Homestead exemption amendments.

08LSO-0304.L1

FISCAL NOTE

This bill contains an appropriation of $5,250,000 from the GENERAL FUND to the State Treasurer.

	FY 2009	FY 2010	FY 2011
NON-ADMINISTRATIVE IMPACT
Anticipated Revenue Increase Decrease:
AD VALOREM TAX	0	0	5,250,000

Source of revenue decrease:

Property tax exemption of 50% of the first $200,000 of fair market value of residential property for owners 65 years of age or older

Assumptions:

The above estimate assumes there would be 13,100 qualified householders who are 65 years of age or older, have lived in Wyoming for at least 10 years, with household income below 150% of federal poverty level for a 4 person household that would be eligible for the exemption in tax year 2010. The estimated number of qualifiers and the corresponding estimated revenue decrease is based on demographic survey information, according to the Division of Economic Analysis.

Eligible property would receive a maximum tax credit of $638 ($200,000 x 50% = $100,000 market value, $100,000 x 9.5% level of assessment = $9,500 assessed value, $9,500 x .067135 = $638) The average state wide mill levy in 2007 was 67.135 mills.

This bill is effective January 1, 2010. This effective date will result in a decrease in property tax revenue beginning in FY 2011.

Local governments are held harmless in FY 2011 by the appropriation in the bill. The estimated revenue decrease of $5,250,000 is offset by the $5,250,000 appropriation, bringing the net impact to local governments to zero. The Governor shall include in his state budget submitted for the 2011 legislative session and thereafter a recommendation for any additional appropriation necessary to fully reimburse local governments for the full exemption provided by this exemption.

Prepared by:   Dean Temte, LSO  Phone: 777-7881

(Information provided by Marvin Applequist, Dept. of Rev. 777-5235:

Wenlin Liu, Economic Analysis Division; 777-7504)

NOTICE-AGENCY ESTIMATE OF ADMINISTRATIVE IMPACT REQUESTED

This bill has administrative impact that appears to increase (or decrease) duties or responsibilities of one or more state agencies and may impact agency spending or staffing requirements. As introduced, the bill does not modify any state agency budget or current personnel authorizations.

The following state agencies will be asked to provide their estimate of the administrative fiscal impact prior to the first committee meeting held to consider the bill:

Department of Revenue