Lacock: Beware of Those Selling You Free Ice Cream

As we carom towards the 2026 Legislative Session and election season, I offer this reminder — beware of those who offer you free ice cream.

I don’t mean that literally. I would never ask you to turn down a scoop of free butter brickle, but I am talking in the figurative sense. We see this in the current conversation about property taxes. There are individuals offering free ice cream by removing or substantially reducing property and claiming that you can still receive the same services. We all know relief comes with a cost to local services.

For some, property tax relief through new state programs is absolutely necessary, and Wyoming has done well to offer it. In the last two years, the Legislature has enacted a cap that doesn’t allow your property tax burden to rise more than 4% year-over-year; a 50% reduction for long-term homeowners, as well as a 25% reduction in property tax that took effect this year. The Long-Term Homeowners Exemption is also available for those who are 65 and older and have paid residential property tax in the state for 25 years or more.

We remind ourselves the state of Wyoming collects no property taxes. Instead, the first 68 cents of every property tax dollar goes to K-12 education, and the next 17 cents goes to county governments. The rest goes to special districts, such as community college districts, weed and pest control districts, cemetery districts, senior citizens’ districts, and others.

Time will determine whether those groups can continue to deliver the same basic services with fewer tax dollars. Our friends at the County Commissions have told us the reductions being made across the state, based on last year’s relief, aren’t inconsequential. Cut those dollars in half again if the People’s Property Tax Initiative passes a vote of the people next year, and major decisions will have to be made as to what roads get resurfaced, what water plants get updated, and whether we continue funding parks or senior services. In all, property tax relief resulted in $187,324,910 fewer dollars in taxes flowing to Wyoming education and local governments in 2024. Over $43 million of that was diverted from Teton County alone, but education and local governmental interests in Laramie ($27M), Natrona ($20 M), Park ($12M), Sheridan ($11M), and Fremont ($10M) also saw significant reductions. The Long Term Homeowners Exemption put a $40 million dent in the budgets of local governments and schools.

At AARP Wyoming, we don’t advocate for higher taxes; we ask for fair and transparent tax policy. There is and should be a healthy discussion about how to achieve the lowest taxes possible while still receiving services from our state and local governments. Here is AARP’s policy on the topic: Property tax relief should be equitable, cost-effective, and targeted to homeowners with low and moderate incomes burdened by their property tax bill.

Wyoming does this pretty well in this regard presently. The Property Tax Refund bill allows you to ask for a refund on last year’s property taxes paid, assuming you make less than 145% of the county’s median income. In several counties, the annual amount is approximately $110,000. This year, the program got refunds totaling just shy of $15 million to 14,080 Wyomingites — an average of $1,057 per applicant.

You will see some encouraging you to cut your property tax by another 50% next election cycle through The People’s Initiative. You will also see proposals that move the state to a cost-of-acquisition system (you are taxed on the amount you paid for your house), which Idaho tried but then decided was too complicated. You’ll even see some requests to eliminate property tax entirely and adopt a “consumption-based system.” That is a fancy way of saying to rely solely on sales tax. You have to decide if it is free ice cream or if the citizens of the state can live with the services that will be impacted.

Nebraska proposed abolishing the property tax last year with the EPIC plan, which would have raised the sales tax to 7.5%. The Tax Foundation, a respected conservative tax policy research group, found this to be too low, suggesting that a 21.6% rate was actually needed for the consumption rate to fill the financial gap.

Last spring, I had a grassroots worker from an out-of-state entity tell me AARP should be in favor of abolishing property taxes entirely because it would help older adults live in their homes longer. That sounds good if you are sending email and fundraising on that talking point (her organization is), but it is important to remember that property tax payments in Wyoming already support services that help older adults age in place. Here are a few examples:

Transportation is crucial for older adults to avoid nursing homes. Wyoming’s local communities use federal funds for 65% of Title III-B funding for older adult transportation programs, with 27% of local match money coming largely from local property taxes. Over 1,500 citizens used these services in 2024.

Wyoming had the highest per capita rate of seniors eating meals at senior centers and the second highest rate of home-delivered meals. Property tax funds the 10% local match.

Wyoming Home Services provides direct care, such as medication management and basic household chores, to individuals who are likely to require nursing home care in the near future. These services are funded 71% by the state and 21% by local matching funds from property taxes.

There are other examples, such as senior center districts. Just something to think about for the next time someone offers you free ice cream.