Reality

[OrediggerPoke]

Thank God they're gonna eliminate property taxes, so all the counties and municipalities can eliminate the services that older people depend on. Smart!

It is crazy. The plan (I guess) is to somewhat replace the revenue with an increased sales tax. That actually has an outsized impact on older people because they typically have smaller (less expensive and thus less taxed) homes, live on fixed incomes but still need to buy everyday items subject to sales taxation to live.

So what we are really doing is subsidizing the Jackson wealthy folks because they no longer would have to pay property tax on their ridiculous multi-million dollar residences but largely don't need to purchase more essentials (subject to sales taxation) than the other typical Wyoming resident.

I don't understand it at all.

 

[LanderPoke]

Thank God they're gonna eliminate property taxes, so all the counties and municipalities can eliminate the services that older people depend on. Smart!

Boomers, man. They want to have their cake and eat it too

 

[LanderPoke]

Oredigger - tell me about the rare earth mineral situation in Wyoming

 

[OrediggerPoke]

Oredigger - tell me about the rare earth mineral situation in Wyoming

I could tell you a lot about it. There is a lot of potential in Wyoming. But most importantly , rare earths largely produce NO royalty income to the state of Wyoming because most economic deposits are located on federally owned minerals in Wyoming which are part of the 1872 Mining Law and not the Mineral Leasing Act (where Wyoming gets half the coal and oil and gas royalties).

As far as severance taxes, coal is taxed at an additional 6.5% in Wyoming but rare earths only at 2%.

Long story short, it cannot solve revenue shortfalls under current royalty and taxing structures…especially if industrial property taxes are ever reduced. Direct income from rare earths is relatively small under current law.

 

[OrediggerPoke]

What is actually a bit interesting, is that the deposits of magnetic rare earths found in Wyoming in economic deposits recently seem to be needed most for: (1) induction generators developed for wind turbines; (2) EV vehicles and their motors; and (3) battery storage. Those are products the freedom caucus seems to rally against.

Personally, I could care less what we produce and what type of energy we create if it has a market and produces income for the state of Wyoming (I don’t pick winners and losers). If California wants to buy a type of energy from Wyoming at a higher cost than it could get from a fossil fuel, that may be stupid of California but that is great for Wyoming.

 

[LanderPoke]

I could tell you a lot about it. There is a lot of potential in Wyoming. But most importantly , rare earths largely produce NO royalty income to the state of Wyoming because most economic deposits are located on federally owned minerals in Wyoming which are part of the 1872 Mining Law and not the Mineral Leasing Act (where Wyoming gets half the coal and oil and gas royalties).

As far as severance taxes, coal is taxed at an additional 6.5% in Wyoming but rare earths only at 2%.

Long story short, it cannot solve revenue shortfalls under current royalty and taxing structures…especially if industrial property taxes are ever reduced. Direct income from rare earths is relatively small under current law.

At least it has potential to provide a lot of jobs?

 

[OrediggerPoke]

At least it has potential to provide a lot of jobs?

Yes that is the upside. But most jobs are actually in the processing of rare earths. Unless you invest in local infrastructure to create an inviting place for a workforce, companies may opt to simply ship the mined ore out of state to be processed elsewhere. I’m afraid this is what will occur with our current path.

 

[LanderPoke]

Yes that is the upside. But most jobs are actually in the processing of rare earths. Unless you invest in local infrastructure to create an inviting place for a workforce, companies may opt to simply ship the mined ore out of state to be processed elsewhere. I’m afraid this is what will occur with our current path.

Cowboy state daily said they just built a processing plant in Upton. If they can build one there then hopefully they could build them elsewhere in Wyoming, too.

 

[OrediggerPoke]

Cowboy state daily said they just built a processing plant on Upton. If they can build one there then hopefully they could build them elsewhere in Wyoming, too.

It’s a small demonstration plant to test the company’s new processing technology. The plants that would be needed to develop resources like the Halleck Creek discovery would be magnitudes bigger.

 

[LawPoke]

It is crazy. The plan (I guess) is to somewhat replace the revenue with an increased sales tax. That actually has an outsized impact on older people because they typically have smaller (less expensive and thus less taxed) homes, live on fixed incomes but still need to buy everyday items subject to sales taxation to live.

So what we are really doing is subsidizing the Jackson wealthy folks because they no longer would have to pay property tax on their ridiculous multi-million dollar residences but largely don't need to purchase more essentials (subject to sales taxation) than the other typical Wyoming resident.

I don't understand it at all.

This is a very thoughtful and cogent post. The scary thing is that most in the Legislature and quite a few citizens have no idea that property taxes fund the most important things in most folks' lives. There is a perception that they are sent to Cheyenne and fund general state operations, when in reality, they fund roads, bridges, ambulances, hospitals, sewer and water infrastructure, schools, snow removal, cemeteries, parks, curb and gutter, sidewalks, senior centers, conservation districts, weed and pest districts, and countless other services. To think you can backfill with extremely regressive sales taxes is crazy - and, as you point out, only serves to further line the pockets of the billionaires and millionaires in Jackson, Star Valley, Cody, Jackson, Pinedale and everywhere else at the expense of the commoner that will see their already high grocery bill skyrocket. None of this mentions the impact on our already struggling retail and commercial sectors, who will have to layer the tax increases on top of inflation and tariff-based adjustments. If it wasn't so terrible and cruel, it would almost be comical.