Sales tax on food-local option.

WORKING DRAFT
2011
STATE OF
WYOMING
11LSO-0189

HOUSE BILL
NO.
HB0169

Sales tax on food-local option.

Sponsored by:
Representative(s) Greear, Petroff and Wallis and Senator(s) Burns

A BILL

for

AN ACT relating to
taxation
and revenue
;
authorizing local gove
rnments to impose a sales and use tax
on food for domestic consumption as specified; providing for distribution, specifying conditio
ns; amending related provisions;

and providing for an effective date.

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

Section 1.

39
‑
15
‑
203(a) by creating a new paragraph (vi),
39
‑
15
‑
204(a)(intro)
,
by creating a new
paragraph (vii)
and by creating a new subsection (b)
,

39
‑
15
‑
205,
39
‑
15
‑
210,
39
‑
15
‑
211(a)(intro)

and by creating a new
paragraph (v)
, 39
‑
16
‑
202(e), 39
‑
16
‑
203(a
) by creating a new paragraph (v
), 39
‑
16
‑
204(a)(intro)
,
by creating a
new paragraph (vi)

and by creating a new subsection (b)
,
39
‑
16
‑
205
and

39
‑
16
‑
211(a)(intro) and by creating a new paragraph (iv)
are
amended to read:

39
‑
15
‑
203.

Imposition.

(a)

Taxable event. The following shall apply:

(v
i)

The following provisions ap
ply to imposition of the food
excise tax under W.S. 39
‑
15
‑
204(a)(
v
ii):

(A)

The board of county commissioners or the city or town council shall adopt
a resolution or
ordinance,
as applicable,
for the
tax authorized. The resolution or
ordinance shall include the following:

(I)

A provision imposing an excise tax on every
sale of food
within the county, city or town at the rate ap
proved by the board of county commissioners, the city council or town council, or both, as
applicable
;

(II)

Provisions identical to those contained in article 1 of this chapter
,
except for W.S. 39
‑
15
‑
102(a), insofar as it relates to sales taxes except the name of the county as the taxing agency shall be substituted for that of the state and an additional license to engage in business shall not be required if the vendor has been issued a state license pursuant to law;

(III)

A provision that any amendments made to article 1
of this chapter
shall automatically become a
part of the sales tax resolution or ordinance
of the county, city or town;

(IV)

A provision that the count
y, city or town imposing the tax
shall contract with the department prior to the effective date of the county
, city or town
sales tax
resolution or
ordinance whereby the department shall perform all functions incident to the administra
tion of the food sales tax resolution or ordinance
of the county, city or town;

(V)

A provision that the amount subject to the tax shall not include the amount of any sales tax imposed by the state of
Wyoming
.

(
B
)

If the
resolution
to
impose a tax on food
within the county is approved
in accordance with
subparagraph
(A
) of this paragraph, a city or
town may impose a food
tax in addition to the countywide tax
to the extent

the additional tax does not exceed the limitation established under W.S. 39
‑
15
‑
204(a)(
v
i
i). Nothing in this subparagraph
prevents a city or town from imposing an
excise
tax on food in the absence of a
countywide
excise
tax on food
;

(C
)

No tax shall be imposed under W.S. 39
‑
15
‑
204(a)(
v
ii) until the
resolution
to impose the tax
is
approved by
the board of county commissioners
,
or the governing body of a
city or town if the
ordinance
is to impose the tax only city wide or town wid
e.
E
xcise taxes imposed under this paragraph shall commence as provided by W.S. 39
‑
1
5
‑
207(c) following the approval of
the imposition of the tax;

(D)

Following approval of a resolution or
ordinance
to impose the tax, the county, city or town shall within thi
rty (30) days following the effective date
and annually thereafter each year the tax is in effect, notify the department of revenue of the
resolution or
ordinance
imposing the food
tax and shall submit a list to the department of all
persons selling food
within
their respective jurisdiction;

(E
)

The tax ma
y be terminated by a resolution

to rescind the tax adopted by the boar
d of county commissioners or by ordinance adopted by

the
city council or town council imposing the tax;

(F
)

No person shall be liable for payment of the tax imposed under W.S. 39
‑
15
‑
204(a)(
vii) for any sale of food
made more than one (1) year prior to the date he is notified by the department of revenue of his liability for the tax.

39
‑
15
‑
204.

Taxation rate.

(a)

In addition to the state tax imposed under W.S. 39
‑
15
‑
101 through 39
‑
15
‑
111 any county of the state may impose the following excise taxes and any city or town may impose the tax authorized by
paragraph

paragraphs
(ii)

and (vii)
of this subsection and any resort district may impose the tax authorized by paragraph (v) of this subsection:

(vii)

An excise tax at a rate in increments of one percent (1%) not to
e
xceed a rate of four percent (4
%) upon the sales price paid for
food
as defined under W.S. 39
‑
15
‑
101(a)
(xli).

(b)

Any tax imposed pursuant to
paragraph

(a)(i), (ii), (iii) or (vi) of this section shall not apply to food taxed pursuant to paragraph (a)(vii) of this section
unless the ta
x imposed pursuant to paragraph
(a)(i), (ii), (iii) or (vi) of this section is approved at the next general
election following imposition
of the food tax pursuant to W.S. 39
‑
15
‑
103(a)(vi)
.

39
‑
15
‑
205.

Exemptions.

There are no specific applicable provisions for exemptions for this article. The provisions of W.S. 39
‑
15
‑
105 shall apply to the taxes imposed by this article
, except as provided in W.S. 39
‑
15
‑
204(a)(vii)
.

39
‑
15
‑
210.

Statute of limitations.

No person shall be liable for payment of the tax imposed under W.S. 39
‑
15
‑
204(a)(ii) for any sale of lodging services

or
the tax
imposed under W.S. 39
‑
15
‑
204(a)(
vii) for any sale of food
made more than one (1) year prior to the date he is notified by the department of revenue of his liability for the tax.

39
‑
15
‑
211.

Distribution.

(a)

All revenue collected by the department from the taxes imposed under W.S. 39
‑
15
‑
204(a)(i), (ii), (v)
,

and

(vi)

and (vii)
shall be transferred to the state treasurer who shall:

(v
)

For revenues collected under W.S. 39
‑
15
‑
204(a)(
v
ii):

(A)

During the first year the tax is imposed in a county, city or town,
deduct
tw
o percent (2%)
for the costs to the state of initial implementation of collection and administration of the tax, and one percent (1%) each year thereafter for state administrative costs with the proceeds to be deposited in the state general fund;

(B)

Ex
cept as
provided in subparagraph
(C) of this paragraph
, distribute the balance on a monthly basis to the treasurer of each county, city or town imposing the tax in an amount equal to the amount collected in each entity less the costs of collection
as provided by subparagraph (A) of this paragraph
;

(C)

If the tax is terminat
ed
and a county, city or town does not reimpose the tax under W.S. 39
‑
15
‑
204(a)(
v
ii), the state treasurer shall retain revenues collected during the last three (3) months the tax is in effect to provide for refund of any overpayment of tax. One (1) year after the tax expires, the state treasurer shall distribute the balance of the revenues retained under this subparagraph to the treasur
er of that county, city or town.

39
‑
16
‑
202.

Administration.

(e)

A county imposing a sales tax pursuant to W.S. 39
‑
15
‑
203(a)(iii),
or
a resort district imposing a sales tax pursuant to W.S. 39
‑
15
‑
203(a)(iv),

or a county, city or town imposing a
sales tax
pursuant
to W.S. 39
‑
15
‑
203(a)(
v
i
)
is authorized and required to impose a corresponding use tax at the same rate and for the same period of time as for the sales tax.

39
‑
16
‑
203.

Imposition.

(a)

Taxable event. The following shall apply:

(v
)

The following provisions ap
ply to imposition of the food
excise tax under W.S. 39
‑
16
‑
204(a)(
v
i
):

(A)

The board of county commissioners or the cit
y or town council shall adopt a resolution or
ordinance,
as applicable,

for the tax authorized.
The
resolution or
ordinance shall include the following:

(I)

A provision imposing an excise tax on every
sale of food
within the county, city or town at the rate ap
proved by the board of county commissioners, the city council or town council, or both, as
applicable
;

(II)

Provisions identical to those contained in article 1 of th
is chapter,
insofar as it relates to sales taxes
,
except the name of the county as the taxing agency shall be substituted for that of the state and an additional license to engage in business shall not be required if the vendor has been issued a state license pursuant to law;

(III)

A provision that any amendments ma
de to article
1 of this
chapter
shall automatic
ally become a part of the use tax resolution or ordinance
of the county, city or town;

(IV)

A provision that the count
y, city or town
imposing the tax
shall contract with the department prior to the effective date of the county
, city or town
use tax resolution or ordinance
whereby the department shall perform all functions incident to
the administration of the use tax resolution or ordinance
of the county, city or town;

(V)

A provision that the amount subject to the tax shall not include the amount of any sales tax imposed by the state of
Wyoming
.

(
B)

If the
resolution
to
impose a tax on food
within the county is approved
in accordance with
subparagraph
(A
) of this paragraph, a city or
town may impose a food
tax in addition to the countywide tax
to the extent
the additional tax does not exceed the limitat
ion established under W.S. 39
‑
16
‑
204(a)(
v
i
). Nothing in this subparagraph prevents a city or town from imposing an
excise
tax on food if a countywide
excise
tax on food is not imposed
;

(C
)

No tax s
hall be imposed under W.S. 39
‑
16
‑
204(a)(
v
i
) until the
resolution
to impose the tax
is
approved by the board of county commissioners or the governing body of a
city or town if the
ordinance
is to impose the tax only city wide or town wid
e. E
xcise taxes imposed under this paragraph shall commence as provided by W.S. 39
‑
1
6
‑
207(c) following the approval of
the imposition of the tax;

(D)

Following approval of a resolution or
ordinance
to impose the tax, the county, city or town shall within thi
rty (30) days following the effective date
and annually thereafter each year the tax is in effect, notify the department of revenue of the
resolution or
ordinance
imposing the food
tax and shall submit a list to the department of all
persons selling food
within
their respective jurisdiction;

(E)

The tax m
ay be terminated by a resolution
to rescind the tax adopted by the board of county commissioners or
by an ordinance adopted by
the city council or town council imposing the tax;

(F
)

No person shall be liable for payment of
the tax imposed under W.S. 39
‑
16
‑
204(a)(
v
i
) for any sale of food
made more than one (1) year prior to the date he is notified by the department of revenue of his liability for the tax.

39
‑
16
‑
204.

Taxation rate.

(a)

In addition to the state tax imposed under W.S. 39
‑
16
‑
101 through 39
‑
16
‑
111 any county of the state may impose the following excise
taxes

and
any city or town may impose the tax authorized by par
agraph (v
i
)
of this subsection

and any resort district may impose the tax authorized by paragraph (iv) of this subsection:

(vi)

An excise tax at a rate in increments of one percent (1%) not to
exceed a rate of four percent (4
%) upon the sales
and storage, use and consumption of
food
as defined under W.S. 39
‑
15
‑
101(a)
(xli).

(b)

Any tax imposed pursuant to paragraph (a)(i),
(ii), (iv) or (v
) of this section shall not apply to food tax
ed pursuant to paragraph (a)(vi
) of this section

unless the ta
x imposed pursuant to paragraph (a)(i), (ii), (iv) or (v
) of this section is approved at the next general election following adoption of the food tax pursuant to W.S. 39
‑
16
‑
103(a)(v).

39
‑
16
‑
205.

Exemptions.

There are no specific applicable provisions for exemptions for this article. The provisions of W.S. 39
‑
16
‑
105 shall apply to the taxes imposed by this article
, except as pr
ovided in W.S. 39
‑
16
‑
204(a)(vi
)
.

39
‑
16
‑
211.

Distribution.

(a)

All revenue collected by the department from the taxes imposed under W.S. 39
‑
16
‑
204(a)(i), (iv)
,

and

(v)

and (vi)
shall be transferred to the state treasurer who shall:

(iv
)

For revenues collecte
d under W.S. 39
‑
16
‑
204(a)(
v
i
):

(A)

During the first year the tax is imposed in a county, city or town,
deduct
two percent (2%) for the costs to the state of initial implementation of collection and administration of the tax, and one percent (1%) each year thereafter for state administrative costs with the proceeds to be deposited in the state general fund;

(B)

Ex
cept as provided in subparagraph (v)(C) of this
sub
section
, distribute the balance on a monthly basis to the treasurer of each county, city or town imposing the tax in an amount equal to the amount collected in each entity less the costs of collection as provided by subparagraph (
v
)(A) of this
sub
section
;

(C)

If the tax is terminated
and a county, city or town does not r
eimpose the tax under W.S. 39
‑
16
‑
204(a)(
vi
), the state treasurer shall retain revenues collected during the last three (3) months the tax is in effect to provide for refund of any overpayment of tax. One (1) year after the tax expires, the state treasurer shall distribute the balance of the revenues retained under this subparagraph to the treasur
er of that county, city or town.

Section 2.
This act is effective July 1, 2011.

(END)

1
HB0169