Optional local Impacts and Improvement Act.

WORKING DRAFT
2005
STATE OF WYOMING
05LSO-0425

HOUSE BILL
NO.
HB0332

Optional Local Impacts and Improvement Act.

Sponsored by:
Representative(s) Olsen, Berger, Luthi and Warren and Senator(s) Larson and Peck

A BILL

for

AN ACT relating to taxation and revenue; providing for the Optional Local Impacts and Improvement Act; imposing a real estate transfer tax as specified; requiring a majority vote for the tax; authorizing collection of the tax; providing for distribution; conforming related provision; and providing for an effective date.

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

Section 1.

W.S. 39
‑
22
‑
101 through 39
‑
22
‑
111 are created to read:

CHAPTER 22
LOCAL IMPACTS AND IMPROVEMENT ACT

39
‑
22
‑
101.

Definitions.

There are no specific applicable provisions for definitions for this chapter.

39
‑
22
‑
102.

Administration.

The department of revenue shall enforce the provisions of this chapter. The department shall promulgate rules and regulations necessary for the implementation and enforcement of this chapter.

39
‑
22
‑
103.

Imposition.

(a)

There is imposed a transfer tax upon the sale of real property. On any sale of real property, a transfer tax shall be imposed upon the total amount of the real property sale. The tax shall be imposed upon all transfers of legal and equitable title to real property.

(b)

The transfer tax authorized by subsection (a) of this section shall not be imposed by a county unless approved by a majority of the qualified voters in the county casting their ballots on the question. If approved by a majority of the voters, the tax shall be valid for a period of four (4) years. Thereafter, the tax shall terminate unless a majority of the voters vote to impose the tax for additional four (4) year periods.

(c)

No tax shall be imposed under this section 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 on the question vote in favor of imposing the tax. Except as otherwise provided, the tax imposed under this section shall commence as provided by W.S. 39
‑
15
‑
207 following the election approving the imposition of the tax.

(d)

The proposition to impose the transfer tax shall be at the expense of the county and be submitted to the electors of the county upon the county clerk's filing of a petition requesting the election signed by at least ten percent (10%) of the qualified electors of the county or of a resolution approving the proposition from the board of county commissioners of the county and the governing bodies of at least two-thirds (2/3) of the incorporated municipalities within the county. The resolution or petition shall state the specific tax rates to be imposed as authorized by W.S. 39
‑
22
‑
104. If proposed by petition by qualified electors, the number of qualified electors required shall be determined by the number of votes cast at the last general election. The petition shall be in a form prescribed by the county clerk, which shall have an affidavit by the circulator. The petition may be circulated for not more than one (1) year after the date the county clerk approves the form of the petition. The county clerk shall verify the signatures on the petition as those of qualified electors of the county. When the ten percent (10%) threshold is met the county clerk shall certify and file the petition. The election shall be at the direction and under the supervision of the board of county commissioners, and in accordance with the provisions of the Wyoming Election Code.

(e)

The proposition may be submitted at any general election or at a special election called for that purpose, provided that no special election may be called if a general election will be held within one hundred twenty (120) days of the date the county clerk certifies and files the petition. If the election is a special election, 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 of the special election shall be published at least once each week for a thirty (30) day period preceding the election. If the proposition is submitted at a general election, the notice of the election shall be included in the general election proclamation as outlined in W.S. 22
‑
2
‑
109. The ballot in an election under this section shall state the question substantially in the following form:

"Shall a tax on the transfer of real property as authorized by W.S. 39
‑
22
‑
103 be imposed in .... county for four (4) years at the following rates as provided by W.S. 39
‑
22
‑
104:

(i)

One hundred thousand dollars ($100,000.00) or less, no tax;

(ii)

More than one hundred thousand dollars ($100,000.00) but less than or equal to three
hundred thousand dollars ($300,000.00) – _____ percent (__%);

(iii)

More than three hundred thousand dollars ($300,000.00) but less than or equal to five hundred thousand dollars ($500,000.00) – ______ percent (__%);

(iv)

More than five hundred thousand dollars ($500,000.00) but less than or equal to one million dollars ($1,000,000.00) – ______ percent (__%);

(v)

More than one million dollars ($1,000,000.00) – ______ percent (__%)."

YES  NO 

If the proposition to impose the tax is approved, the same proposition shall be submitted, at the second general election following the election at which the proposition was initially approved and at the general election held every four (4) years thereafter, until defeated.

(f)

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 one (1) year. 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.

(g)

If the proposition is approved by the qualified electors, the board of county commissioners shall by resolution impose a tax upon the transfer of real property.

39
‑
22
‑
104.

Taxation rate.

(a)

The tax rate shall be as follows on the price paid for real property:

(i)

One
hundred thousand dollars ($100,000.00) or less – no tax;

(ii)

More than one hundred thousand dollars ($100,000.00) but less than or equal to three hundred thousand dollars ($300,000.00) – not to exceed one-quarter percent (1/4%);

(iii)

More than three hundred thousand dollars ($300,000.00) but less than or equal to five hundred thousand dollars ($500,000.00) – more than one-quarter percent (1/4%) but not to exceed three quarters percent (3/4%);

(iv)

More than five hundred thousand dollars ($500,000.00) but less than or equal to one million dollars ($1,000,000.00) – more than three quarters percent (3/4%) but not to exceed one and one-quarter percent (1 1/4%);

(v)

More than one million dollars ($1,000,000.00) – more than one and one-quarter percent (1 1/4%) but not to exceed three percent (3%).

39
‑
22
‑
105.

Exemptions.

(a)

The tax shall not be imposed upon any of the following:

(i)

Any transfer exempted by W.S. 34
‑
1
‑
142(c)(i) through (vi) and (viii);

(ii)

Any transfer of real property exempted from taxation by W.S. 39
‑
11
‑
105, and any property protected from taxation by the constitution;

(iii)

Any transfer of property pursuant to a judicial decree or judgment, except for the judicial enforcement of contracts or agreements of sale not otherwise exempt hereunder;

(iv)

Any transfer of property pursuant to a contract executed prior to the effective date of this act;

(v)

Any transfer of real property valued for taxation under W.S. 39
‑
13
‑
102(m).

(b)

For agricultural lands the real estate transfer tax shall apply only to that amount of the real property sale which exceeds the production value of the land as determined pursuant to W.S. 39
‑
13
‑
103(b)(x).

39
‑
22
‑
106.

Licensing; permits.

There are no specific applicable provisions for licenses and permits for this chapter.

39
‑
22
‑
107.

Compliance; collection procedures.

(a)

Returns and reports. Taxes imposed by this section are due and payable at the office of the county treasurer of the county in which the real property is located on the date of recordation of the deed or other instrument making the sale a matter of public record. The tax shall only be collected on the price paid for real property. The county clerk shall not record a document transferring legal or equitable title to real property until all taxes due under this section have been paid to the county treasurer.

(b)

Payment. The tax shall be paid by the purchaser and collected from the party recording the deed or other instrument making the sale a matter of public record by the county treasurer based upon the total amount paid or to be paid as shown in the statement presented to the county clerk for recording under W.S. 34
‑
1
‑
142.

(c)

Timelines. There are no specific applicable provisions for timelines for this chapter.

39
‑
22
‑
108.

Enforcement.

(a)

Audits. The state department of audit shall conduct an audit of the county's collection of taxes under this chapter every two (2) years.

(b)

Interest. There are no specific applicable provisions for interest for this chapter.

(c)

Penalties. Any person failing to pay the tax imposed by this chapter is guilty of a misdemeanor and is subject to a fine of not more than seven hundred fifty dollars ($750.00), imprisonment for not more than six (6) months, or both.

(d)

Liens. Taxes owed under this section constitute a lien against the property transferred until paid.

(e)

Tax sales. There are no specific applicable provisions for tax sales for this chapter.

39
‑
22
‑
109.

Taxpayer remedies.

There are no specific applicable provisions for taxpayer remedies for this chapter.

39
‑
22
‑
110.

Statute of limitations.

There are no specific applicable provisions for a statute of limitations for this chapter.

39
‑
22
‑
111.

Distribution.

(a)

Taxes collected by the county treasurer shall be distributed as follows:

(i)

Ninety percent
(90%) shall be transferred to the county treasurer for distribution as follows:

(A)

To the county in the proportion that the population of the county situated outside the corporate limits of its cities and towns bears to the total population of the county including cities and towns;

(B)

To each city and town within the county in the proportion the population of the city or town bears to the population of the county.

(ii)

Ten percent (10%)
shall be transferred to the state treasurer for deposit into the general fund.

Section 2.

W.S. 34
‑
1
‑
142(d) is amended to read:

34
‑
1
‑
142.

Instrument transferring title to real property; procedure; exceptions; confidentiality.

(d)

The sworn statements shall be used by the county
clerk to collect the real property transfer tax authorized by W.S. 39
‑
2
2
‑
101
through 39
‑
2
2
‑
111
and the county
assessors and the state board of equalization and the department of revenue along with other statements filed only as data in a collection of statistics which shall be used collectively in determining sales-price ratios by county. An individual statement shall not, by itself, be used by the county assessor to adjust the assessed value of any individual property.

Section 3.
This act is effective July 1, 2005.

(END)

1
HB0332