Consumer tax relief.

WORKING DRAFT
2006
STATE OF
WYOMING
06LSO-0259

HOUSE BILL
NO.
HB0117

Consumer tax relief.

Sponsored by:
Representative(s) Robinson, Brechtel, Martin, McOmie and Thompson and Senator(s) Decaria,
Jennings
, Job, Scott and Sessions

A BILL

for

AN ACT relating to taxation; providing sales and use tax exemptions on certain consumer transactions; providing
funds
for local governments
and modifying sales tax distributions
to offset decreased revenues resulting from the exemptions; providing a sunset;
providing an appropriation;
and providing for an effective date.

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

Section 1.

W.S. 39
‑
15
‑
101(a) by creating a new paragraph (xxxix), 39
‑
15
‑
105(a)(vi) by creating new subparagraphs (E) and (F),
39
‑
15
‑
111(b)(i), (iii)(intro), (f) and (g),
39
‑
16
‑
101(a) by creating a new paragraph (xvii)
,
39
‑
16
‑
105(a)(vi) by creating new subparagraphs (E) and (F)
and 39
‑
16
‑
111(b)(i), (iii)(intro) and (c)
are amended to read:

39
‑
15
‑
101.

Definitions.

(a)

As used in this article:

(xxxix)

"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)

S
ales of food for domestic home consumption;

(F)

For the period commencing July 1, 2006 and ending June 30, 2008, sales of gas, electricity or heat for domestic consumption which would otherwise be taxed pursuant to
W.S. 39
‑
15
‑
103.

39
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15
‑
111.

Distribution.

(b)

Revenues earned under W.S. 39
‑
15
‑
104 during each fiscal year shall be recognized as revenue during that fiscal year for accounting purposes. Revenue collected by the department under W.S. 39
‑
15
‑
104 shall be transferred to the state treasurer who shall:

(i)

Until June 30,
2004
2008
, subject to subsection (g) of this section, credit
seventy and one-half percent (70.5%) and thereafter
sixty-nine percent (69%)
and thereafter sixty-four and
sixty-five hundredths
percent (64
.65
%)
to the state general fund except as provided by subsections (c) and (d) of this section;

(iii)

From the remaining share,
until June 30, 2004, deduct an amount equivalent to one-half percent (0.5%) and thereafter
deduct an amount equivalent to one percent (1%) of the tax collected under W.S. 39
‑
15
‑
104. From this amount, the state treasurer shall distribute
until June 30, 2004, twenty thousand dollars ($20,000.00) and thereafter
forty thousand dollars ($40,000.00) annually to each county in equal monthly installments and then distribute the remainder to each county in the proportion that the total population of the county bears to the total population of the state. The balance shall then be paid monthly to the treasurers of the counties, cities and towns for payment into their respective general funds. The percentage of the balance that will be distributed to each county and its cities and towns will be determined by computing the percentage that net sales taxes collected attributable to vendors in each county including its cities and towns bear to total net sales taxes collected of vendors in all counties including their cities and towns. Subject to subsection (h) of this section, this percentage of the balance shall be distributed within each county as follows:

(f)

In addition to the distribution specified in subsection (b) of this section, until June 30,
2004
2008
,
twenty-nine and one-half percent (29.5%) and thereafter
thirty-one percent (31%)
and thereafter thirty-five and
thirty-five hundredths
percent (35
.35
%)
of sales taxes collected from out-of-state vendors shall be distributed to counties, cities and towns in the same percentage as determined in paragraph (b)(iii) of this section.

(g)

If the tax imposed under W.S. 39
‑
15
‑
104(b) is reduced to one-half of one percent (.5%) under W.S. 39
‑
15
‑
104(d), on and after September 1 of the year in which the reduction occurs, the distributions to the state general fund under paragraph (b)(i) of this section shall be reduced until June 30,
2004
2008
, from
seventy and one-half percent (70.5%) to sixty-eight and one-half percent (68.5%) and thereafter from
sixty-nine percent (69%) to sixty-five percent (65%)
and thereafter from sixty-four and
sixty-five hundredths
percent (64
.65
%) to
fifty-nine
and
three-fifths
percent (
59
.6
%)
.

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)

P
urchases of food for domestic home consumption;

(F)

For the period commencing July 1, 2006 and ending June 30, 2008, purchases of gas, electricity or heat for domestic consumption which would otherwise be taxed pursuant to
W.S. 39
‑
16
‑
103.

39
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16
‑
111.

Distribution.

(b)

Revenues earned under this article during each fiscal year shall be recognized as revenue during that fiscal year for accounting purposes. Revenue collected by the department from the taxes imposed by this article shall be transferred to the state treasurer who shall:

(i)

Until June 30,
2004
2008
, subject to subsection (g) of this section, credit
seventy and one-half percent (70.5%) and thereafter
sixty-nine percent (69%)
and thereafter sixty-four and
sixty-five hundredths
percent (64
.65
%)
to the general fund except as provided by subsections (d) and (e) of this section;

(iii)

From the remaining share,
until June 30, 2004, deduct an amount equivalent to one-half percent (0.5%) and thereafter
deduct an amount equivalent to one percent (1%) of the tax collected under W.S. 39
‑
16
‑
104. From this amount, the state treasurer shall distribute
until June 30, 2004, five thousand dollars ($5,000.00) and thereafter
ten thousand dollars ($10,000.00) annually to each county in equal monthly installments and then distribute the remainder to each county in the proportion that the total population of the county bears to the total population of the state. The remainder shall then be paid monthly to the treasurers of the counties, cities and towns for payment into their respective general funds. The percentage of the remainder that will be distributed to each county and its cities and towns will be determined by computing the percentage that net use taxes collected attributable to vendors in each county including its cities and towns bear to total net use taxes collected of vendors in all counties including their cities and towns. The distribution shall be as follows:

(c)

In addition to the distribution in subsection (b) of this section, until June 30,
2004
2008
,
twenty-nine and one-half percent (29.5%) and thereafter
thirty-one percent (31%)
and thereafter thirty-five and
thirty-five hundredths
percent (35
.35
%)
of use taxes accruing from out-of-state vendors shall be distributed to counties, cities and towns in the same percentage as determined in paragraph (b)(iii) of this section.

Section 2.
For the fiscal biennium beginning July 1, 2006 and ending June 30, 2008, there is appropriated to the state treasurer from the general fund
sixty-
s
even
million
one hundred thousand
dollars ($
6
7
,
1
00,000.00) for the purpose of augmenting revenues to local governments in recognition of revenues lost by local governments as a result of the sales and use tax exemptions provided under this
act
. The appropriation provided in this section shall be divided into twenty-four (24) equal amounts to be distributed monthly. Each month the state treasurer shall distribute to each county, city and town a share of this total monthly amount in the same proportion as each county, city and town receives that same month from all sales and use tax monthly distributions under W.S. 39
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15
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111, 39
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15
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211, 39
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111 and 39
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16
‑
211.

Section 3.
This act is effective
July 1, 2006.

(END)

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HB0117