Cash-Strapped Wyoming Towns Face Existential Threat

With the decline of the fossil fuel industry and the economic effects of COVID-19 further gutting the state, Wyoming and some of its small cities are facing dire fiscal consequences.

1 minute read

November 9, 2020, 12:00 PM PST

By James Brasuell @CasualBrasuell


Wyoming

Sheridan, Wyoming. | Ems Images / Shutterstock

"Faced with COVID-19 and the collapse of Wyoming’s coal industry, Republican Gov. Mark Gordon said [in July] that the state might have to start abandoning small towns because there’s not enough money to maintain their sewers and streets," writes Nate Martin.

As reported in October, the city of Sundance is considering budget cuts that would defund the police—solely because the city lacks the money to pay for them.

Martin, columnist for the Casper Star-Tribune, writes this month writing to criticize one key component of the state's fiscal policy: its lack of a state income tax, and its low tax rate overall.

"Wyoming is one of nine states without an income tax. Places like Texas and Florida that lack income tax tend to have ultra-high property and sales tax rates instead. Alaska does not, only because it’s likewise dependent on mineral taxes," according to Martin.

"Along with having no personal or corporate state income tax, Wyoming also has the third lowest property tax rate in the nation and the sixth lowest sales tax rate. All of this may make residents feel special, but it means everyone depends on fossil fuels to stay healthy."

Sunday, November 8, 2020 in Casper Star-Tribune

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