Intangible property-taxation.

WORKING DRAFT
2006
STATE OF
WYOMING
06LSO-0168

SENATE
FILE

NO.
SF0032

Intangible property-taxation.

Sponsored by:
Joint Revenue Interim Committee

A BILL

for

AN ACT relating to taxation and revenue; providing for the taxation of intangible property as specified; providing for rules and regulations; requiring a report; specifying applicability; and providing for an effective date.

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

Section 1
.

W.S. 39
‑
13
‑
103 by creating a new subsection (d) is amended to read:

39
‑
13
‑
103.

Imposition
.

(d)

A percentage of the unitary value representing the value of intangible personal property typical for the industry group shall be removed from the unitary value established by the department for property described in W.S. 39
‑
3
‑
102(m). The following shall apply:

(i)

The department shall promulgate rules necessary to gather information from and to establish percentages of intangible personal property deductions for each of the following industry groups:

(A)

Airlines;

(B)

Major telecommunications companies including long distance and local exchange telecommunications companies;

(C)

Rural telecommunications companies;

(D)

Cellular telecommunications companies;

(E)

Reseller telecommunications companies;

(F)

Major electric utilities;

(G)

Rural electric utilities;

(H)

Municipal electric utilities;

(J)

Gas distribution companies;

(K)

Liquid pipeline companies;

(M)

Natural gas pipeline companies;

(N)

Railroad companies.

(ii)

The department shall gather information from each industry from the taxpayer's or parent company's:

(A)

Books and records;

(B)

Reports filed with any state or federal regulatory agency;

(C)

Federal income tax returns; or

(D)

Other documentation as accepted by the department.

(iii)

The department shall gather such information beginning in 2006, and the percentages established by the department for the intangible personal property deduction shall be utilized
to value the property as provided by this subsection.
Once established, the deduction percentage for each industry group specified in paragraph (i) of this subsection shall be applied to each taxpayer's unitary valuation determined by the department
;

(iv)

If any taxpayer believes that the value of its intangible personal property is greater than that allowed under the minimum percentage, the taxpayer may propose alternative methodology or information at any time during the appraisal process and the department shall give the proposal full and fair consideration. If the department concludes that the value of the intangible personal property is greater than that allowed in the minimum percentage, the unit value shall be decreased accordingly.

Section 2.
The department shall report to the governor and the joint revenue interim committee not later than December 10, 2008 reviewing the effectiveness of the procedures outlined including any recommended statutory changes. The legislature shall consider the report and may offer appropriate legislation based upon a fair assessment of the report and its substance.

Section 3.
This act is effective January 1, 2007.

(END)

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SF0032