Property tax-assessment rate.

06LSO-0327.C1

                                                         

FISCAL NOTE

 

This bill contains an appropriation of 74,000,000 from the BUDGET RESERVE ACCOUNT to the Department of Revenue for the period beginning January 1, 2007 through June 30, 2009.

 

This bill contains an appropriation of 15,000,000 from the BUDGET RESERVE ACCOUNT to the State Treasurer for the period beginning January 1, 2007 through June 30, 2009.

 

 

FY 2007

FY 2008

FY 2009

NON-ADMINISTRATIVE IMPACT

 

 

 

Anticipated Revenue (Decrease):

 

 

 

AD VALOREM TAX

0

(35,190,092)

(38,709,102)

SCHOOL FOUNDATION FUND

0

(7,151,731)

(7,866,904)

 

Anticipated Expenditure Increase:

 

 

 

BUDGET RESERVE ACCOUNT

0

42,341,823

46,576,006

 

Source of revenue decrease: Decrease in the property tax assessment rate from 9.5 percent to 8.25 percent.

 

Source of expenditure increase: Budget Reserve Account appropriation to offset property tax revenue decrease due to reduction in assessment rate.

 

Assumptions:

 

Assumed appraised values increase by 10 percent each year. The above estimates are based on tax year 2005 assessed valuations of property assessed at the 9.5 percent assessment rate (Wyoming Department of Revenue Annual Report, July 1, 2004 through June 30, 2005).

 

Assumed mill levies remain constant. The above estimates are based on the School Foundation Program 12 mill levy, and the 2005 statewide average mill levy for municipalities of 71.046 mills (page 80 of Wyoming Department of Revenue Annual report, July 1, 2004 through June 30, 2005).

 

Please see the attached spreadsheet for additional information.

 

Local governments are held harmless in FY 2008 and FY 2009 by the $74,000,000 appropriation. The School Foundation program is held harmless in FY 2008 and FY 2009 by the $15,000,000 appropriation.

 

This bill is effective January 1, 2007, therefore the fiscal impact would begin with the 2007 assessment year (fiscal year 2008).

 

Prepared by:   Wade Hall, Dept. of Revenue Phone:   777-5235