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Veterans' property tax exemption. |
11LSO-0052.L3 |
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FISCAL NOTE
Source of revenue decrease:
Extending the current property and vehicle tax exemptions for veterans to full time active duty military personnel
Source of expenditure increase:
Increased General Fund expenditure necessary to reimburse counties for the property tax revenue decrease resulting from the exemption
Assumptions:
It is assumed there are currently 3,136 active personnel at FE Warren Air Force Base. There are currently 306 active in the Army/Air Guard around the state. There are 3,000 troops in the National Guard around the state and even though not all of them are currently active, they have deployed in the past and it is expected that they will be deployed again in the future. The Navy/Army/Marine Reserve currently have about 25 active personnel.
It is assumed that all of the above personnel (a total of 6,467) could be active in any given year under our nation’s current situation. It is also assumed that each one would qualify for, and use the entire $3,000 assessed value exemption. An average mill levy of 70 mills was applied, assuming most individuals are residents of the incorporated areas.
Total potential personnel in 2012 of 6,467 x $3,000 = $19,401,000 assessed value. 70 mills (.070) x $19,401,000 = $1,358,070 in property taxes.
The potential for error is substantial considering it is unknown how many personnel are on active duty in other locations but declare Wyoming as their residence and own vehicles or property in Wyoming. The Department of Revenue does not know how many National Guard will be officially deployed in any specific year. This is the Department’s best estimate based on the information available.
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Counties are currently reimbursed, upon request, for their revenue decrease resulting from the veteran’s property tax exemption. Funding to reimburse counties for the veteran’s exemption is included in the Treasurer’s Office Budget. $10,535,000 (General Fund) is appropriated for this reimbursement program in the 2010 Budget Act passed by the legislature during the 2010 budget session. Of this amount, $1,300,000 was effective immediately for expenditure in FY 2010, with the remaining $9,235,000 budgeted for this reimbursement program in the 2011-12 biennium ($4,617,500 per fiscal year).
This bill shall apply to ad valorem tax assessed on and after January 1, 2011 (2011 assessment year), impacting property tax collections beginning in FY 2012.
Prepared by: Dean Temte, LSO Phone: 777-7881
(Information provided by Marvin Applequist, Dept. of Rev.; 777-5235)
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