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Committee clears bill to codify property tax refund thresholds, department warns of funding/proration questions
Summary
House Bill 39 passed the Senate Revenue Committee 5-0 to place in statute the 145% maximum income threshold for the property tax refund program. Department of Revenue officials described program growth, asset tests, and funding needs and warned the committee about potential prorating if supplemental funding is not approved.
The Senate Revenue Committee on a 5-0 vote advanced House Bill 39, which clarifies in statute how Wyoming's property tax refund program will be administered after last year's executive actions and program changes.
Brenda Henson, director of the Department of Revenue, told the committee HB39 exists to codify the program administration that followed the governor's line-item veto last session. Henson said House Bill 4 had added additional income tiers for refund eligibility, including a tier at 165 percent of median household income; the governor's veto removed that portion, leaving a 145 percent maximum the department has been applying. "This bill just simply clarifies in statute that the maximum income amount is 145 percent of median household income for the county or the statewide average," Henson said.
Henson provided program statistics and administrative context. The department recorded 9,719 applications in 2022 and 14,782 in 2023; it expects roughly 15,000 applications for 2024. She told the committee that refunds for applicants at the 125 percent tier equated to roughly $12.4 million in approved refunds in 2023 and nearly $13.5 million in refund requests for that tier. Henson also described the program's asset test for 2024: total personal assets cannot exceed $163,019 per adult household member (excluding the primary home, vehicles and retirement accounts).
On funding, Henson said the legislature provided $20,000,000 for the biennium. The department spent about $14,269,000 on 2023 refunds and reported about $5,700,000 remained from the original appropriation; it requested a $10,500,000 supplemental appropriation to cover anticipated 2024 refunds and said that, if approved, the combined funds would exceed $16,000,000. Henson said the department would administer the program the same whether HB39 is passed or not, but codifying the 145 percent figure reduces inconsistency between statute text and the department's pamphlets and online guidance.
Committee members asked how the governor justified the veto; Henson read the veto message summary that said extending eligibility to 165 percent moved beyond targeted tax relief. Committee members also asked how the department would handle funding shortages. Henson said the statute does not prescribe a distribution rule; options discussed in the committee and by staff include prorating refunds if funds are insufficient, a practice she said the department would prefer to first-ask the legislature to fund. "I would be hesitant to do a first-come, first-serve approach," Henson said.
Kristy Urich, administrator of administrative services for the Department of Revenue, was introduced as the official who oversees application processing and county coordination.
Senator Case moved the bill and Senator Pappas seconded. The roll-call vote was 5-0 in favor (Senators Case, French, Eyde, Pappas and the committee chair voting aye). The committee closed public comment and advanced HB39.
