Sales & use tax refund.

WORKING DRAFT
2006
STATE OF
WYOMING
06LSO-0083.E1

HOUSE BILL
NO.
HB0055

Sales & use tax refund.

Sponsored by:
Representative(s) Anderson, R., Brechtel, Bucholz, Childers, Harshman and Pedersen

A BILL

for

AN ACT relating to taxation and revenue; providing for a sales and use tax refund as specified; amending related provisions; providing an appropriation; and providing for effective dates.

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

Section 1.

W.S. 39
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11
‑
109(c)(iii) through (v) and (vii)(intro) and by creating a new subsection (g) is amended to read:

39
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11
‑
109.

Taxpayer remedies.

(c)

Refunds. The following shall apply:

(iii)

Qualified residents shall apply to the department, or its designee, in the county of their residence, on or before the last working day in August of each year for a refund of
exempted sales and use
state
taxes, certifying age, residency, disability, if any, marital status, resources and income under oath on forms prescribed by the department. Each application shall be submitted under oath by the applicant and shall be accompanied by a copy of the applicant's federal income tax return for the previous calendar year or a statement under oath that the applicant was not required to file a return for the previous calendar year. The department shall issue upon request to each qualified applicant a receipt acknowledging the filing of a completed application;

(iv)

Warrants for tax refunds shall be mailed by the department to qualified recipients by December 20 following the application date of the last working day in August. The department shall enclose a letter of transmittal with each warrant explaining how the refund was computed on the basis of the applicant's income, enclosing a chart which shows sources of income to the state general fund and an explanation indicating that each payment represents an allowance for
sales and use tax refund,
a
property tax refund and a refund for utility or energy costs;

(v)

Warrants are issued to senior citizens and disabled persons as a refund and partial exemption of taxes paid under
the sales and use taxes,
property tax relief and utility or energy cost relief. Refunds are payable from the general fund;

(vii)

No applicant is entitled to a refund under this
article

subsection
who owns resources that exceed an equity value of four thousand five hundred dollars ($4,500.00). In determining resources, a single one hundred thousand
dollars
dollar
($100,000.00) equity value of the
following
combined property is exempt:

(g)

Sales and use tax refunds. The following shall apply:

(i)

On or before the first Monday in June, upon the filing of an affidavit demonstrating an adequate showing that he is qualified under paragraph (ii) of this subsection, any person may apply to the department of revenue or its designee in the county of the person’s residence for a sales and use tax refund. An applicant shall have been a resident of this state for not less than one (1) year prior to applying for a refund under this subsection. Subject to legislative appropriation, the affidavit shall include information as required by rule and regulation on a form approved by the department of revenue. The sales and use tax refund shall not exceed three hundred thirty-five dollars ($335.00) each year for the first two (2) years starting January 1, 2007 and two hundred thirty dollars ($230.00) each year thereafter per qualified application;

(ii)

Gross income as used in this subsection shall be defined by the department through rules and regulations. The gross income shall be verified by federal income tax returns which shall accompany the application for refund, if federal income tax returns were required and filed, or whatever other means necessary as determined by the department through rules and regulations. The department shall issue all refunds due under this subsection on or before September 30 of the year in which application is made for the refund. Any person shall qualify for a refund under this subsection if the person's gross income including the total household income of which the person is a member does not exceed the greater of one-half (1/2) of the median gross household income for the applicant's county of residence or the state, as determined annually by the economic analysis division of the department of administration and information. Not more than one (1) person per household shall qualify for a refund under this subsection. Additionally, no person shall qualify for a refund under this subsection unless the person has total household assets as defined by the department of revenue through rules and regulations of not to exceed twenty thousand dollars ($20,000.00) per adult member of the household as adjusted annually by the statewide average Wyoming cost-of-living index published by the economic analysis division of the department of administration and information, excluding the following:

(A)

The value of the home in which the taxpayer resides;

(B)

One (1) personal motor vehicle per adult in the household;

(C)

Household furnishings and personal property;

(D)

Assets held under a bona fide pension plan or individual retirement account (IRA);

(E)

The cash value of any life insurance policies held.

(iii)

The department of revenue shall promulgate rules and regulations necessary to implement this subsection.

Section 2.
There is appropriated from the general fund to the department of revenue eight million nine hundred thousand dollars ($8,900,000.00) for the purposes of this act.

Section 3.

(a)

Except as provided in subsection (b) of this section this act is effective July 1, 2006.

(b)

The department of revenue may promulgate rules and regulations pursuant to W.S. 39
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11
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109(g)(iii) commencing with the effective date of this subsection. This subsection is
effective immediately upon co
m
pletion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constit
u
tion.

(END)

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HB0055