Wyoming does not have a state income tax. Therefore, property taxation, also known as ad valorem taxation, plays a key role in funding Wyoming state and local government operations. Below is a brief overview of key Wyoming property tax principles for Wyoming ad valorem taxation.
- Constitution. The Wyoming state Constitution is the starting point for Wyoming taxation law. As set forth in the Wyoming Constitution, all property must be uniformly valued for taxation.[1]
- Assessment date. Property is assessed for ad valorem taxation as of January 1 of each year.[2] While the term “assessment” is not defined in Wyoming statutes, assessment is defined in the context of property taxation as “the process of listing and valuing property for taxation purposes.”[3]
- Who performs the assessment? Wyoming property is assessed by one of two different governmental assessors. The Wyoming Department of Revenue assesses mines, pipelines, electric utilities, railroads, rail cars, telecommunications, and other public utilities.[4] All other property is assessed by the county assessor in each county. The county assessor may be aided by hired appraisers.
- Fair market value. Property is valued annually at its fair market value.[5] Fair market value is:
…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….[6]
- Method of assessment. The Wyoming Department of Revenue shall prescribe by rule and regulation the appraisal methods and systems for determining fair market value using generally accepted appraisal standards.[7] Typically property is valued under a cost, sales comparison, or income approach to value.
- Rendition. Not later than March 1 of each tax year, all taxpayers must submit a statement of the property owned or controlled. This statement is referred to as a rendition. An extension for the filing of a rendition may be granted to April 1.[8]
- Failure to submit a rendition. If a taxpayer fails to provide a listing of personal property owned by him, the assessor shall issue an assessment of personal property from the best information available.[9]
- Assessment schedules. The County Assessor sends assessment schedules (also called a notice of assessment) by the 4th Monday in April to the taxpayers.[10]
- Appeals. A taxpayer may contest the assessment within 30 days from the assessment schedule. To appeal the assessment, the taxpayer files a statement with the assessor specifying why the assessment is incorrect.[11]
- Review. Any person whose property assessment has been increased by an equalization order shall be notified of the increase by the county assessor. Any person wishing to review an assessment of his property may contact the county assessor.[12]
Knowing these foundational principles of Wyoming property taxation is crucial to insuring that the taxpayer’s property is assessed fairly and according to law.
Jared M. Le Fevre is a Partner in the Tax, Trusts and Estates Practice Group of Crowley Fleck PLLP. Mr. Le Fevre represents taxpayers before the IRS, IRS Independent Office of Appeals, Tax Court, Federal District Court and state tax agencies throughout Montana, Wyoming, North Dakota, Idaho, and Utah. Mr. Le Fevre is involved in federal and state and local tax audits, appeals, and tax resolution throughout these western states. Mr. Le Fevre also advises clients on the tax effects of business and real estate transactions.
[1] Wyo. Const. Art. 15, 11.
[2] Wyo. Stat. Ann. § 39-13-103(b)(i)(a).
[3] 72 Am. Jur. 2d State and Local Taxation § 604
[4] Wyo. Stat. Ann § 39-13-102(m).
[5] Wyo. Stat. Ann. § 39-13-103(b)(ii).
[6] Wyo. Stat. Ann. § 39–11–101(a)(vi)
[7] Wyo. Stat. Ann. §; § 39-13-103(b)(ii).
[8] Wyo. Stat. Ann. § 39-13-103(b)(v); 39-13-107(a).
[9] Id.
[10] Wyo. Stat. Ann. § 39-13-103(b)(vii)
[11] Wyo. Stat. Ann. § 39-13-109
[12] Wyo. Stat. Ann. § 39-13-102(f).