Economic development-excise taxes.

WORKING DRAFT

ORIGINAL HOUSE

BILL

NO.
0232

ENROLLED ACT NO. 124, HOUSE OF REPRESENTATIVES

FIFTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
2005 GENERAL SESSION

AN ACT relating to taxation and revenue; authorizing local governments to use excise taxes and impose additional excise taxes for economic development as specified; providing for distribution, specifying conditions; amending related provisions; and providing for an effective date.

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

Section 1.
W.S. 39
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203(a)(i)(C) and by creating a new paragraph (v), 39
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204(a)(iv) and by creating a new paragraph (vi), 39
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211(a)(intro) and (i) by creating a new subparagraph (C) and by creating a new paragraph (iv), 39
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203(a)(i)(C) and by creating a new paragraph (iv), 39
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204(a)(intro), (iii) and by creating a new paragraph (v) and 39
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211(a)(intro) and (i) by creating a new subparagraph (C) and by creating a new paragraph (iii) are amended to read:

39
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203.

Imposition.

(a)

Taxable event. The following shall apply:

(i)

The following provisions apply to imposition of the general purpose excise tax under W.S. 39
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15
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204(a)(i):

(C)

The proposition may be submitted at an election held on a date authorized under W.S. 22
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103. A notice of election shall be given in at least one (1) newspaper of general circulation published in the county in which the election is to be held, and the notice shall specify the object of the election. The notice shall be published at least once each week for a thirty (30) day period preceding the election. At the election the ballots shall contain the words "for the county sales and use tax" and "against the county sales and use tax".
If a portion of the proceeds from the tax will be used for economic development as provided by W.S. 39
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15
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211(a)(i), the ballot shall contain the words "a portion (or specific percentage) of the tax proceeds shall be used for economic development" in a clear and appropriate manner.
If the proposition is approved the same proposition shall be submitted at subsequent general elections as provided in this subparagraph until the proposition is defeated. If the tax proposed is approved after July 1, 1989, the same proposition shall be submitted at every other subsequent general election until the proposition is defeated. However in those counties where the tax is not in effect, the county commissioners with the concurrence of the governing bodies of two
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thirds (2/3) of the municipalities may establish the initial term of the tax at two (2) years. If the term of the tax is limited to two (2) years, the term of the tax shall be stated in the proposition submitted to the voters. If approved, the proposition shall be submitted at the next general election and at every other subsequent general election thereafter until the proposition is defeated;

(v)

The following provisions apply to imposition of the excise tax under W.S. 39
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15
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204(a)(vi) the purpose of which is economic development:

(A)

N
o tax shall be imposed under W.S. 39
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15
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204(a)(vi) until the proposition to impose the tax is submitted to the vote of the qualified electors of the county, and a majority of those casting their ballots vote in favor of imposing the taxes. Except as otherwise provided, excise taxes imposed under this paragraph shall commence as provided by W.S. 39
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207 following the election approving the imposition of the tax;

(B)

The proposition to impose an excise tax shall be at the expense of the county and be submitted to the electors of the county upon the receipt by the board of county commissioners of a petition requesting the election signed by at least five percent (5%) of the electors of the county or of a resolution approving the proposition from the governing body of the county and the governing bodies of at least two
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thirds (2/3) of the incorporated municipalities within the county. If proposed by petition by electors, the number of electors required shall be determined by the number of votes cast at the last general election. The election shall be at the direction and under the supervision of the board of county commissioners;

(C)

The proposition may be submitted at an election held on a date authorized under W.S. 22
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103. A notice of election shall be given in at least one (1) newspaper of general circulation published in the county in which the election is to be held, and the notice shall specify the object of the election. The notice shall be published at least once each week for a thirty (30) day period preceding the election. At the election the ballots shall contain the words "for the county sales and use tax for economic development" and "against the county sales and use tax for economic development". If the tax proposed is approved, the same proposition shall be submitted at every other subsequent general election until the proposition is defeated. However, the county commissioners with the concurrence of the governing bodies of two
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thirds (2/3) of the municipalities may establish the initial term of the tax at two (2) years. If the term of the tax is limited to two (2) years, the term of the tax shall be stated in the proposition submitted to the voters. If approved, the proposition shall be submitted at the next general election and at every other subsequent general election thereafter until the proposition is defeated;

(D)

If the proposition to impose or continue the tax is defeated the proposition shall not again be submitted to the electors of the county for at least eleven (11) months. If the proposition is defeated at any general election following initial adoption of the proposition the tax is repealed and shall not be collected following June 30 of the year immediately following the year in which the proposition is defeated;

(E)

If the proposition is approved by the qualified electors, the board of county commissioners shall by ordinance impose an excise tax upon retail sales of tangible personal property, admissions and services. The board of county commissioners or the city or town council shall adopt an ordinance for the tax authorized by W.S. 39
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204(a)(vi). The ordinance shall include the following:

(I)

A provision imposing an excise tax upon every retail sale of tangible personal property, admissions and services made within the county;

(II)

Provisions identical to those contained in article 1 of this chapter except for W.S. 39
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102(a), insofar as it relates to sales taxes, except the name of the county as the taxing agency shall be substituted for that of the state and an additional license to engage in business shall not be required if the vendor has been issued a state license pursuant to law;

(III)

A provision that any amendments made to article 1 or to chapter 16 not in conflict with article 1 of this chapter or to chapter 16 shall automatically become a part of the sales tax ordinances of the county, city or town;

(IV)

A provision that the county, city or town, as appropriate, shall contract with the department prior to the effective date of the county sales tax ordinances whereby the department shall perform all functions incident to the administration of the sales tax ordinances of the county, city or town;

(V)

A provision that the amount subject to the sales tax shall not include the amount of any sales imposed by the state of Wyoming.

(F)

The tax may be terminated by an election to rescind the tax conducted subject to subparagraphs (B) through (D) of this paragraph;

(G)

In no event shall any of the revenue collected from the tax imposed under this paragraph be expended, either directly or indirectly, to finance or involuntarily acquire any public utility as defined in W.S. 37-1-101 or any telecommunications system by condemnation or other legal process.

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204.

Taxation rate.

(a)

In addition to the state tax imposed under W.S. 39
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101 through 39
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111 any county of the state may impose the following excise taxes and any city or town may impose the tax authorized by paragraph (ii) of this subsection and any resort district may impose the tax authorized by paragraph (v) of this subsection:

(iv)

In no event shall the total excise tax imposed within any county under the provisions of paragraphs (i)
,

and
(iii)
and (vi)
of this subsection exceed two percent (2%);

(vi)

An excise tax at a rate in increments of one
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quarter of one percent (.25%) not to exceed a rate of one percent (1%) upon retail sales of tangible personal property, admissions and services made within the county, the purpose of which is for economic development.

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211.

Distribution.

(a)

All revenue collected by the department from the taxes imposed under W.S. 39
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204(a)(i), (ii)
,

and
(v)
and (vi)
shall be transferred to the state treasurer who shall:

(i)

For revenues collected under W.S. 39
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204(a)(i):

(C)

Notwithstanding subparagraph (B) of this paragraph, a county and its cities and towns receiving distributions under this paragraph may expend not to exceed twenty-five percent (25%) of the amount received under subparagraph (B) of this paragraph for the purposes of economic development provided:

(I)

The intent to use a portion of the amount distributed for economic development was indicated by specific language on the ballot as provided by W.S. 39
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203(a)(i)(C) or the enactment of a resolution or ordinance stating that a portion of the proceeds would be used for "economic development";

(II)

The county has not imposed a tax under W.S. 39-15-204(a)(vi).

(iv)

For revenues collected under W.S. 39
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204(a)(vi):

(A)

Deduct one percent (1%) to defray the costs of collecting the tax and administrative expenses incident thereto which shall be deposited into the general fund;

(B)

Deposit the remainder into the trust and agency fund for monthly distribution to counties imposing the tax and its cities and towns. The distribution to the county and its cities and towns shall be equal to the amount collected in each county less the costs of collection as provided by subparagraph (A) of this paragraph. The distribution shall be as follows:

(I)

To the county for deposit into its general fund in the proportion the population of the county situated outside the corporate limits of its cities and towns bears to the total population of the county;

(II)

To the incorporated cities and towns within the county for deposit into their treasuries in the proportion the population of each city or town bears to the total population of the county.

39
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203.

Imposition.

(a)

Taxable event. The following shall apply:

(i)

The following provisions apply to imposition of the general purpose excise tax under W.S. 39
‑
16
‑
204(a)(i):

(C)

The proposition may be submitted at an election held on a date authorized under W.S. 22
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21
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103. A notice of election shall be given in at least one (1) newspaper of general circulation published in the county in which the election is to be held, and the notice shall specify the object of the election. The notice shall be published at least once each week for a thirty (30) day period preceding the election. At the election the ballots shall contain the words "for the county sales and use tax" and "against the county sales and use tax".
If a portion of the proceeds from the tax will be used for economic development as provided by W.S. 39
‑
16
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211(a)(i), the ballot shall contain the words "a portion (or specific percentage) of the proceeds will be used for economic development" in a clear and appropriate manner.
If the proposition is approved the same proposition shall be submitted at subsequent general elections as provided in this subparagraph until the proposition is defeated. If the tax proposed is approved after July 1, 1989, the same proposition shall be submitted at every other subsequent general election until the proposition is defeated. However in those counties where the tax is not in effect, the county commissioners with the concurrence of the governing bodies of two
‑
thirds (2/3) of the municipalities may establish the initial term of the tax at two (2) years. If the term of the tax is limited to two (2) years, the term of the tax shall be stated in the proposition submitted to the voters. If approved, the proposition shall be submitted at the next general election and at every other subsequent general election thereafter until the proposition is defeated;

(iv)

The following provisions apply to imposition of the excise tax under W.S. 39
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204(a)(v) the purpose of which is economic development:

(A)

No tax shall be imposed under W.S. 39
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204(a)(v) until the proposition to impose the tax is submitted to the vote of the qualified electors of the county, and a majority of those casting their ballots vote in favor of imposing the taxes. Except as otherwise provided, excise taxes imposed under this paragraph shall commence as provided by W.S. 39
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207 following the election approving the imposition of the tax;

(B)

The proposition to impose an excise tax shall be at the expense of the county and be submitted to the electors of the county upon the receipt by the board of county commissioners of a petition requesting the election signed by at least five percent (5%) of the electors of the county or of a resolution approving the proposition from the governing body of the county and the governing bodies of at least two
‑
thirds (2/3) of the incorporated municipalities within the county. If proposed by petition by electors, the number of electors required shall be determined by the number of votes cast at the last general election. The election shall be at the direction and under the supervision of the board of county commissioners;

(C)

The proposition may be submitted at an election held on a date authorized under W.S. 22
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21
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103. A notice of election shall be given in at least one (1) newspaper of general circulation published in the county in which the election is to be held, and the notice shall specify the object of the election. The notice shall be published at least once each week for a thirty (30) day period preceding the election. At the election the ballots shall contain the words "for the county sales and use tax for economic development" and "against the county sales and use tax for economic development". If the tax proposed is approved the same proposition shall be submitted at every other subsequent general election until the proposition is defeated. However, the county commissioners with the concurrence of the governing bodies of two
‑
thirds (2/3) of the municipalities may establish the initial term of the tax at two (2) years. If the term of the tax is limited to two (2) years, the term of the tax shall be stated in the proposition submitted to the voters. If approved, the proposition shall be submitted at the next general election and at every other subsequent general election thereafter until the proposition is defeated;

(D)

If the proposition to impose or continue the tax is defeated the proposition shall not again be submitted to the electors of the county for at least eleven (11) months. If the proposition is defeated at any general election following initial adoption of the proposition the tax is repealed and shall not be collected following June 30 of the year immediately following the year in which the proposition is defeated;

(E)

If the proposition is approved by the qualified electors, the board of county commissioners shall by ordinance impose an excise tax upon services and upon sales and storage, use and consumption of tangible personal property. The board of county commissioners shall adopt an ordinance for the tax authorized by W.S. 39
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204(a)(v). The ordinance shall include the following:

(I)

A provision imposing an excise tax upon every retail sale of tangible personal property, admissions and services made within the county and upon sales made within the county and storage, use and consumption of tangible personal property in the county at the rate approved by the electors;

(II)

Provisions identical to those contained in article 1 of this chapter, insofar as it relates to use taxes, except the name of the county as the taxing agency shall be substituted for that of the state and an additional license to engage in business shall not be required if the vendor has been issued a state license pursuant to law;

(III)

A provision that any amendments made to article 1 or to chapter 15 not in conflict with article 1 of this chapter or to chapter 15 shall automatically become a part of the sales tax ordinances of the county;

(IV)

A provision that the county shall contract with the department prior to the effective date of the county use tax ordinances whereby the department shall perform all functions incident to the administration of the use tax ordinances of the county, city or town;

(V)

A provision that the amount subject to the tax shall not include the amount of any sales or use tax imposed by the state of Wyoming.

(F)

The tax may be terminated by an election to rescind the tax conducted subject to subparagraphs (B) through (D) of this paragraph;

(G)

In no event shall any of the revenue collected from the tax imposed under this paragraph be expended, either directly or indirectly, to finance or involuntarily acquire any public utility as defined in W.S. 37-1-101 or any telecommunications system by condemnation or other legal process.

39
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16
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204.

Taxation rate.

(a)

In addition to the state tax imposed under W.S. 39
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101 through 39
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111 any county of the state may impose the following excise taxes
authorized by paragraph (ii) of this subsection
and any resort district may impose the tax authorized by paragraph (iv) of this subsection:

(iii)

In no event shall the total excise tax imposed within any county under the provisions of paragraphs (i)
,

and
(ii)
and (v)
of this subsection exceed two percent (2%);

(v)

An excise tax at a rate in increments of one
‑
quarter of one percent (.25%) not to exceed a rate of one percent (1%) upon sales and storage, use and consumption of tangible personal property as provided by this article made within the county, the purpose of which is for economic development;

39
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211.

Distribution.

(a)

All revenue collected by the department from the taxes imposed under W.S. 39
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204(a)(i)
, (iv)
and
(iii)
(v)
shall be transferred to the state treasurer who shall:

(i)

For revenues collected under W.S. 39
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16
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204(a)(i):

(C)

Notwithstanding subparagraph (B) of this paragraph, a county, city or town receiving distributions under this paragraph may expend not to exceed twenty-five percent (25%) of the amount received under subparagraph (B) of this paragraph for the purposes of economic development provided:

(I)

The intent to use a portion of the amount distributed for economic development was indicated by specific language on the ballot as provided by W.S. 39
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16
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203(a)(i)(C) or the enactment of a resolution or ordinance stating that a portion of the proceeds would be used for "economic development";

(II)

The county has not imposed a tax under W.S. 39
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204(a)(v).

(iii)

For revenues collected under W.S. 39
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16
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204(a)(v):

(A)

Deduct one percent (1%) to defray the costs of collecting the tax and administrative expenses incident thereto which shall be deposited into the general fund;

(B)

Deposit the remainder into the trust and agency fund for monthly distribution to counties imposing the tax and its cities and towns. The distribution to the county and its cities and towns shall be equal to the amount collected in each county less the costs of collection as provided by subparagraph (A) of this paragraph. The distribution shall be as follows:

(I)

To the county for deposit into its general fund in the proportion the population of the county situated outside the corporate limits of its cities and towns bears to the total population of the county;

(II)

To the incorporated cities and towns within the county for deposit into their treasuries in the proportion the population of each city or town bears to the total population of the county.

Section 2.
This act is effective July 1, 2005.

(END)

Speaker of the House

President of the Senate

Governor

TIME APPROVED: _________

DATE APPROVED: _________

I hereby certify that this act originated in the House.

Chief Clerk

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