Tax & Carrying Costs

Annual property taxes, insurance, and total carrying cost for both parcels.

Wyoming Property Tax

The Wyoming parcel carries one of the most favorable property tax burdens in the country. The 2025 property tax on the 40-acre parcel was $99.47 — a remarkably low figure that reflects the agricultural tax classification and Wyoming's tax-friendly approach to vacant rural land.

How Wyoming Property Tax Works

Wyoming property tax is administered at the county level, with the Sweetwater County Treasurer collecting annual payments. The tax is calculated as:

Assessed Value × Mill Levy = Annual Tax

The assessed value is a percentage of the property's fair market value as determined by the Sweetwater County Assessor. For agricultural land, the assessed value is calculated using a productivity-based formula rather than market value, which typically results in a much lower tax burden. The mill levy is set annually by the county commissioners, school districts, and other taxing entities.

Agricultural Tax Classification

The Sweetwater parcel qualifies for the agricultural land tax classification under Wyoming statute. This classification requires that the land be used primarily for agricultural purposes, including grazing livestock, producing crops, or hay production. The result: 40 acres of Wyoming high desert with a 2025 tax bill of $99.47.

Historical Tax Payments

• **2022:** approximately $95 (estimated)
• **2023:** approximately $97 (estimated)
• **2024:** approximately $98 (estimated)
• **2025:** $99.47 (actual)
• **2026:** expected to remain in the $100 range (estimated)

The annual increase is small and reflects minor adjustments in the mill levy and assessed value.

New Mexico Property Tax

The Rio Rancho Estates lot in Sandoval County, New Mexico is taxed under the standard New Mexico property tax system.

How New Mexico Property Tax Works

New Mexico property tax is calculated as:

Net Taxable Value × Local Rate = Annual Tax

The net taxable value is one-third of the property's market value — a unique New Mexico rule that significantly reduces the tax burden compared to most other states. The local rate is set by Sandoval County, the City of Rio Rancho, the school district, and other entities.

Rio Rancho Estates Tax Estimate

For a vacant 0.5-acre residential lot in Rio Rancho Estates, the annual property tax is typically in the range of $50–$200 per year, depending on the market value assessment.

Other Carrying Costs

Beyond property tax, the LLC's carrying costs for the two parcels are minimal:

• **Insurance:** None currently — the LLC does not carry insurance on the vacant parcels. General liability coverage ($500–$1,500/year range) would be recommended if the parcels were ever developed.
• **HOA fees:** Wyoming parcel — none (no HOA). New Mexico lot — verify with any Rio Rancho Estates HOA (likely minimal, if any).
• **Utilities:** None — both parcels are vacant with no active utility connections.
• **Maintenance:** Minimal — occasional site visits to verify no trespass or vandalism.

Estimated Total Annual Carrying Cost

• Property tax: approximately $200/year combined
• Insurance: $0
• HOA: $0 (NM — verify)
• Utilities: $0
• Maintenance: approximately $150/year for periodic site checks

Combined annual carrying cost for both parcels: approximately $350 per year. This makes the portfolio a very cost-efficient holding from a cash-flow perspective.

Tax Payment Schedule

• **Wyoming property tax:** Payable in two installments — first half September 1 to November 10; second half March 1 to May 10.
• **New Mexico property tax:** Payable in two installments — first half due November 10; second half due April 10.

Both payments are made through the respective county treasurer's office.

Tax Sale Risk

If property taxes go unpaid, the property may eventually be sold at a tax sale by the county. Sweetwater Acres LLC has never had a tax delinquency on the Wyoming parcel.

Federal Income Tax

Sweetwater Acres LLC is taxed as a pass-through entity. The LLC files IRS Form 1065 annually, and income, gains, or losses flow through to the owners' individual returns.