
Ultimately, if we want to truly fix Wyoming’s property tax system and provide meaningful relief for families, we need to move beyond short-term fixes and pursue real, lasting reform. The time has come to move toward a system that offers fairness, transparency, and predictability, so Wyoming residents can feel confident that their property tax obligations are based on a value they understand, not on an arbitrary figure subject to annual whims.