Senate File 0089 “Local Housing Projects - tax exemption amendments" failed to gain the two-thirds threshold it needed to make it onto the Senate floor. Sponsored by Senator Cheri Steinmetz, this bill sought to eliminate property tax exemption loopholes used by out-of-state investors and equity firms. Across Wyoming, local housing authorities will take a fractional percent interest in a housing project for purposes of achieving a full property tax exemption for the beneficial owners. Often, the local assessor’s office is unaware of the fractional ownership.
In the case of the Liberty Square Apartments, for example, the Casper Housing Authority CARES owns .005 percent of the development along with other small percentage owners, and Boston Financial owns the other 99.98%. Boston Financial also received 94% of the rental revenue. Despite this organizational structure, the LSA still receives a full property tax exemption.
The Open Range Record previously reported that housing developers across the state have been successful in acquiring a 99.9% interested in residential properties without having to pay property taxes.
Senator Steinmetz’s bill attempted to recoup the lost revenue. According to Bret Fanning, who is the Director of the Wyoming Department of Revenue, “Our local County Assessors make the determination(s) on whether or not certain properties are exempt from property tax.” He added that “these housing projects are worth a review by the Department.”
For now, these housing projects are handled in a variety of ways across the state. In Teton County, for example, they receive full property tax exemptions.
Ten other Republican Senators voted along with the two Democrat Senators, Gierau and Rothfuss, and the Republican Majority Floor Leader, Senator Nethercott, against ending property tax loopholes for major corporations. These Senators were Anderson, Brennan, Cooper, Crago, Crum, Dockstader, Driskel, Landen, Olsen and Pappas.