JACKSON, Wyo. — Discussions surrounding property tax-related ballot initiative Proposition 1 are heating up prior to Election Day. A voter forum held Wednesday at the Teton County Library aimed to shed light on the proposed cuts.
The evening began with a presentation about how citizen-led initiatives travel a long road before appearing on a general election ballot, explained by the Jackson Hole News&Guide’s Jasmine Hall. Following her introduction, Better Wyoming Executive Director Nate Martin and former State House Rep. Marti Halverson discussed the pros and cons of Prop. 1, which would allow a 50% property tax exemption on residential structures owned by full-time Wyoming residents.
Martin, who opposes Prop. 1, called the proposed cut “reckless and fiscally irresponsible.” He used the metaphor of a three-legged stool to describe state-funded public services, with the three legs in most states being income tax, property tax and sales tax.
“A three-legged stool is solid; you can build a strong, diverse economy on top of that,” Martin said. “Wyoming, of course, only has two of those legs: We have property tax and sales tax, and then we have kind of a wonky third leg, which is the fossil fuel industry, which is sometimes pretty strong, and sometimes not so strong. … What Proposition 1 does is kick one of those stable legs out from under the state, and just hope that we’re going to be able to sit on those other two legs. There is no plan at all that survives a modicum of scrutiny to replace the revenue that will be lost as a result of this proposition.”
Martin pointed to service cuts that have been observed in the state as the result of the existing 25% property tax exemption. “These are all examples of the things that are really, actually, happening right now as a result of the 25% cut that’s already taken place,” he said, noting that a 50% cut would amplify these effects.
From Halverson’s perspective, explosive growth in property taxes has not led to improvements in roads or public education. Noting that the exemption would not apply to taxes on mineral or mining properties, commercial or industrial properties, agricultural properties, second homes or vacation homes, she sees enough available funding to cover gaps created by tax revenue losses.
“How or if any budget adjustments will impact residents is mostly up to our county commissioners,” Halverson said. “If Prop. 1 passes, you shall know your commissioners by their priorities. … Over the last seven years, counties in Wyoming have built up over $1.1 billion in reserves. How can they look us in the eye and say there is no money for a fire truck?”
When asked whether the passing of Prop. 1 would end up shifting the tax burden to small business owners or consumers via higher sales tax, Halverson said,”That is entirely up to the next legislature. If Proposition 1 passes, we are concerned that there will be an increase in sales taxes. There’s even talk out there about estate income tax, because they have to have their money. They’re going to lose a pocket here, so they have to make up a pocket over here. Yes, we are very concerned that the legislature will attempt to shift the burden to small business, large businesses — yes, it’s a very real concern.”
See the whole conversation unfold in the video below:
In addition to the Prop. 1 conversation, this forum featured appearances by House District 23 candidates and Teton County Assessor candidate Ashlee Nader:
These candidate forums are presented by the League of Women Voters of Wyoming, Teton County Library, the Jackson Hole News&Guide, KHOL Radio and Buckrail. KHOL’s Evan Robinson-Johnson moderated the conversation, and questions were posed by Buckrail’s Monica Stout, KHOL’s Sophia Boyd-Fliegel, and Hall with the News&Guide. Early voting is now open and Election Day is Nov. 3.
