Electricity production-taxation.

WORKING DRAFT
2009
STATE OF
WYOMING
09LSO-0611

HOUSE BILL
NO.
HB0270

Electricity production-taxation.

Sponsored by:
Representative(s) Miller, Anderson, R., Harshman and Pedersen

A BILL

for

AN ACT relating to taxation and revenue; imposing an excise tax upon the production and sale of electricity as specified; providing a rate; providing rulemaking authority; providing a penalty; and providing for an effective date.

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

Section 1.

W.S. 39
‑
2
2
‑
101 through 39
‑
2
2
‑
111 are created to read:

C
HAPTER 2
2
TAX UPON PRODUCTION
AND
SALE

OF ELECTRICITY

39
‑
22
‑
101.

Definitions.

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

3
9
‑
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
.

3
9
‑
22
‑
103.

Imposition.

There is levied an excise tax upon the privilege of producing
and selling
electricity in this state. The tax shall be imposed upon the production
and sale
of any electricity generated for sale or trade.

3
9
‑
22
‑
104.

Taxation rate.

The tax rate shall be ten one-hundredths of one cent ($.0010) upon each kilowatt hour, or portion thereof, produced
and sold
in this state.

3
9
‑
22
‑
105.

Exemptions.

No tax shall be imposed upon electricity which is produced for the personal consumption of the producer.

3
9
‑
22
‑
106.

Licensing; permits.

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

3
9
‑
22
‑
107.

Compliance; collection procedures.

(a)

Returns and reports. Any person producing
and selling
electricity in this state shall report the amount of kilowatt hours produced
and sold in this state
on or before February 1 of the year immediately following the year in which the electricity was produced
and sold
.

(b)

Payment. Any person owing a tax under this
chapter
shall pay the tax once each year on or before February 1 of the year immediately following the year in which the electricity was produced
and sold
. The tax shall be collected by the department of revenue.

(c)

Timelines.

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

3
9
‑
22
‑
108.

Enforcement.

(a)

Audits. There are no specific applicable provisions for audits for this
chapter
.

(b)

Interest. Interest at an annual rate equal to the average prime interest rate as determined by the state treasurer during the preceding fiscal year plus four percent (4%) shall be added to all delinquent taxes under this
chapter
. To determine the average prime interest rate, the state treasurer shall average the prime interest rate for at least seventy-five percent (75%) of the thirty (30) largest banks in the
United States
. The interest rate on delinquent taxes shall be adjusted on January 1 of each year following the year in which taxes first became delinquent. In no instance shall the delinquent
interest
rate be less than twelve percent (12%) nor greater than eighteen percent (18%).

(c)

Penalties. The following shall apply:

(i)

If any person fails to make or file a return and remit the tax as required by W.S. 39
‑
2
2-107
the department shall impose a penalty of five percent (5%) of the taxes due for each thirty (30) day period, or fraction thereof, elapsing between the due date of the return and the date filed, unless the person for good cause obtains from the department an extension of time for filing prior to the due date for filing. In no event shall the total penalty imposed by this subsection exceed twenty-five percent (25%) of the tax due. The department, for good cause, may waive a penalty imposed for failure to file a return for any one (1) calendar year, provided that:

(A)

The return was filed within five (5) business days following the due date, including an approved extension period; and

(B)

The taxpayer requests the waiver in writing within fifteen (15) days after the return was filed, setting forth the reasons for the late filing.

(ii)

If any part of a tax deficiency is due to negligence or intentional disregard of rules and regulations there shall be added a penalty of five percent (5%) of the amount of the deficiency plus interest as provided by subsection (b) of this section. The taxes, penalty and interest shall be paid by the taxpayer within ten (10) days after receipt of notice and demand by the department;

(iii)

Taxes due together with interest, penalties and costs shall be collectible by the department by appropriate judicial proceedings;

(iv)

The department may credit or waive penalties imposed by this section as part of a settlement or for any other good cause.

(d
)

Liens. Any delinquent tax is a lien upon the property of any owner from and after the time the tax is due until the tax is paid. The tax lien shall have preference over all liens except any valid mortgage or other liens of record filed or recorded prior to the date the tax became due.

(e)

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

3
9
‑
22
‑
109.

Taxpayer remedies.

(a)

Credits. Any person producing and selling electricity in this state using in the production process any mineral which has been taxed under the provisions of W.S. 39
‑
14
‑
101 et seq. shall be entitled to a credit equal to the amount of the tax paid on the minerals consumed in the production of the electricity. In order to qualify for the credit,
any
person producing and selling electricity in this state shall adequately demonstrate to the department of revenue that he will expend
an amount not less than
:

(i)

Ninety
percent (
9
0%)
of the qualifying credit
on construction of new projects for the generation of electricity
powered by any natural resource including minerals
or new
power
lines to conduct electricity; and

(ii)

Ten
percent (
1
0%)
of the qualifying credit
to be transferred to the state
treasurer
for deposit into the low income energy assistance p
rogram
(LIEAP) as provided by
W.S. 42
‑
2
‑
501.

3
9
‑
22
‑
110.

Statute of limitations.

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

3
9
‑
22
‑
111.

Distribution.

The proceeds from the tax imposed by this
chapter
shall be deposited in the general fund.

Section 2.

This act is effective January 1, 20
10
.

(END)

1
HB0270