Ballot Guide 2026: Wyoming's Initiative 1

Mountain States Policy Center has released a new study examining Wyoming Initiative 1, which would exempt 50% of a qualifying primary residence’s assessed dwelling value from property taxes.

Written by MSPC’s Marta Mossburg, the study reviews the initiative’s eligibility requirements, arguments from supporters and opponents, estimated revenue effects, and alternatives for addressing rising property tax bills.

Under the proposal, homeowners would need to have lived in Wyoming for at least one year and occupied their primary residence for at least six months of the previous tax year. The exemption would apply to the residential structure, excluding land.

The study highlights two revenue estimates with different scopes. The official ballot language projects state revenue reductions of approximately $92.6 million in fiscal year 2028 and $95.9 million in fiscal year 2029. A separate Wyoming Department of Revenue analysis estimates that state and local government revenue could decline by as much as $124.7 million in fiscal year 2028.

Those reductions raise a central question: how would governments adjust spending or replace the revenue used to support schools, roads and other services?

The study warns that substituting higher sales taxes could create additional problems, including greater revenue volatility, incentives for shoppers to purchase across state lines, and a heavier burden on lower-income households. It also examines how shifting funding responsibility to the state could weaken local control.

As alternatives, the study recommends considering levy limits, Truth in Taxation and income-based circuit breakers. Levy limits constrain growth in property tax revenue. Truth in Taxation requires public notice and hearings on proposed revenue increases. Circuit breakers target relief to households whose property tax burdens are high relative to their income. The analysis emphasizes that rising home values do not automatically justify larger government budgets. Lasting relief requires attention to spending, transparency and the circumstances of taxpayers struggling to afford their bills.

The study provides voters and policymakers with an examination of Initiative 1’s tradeoffs and other approaches to property tax reform.

Mountain States Policy Center is an independent, nonprofit research organization serving Idaho, Montana, Washington and Wyoming. Its work advances free enterprise, limited government and individual liberty through fact-based public policy research.

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