Albany County voters could make 5th penny tax permanent

The 5th penny has been renewed every four years since 1986. Voters can renew the tax again for another four-year cycle or make it permanent. They could also eliminate the tax.

Voters across Albany County will have the chance to renew or repeal the final penny of the community’s five-cent sales tax.

The “5th penny” has appeared on the ballot every four years for nearly four decades. And every time it’s appeared on the ballot, Albany County has voted overwhelmingly to keep it.

This year, however, voters have the chance to make that tax permanent. They still have the option to renew it for four years, as well as the option to repeal and eliminate the tax.

There will be two separate propositions on the ballot and the electorate can vote on both:

• 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).

Despite the presence of two separate ballot propositions, there is no chance of a double tax. Those who wish to make the tax permanent are safe to vote for both propositions – in order to support a four-year renewal if the permanent proposition fails. Those who only want a four-year renewal can vote for Proposition 1 and against Proposition 2. Those opposed to any extension of the 5th penny can vote against both.

If both propositions pass, the tax will be made permanent. If the electorate votes for a four-year renewal but against a permanent tax, the 5th penny will be renewed and reappear on ballots in 2026. If both propositions fail, the 5th penny will be eliminated at the end of this calendar year.

What is the 5th penny?

The Laramie City Council is unanimous in its support for the 5th penny. The tax also enjoys majority support from the Albany County Commissioners and the Rock River Town Council.

“A lot of us – for a number of reasons, not the least of which being not having to do this every four years, and we don’t think there’s ever going to be a time when the 5th penny isn’t absolutely required for basic services – would like to see this made permanent,” Mayor Paul Weaver said during a joint meeting of the city council, town council and county commission in May.

The 5th penny could also be made permanent by concurrent votes of the city council, town council and county commission. But during the meeting in May, they decided together to throw the question to the voters instead.

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.

According to the same summary, should the voters repeal the 5th penny in November, the city will “immediately” have to reduce its current two-year budget by $5 million.

“Since 2014, 5th Penny sales tax monies have become increasingly necessary to pay for basic and essential municipal services due to the significant decline in appropriations from the State of Wyoming,” the summary states. “Since 2014, the State Legislature has voted repeatedly to reduce direct distribution funding to Laramie by approximately $1.6 million per year and to eliminate the capital consensus program which provided an average of $500,000 per year for public safety services and street and stormwater improvements.”

The city also uses 5th penny funds to match Community Partner Program grants, which give a financial boost to nonprofit organizations like Laramie Interfaith and Laramie Soup Kitchen. The city highlights a number of these 5th penny beneficiaries on its official Youtube channel.

“We are trying to continue the tax, not raise it,” Councilor Bryan Shuster said during the intergovernmental meeting in May. “Either way they vote, we are not raising taxes, we are trying to continue with what we have to run the city.”

How has Albany County voted in the past?

The option to make the 5th penny tax permanent is new this election cycle, but voters have had the opportunity to reestablish the 5th penny every four years since 1986, when it first appeared on ballots.

Every single time Albany County has faced the choice, the voters have chosen, often overwhelmingly, to renew the tax. But that support has been falling in recent elections.

In both 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.