CHEYENNE — A Thursday declaration from the State Board of Equalization that property tax exemptions are unconstitutional has resulted in a lawsuit.

Gov. Mark Gordon announced Tuesday that he directed Attorney General Keith Kautz to file a lawsuit in Laramie County District Court seeking an injunction. The injunction would require the State Board of Equalization to certify residential property values and recognize the exemptions passed by the legislature in 2024 until a court rules the exemptions unconstitutional. 

It is my duty to uphold and support the laws passed by the legislature,” Gordon said. “Once those laws are on the books, it is solely the role of the judiciary to determine their constitutionality, not the agencies, boards, or commissions. For this reason, I believe the Board is incorrect in their order and I believe it is appropriate to go to the judicial branch for clarification.”

If successful, the state believes the injunction will prevent confusion and disruption to residential property owners and counting that are in the process of winding up assessments.

As the issue is now in court, Gordon declined to comment further. 

The action has already gotten support from the Wyoming County Commissioners Association. The WCCA said the State Board of Equalization’s decision creates uncertainty not only for county governments and county assessors, but taxpayers themselves. 

“It is important that counties, assessors and taxpayers have clear direction as they move through the annual assessment and certification process,” WCCA Executive Director Jerimiah Rieman said. “The Legislature adopted the 4% cap, and counties have worked in good faith to implement that law. We support efforts to obtain timely clarification from the courts so local governments can continue administering Wyoming’s property tax system with consistency and confidence.”

The WCCA notes the uncertainty around the cap’s implementation can cause administrative challenges to counties, which can include recalculating assessments, revising assessment schedules, processing appeals and updating tax notices. 

The property tax exemptions passed in 2024 were done in response to rapidly increasing property tax rates across the state. Sweetwater County Assessor Dave Divis previously told SweetwaterNOW that the tax increases were fueled by people flush with cash seeking a life outside of the city because they were able to work remotely. Those buyers drove residential property values up to a point where it impacted the assessed property valuations in several counties, sometimes leading to double-digit percentile increases in property tax rates year over year.

Divis also previously said Sweetwater County didn’t see the same increases Sheridan County and Sublette County had because the county’s tax base is more aligned with its heavy industries and didn’t attract the volume of out-of-state property buyers other counties saw. 

The potential for more property tax reductions will be brought before voters in November as a question to reduce property taxes by 50% will be on the ballot.