Proposal would let Wyoming homeowners borrow for property tax increases

The Wyoming property tax relief authority would provide loans to homeowners who need help paying increased property taxes. Applicants would need to live in Wyoming and own a home in Wyoming that serves as their primary residence. Homeowners would apply to the authority or a participating financial institution. Loans would depend on money received from bonds, gifts, grants, or other allowed sources. Each loan could cover no more than the increase in taxes on the primary home compared with the immediately preceding tax year. The proposal would allow no loans to be created, issued, or paid out before July 1, 2026.

Borrowers would repay loans with interest, and each loan would place a lien, a legal claim for repayment, on the home. These terms would apply to homeowners borrowing through the property tax loan program. Interest would match the current yield of a U.S. Treasury security lasting as long as the loan. Borrowers would use the money only for taxes on their primary home and meet the property tax payment deadlines. The home's lien would take priority over other liens placed on it later. The authority could approve a line of credit for later loans. Each year's borrowing would be limited to that year's tax increase. Borrowers would certify their need annually and reapply as required. Repayment plans and lines of credit could last no more than ten years.

A five-member board would govern the Wyoming property tax relief authority. The authority would manage the property tax loan program for Wyoming homeowners. The governor would appoint voting board members with the Senate's approval. The $100,000 from the state general fund would pay only administrative expenses. Unspent money not committed to an expense would return as required by law on June 30, 2028. Applications and records submitted by applicants or participants would be confidential and unavailable under the Public Records Act. The authority could not use the powers in its purposes section if private providers already perform the authorized work or services. The authority would begin July 1, 2026. Administrative funding would run from enactment through June 30, 2028.

The authority could sell bonds, a form of borrowing, to fund homeowner loans. The authority's bonds and earnings from them would be exempt from Wyoming state and local taxes. Bond debt would belong only to the authority, not the state or local governments. Loan revenues would repay bonds after reasonable fees for participating financial institutions. Those institutions could receive fees of up to 1% of each loan they distribute. Bondholders could ask a court to enforce payment duties. If bonds went unpaid, a court could appoint someone to run the loan program and collect its revenues. The 30-day challenge period would begin when the bond approval is published. After it ends, challenges to the bonds, pledged security, or approval terms would be barred.