Budget & Taxes

Wyoming's HB 128 provides a 5-year severance tax exemption for oil and gas operators using certified advanced extraction methods (tertiary production) between July 2026 and July 2031. It directly affects oil and gas producers who implement qualifying projects approved by the Wyoming Oil and Gas Conservation Commission after July 1, 2026. The bill requires annual reports by the Commission and Department detailing production volumes, qualifying operators, wells, and the tax savings from the exemption. This exemption applies specifically to severance taxes under Wyoming law, with reports due each November 1 from 2026 through 2036.

This bill amends Wyoming's tax exemption rules for housing projects owned by cities or counties. It requires that such housing property be 100% publicly owned (by a municipality, county, or fully controlled entity) to qualify for tax exemption, excludes profit-making portions from the exemption (while allowing adjustments for public utility costs), and permits cities to instead make payments to maintain low-rent housing. The changes apply to all Wyoming cities, towns, and counties starting January 1, 2026.

This bill establishes a property tax rate of 8.3% for residential real estate in Wyoming, effective for the 2026 tax year. It defines residential real property to include single-family homes, condominiums used as primary residences, and associated land. The rate applies only to qualifying residential properties, while other property types would continue to be taxed at 9.5%. Homeowners with residential properties meeting the new definition would see their property taxes calculated at this rate starting in 2026.

This bill revises Wyoming's homeowner property tax exemption rules. It removes the requirement that homeowners must reside in their property for at least eight months each year to qualify for the exemption, effective for tax year 2026. The bill also adds an exception for active-duty military members: if their service prevents meeting the residency requirement, the property still qualifies if it's the legal domicile of the service member. This change directly affects Wyoming homeowners seeking the property tax exemption, simplifying eligibility for most residents while maintaining a military exception.