Tax Justice Digest stories about Wyoming
Wyoming Governor Dave Freudenthal recently proposed a constitutional amendment for his state as well, offering a plan to cut property taxes for the elderly. An amendment is necessary as
Given that Wyoming already has two means-tested property tax relief programs - one targeted to the elderly and another for all taxpayers - and a third not presently funded by the legislature, one could legitimately ask whether the goal of alleviating property taxes for those least able to pay them would be best accomplished through the Governor's amendment. Reed Eckhart of the Wyoming Tribune-Eagle poses that question and others in his recent column, arguing for all Wyomingites to contribute to public structures like schools and roads.
With Halloween and Thanksgiving just around the corner, it's no surprise that state lawmakers are in the holiday spirit. But Wyoming policymakers may have taken the holiday mood one step too far with a property tax holiday proposal. Governor Freudenthal is proposing a one year property tax holiday that would reduce property tax rates by 12 mils. Apparently the state doesn't need to generate property tax revenue next year because surpluses are expected. This proposal leaves low- and middle-income taxpayers with little to celebrate because the tax cuts aren't targeted to those with the least ability to pay. A better policy alternative would be to expand the state's current property tax relief programs.
Wyoming community colleges are funded primarily by county property taxes. Right now, the seven counties containing community colleges levy a special property tax for this purpose, but most other Wyoming counties don't — even though these other counties benefit from the services the community colleges provide. An interim legislative committee is exploring a statewide property tax as an alternative to this inequitable state of affairs. The committee has identified an important tax fairness problem that residents of most major cities are all too aware of: when local governments provide services that benefit a broader geographical area, how can they ensure that other localities pay their fair share of the cost for these services? A statewide property tax seems like a good place to start.
Earlier this spring, Wyoming became the latest state to exempt groceries from its sales tax. Now businesses are discovering that special sales tax exemptions can be harder to implement than they are to enact. As one local entrepreneur notes, "If the tax exemption is meant for food that's not immediately consumed will his employees need to treat the customer who buys a bagel to eat in the store differently from the customer who takes his bagel elsewhere to eat?" Sales tax exemptions are a progressive (but costly) approach to sales tax relief. ITEP has more on options for progressive sales tax reform here.
