State of Wyoming; Department of Revenue and Taxation; and State Board of Equalization, Appellants (defendants), V…

Summary

The Wyoming Supreme Court affirmed in part and reversed in part a summary judgment invalidating portions of the State Board of Equalization's 1992 rules implementing the ad valorem tax exemption for pollution control property. The court held the Board exceeded its statutory authority by limiting the exemption to property required by the Wyoming Department of Environmental Quality or federal environmental protection agencies by permit, license, or legal requirement, and by excluding pollution monitoring devices, because both limitations contradicted the plain language of the exemption statute. It reversed, however, the ruling on the rule's 'capitalized machinery' language, because the taxpayers showed no actual or imminent injury and thus no justiciable controversy. The court also confirmed that a party may challenge the validity of an agency rule by declaratory judgment without first exhausting administrative remedies.