Vehicle sales and use tax.

WORKING DRAFT
2008
STATE OF
WYOMING
08LSO-0094

HOUSE BILL

NO.
HB0032

Vehicle sales and use tax
.

Sponsored by:
Joint Revenue Interim Committee

A BILL

for

AN ACT relating to
vehicle sales and use tax;
requiring the titling of certain vehicles
;
requiring the buyer and seller in a private sale to sign
and attest to the sales price paid before a notary public;

removing the prohibition of certain
vendor
s
of vehicle
s from collecting and remitting sales and use tax on the sale of those vehicles
;

requiring county treasurers to collect sales and use tax from private sales of vehicles
and other vehicle transfers that are not collected by a vendor
;
exempting sales of vehicles to residents of other states from the sales tax;

repealing the interest and civil fees for delinquent sales tax;
and providing for an effective date.

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

Section 1.

W.S.
31
‑
2
‑
101(b),
31
‑
2
‑
104
(h)(ii),
39
‑
15
‑
103(b)(ii)
and
(c)(iii),
39
‑
15
‑
105(a)(ix)(A)
and
by creating a new subparagraph (B), 39
‑
15
‑
107(a)(viii)
(intro), (A), (B), (b)(i)
and
(ii)
, 39
‑
15
‑
108
(b)(ii)
(intro)
and

(d)(ii),
39
‑
16
‑
103(b)(ii),
39
‑
16
‑
105(a)(x)(A)
and
by creating a new subparagraph (B)
and

39
‑
16
‑
107
(a)(v),
(b)(ii)
and (iii)
are amended to read:

31
‑
2
‑
101.

Required application.

(b)

Every owner or transferee upon transfer of ownership of
an
off
‑
road recreational

any

vehicle
may
that has an identifying
number
as defined in W.S. 31
‑
1
‑
101(a)(ix) including
, without limitation,
off
‑
road
vehicles
, recreational
vehicles
, multipurpose vehicles and, for the purpose of obtaining a title under this section, snowmobiles and watercraft
,
shall

apply for a certificate of title at the office of a county clerk.

31
‑
2
‑
104.

Transfer of ownership.

(h)

The requirement under subsection (a) of this section to deliver a certificate of title to a transferee at the time the vehicle is delivered does not apply to a transferor if:

(ii)

The transferor is an auctioneer of vehicles and transfers the vehicle in the course of his business as an auctioneer of vehicles or through an auctioneer of vehicles. The transferor or auctioneer shall then deliver the certificate of title to the transferee within thirty (30) days of the date of sale and shall deliver to the transferee at the time the vehicle is delivered a signed, notarized bill of sale in substantially the following form:

VEHICLE BILL OF SALE

I, (NAME OF TRANSFEROR OR AUCTIONEER), on (date), hereby sell and convey all (my interest the interest of (name of current owner)) in the following described vehicle: (COLOR, YEAR, MAKE, MODEL, VEHICLE IDENTIFICATION NUMBER) to (NAME OF TRANSFEREE) in exchange for: (sales price). I hereby state that the certificate of title for the above described vehicle is held by (NAME OF TRANSFEROR-VEHICLE AUCTIONEER, BANK OR OTHER FINANCIAL INSTITUTION) and that within thirty (30) days, (NAME OF TRANSFEREE) will be provided a properly executed title free of all liens for the vehicle unless otherwise specified in this bill of sale.
DATE:

_________
________________________________________
(TRANSFEROR'S OR AUCTIONEER'S SIGNATURE)

________________________________________
(TRANSFER
EE'S OR PURCHASER
'S SIGNATURE)

(BILL OF SALE MUST BE NOTARIZED)

39
‑
15
‑
103.

Imposition.

(b)

Basis of tax. The following shall apply:

(ii)

For purposes of W.S. 39
‑
15
‑
107(b)(i),
T
he sales price of motor vehicles, house trailers, trailer coaches, trailers or semitrailers
as defined by W.S. 31
‑
1
‑
101

shall be declared
by the purchaser
upon a copy of the original invoice
from
including the sales tax charged to the purchaser by

the vendor
.

or upon an affidavit furnished by the department if not purchased from a vendor and the tax collected shall be based upon the declaration or invoice

If the purchase is by private sal
e, the seller and purchaser shall
sign the original vehicle title
or bill of sale
and attest to the
date of sale and the
sales price paid by the
purchaser

before a notary public or a person authorized to administer oath
s
;

(c)

Taxpayer. The following shall apply:

(iii)

Any tax due under this article constitutes a debt to the state from the persons who are parties to the transaction
, other than any vendor or other seller who is prohibited or not authorized by law to collect any tax under this article,
and is a lien from the date the tax is due on all the real and personal property of those persons;

39
‑
15
‑
105.

Exemptions.

(a)

The following sales or leases are exempt from the excise tax imposed by this article:

(ix)

For the purpose of avoiding application of the sales tax more than once on the same article of tangible property for the same taxpayer:

(A)

The trade-in value of tangible personal property shall be excluded from the sales price of new tangible personal property when trade-in and purchase occur in one (1) transaction
;
.

and

(B)

The sales price paid for a motor vehicle, house trailer,
trailer coach, trailer or semi
trailer as defined in W.S. 31
‑
1
‑
101 if the
vehicle
is purchased by a nonresident of Wyoming, titled in the state of residence of the purchaser and the vehicle is to be removed from the state of Wyoming
within

thirty (30) days
of purchase. The purchaser
shall
declare under penalty of perjury
on a form prescribed by the
department

that
he is a resident of another state
.

39
‑
15
‑
107.

Compliance; collection procedures.

(a)

Returns, reports and preservation of records. The following shall apply:

(viii)

When applying for registration, every new owner of a
motorcycle
motor vehicle, house trailer, trailer coach, trailer or
semitrailer

shall produce either:

(A)

A

A
n original
receipt
or invoice

from the
department
vendor

showing that the sales or use tax has been paid;

(B)

A receipt on forms provided by the department showing that the motorcycle was purchased from a Wyoming licensed dealer and that the dealer has collected the sales tax

In the case of a private sale, the original vehicle title
which has been
signed
by both the seller and purchaser pursuant to W.S. 39
‑
15
‑
103(b)(ii)
; or

(b)

Payment. The following shall apply:

(i)

Except as provided by paragraph (viii) of this subsection, no vendor shall collect taxes imposed by this article upon the sale of motor vehicles, house trailers, trailer coaches, trailers or semitrailers. The taxes imposed shall be collected by the county treasurer prior to the first registration in
Wyoming
and not upon subsequent registration by the same applicant.
For sales of motor vehicles, house trailers, trailer coaches, trailers or semitrailers as def
ined in W.S. 31
‑
1
‑
101, the
tax imposed by this article shall be collected by the vehicle dealer at the time of sale. In the case of a private sale or any sale made outside of
Wyoming
, the county treasurer shall coll
ect
any

applicable
sale
s
or use
tax prior to first registration.

The
vehicle
dealer
or the

county treasurer shall collect and remit to the department the tax in effect in the county of the
owner's

purchaser's
principal res
idence;

(ii)

Except for those vehicles specified under paragraph (viii) of this subsection,
T
he tax imposed by this article upon the sale of a motor vehicle, house trailer, trailer coach, trailer or semitrailer
as defined in W.S. 31
‑
1
‑
101

purchased as a gift shall be collected from the donee prior to the first registration based upon the fair market value of the gift at the time of the gift

if the donee cannot provide evidence that the sales or use tax
has been paid
;

39
‑
15
‑
108.

Enforcement.

(b)

Interest. The following shall apply:

(ii)

If
a vehicle is sold by a private party,

the sales or use tax on
a
the

vehicle
, including local option sales or use tax, under W.S. 39
‑
15
‑
101 through 39
‑
15
‑
211 or 39
‑
16
‑
101 through 39
‑
16
‑
211,
is not
shall be
paid within fifty (50) days after the date of the sale, or in the case of a motor vehicle brought into this state, fifty (50) days after the vehicle is brought into the state if the owner submits to the county treasurer an affidavit and any other satisfactory proof as necessary to verify the date the vehicle was brought into the state
.
:

(d)

Liens. The following shall apply:

(ii)

Except as provided by W.S. 39
‑
15
‑
107(b)(viii), no vendor shall collect taxes imposed by this article upon the sale of motor vehicles, house trailers, trailer coaches, trailers or semitrailers. The taxes imposed shall be collected by the county treasurer prior to the first registration in
Wyoming
and not upon subsequent registration by the same applicant.

Upon a failure to pay the tax due upon any vehicle as provided by paragraph (b)(ii) of this section, the county treasurer shall notify the county clerk and the county clerk shall notify the department. The department may file a lien against the vehicle as provided by paragraph (i) of this subsection and shall note the lien on the title of the vehicle. After review by and approval of the board of county commissioners, the county may also collect the tax due and any interest, penalties or costs of collection through the use of a collection agency or by the filing of a civil action.

39
‑
16
‑
103.

Imposition.

(b)

Basis of tax. The following shall apply:

(ii)

For purposes of W.S. 39
‑
16
‑
107(b)(ii),
T
he sales price of motor vehicles, house trailers, trailer coaches, trailers or semitrailers as defined by W.S. 31
‑
1
‑
101 shall be declared
by the purchaser
upon a copy of the original invoice
from
including the sales tax charged to the purchaser by

the vendor
.

or upon an affidavit furnished by the department if not purchased from a vendor and the tax collected shall be based upon the declaration or invoice

If the purchase is by private sale, the seller and purchaser
shall
sign the original vehicle title
or bill of sale
and attest to
the date of purchase and
the sales price paid by the
purchaser
before a notary public or a person auth
orized to administer oaths
;

39
‑
16
‑
105.

Exemptions.

(a)

The following purchases or leases are exempt from the excise tax imposed by this article:

(x)

For the purpose of avoiding application of the use tax more than once on the same article of tangible property for the same taxpayer:

(A)

The trade-in value of tangible personal property shall be excluded from the sales price of new tangible personal property when trade-in and purchase occur in one (1) transaction
;
.

and

(B)

The purchase price paid for a motor vehicle, house trailer, trailer coach
, trailer or semi
trailer as defined in W.S. 31
‑
1
‑
101 if the
vehicle
is purchased by a non
resident of Wyoming, titled in the state of residence of the purchaser and the vehicle is to be removed from the state of Wyoming
within

thirty (30) days
of purchase. The purchaser
shall
declare under penalty of perjury
on a form prescribed by the department
that
he is
a resident of another state.

39
‑
16
‑
107.

Compliance; collection procedures.

(a)

Returns, reports and preservation of records. The following shall apply:

(v)

Taxes collected
under paragraphs (b)(ii) and (iii) of this section
by county treasurers from sales of motor vehicles, house trailers, trailer coaches, trailers or semitrailers as defined in W.S. 31
‑
1
‑
101 from private sales or other sales where use tax was not collected
at the time of sale

shall be remitted in full by the county treasurer to the department monthly or as required by the department together with reports as required by the department;

(b)

Payment. The following shall apply:

(ii)

Except as provided by paragraph (iv) of this subsection,
N
o vendor shall collect the taxes imposed by this
article
chapter

upon the sale of motor vehicles, house trailers, trailer coaches, trailers or semitrailers as defined by W.S. 31
‑
1
‑
101. The
use

taxes imposed shall be collected by the county treasurer

prior to the first registration in
Wyoming
and not upon subsequent registration by the same owner. The county treasurer

shall collect and remit to the department the tax in effect in the county of the
owner's

purchaser's
principal residence. The
use

tax shall not be collected if previously registered by the same nonresident
owner
purchaser

in another state. The county treasurer may also collect the tax due and any interest, penalties or costs of collection through the use of a collection agency or by the filing of a civil action;

(iii)

Except for those vehicles specified under paragraph (iv) of this subsection,
T
he use tax imposed by this
article

chapter
upon a motor vehicle, house trailer, trailer coach, trailer or semitrailer
as defined in W.S. 31
‑
1
‑
101

purchased outside the state of Wyoming as a gift shall be collected from the donee prior to the first registration based upon the fair market value of the gift at the time of the gift;

Section 2.

W.S. 31
‑
2
‑
102(a)(iv)
and
(vi)
,
39
‑
15
‑
103(b)(iii), 39
‑
15
‑
107(a)(vii)
and
(b)(viii)
,
39
‑
15
‑
108(b)(ii)(A)
through

(C), 39
‑
16
‑
103(b)(iii), (c)(iii)
and
(iv) and 39
‑
16
‑
107(b)(iv)
are repealed.

Section 3
.

This act is effective July 1, 2008.

(END)

1
HB0032