CHEYENNE - Gov. Dave Freudenthal is asking Wyoming residents to get involved in his efforts to promote property tax relief in the upcoming session of the Legislature.

Freudenthal on Wednesday released a statement asking residents to urge their state lawmakers - some of whom campaigned on tax relief - to reactivate the homestead property tax exemption.

"Last session, my proposal did not receive the support of the Legislature, but I hope this year residents will let their legislators know that they expect them to follow through on their campaign promises and deliver tax relief," Freudenthal said in the statement.

Freudenthal's supplemental budget recommendation, released last week, included $39 million in existing state revenue to pay for the homestead exemption, which already exists in state law but is not funded.

Freudenthal's plan calls for a tax exemption on the first $5,000 of the taxable value of homes worth $237,000 or less, excluding the value of the lot.

Depending on local property tax levies, the amount should provide an average of $278 in tax savings to around 139,500 Wyoming households, according to figures from the governor's office.

About 17,000 households statewide, or about 10 percent, would not be eligible for the exemption, the figures show.

"Placing a $237,000 cap on the benefit does exclude some properties," Freudenthal said. "But it is important to get relief to those who need it most.

"The cap reduces the impact on the state budget while still providing a benefit to more than half the households in Wyoming," Freudenthal added.

Only residents of Wyoming for three years or more would qualify for the plan, and they must own and occupy the property. The plan includes a provision to reimburse local governments for tax losses created by the exemption.

Not every legislator is thrilled by the proposal.

Rep. Keith Gingery, R-Jackson, said he is disappointed that Freudenthal opted to cap eligibility at a home value of $237,000, which disqualifies most homes in Gingery's district in Teton County.

Some longtime Teton County residents complain they are being strangled by property taxes as home values skyrocket in the rich, western Wyoming county.

"I'm not in favor of his plan, simply because he's removed Teton County, but it may benefit other parts of the state," said Gingery, adding that he likely would not vote against the measure because of its value to other state residents.

Incoming Senate President John Hines, R-Gillette, said his main criterion for property tax relief efforts is the targeting of groups that really need it - and he's not sure Freudenthal's plan is targeted enough.

Providing relief to owners of all homes valued at $237,000 or less seems "pretty broad," Hines said.

"My main concern is that we help those who are really in need," Hines said. "Basically, the majority of people in Wyoming have very low taxes to begin with, so those who are currently able to pay them, I think they should pay them."

Rep. Collin Simpson, R-Cody, the incoming House speaker, said the same issues of fairness that hurt the homestead property tax exemption last year may be a factor in the debate this year, because some homeowners will be excluded under Freudenthal's proposal.

"The relief (last session) was not broad based, and it still needs to be fair and equitable according to the constitution," Simpson said.

Freudenthal's won't be the only tax relief proposal on the table when lawmakers meet next month. There is also talk of a constitutional amendment that would allow for property tax relief targeted directly to homeowners.

Constitutional amendments require a public vote. The Legislature has defeated similar measures in the past.

Simpson said he is drafting a bill to reduce the tax rate for commercial and residential property from 9.5 percent to roughly 8.25 percent. He said such a reduction would be allowed without amending the constitution.

Despite the push for lower taxes, Wyoming property owners still pay among the lowest tax rates in the nation. A 2006 study by the Minnesota Taxpayers Association ranked Wyoming near last in property taxes compared to other states.

Even with recent tax spikes attributed to the mineral boom and escalating property values, taxes in Wyoming are comparatively low, the study showed.

Contact capital bureau reporter Jared Miller at (307) 632-1244 or at {M7jared.miller@trib.com.

The following table shows how Gov. Dave Freudenthal's proposal to reactivate the homestead tax exemption would affect residents of Wyoming's 23 counties.

County #of parcels eligible # of parcels ineligible Total exempted value Estimated taxes lost Avg exemption per parcel

Albany 7,321 1,088 $30.4 million $2.2 million $295

Big Horn 3,618 99 $13.2 million $937,253 $259

Campbell 10,1006 539 $38.3 million $2.7 million $271

Carbon 5,354 170 $19.4 million $1.3 million $257

Converse 3,912 180 $14.7 million $1 million $265

Crook 2,467 107 $7.6 million $536,908 $218

Fremont 10,273 774 $35.7 million $2.5 million $246

Goshen 4,148 194 $15 million $1 million $257

Hot Springs 1,539 56 $5.9 million $415,275 $270

Johnson 2,472 345 $9.9 million $704,993 $285

Laramie 21,642 2,152 $92.4 million $6.5 million $302

Lincoln 5,090 764 $20.7 million $1.5 million $288

Natrona 17,856 1,888 $74.2 million $5.2 million $294

Niobrara 1,060 20 $3 million $214,847 $203

Park 7,390 1,078 $30.3 million $2.1 million $290

Platte 3,280 90 $11.4 million $809,861 $247

Sheridan 7,171 1,439 $29.7 million $2.1 million $294

Sublette 2,688 563 $10.9 million $778,008 $289

Sweetwater 10,030 971 $37.8 million $2.7 million $267

Teton 2,248 4,359 $10 million $711,689 $317

Uinta 5,247 320 $20.3 million $1.4 million $274

Washakie 2,145 146 $9.6 million $681,604 $282

Weston 2,324 43 $8 million $569,392 $245

Totals 139,533 17,387 $547 million $38,863,169 $278

Source: Governor's office]]->