TAX BENEFITS OF WYOMING BY NEIL BANGS BROKER ASSOCIATE | FAY RANCHES
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hether you are in the land market for a working ranch, recreational ranch, second home, or personal residence, you must consider certain criteria. Everyone has heard the old saying location, location, location when it comes to purchasing real estate. Location holds many different meanings depending on the type of property you are purchasing. Sometimes, this is on a smaller scale, like a buyer of a personal residence finding a home located near a school or shopping more appealing than a home located next to a race track. A ranch buyer may find a ranch more appealing being located closer to a stockyard than not. It is also worth considering why some states are better than others when you’re looking for land. Wyoming is at the top of the pile for several reasons. Wyoming is currently ranked the second most tax-friendly state in the United States just behind Alaska. Below is a long list of the reasons why. Wyoming has no income tax. Wyoming is one of seven states that does not collect state individual income tax. Many people believe that states that don’t directly dip into their residents’ pay are better at creating jobs and keeping a core of young, educated workers. Wyoming has no estate tax or inheritance tax. Wyoming’s Estate Tax is not imposed on the estates of people who died in 2005 and after. There is a Federal Estate Tax that may apply if the estate is large enough. Wyoming does not levy an Inheritance or Gift tax, but again, one must be diligent and investigate the Federal Tax as the Federal Gift Tax may apply to gifts over $15,000. Wyoming has no tax on out-of-state retirement income. Retirement income earned from another state is safe from taxation in
Wyoming, including Social Security benefits, 401K withdrawals, and pensions. Wyoming has no excise tax. Another benefit to business and manufacturing in the state of Wyoming is the lack of an excise tax. Wyoming does have a state levy sales tax of 4% (which municipalities can add up to 2% to that) but rest assured, you are not paying duty on those goods at the time of manufacture. Wyoming has a low property tax. Wyoming enjoys one of the nation’s lowest property tax rates. Industrial property rate is 11.5% and 9.5% for commercial, residential, and all other property. For a definition and further information regarding Agriculture Land please visit: www.wyo-prop-div.wyo.gov/agricultural Wyoming has no tax on mineral ownership. Minerals are exempt from property tax, but incur an ad valorem tax and a severance tax once produced. These taxes contribute approximately $2.2 billion dollars to state and local economies of Wyoming. Wyoming motor fuel taxes are $0.24 per gallon. As you take stock of this and all of the other tax savings Wyoming offers compared to other states, you will realize there is hidden value in the state of Wyoming. If you are looking at two comparable ranches, one in Wyoming and one elsewhere, the tax benefits in Wyoming will far outweigh almost any other state. One could even justify a higher budget in Wyoming because of the annual tax savings, or you could maintain your budget and enjoy a better bottom line at the end of the year. If you are actively searching for a ranch or recreational property, I urge you to explore Wyoming.
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