Albany County approves 5th penny extension, rejects permanent tax

The 5th penny funds roughly 20-25% of basic city services. Local government officials say city services would have to be cut if the tax is ever repealed.

The Albany County electorate voted to keep the 5th penny tax — a crucial source of local government funding since its introduction in the 1980s.

But they rejected the opportunity to make the tax permanent, committing the county and its voters to revisiting the issue again in four years.

“The permanency question was put before the voters because it is difficult to imagine how the local government would be able to operate at the level citizens expect without it,” Mayor Paul Weaver said. “The result of the vote is understandable. Albany County voters understand the importance of this funding, but they are probably in favor of providing oversight every four years. It is likely that the idea of being able to give a vote of approval to this tax every four years is a more comfortable idea at this time.”

The choices were presented to Albany County voters in a pair of ballot propositions:

• Ballot Proposition 1: Vote FOR or AGAINST the county establishing a 1% sales tax for a period of four years (through the end of 2026).

• Ballot Proposition 2: Vote FOR or AGAINST the county establishing a permanent 1% sales tax (to last indefinitely).

If both had passed, Proposition 2 would take precedence and the tax would last indefinitely. If both had failed, the tax would have been eliminated. But last week, Proposition 1 passed and Proposition 2 failed.

Ballot Proposition 1 has appeared before voters every midterm election year since 1986. It has always been approved by Albany County voters.

This year, the proposition earned 63% of the votes cast, continuing a downward (but decelerating) trend. In 2006 and 2010, about 74 percent of ballots cast supported renewal of the 5th penny tax. In 2014, that support fell slightly to 69 percent. In 2018, it fell again, this time to 64 percent.

Ballot Proposition 2 was rejected, earning just under 45% of the votes cast. More than 55% voted against making the 5th penny tax permanent. Each proposition received more than 12,000 votes.

The 5th penny funds about 20-25 percent of basic governmental operations, according to a summary produced by city staff. The money raised through the 5th penny tax funds everything from street and bridge repair to animal control to park and trail maintenance to firefighting and policing services.

“The 5th penny is an essential revenue source for local government both at the county and city level,” Weaver said. “Without it neither government body, nor any of the agencies within, would be able to operate normally. This would affect streets, road and bridge, trash collection, parks and recreation, and all public safety including fire and EMS.”

City staff warned the Laramie City Council, the Rock River Town Council and the Albany County Commission earlier this year that if the 5th penny was repealed in November, the city would “immediately” have to reduce its current two-year budget by $5 million.

“It would be important for the community to understand that if the 5th penny was not renewed, in order to maintain services, another revenue source would need to be found or services would be heavily reduced,” Weaver said. “Any discussion around repeal of the 5th penny should involve those considerations.”

Most communities across Wyoming benefit from a 5th penny tax. Only a couple go without (such as Park County, which instead relies heavily on Yellowstone tourism).

Albany County also voted overwhelmingly (with 76% of the votes cast) to continue the 2 percent lodging tax. Despite its broad support, this ballot proposition is slightly less popular than it has been in years past. Like the 5th penny — but to a lesser extent — the lodging tax has seen support decline since 2006 when it received 80% of all votes cast.

Below are the official results for the three ballot propositions put to Albany County voters in the 2022 general election. The winning votes are printed in bold.

Ballot Prop 1 (keeping the 5th penny for four more years)

• For: 7,816

• Against: 4,500

Ballot Prop 2 (making the 5th penny permanent)

• For: 5,469

• Against: 6,735

Ballot Prop 3 (continuing the 2 percent lodging tax)

• For: 9,424

• Against: 2,966