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Why It Matters
Wyoming’s Board of Equalization has escalated its dispute with Governor Mark Gordon by filing a counterclaim in state court challenging the constitutionality of the Legislature’s 2024 residential property tax cap. The outcome could affect how local governments collect property taxes statewide and determine whether homeowners continue receiving the tax relief the cap was designed to provide.
What Happened
The Board of Equalization filed a counterclaim in Laramie County District Court seeking a court declaration that the 4% residential property tax cap enacted two years ago violates Wyoming’s constitution. The board also requested that the court bar enforcement of the cap.
The move comes after a judge previously ruled in Gordon’s favor, ordering the board to certify residential property tax values despite the board’s objections. The board contends it cannot constitutionally certify those values while the cap remains in effect.
The Legislature passed the residential property tax cap in 2024 to provide relief to homeowners. However, the Board of Equalization argues the cap creates unfair and non-uniform tax burden shifts between property owners across the state, including what the board characterizes as “thousands of value ‘inversions'” by county.
The Dispute’s History
The board warned lawmakers about potential consequences during legislative debate before the cap became law. After the measure took effect, board members raised concerns with Gordon and the state attorney general about its implementation.
In January, the board prepared a state-authorized lawsuit challenging the cap’s constitutionality. Gordon’s office quashed that effort, prompting the board to file the counterclaim in response to the governor’s original lawsuit demanding certification.
According to the governor’s office, “The Board of Equalization has been clear with the Governor in their belief that the 4% cap is not constitutional.” The office stated the cap’s application should ultimately be settled by the courts.
Potential Impact
The board warned that if it does not certify residential property values, local governments could be unable to collect 2026 taxes on residential properties. This would create a cascading effect across Wyoming counties, potentially affecting funding for schools, municipalities, and other local services dependent on property tax revenue.
The Board of Equalization, a governor-appointed panel responsible for equalizing property values in Wyoming’s tax system, contends it has a constitutional obligation to ensure uniformity in property assessments. The board argues this obligation prevents certification while the cap remains in place, as the cap creates disparities it cannot reconcile.
What’s Next
The lawsuit is now in Laramie County District Court, where the judge must decide whether the 4% cap violates Wyoming’s constitution and whether the board has grounds to refuse certification. The court’s ruling could force the Legislature to revisit the cap during a future session or require the board to find a way to implement it while meeting constitutional uniformity requirements.
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