Homestead exemption-2.

09LSO-0371.L1

                                                         

FISCAL NOTE

 

This bill contains an appropriation of $40,000,000 from the GENERAL FUND to the Department of Revenue.  This appropriation is effective immediately.

 

 

FY 2010

FY 2011

FY 2012

NON-ADMINISTRATIVE IMPACT

 

 

 

Anticipated Revenue (Decrease):

 

 

 

AD VALOREM TAX

(33,223,402)

0

0

SCHOOL FOUNDATION FUND

(6,776,598)

0

0

 

Source of revenue decrease: Homestead property tax exemption of up to $300 of the property tax assessed on owner-occupied primary dwellings for homeowners who currently live in Wyoming and have lived in Wyoming for at least 3 years

 

Assumptions:

The above estimates are based on assessed valuations from the 2008 tax year and the average 2008 municipal mill levy of 70.832 mills. The percentage of owner-occupied properties is assumed to be 71.5%, based on the 2005 American Community Survey, obtained from the U.S. Census Bureau.

 

This bill shall apply to property tax assessed beginning in tax year 2009, which will impact property taxes collected in FY 2010. Local governments are held harmless in FY 2010 by the appropriation in the bill. The total estimated revenue decrease is offset by the $40,000,000 appropriation.

 

The proposed homestead exemption is applicable only for tax years in which one of the following requirements is met:

1.  The legislature has appropriated funds to reimburse local governments for tax losses caused by the exemption.

2.  As of the last day of the preceding budget biennium, the combined unappropriated balance of the General Fund and the Budget Reserve Account will meet or exceed 5% of the General Fund projection for the current biennium and the unappropraited balance of the School Foundation Program Account will meet or exceed $100 million.

 

 

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

(Information provided by Marvin Applequist, DOR; 777-5235)