What Happens If I Don't Pay Property Taxes in Wyoming?

People who own real property must pay property taxes. The government uses the money these taxes generate to pay for schools, public services, libraries, roads, parks, and the like. Typically, the tax amount is based on a property's assessed value.

When homeowners don't pay their property taxes, the overdue amount becomes a lien on the property. A lien effectively makes the property act as collateral for the debt. All states, including Wyoming, have laws that allow the local government to sell a home through a tax sale process to collect delinquent taxes.

The county treasurer can hold a tax lien sale if your Wyoming property taxes are delinquent. After the tax lien sale, if you don't pay the overdue taxes, plus some other amounts, within about four years, you'll lose ownership of your home.

Is Wyoming a Tax Lien or a Tax Deed State?

Again, if you don't pay your property taxes, the past-due amount becomes a lien on your home. Each state has a different tax sale process to collect delinquent taxes.

Tax Deed States

In some states, the taxing authority sells the home if the homeowner doesn't pay off the debt. But the purchaser might not get the deed to the property right away. Sometimes, a redemption period must expire before the buyer receives the deed.

Tax Lien States

In other states, the taxing authority sells the tax lien, and the purchaser must foreclose or use different procedures to get a deed to the property.

Wyoming is considered a tax lien state.

Other Tax Sale Procedures

And in other states, a tax foreclosure process is used, or the taxing authority simply executes its lien by taking title to the home.

How Does Wyoming Handle Property Tax Non-Payment?

In Wyoming, the county treasurer will hold a public sale to sell the lien. (Wyo. Stat. § 39-13-108.)

If a third party buys the tax lien at the sale. If a third party, such as an investor, buys the lien at the sale, the purchaser gets a certificate of purchase.

If no one purchases the tax lien at the sale. If no one buys the lien at the sale, the county gets the certificate of purchase. (Wyo. Stat. § 39-13-108.)

Notice of a Tax Lien Sale

Before a Wyoming tax lien sale, notice is given by publication or, in some cases, by posting.

Notice by publication. The county treasurer must publish notice of the lien sale in a newspaper once a week for three weeks. (Wyo. Stat. § 39-13-108.)

Notice by posting. If the county doesn't have a newspaper, the treasurer posts a notice near the courthouse door and in three public places at least 30 days before the sale. (Wyo. Stat. § 39-13-108.).

Can I Get My Home Back After a Wyoming Tax Lien Sale?

After the tax lien sale, you get four years, called a "redemption period," during which you can pay off the tax debt, plus various other amounts, before the lien purchaser or county can get ownership of your home. (Wyo. Stat. § 39-13-108.)

You'll also probably get some extra time to pay off the debt and reclaim (redeem) your home after the four-year period expires, depending on whether a third party bought the lien and the method used to get title to your home.

How Long You Get to Redeem if a Third Party Buys the Lien and Applies for a Deed

After four years goes by, but no more than six years, the person or entity that bought the lien at the sale can get title to your home by filing an application for a tax deed from the county treasurer. (Wyo. Stat. § 39-13-108.)

You can redeem up until the application is filed and the county treasurer accepts it. (Wyo. Stat. § 39-13-109.)

How Long You Get to Redeem if a Third Party Buys the Lien and Forecloses

Instead of filing an application for a tax deed, the person or entity that bought the lien at the sale may enforce it by filing a lawsuit in district court. The court action will proceed like a judicial foreclosure. The court will determine the total amount you owe, enter a judgment, and order the home sold to satisfy the debt. (Wyo. Stat. § 39-13-108.)

If the lien purchaser proceeds this way, you can redeem up until the court confirms the sale. (Wyo. Stat. § 39-13-108.)

How Long You Get to Redeem if the County Gets the Certificate of Purchase

If the county got the certificate of purchase at the tax lien sale, the treasurer will issue and record a tax deed to the county four years after the sale. (Wyo. Stat. § 39-13-108.)

You can redeem up until the county issues and records the tax deed.

How Much You'll Have to Pay to Redeem Your Wyoming Home After a Tax Sale

The amount you'll have to pay to redeem depends on whether a third party or the county obtained the certificate of purchase at the sale.

How Much You'll Have to Pay to Redeem Your Wyoming Home From a Third Party

To redeem your home from a third party, you'll have to pay the county treasurer:

• the purchase price from the sale
• a 3% penalty
• 15% interest per year
• accrued taxes if the purchaser paid them, plus 15% interest per year, and
• the purchaser's actual expenses, not to exceed $250, if you redeem after the purchaser gives notice of its intent to apply for a tax deed. (Wyo. Stat. § 39-13-109.)

How Much You'll Have to Pay to Redeem Your Wyoming Home From the County

To redeem your home from the county, you'll have to pay:

• the certificate amount, which includes overdue taxes, interest, penalties, and costs
• 15% interest per year, and
• accrued taxes, plus 15% interest per year. (Wyo. Stat. § 39-13-109.)

Notice Before You Lose Your Wyoming Home

Before you lose your home to a new owner, you'll get a notice from either the lien purchaser or the county.

Notice You'll Get if a Third Party Bought the Lien at a Wyoming Tax Lien Sale

Before applying for a tax deed, the person or entity that bought the lien at the sale must serve you with a written notice by certified or registered mail at least three months before applying for a tax deed. But if you don't occupy the home, the purchaser only needs to publish notice in a newspaper. (Wyo. Stat. § 39-13-108.)

If the purchaser opts to foreclose the lien, you'll learn about the suit when you receive a complaint and summons.

Notice You'll Get if the County Holds the Certificate

If the county holds the certificate of purchase, it must personally serve or mail you a notice by certified mail at least 60 days before issuing a tax deed to itself. (Wyo. Stat. § 39-13-108.)

What Happens to My Mortgage in a Tax Sale?

Because a property tax lien has priority, mortgages (and deeds of trust) get wiped out if you lose your home through a tax sale process. So, If your loan isn't escrowed and you fail to pay the property taxes like you're supposed to, the loan servicer will usually advance money to pay delinquent property taxes to prevent a tax sale from happening.

Most mortgages have a clause allowing the lender to add the amount it paid to bring the taxes current to your loan balance. You'll then have to make repayment arrangements with the servicer or potentially face a foreclosure.

What Options Do I Have If I Can't Afford to Pay My Property Taxes in Wyoming?

If you're having trouble paying your property taxes, you might be able to reduce your tax bill or get extra time to pay.

Getting Help

Talk to a foreclosure, tax, or real estate lawyer if you're facing a tax lien sale in Wyoming and have questions about the process or need help redeeming your property.

To learn more about property taxes and other aspects of homeownership in general, get Nolo's Essential Guide to Buying Your First Home by Ilona Bray, J.D., Attorney Ann O'Connell, and Marcia Stewart.