Jackson Hole, Wyoming, Financial Overview

Investment In Jackson Hole Real Estate Deemed Wise

Wyoming has become one of the lowest tax burden states in the nation according to the Tax Foundation. No state-imposed income or corporate taxes also prove a boon for Wyoming businesses which are currently thriving. Per capita income is above both the Rocky Mountain states’ and national averages, according the U.S. Department of Commerce. In turn the prosperity has allowed more infrastructure and growth in the service and hospitality sectors.

In 2006 Pollina Corporate Real Estate, Inc. rated Wyoming in the top ten for Pro-business states. Per capita income rose by 10% in 2006. Jackson Hole has a niche oriented business landscape heavily partial to the service sector, but local entrepreneurs have been creative in catering to a diverse population of full and part-time residents who treat themselves well from the trail to the dining room.

Times are good in Wyoming. Unemployment is below the national average. The state recently repealed taxes on prescriptions and food for consumption. The sales tax is a low 4%, and there is no inheritance tax or state-imposed estate taxes. Furthermore, retirement income, even when it comes from another state, is not taxed. Without surprise, retirees find the state amenable whether they are downsizing or upgrading their lifestyle. When people seek high quality of life, they find Wyoming gives back financially and recreationally. Bloomberg Wealth Manager ranked Wyoming as the most wealth-friendly state for the seventh year in a row in 2004, falling to second behind Hawaii in 2005. Wyoming has long been a tax shelter for both businesses and retirees.

The state’s natural resources – coal, hydro-carbon, natural gas - and their tax revenues contribute to Wyoming’s economic gains while also putting pressure on the housing sector as it finds room for new workers. With 97% of Teton County protected as open space, home prices for Jackson Hole real estate are further buoyed in this coveted destination. According to Jonathan Schechter, a Jackson Hole statistician, the median home price has reached $2.4 million. Coupled with all of this good news about economic growth and low taxes is the fact of inflation. If you can get in the door, cost of living in other sectors, while rising, is still quite reasonable.

Many of the financial affairs are a small price to pay, some say, for a dream home within the Jackson Hole real estate market. Property taxes are structured favorably for owners of Jackson Hole real estate. Wyoming is a “fractional assessment” state. Property tax applies to only the property’s assessed value, not the full market value. This means, 9.5% of the market value is subject to tax for all residential, commercial, and non-industrial properties. This value is then multiplied by the mill levy which was approximately 60 (.06) in 2006.

With much respect for the landscape, property owners use conservation easements as a way to protect private land; they benefit from corresponding tax incentives. Natural resources are often reason enough for many people to choose to invest in Jackson Hole real estate and call Wyoming their home.

Sales Taxes
State Sales Tax: 4% (prescription drugs exempt); counties have the option of adding up to 2% in additional taxes. There is a county lodging tax that varies from 2% to 4% and is added to the other sales taxes. Gasoline Tax: 14 cents/gallon Diesel Fuel Tax: 14 cents/gallon Gasohol Tax: 14 cents/gallon Cigarette Tax: 60 cents/pack of 20

Personal Income Taxes
No state personal income tax Retirement Income Taxes: Not taxed, including that received from other states.

Property Taxes
Statutes limit property tax rate increases. For county revenue, the property tax rate cannot exceed 12 mills (or 1.2 percent) of assessed value. For cities and towns, the rae is limited to 8 mills (0.8 percent). With very few exceptions, state law limits the property tax rate for all governmental purposes. A June 2000 survey by the Wyoming Taxpayers Association found that the state's residential property tax rate of 0.735% of market value compares to an average of 1.4% for surrounding states and 1.2% to 1.5% average tax rate for all states, depending on the price of the home. Nominal property tax rates, or mill levies, vary widely among the over 400 separate government bodies in Wyoming that levy property tax.

Inheritance and Estate Taxes
There is no inheritance and the estate tax is limited and related to federal estate tax collection. For more information, visit the Wyoming Department of Revenue site or call 307-777-5283. //