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Home My WebLink About03-22-22 Public Comment - T. Keck - Affordable Housing Materials Provided at City Commission Meeting 3/21/22,4:41 PM Lawmakers breathe life into real estate transfer tax BUCKRAIL ,VYQI 1LE Lawmakers breathe life 'Unt re-W ® by WyoFile December 24,2021 E h �l 1 Real estate transactions in Teton county are on pace to surpass$3 billion in 2021.Photo:Mike Koshmrl//WyoFile Wyo e by Mrike Koshim-1 WYOMING—A legislative committee has resurrected a many-times-failed real estate transfer tax,a levy that proponents say could help turn the corner on a workforce housing crisis that's fraying the community fabric of Wyoming's costliest locale. The idea behind the county-optional 1%tax,which has been repeatedly introduced by Teton County's delegates,is to assess a sales tax on real estate transactions above a certain threshold. In its current form,the bill being carried forward by the Wyoming Legislature's Joint Revenue Committee could generate perhaps $20 million annually for subsidized,deed-restricted housing or for other community needs,Rep.Mike Yin(D-Jackson) estimated. https:Hbuckrai1.com/lawmakers-breathe-life-into-real-estate-transfer-tax/ 1/7 3/21/22,4:41 PM Lawmakers breathe life into real estate transfer tax "It could do a lot,it could really do a lot,"Yin said. Real estate sales in Teton County are projected to top$3 billion in 2021,roughly doubling taxable retail sales in the tourist-swarmed community. "Real estate is to Teton County what coal is to Campbell County, except that we get to sell it again and again and at a higher price each time,"Wyoming Association of Municipalities lobbyist Bob McLaurin said,testifying in support of the bill. The tax structure being considered would allow counties to i exempt up to the first$1.5 million of any real estate transaction. j So if a home sold for$3 millio only half of that total might be taxed at the 1% levy if the county sought the full exempted amount.But the proposed legislation also allows counties to set the threshold lower,making the tax a viable option for counties where home prices aren't so exorbitant. Counties could pursue the optional tax if half the incorporated Rep.Mike Yin(D-Jackson) municipalities plus county commissioners agree to it,or if 5%of the electorate petitions for it.If that happened,the real estate tax would be put to voters in the county.How the funds would be used would be spelled out on the ballot"in a clear and appropriate manner,"according to the df-a fl 1)iR. People whose jobs involve housing Jackson Hole's workforce say the infusion of funds a real estate tax could return could dwarf public dollars currently going toward the cause.Over the past five years,the Teton County government has put$37 million in public funds toward housing,an investment that resulted in 241 new units and leveraged about$100 million in additional private capital,according to Jackson/Teton County Housing Director April Norton. "That's about all we can do,because we don't have a funding source,"Norton said."We are constantly vetting new potential projects,and our major limitation is funding.We have four [affordable housing projects] in front of us right now,but we won't be able to afford four.We might be able to afford one." https://buckraii.com/lawmakers-breathe-life-into-real-estate-transfer-tax/ 2/7 3/21/22,4:41 PM Lawmakers breathe life into real estate transfer tax i i 5 1 Sotheby's International Realty is listing this three-bedroom,two-bathroom home on a 0.34-acre lot in East Jackson for$4.8 million.A real estate tax that's gained the support of the Wyoming Legislature's Joint Revenue Committee would allow Teton County to assess a 1% surcharge on portions of the sale.(Mike Koshrnrl/WyoFile) In the meantime,hourly wage laborers and salaried professionals w�ovi e Jackson Hole's most basic services are increasingly being priced out of the place where they work.That's been an issue for decades,and it has been exacerbated by an aging workforce that's retiring,cashing out on their high-dollar homes and leaving.Wealthy newcomers with location-neutral jobs are often taking their place. -,----'we are losing our employees,"Jackson Hole Chamber of Commerce President/CEO Anna Olson—, .l told revenue committee members."My No. 1 issue for employers is the lack of employee housing / here,and it's getting worse by the day." New support Olson urged the committee members to advance the proposed tax so it could be considered in the Legislature's February budget session,and they did.The committee advanced the 18-page draft bill Dec. 15 by a 8-to-4 vote.A year ago,the Legislature's Joint Revenue Committee killed a statewide o.,% real estate tax More than half that committee's membership turned over,but there was also one vote that flipped:that of Rep.Tim Hallinan(R-Gillette). Rep. https://buckrail.com/lawmakers-breathe-life-into-real-estate-transfer-tax/ 3/7 3/21/22,4:41 PM Lawmakers breathe life into real estate transfer tax Hallinan was swayed by a new provision in the bill that sweetens the pot for the state of Tim Wyoming,he told WyoFile. Specifically,the Office of State Lands and Investments Hallinan distributions to local governments exercising the real estate tax would be reduced by (R Gillette) 50%—and those funds deflected to the general fund. Hallinan is also not certain he'll vote in favor of the real estate tax bill once the entire House convenes in February,he said.Because it's a budget session,bills require two-thirds majority support to be considered in that chamber. Two-thirds support is a"high bar"in Wyoming's tax-averse Legislature,said Rep.Andy Schwartz (D-Jackson),who has introduced a real estate transfer tax several times without committee support. "My hope will be that,even if it dies in this session,that it will come back as a committee bill in the general session," Schwartz said. Simple majority support is needed during the general session,a"huge difference,"he said. Newspaper archives show there have been discussions about a real estate transfer tax in Jackson Hole since the 1980s,and attempts at bringing_the ide-a-to the--Ca} tol-m.Qheyenne for 30 years. My No. 1 issue for employers is the lack of employee housing here, and it's getting worse by the day. �\\ A similar Teton County-led effort spanning decades was employed to pass another county-option tax now commonplace in Wyoming. Lodging tax bills were introduced as long ago as 1965,according to old editions of the Jackson Hole Guide,but they were contested by the likes of the Jackson Motel Association,and it wasn't until 1986 that then-Gov.Ed Herschler's signature enacted the tax.Today, e s ate%bed fax�rr all short-term lodging in Wyoming,and counties have the option of assessin r- tax. - ®id foes Likewise,there has been steady opposition to the prospect of a new real estate sales tax.Laurie Urbig ikik government affairs director for the Wyoming Association of Realtors,relayed her https://buckraii.com/lawmakers-breathe-life-into-real-estate-transfer-tax/ 4/7 3/21/22,4:41 PM Lawmakers breathe life into real estate transfer tax position to lawmakers bluntly. "Obviously we are opposed to this bill," she said."We always have been,and probably always will be." The Teton Board of Realtors has not taken a position on the bill,according to the Jackson Hole News&Guide. Some individual real estate agents,however,have come out in support, including the owner of Jackson-based Prugh Real Estate. "I am for a transfer tax,"Greg Prugh said,"or at least counties having the option to pursue." IA ' Available .. .... For Sale I A 350-acre ranch for sale boasts seven parcels and five homesites on a website that was created for the property.Although the price is unlisted,similar properties in Jackson Hole can fetch tens of millions of dollars.(Mike Koshmrl/WyoFile) Urbigkit dubbed the real estate tax"unconstitutional."The 1% surcharge imposed on speculative real estate investments is not fair, she said. "Putting a sales tax on those investments is not equitable when we do not tax stocks or bonds," she said. The private sector,Urbigkit added,can come up with solutions to workforce housing shortages in Jackson Hole and beyond.That's being attempted.Jackson Hole realtors recently conceived a "Community Housing Fund,"a nonprofit that funnels donated real estate agent commissions and https://buckrail.com/lawmakers-breathe-life-into-real-estate-transfer-tax/ 5/7 3/21/22,4:41 PM Lawmakers breathe life into real estate transfer tax home seller proceeds toward affordable housing.The effort raised some $200,000 in its first month,the News&Guide reported,most of which was gifted to the Jackson Hole Community Housing Trust. Although a real estate tax is thought of as a Teton County tool,the idea has generated interest within other Wyoming communities struggling to house their workforces.Greater Cheyenne Chamber of Commerce President/CEO Dale Steenbergen,who testified in support of a county- option real estate tax,told WyoFile he believes the bill could benefit southeast Wyoming. "We've got to set the bill up so that it can serve a larger percentage of Wyoming,"he said."I bet I have a bigger housing problem in Laramie County.Jackson would have a stroke if they had to deal with the housing problem I have.I need 5,000 housing units today." �r Buckrail is brought to you in part by these community partners. / EtdGkGEYt3i.l({f..t:)t 1 ViL)"dl?i i 0 1 CCentral Wyoming KSON College 0 THE CENTER �\GRANDTARGHEE St.10E1h5. I., u, COMMUNITy FOUNDATION or mcr.SoN Norr ,��♦.��✓ ! , New West; Sti� BUILDING COMPANY j :huun hula,svpnming tAw_i C 4F-P-1'EjL—uGFF-0 https://buckrail.com/lawmakers-breathe-life-into-real-estate-transfer-tax/ 617 3/19/22,8:29 PM Jackson Hole's working class has scrambled for housing.But now the market is forcing an exodus.I Wyoming Public Media AM, Donate 1 wYu1i111G Oumic molt, FCC Applications Mountain West News Bureau A regional collaboration of public media stations that serve the Rocky Mountain States of Colorado, Idaho, Nevada, New Mexico, Utah and Wyoming. Jackson Hole's working class has scrambled for housing. But now the market is forcing an exodus. Wyoming Public Radio I By Maggie Mullen 0 Published December 17,2021 at 4:00 PM MST rr,< https://www.wyom ingpubl icmed ia.org/open-spaces/2021-12-17fjackson-holes-working-class-has-scrambled-for-housing-but-now-the-market-is-forcin... 1/10 3/19/22,8:29 PM Jackson Hole's working class has scrambled for housing.But now the market is forcing an exodus.i Wyoming Public Media I I i t P.htrible;CCMYSA3,0Naps.%Creativecommons.Org;Licensesi,3,-Sa!?.0,%Deed.Fn Several years ago, Brandy Borts started keeping a list of the places she had lived in Jackson Hole, Wyo. She stretched her mind back to 1998-when she moved to the valley- and wrote down all the spots she could remember. From then on, each time she moved, Borts would jot down another entry. Since she started the list, it's grown to 40 addresses. "I've moved so many times that it's just crushing;" she says. Borts,47, has had leases broken when a property was sold. She has been forced out when rent was hiked up suddenly. To make the upheaval a little less formidable, she's learned to limit her personal belongings to what can fit into a few plastic bins. The last place she unpacked those bins in Jackson was an older home with a mold problem that led to health issues. "That was kind of the last straw;" Borts says. "It's just time. It's time to move on, and that hurts my heart a little bit to say that, but it's a big world out there." https://www.wyomi ng pub]icmedia.org/open-spaces/2021-12-17/Jackson-holes-worki ng-cl ass-has-scrambled-for-housing-but-now-the-market-is-forcin... 2/10 3/19/22,8:29 PM Jackson Hole's working class has scrambled for housing.But now the market is forcing an exodus.I Wyoming Public Media Forty different addresses over a couple decades may sound like an exaggeration. Even Borts knows some won't buy it. But to the ears of locals-especially those who don't own the roof over their head-it's not so inconceivable in Jackson Hole. Renters here move around a lot. And as more concentrated wealth and more visitors pour into the area, many long-time renters like Borts are thinking about heading in the opposite direction. For some,the pandemic pushed them over the edge. Borts has spent her time in Jackson working in the service industry. For the last 11 years, she has been at the Snake River Grill. The restaurant is a local favorite and was one of the first in the area to offer true fine dining when it opened on the Town Square almost three decades ago. Borts says it's a great gig with good pay, benefits, and two months of vacation a year during the off-season. "I never really had a problem finding work there;" she says. "It's always been the housing." Borts found most places by word of mouth from coworkers, friends and acquaintances. A spot opens up, and the valley's version of musical chairs plays out,with each person vying for housing that's more affordable, has just slightly more space,or doesn't involve driving over a dangerous mountain pass. Borts is currently away from the area, holed up with family in Washington state. She's not sure where she'll settle in next, but it won't be anywhere in the valley. Residents moving from Jackson Hole due to the lack of affordable or stable housing isn't a new phenomenon. But the current exodus is happening at a critical moment in the valley's history. Tourists are flocking to the area in numbers never seen before-nearby Grand Teton and Yellowstone national parks broke visitation records this season. This summer, some workers were forced to move elsewhere for housing. The shortage of labor caused many businesses to either close their doors or limit their hours. There's a lot of wealth involved in the equation,too. A study by the Economic Innovation Group found that Teton County has the nation's highest per-capita income from assets, including interest, dividends and rent. "Mountain West states contain some of the greatest inequality in asset income, with enclaves of extreme wealth peppered across the landscape;"the study says. "Mountain West states contain some of the greatest inequality in asset income, with enclaves of extreme wealth peppered across the landscape." { https://www.wyomingpublicmedia.org/open-spaces/2021-12-17fjackson-holes-working-class-has-scrambled-for-housing-but-now-the-market-is-forcin... 3/10 3/19/22,8:29 PM Jackson Hole's working class has scrambled for housing.But now the market is forcing an exodus. I Wyoming Public Media That's reflected in the local real estate market. In November, a 55-acre property known as "Camp Teton" was listed at $65 million and sold for an undisclosed price. That's one of-if not the-most expensive single-family home sales in the area, according to the Jackson Hole News and Guide. Area homes are regularly priced in the millions. The Jackson Hole Real Estate Report says buyers spent more than $2 billion in the first nine months of 2021-an all- time high. Meanwhile, the number of homes on the market is at an all-time low,the I report says. In other words, more money is being spent but on fewer homes. "While the number of local working-class buyers continues to dwindle as inventory in their price range becomes nonexistent,the amount of Zoom Town telecommuters, second home buyers, and early retirees continues to increase;" says the report. It also notes that investors are buying up homes and condos in the $400,000 to $1.8 million dollar price range, and turning those properties into rentals. One investor alone purchased 25 properties in the last two years. That sort of extreme real estate dynamic helped drive Ryan Dorgan and Emily Mieure from the valley. "The wealth wasn't really veiled anymore;" says Dorgan, 34. He and his partner, Mieure, 33, now live about an hour south of Indianapolis, in Nashville, Indiana. They arrived in Jackson separately, but both came for jobs at the Jackson Hole News and Guide. Mieure worked on the criminal justice and breaking news beat and Dorgan was the paper's photographer. Like so many,their time in the valley was characterized by unparalleled outdoor access- they were able to ski up Snow King and take a lap before heading into the office on a fresh powder day. "Being able to pick a direction and wall:and enjoy yourself on public lands at no cost was one of my favorite things about living there," Dorgan says. But they also had to move around a lot. Things became slightly more affordable after they started dating and made the decision to move in together. "There are a lot of matches made out of necessity in Jackson," Dorgan says. "We got lucky that it worked out;" Mieure adds. At one point,they lived in the bedroom community of Cottonwood. There were six people in a three-bedroom unit, which put them above the legal limit. "We were just trying to get by and splitting a small house with a lot of people made rent https://www.wyomingpublicmed ia.org/open-spaces/2021-12-17/Jackson-holes-worki ng-class-has-scrambled-for-housing-but-now-the-market-is-forcin... 4/10 3/19/22,8:29 PM Jackson Hole's working class has scrambled for housing.But now the market is forcing an exodus. i Wyoming Public Media Their last valley home was in Kelly, a rural community with fewer than 150 people. That meant a morning commute of about 25 minutes, but they jumped at the opportunity when their rent in town was about to go up again. Kelly sits along the Gros Ventre River and has some of the least obscured views of the Tetons. Mieure describes it as "this magical place." But when the pandemic hit, some of that magic was lost. Mieure says being confined to a 400-square-foot apartment felt like the walls were closing in and the snow was piling up. 1 think I probably would have had another year or two in me in that apartment, had it not been for being quarantined there," Mieure says. When they did get out of the house, like heading into town for groceries,they noticed how quickly things around them were changing. "There was a lot of outside investment and speculative development that came in and just started bulldozing old buildings and putting up boxes;" Dorgan says. Much of that came in residential neighborhoods, with the demolition of cabins and houses built in the early 20th Century. To Dorgan,they stood for something more authentic than what he describes as the current "Disneyworld Old West charm" of the Town Square with its famed elk antler arches. Gone were homes where families were raised over the last few decades-places Dorgan and Mieure once might have been able to afford. Seeing it happen brought them to a new realization. "Even if we try to keep chugging along,we're eventually going to hit a point where we just don't make enough money to live here anymore," Dorgan says. "And that was kind of when I threw in the towel. I said, 'Okay, let's go."' The decision to leave was coupled with Mieure getting an exciting job offer as an investigative reporter at a podcast production company in the Midwest. It also came after an unsuccessful offer on a house in Victor, Idaho- a once-affordable section of the Teton Valley across the border in Idaho that is experiencing its own real estate boom. Mieure and Dorgan also spent a few years trying to find a home through a program run by the Jackson/Teton County Affordable Housing Department, but nothing ever panned out. "It wasn't for not trying;" Mieure says. "If you have a place here, please, never stop fighting for local workers. And I mean really fight. Thy Imont r-ni/rcn of thinnc is i inci �ctainahl� " https://www.wyoming pub Iicmedia.org/open-spaces/2021-12-17/Jackson-holes-working-cl ass-has-scrambled-for-housing-but-now-the-market-is-forcin... 5/10 3/19/22,8:29 PM Jackson Hole's working class has scrambled for housing. But now the market is forcing an exodus.I Wyoming Public Media Borts didn't have much more luck with the affordable housing agency, either. Part of the program works as a lottery with a weighted drawing, but Borts says she was never chosen and it was a very discouraging process. "I just had this hope that someday I was going to get chosen and yeah, it's just that was hard, really hard after 20 some years;" she says. There are other creative approaches to helping would-be home buyers like Borts, Dorgan and Mieure. A local non-profit called Shacks on Racks aims to relocate homes that would otherwise be torn down by gathering information and publishing demolition permits. "I absolutely love moving houses," says Esther Judge-Lennox, who began the group a few years ago. She guesses about 90 percent of the homes that get torn down in the area are worthy of moving,while the other 00 percent aren't suitable. Another benefit of moving homes-it can free up a lot to build employee housing or workforce restricted property. When that doesn't happen, and old homes give way to new single-family builds, Judge- Lennox says, "then we're perpetuating the problem." She's also quick to point out that the non-profit's work is a drop in the bucket. "I am the only one doing [something] of this kind in any community that I know of. [It's of] such value, but totally not enough;" she says. Meanwhile, a real estate transfer tax appears to have support from more than half of the community, according to a survey by the Jackson Hole Chamber of Commerce. It would act like a sales tax on properties sold over a certain amount of money, and those funds could be used by the county to address the affordable housing crisis. This week, the Wyoming Legislature's Joint Revenue Committee advanced a bill for the tax —the first time the legislature has sponsored such a bill after many years of being proposed, mostly by Teton County lawmakers. Whether or not the community finds a long-term solution, it won't be in time for people like Borts, Dorgan or Mieure. But they're still rooting for change. In his farewell post on Instagram, Dorgan implored his old community to keep at it. "If you have a place here, please, never stop fighting for local workers;" he wrote. "And I mean really fight. The current course of things is unsustainable." Editor's note:A version of this story appears in Jackson Hole Snowboarder Magazine This story was produced by the Mountain West News Bureau, a collaboration between Wyoming Public Media, Nevada Public Radio, Boise State Public Radio in Idaho, KUNR in Nevada, the O'Connor Center for the Rocky Mountain West in Montana, KUNC in Colorado, KUNM in New Mexico, with support from affiliate stations across the region. https://www.wyomingpublicmedia.org/o pen-spaces/2021-12-17/jackson-holes-working-cl ass-has-scrambled-for-housing-but-now-the-market-is-forcin... 6/10