Wyoming Department of Revenue reports $7.4M in property tax refunds amid application surge

The Joint Appropriations Committee of the Wyoming Legislature convened on June 24, 2025, to discuss various topics related to the Department of Revenue, including updates on property tax refunds and sales tax distributions.

The meeting began with an introduction from Matt Sachet, the interim director of the Wyoming Department of Revenue, who provided an overview of the property tax refund program. As of the previous Friday, the department had received 14,911 applications, processed 7,312, and distributed approximately $7.4 million in refunds. Sachet noted that there remains about $8.5 million available to cover the remaining applications, indicating that the program is on track to meet the anticipated demand.

Committee members inquired about the denial rates for these applications, but Sachet did not have that information readily available, promising to follow up with the relevant administrator. Discussion then shifted to feedback regarding changes in property tax regulations, specifically a 4% cap and a 25% reduction for homeowner-occupied properties. While some feedback had been received from counties, there was no public feedback reported at this time.

Brett Fanning, the excise tax administrator, followed Sachet to discuss sales tax issues. He clarified the structure of sales tax in Wyoming, which includes a base 4% state tax and additional voter-approved local taxes. Fanning emphasized the confusion among business owners regarding the distribution of sales tax revenues, noting that the Department of Revenue manages one distribution model while the legislature oversees another.

Fanning also provided insights into the revenue generated from sales tax, stating that last fiscal year, the state collected approximately $609 million from sales tax and $61 million from use tax. He explained that the increase in sales tax revenue over recent years can largely be attributed to inflation and rising prices, particularly in the tourism sector.

The committee discussed the number of sales tax exemptions in Wyoming, which currently stands at 52. Fanning explained that while the state has narrow imposition statutes, the exemptions can significantly impact revenue. He noted that approximately two-thirds of sales reported to the Department of Revenue are exempt from taxation, making it challenging to quantify the total revenue lost due to these exemptions.

Senator Driscoll raised concerns about the need for better tracking of exemptions and compliance, suggesting that improvements could be made without requiring statutory changes. Fanning acknowledged the challenges in breaking down exemptions but indicated that the Department of Revenue has the capability to enhance tracking if necessary.

Kevin Hibbard, director of the Wyoming State Budget Department, added that the increase in sales tax revenue could also be influenced by the influx of federal funds through the American Rescue Plan Act (ARPA) and previous CARES funding.

The meeting concluded without any formal resolutions but highlighted the ongoing discussions regarding tax policies and their implications for revenue generation in Wyoming. The committee plans to continue addressing these issues in future sessions.