Residential property tax replacement.

HB 118 would replace residential property tax revenue lost when Wyoming sets the taxable value of residential property (homes and condos used as primary residences) to 0% (down from 9.5%). To compensate, it creates a new 2% sales tax starting April 1, 2027 (administered as a 6% total sales tax rate), with revenue distributed to counties based on their property tax losses. Local governments directly affected would receive annual reimbursements through a new "property tax reduction and replacement account" to offset reduced property tax revenue from the valuation change. This bill affects homeowners (reducing their property taxes) and local governments (receiving sales tax revenue to replace lost property tax income), contingent on a constitutional amendment.