The Joint Agriculture Committee voted to advance Senate File 81, which would exempt state-owned property from property taxation and apply the exemption to the tax year beginning Jan. 1, 2025; the bill also includes a repeal clause effective Dec. 31, 2026.

Ken Geehl, administrator of the Department of Revenue’s Property Tax Division, told the committee the Wyoming Supreme Court recently found that certain state-leased property used for commercial purposes (an example cited was a truck stop) did not qualify as a governmental purpose and therefore could be taxable. Geehl said the court’s decision made clear that if the Legislature wants these parcels exempt, it must act by statute. “So this came about … the supreme court ruled that, yes, state land, because of the situation, can be taxed,” Geehl said.

Geehl also provided a fiscal estimate: taxing the identified leased grazing parcels would result in about $3,000,000 of tax liability that the state would owe if the parcels were not exempt. He explained that improvements owned by lessees (for example, a barn or other structures) remain taxable; the proposed bill would not change that.

County assessors and county officials testified that the valuation machinery and agricultural classification are in place to assess these parcels for the 2025 tax year if the Legislature chooses not to exempt them—but they warned the transition would be administratively complex. Tera Berg, Fremont County assessor, told the committee counties could implement the valuation but noted statutory cleanup may be needed to resolve conflicts between the proposed blanket exemption and existing statutes that already treat some state-held properties differently.

Public stakeholders including the Wyoming Stockgrowers Association and Farm Bureau urged the committee to move the bill and gave context about practical implementation concerns; Stockgrowers’ Jim McGavin asked for time to work out fairness and implementation before any rulemaking would shift tax burdens to lessees.

Committee members discussed possible carve-outs and cleanup amendments (for example, clarifying treatment of Game and Fish properties and other existing statutory provisions). Sponsor Senator Crago said he would work with Department of Revenue and county assessors on targeted changes before floor consideration. The committee approved an LSO amendment clarifying the exemption applies to tax year starting Jan. 1, 2025 and granted the bill committee approval on a roll call vote (5 ayes).

The committee did not adopt additional carve-outs at the hearing; senators indicated further amendments could be filed on the floor to address issues raised by assessors and stakeholders.