Sales tax on food exemption-sales tax increase.

WORKING DRAFT
2005
STATE OF WYOMING
05LSO-0101

HOUSE BILL
NO.
HB0160

Sales tax on food exemption-sales tax increase.

Sponsored by:
Representative(s) Robinson, Bagby, Berger, Brechtel, Esquibel, Gay, Gilmore, Hastert, Landon, Martin, McOmie, Morgan, Reese, Thompson, Walsh, Warren and Watt and Senator(s) Boggs, Decaria, Jennings, Job, Massie, Meier, Mockler, Scott, Sessions and Vasey

A BILL

for

AN ACT relating to taxation and revenue; removing the sales and use tax on food as specified; providing an increase in sales and use tax as specified; providing an appropriation; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1.

[Removes sales and use tax on food] W.S. 39
‑
15
‑
101(a) by creating a new paragraph (xxiii), 39
‑
15
‑
105(a)(vi) by creating a new subparagraph (E), 39
‑
16
‑
101(a) by creating a new paragraph (xvii) and 39
‑
16
‑
105(a)(vi) by creating a new subparagraph (E) are amended to read:

39
‑
15
‑
101.

Definitions.

(a)

As used in this article:

(xxiii)

"Food" means food for domestic home consumption as defined by department rule and regulation.

39
‑
15
‑
105.

Exemptions.

(a)

The following sales or leases are exempt from the excise tax imposed by this article:

(vi)

For the purpose of exempting sales of services and tangible personal property which are essential human goods and services, the following are exempt:

(E)

Sales of food for domestic home consumption.

39
‑
16
‑
101.

Definitions.

(a)

As used in this article:

(xvii)

"Food" means food for domestic home consumption as defined by department rule and regulation.

39
‑
16
‑
105.

Exemptions.

(a)

The following purchases or leases are exempt from the excise tax imposed by this article:

(vi)

For the purpose of exempting sales of services and tangible personal property and services which are essential human goods and services, the following are exempt:

(E)

Purchases of food for domestic home consumption.

Section 2.

[Increases statewide sales and use tax] W.S. 39
‑
15
‑
104(b) and (d) and 39
‑
16
‑
104(b) and (d) are amended to read:

39
‑
15
‑
104.

Taxation rate.

(b)

Effective July 1,
1993
2005
, in addition to the sales tax under subsection (a) of this section, there is imposed an additional sales tax of
one percent (1%)
one and three-tenths percent (1.3%)
which shall be administered as if the sales tax rate under subsection (a) of this section
was
were
increased from three percent (3%) to
four percent (4%)
four and three-tenths percent (4.3%)
. The revenue from these increases shall be distributed in the same manner as other sales tax revenue under those sections.

(d)

The tax imposed under subsection (b) of this section shall be indexed in accordance with the formula in this subsection
.

as follows:

(i)

The tax shall be reduced to
one-half of one percent (.5%)
one percent (1%)
effective July 1, if, not later than March 31, of the same year, it is determined that the unappropriated general fund balance at the end of the current budget period minus any expected shortfall in revenue to fully fund the school foundation program for the following school year will exceed thirty-five million dollars ($35,000,000.00). The governor shall make this determination using actual revenues received during the current fiscal year, revenue estimates of the consensus revenue estimating group (CREG), actual appropriations and expenditure estimates for the foundation program determined by the department of education. If the determination made by the governor under this formula results in a reduction of the tax, the governor shall so certify to the department of revenue which shall order the rate reduced to
one-half of one percent (.5%).
one percent (1%);

(ii)

The tax shall be reduced to one-half of one percent (.5%) effective July 1, if, not later than March 31, of the same year, it is determined that the unappropriated general fund balance at the end of the current budget period minus any expected shortfall in revenue to fully fund the school foundation program for the following school year will exceed seventy million dollars ($70,000,000.00). The governor shall make this determination using actual revenues received during the current fiscal year, revenue estimates of the consensus revenue estimating group (CREG), actual appropriations and expenditure estimates for the foundation program determined by the department of education. If the determination made by the governor under this formula results in a reduction of the tax, the governor shall so certify to the department of revenue which shall order the rate reduced to one-half of one percent (.5%).

39
‑
16
‑
104.

Taxation rate.

(b)

Effective July 1,
1993
2005
, in addition to the use tax under subsection (a) of this section, there is imposed an additional use tax of
one percent (1%)
one and three-tenths percent (1.3%)
which shall be administered as if the use tax rates under subsection (a) of this section were increased from three percent (3%) to
four percent (4%)
four and three-tenths percent (4.3%)
. The revenue from these increases shall be distributed in the same manner as other use tax revenue under that subsection.

(d)

The tax imposed under subsection (b) of this section shall be indexed in accordance with the formula in this subsection
.
as follows:

(i)

The tax shall be reduced to
one-half of one percent (.5%)
one percent (1%)
effective July 1, if, not later than March 31, of the same year, it is determined that the unappropriated general fund balance at the end of the current budget period minus any expected shortfall in revenue to fully fund the school foundation program for the following school year will exceed thirty-five million dollars ($35,000,000.00). The governor shall make this determination using actual revenues received during the current fiscal year, revenue estimates of the consensus revenue estimating group (CREG), actual appropriations and expenditure estimates for the foundation program determined by the department of education. If the determination made by the governor under this formula results in a reduction of the tax, the governor shall so certify to the department of revenue which shall order the rate reduced to
one-half of one percent (.5%).
one percent (1%);

(ii)

The tax shall be reduced to one-half of one percent (.5%) effective July 1, if, not later than March 31, of the same year, it is determined that the unappropriated general fund balance at the end of the current budget period minus any expected shortfall in revenue to fully fund the school foundation program for the following school year will exceed seventy million dollars ($70,000,000.00). The governor shall make this determination using actual revenues received during the current fiscal year, revenue estimates of the consensus revenue estimating group (CREG), actual appropriations and expenditure estimates for the foundation program determined by the department of education. If the determination made by the governor under this formula results in a reduction of the tax, the governor shall so certify to the department of revenue which shall order the rate reduced to one-half of one percent (.5%).

Section 3.

For the period beginning July 1, 2005 and ending June 30, 2006, there is appropriated to the department of revenue from the general fund not to exceed four million nine hundred thousand dollars ($4,900,000.00) for the purpose of maintaining revenues to local governments that otherwise would be distributed to local governments under W.S. 39
‑
15
‑
111 and 39
‑
16
‑
111 but for the sales and use tax exemptions provided under this act. The department of revenue is authorized to distribute monthly to local governments funds appropriated under this section based upon historical data on distributions made to local governments from sales and use tax revenues from food for domestic consumption. Appropriations under this section shall not be expended for any purpose other than as stated in this section, and unobligated funds shall revert to the budget reserve account on June 30, 2006.

Section 4.

This act is effective July 1, 2005.

(END)

1
HB0160