WYOMING — The State Board of Equalization released a 32-page report on Thursday stating that Wyoming's 4% residential property tax cap has caused value inversions and disparities in tax burdens. The board said it cannot certify residential land or improvement values due to non-uniformity, a decision that could prevent local governments from collecting 2026 property taxes on residential properties.

The Wyoming Legislature passed the tax cap in 2024, limiting annual property tax increases to 4% even if real estate values grow at a higher rate. The board's report found the caps generated thousands of value inversions in each county. A value inversion occurs when a residential property with a higher market value is assessed at a lower taxable value than another property. The report states, "The difference is often substantial, and the reasons for the disparate tax burdens are arbitrary."

Martin Hardsocg, State Board of Equalization vice chairman, said, "This is so unprecedented, we don't really have a blueprint." He added, "There's nothing in the history of Wyoming that comes close to this." Hardsocg said the board warned the governor's staff before the cap took effect that it would not withstand constitutional scrutiny. Governor Mark Gordon directed the board in January not to file a lawsuit to challenge the cap after the board had prepared a legal complaint. Hardsocg said the board encouraged lawmakers during the 2024 session to seek property tax relief through other methods, such as refunds. "But 'the momentum was, 'we got to get the taxpayers relief today,'" Hardsocg said. "Then they voted for it anyway."

Dixie Huxtable, the Converse County Assessor, is awaiting guidance from her county attorney's office on how to proceed. Huxtable noted that assessors are required to follow the 4% cap, while state statutes also mandate honoring all orders from the State Board of Equalization regarding property tax valuation. "Under our oath, we are required to follow the laws of the state of Wyoming, and currently, in the law is the 4% cap," Huxtable said. "There is also language in the statutes, there are duties that say we are to honor all orders of the state Board of Equalization in regards to property tax valuation."