CHEYENNE -- Gov. Dave Freudenthal wants to reactivate the homestead property tax exemption to give short term relief to homeowners faced with higher food, gasoline and home heating costs.

Based on a $3,000 or $5,000 exemption on assessed value of an owner-occupied residence, the proposal would offer between $184 and $291 in property tax relief for Wyoming homeowners.

It would cost the state $20 million or $56 million, the governor said in a release.

Freudenthal sent a letter advising the chairmen of the Joint Revenue Committee -- Sen. Jim Anderson, R-Glenrock, and Rep. Rodney (Pete) Anderson, R-Pine Bluffs -- of his proposal and said he was looking forward to working with the committee.

Anderson said Tuesday that the committee at a meeting in Gillette earlier this month began working on reviving the homestead tax exemption.

"We're already on it," Anderson said.

The exemption has been on the books "subject to appropriation," but the Legislature hasn't allocated money for many years.

"We might tweak it," Anderson said. "I don't care who gets the credit as long as we do the right thing."

Freudenthal's targeted proposal to offer tax relief to Wyoming seniors failed to pass the Legislature last winter. The only bills that got through were those that expanded existing property tax relief programs.

Rep. Keith Gingery of Jackson Hole said in a release Tuesday he is excited the governor is bringing the homestead exemption bill back to the forefront.

Gingery noted he was primary sponsor of the bill the past two years.

In 2007, the proposal failed to get out of the House Revenue Committee. In 2008, the bill failed to receive enough introduction votes to be considered by the Legislature in the budget session.

Gingery said Freudenthal was a strong supporter of the bill in 2007, but advocated relief programs for targeted populations in 2008.

As a long-term solution, the governor suggested the Legislature consider a proposal offered in the last session by Rep. Colin Simpson, R-Cody, to create a separate constitutional tier for residences.

Gingery said he also supports Simpson's idea.

The constitution allows three classes of property: mineral, industrial and "all other property, real and personal," which includes residential property.

A constitutional amendment to change the tiers can't get on the ballot until 2010, which will allow the lawmakers two years to study the change, Freudenthal said.

The homestead exemption was originally passed in 1979 as a tax exemption and then modified to a tax credit in 1980.

Freudenthal said both the attorney general and Legislative Service Office say that, given the 1988 constitutional amendment creating the tier system, it may be advisable to recast the credit as a true exemption and stay within the clear language of Article 15 § 12 of the Wyoming Constitution.

That article lists property, such as government and church property, that is exempt from taxes.

The governor's August 21 letter said in part, "We have from time to time talked about various property tax relief measures. Generally, I talk, you politely listen and then the proposals die a rather unceremonious death upstairs.

"But hope tends to overcome experience," the letter added, "so I write again to offer another suggestion. Rather than argue about whether this is a legislative or gubernatorial proposal, perhaps we can arrive at something upon which we agree -- and then give the credit to the citizens of Wyoming."

A final decision on the homestead tax exemption will depend on revenue projections, the governor wrote.

Contact Joan Barron at (307) 632-1244 or joan.barron@trib.com