Local option tax-municipalities.

WORKING DRAFT
2012
STATE OF
WYOMING
12LSO-0328

HOUSE BILL
NO.
HB0106

Local option tax-municipalities.

Sponsored by:
Representative(s) Miller, Krone, McOmie and Vranish and Senator(s) Bebout, Case and Coe

A BILL

for

AN ACT relating to
taxation and revenue; authorizing a municipal sales and use tax as specified; providing procedures; amending related provisions;
and providing for an effective date.

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

Section 1.

W.S. 39
‑
15
‑
203(a) by creating a new paragraph (vi), 39
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15
‑
204(a)
(intro),
(iii)
and
by creating a new paragraph (vii), 39
‑
15
‑
211 by creating a new subsection (d), 39
‑
16
‑
203(a) by creating a new paragraph (v), 39
‑
16
‑
204(a)
(intro),
(ii)
and
by creating a new paragraph (vi) and 39
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16
‑
211 by creating a new subsection (d) are amended to read:

39
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15
‑
203.

Imposition.

(a)

Taxable event. The following shall apply:

(vi)

The following provisions apply to imposition of the municipal specific purpose excise tax under W.S. 39
‑
15
‑
204(a)(vii):

(A)

Any incorporated municipality located in a county wherein no
incorporated municipality contains more than fifty percent (50%) of the population of the county may impose a specific purpose excise tax as authorized by W.S. 39
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15
‑
204(a)(vii). Population figures shall be based upon the official ten (10) year federal census preceding the time of election. Population figures based upon the official census may be periodically revised by a state population estimate not later than five (5) years following the federal census publication date. If a county has currently imposed a specific purpose excise tax as authorized by W.S. 39
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15
‑
204(a)(iii), an incorporated municipality may still impose a municipal specific purpose excise tax in the amount authorized by W.S. 39
‑
15
‑
204(a)(vii);

(B)

The revenue from the tax shall be used in a specified amount for specific purposes authorized by the qualified electors. Specific purposes shall not include ordinary operations of local government except those operations related to a specific project;

(C)

No tax shall be imposed under this paragraph until the proposition to impose the tax for specific purposes in specific amounts is approved by the vote of the majority of the qualified electors voting on the proposition. The amount of revenue to be collected and the purpose or purposes for which it is proposed to be used shall be specified in the proposition. The election shall be held in accordance with W.S. 22
‑
21
‑
101 through 22
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21
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112. Any debt created may also be repaid, in whole or in part, by a property tax levy if general obligation bonds are authorized by the electors. Any excise tax imposed under this subsection shall commence on the first day of the second month following the election approving the imposition of the tax, except that it shall commence on the first day of any subsequent month following the receipt of tax funds in the approved amount by any tax previously imposed under this subsection as provided by subparagraph (E) of this paragraph. Unless terminated earlier by the
sponsoring entities pursuant to subparagraph (G) of this paragraph, the tax shall terminate on the last day of the month following the month in which the amount approved by the electors is collected;

(D)

No debt may be incurred or approved which when added to the existing indebtedness of the sponsoring entity or entities, would exceed the constitutional debt limitation of the sponsoring entity or entities. However, nothing herein prohibits the approval of a proposition which establishes a fund for accumulation of funds sufficient to carry out the purpose approved or to pay a sufficient amount of the cost so as to bring the remainder of the debt within the debt limitation of the sponsoring entity or entities;

(E)

Upon certification of the election results by the municipality, the municipality shall, within ten (10) days, notify the department of revenue of the requirement for imposition of any tax under this paragraph and shall, upon the receipt of all tax funds in the amount approved, notify the department of revenue that the special sales tax levy is terminated. The department of revenue shall, upon notification, inform all holders of sales tax
licenses within the municipality of the requirement for the collection and payment of the additional tax. After receipt of notice that the amount has been collected or that the sponsoring entities have terminated the tax pursuant to subparagraph (G) of this paragraph, the department shall notify the license holders of the termination of the tax;

(F)

The first municipality imposing the tax provided by this paragraph shall be responsible for payment of costs incurred by the department to initially set up computer records and support systems for administration of this tax. These costs shall be withheld by the state treasurer from the proceeds to be distributed pursuant to the preceding paragraph until such costs are fully recovered;

(G)

The sponsoring entities may agree to terminate the tax if the tax collected reaches the actual cost of the completed projects and the amount specified in the proposition exceeds the actual cost of the completed projects. The sponsoring entities shall inform the department of revenue and the county treasurer that the tax is terminated.

39
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15
‑
204.

Taxation rate.

(a)

In addition to the state tax imposed under W.S. 39
‑
15
‑
101 through 39
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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:

(iii)

An excise tax not to exceed two percent (2%) upon retail sales of tangible personal property, admissions and services made within the county. The total excise tax imposed within any county under this paragraph shall not exceed two percent (2%).
If
an incorporated municipality has

previously
imposed
a tax
under par
agraph (vii) of this subsection,
the rate
of the tax imposed
under this paragraph
within the boundaries of the municipality
shall be reduced by the rate imposed under paragraph (vii) of this subsection so that the total rate of tax within the boundaries of the municipality does not exceed two percent (2%)
.

The revenue from the tax shall be used in a specified amount for specific purposes authorized by the qualified electors. Specific purposes shall not include
ordinary operations of local government except those operations related to a specific project;

(vii)

An excise tax not to exceed two percent (2%) upon retail sales of tangible personal property, admissions and services made within an incorporated municipality, less the rate of any tax
previously
imposed by a county government under paragraph (iii) of this subsection. If the rate imposed under paragraph (iii) of this subsection is two percent (2%), the rate under this paragraph shall be zero (0). The revenue from the tax shall be used in a specified amount for specific purposes authorized by the qualified electors. Specific purposes shall not include ordinary operations of local government except those operations related to a specific project.

39
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15
‑
211.

Distribution.

(d)

All revenue collected by the department from the taxes imposed by W.S. 39
‑
15
‑
204(a)(vii) shall be transferred to the state treasurer who shall:

(i)

Deduct one percent (1%) to defray the costs of collecting the tax and administrative expenses incident thereto which shall be deposited into the general fund;

(ii)

Deposit the remainder into the trust and agency fund for monthly distribution to the incorporated municipality in which the tax has been imposed to be distributed immediately to the sponsoring entity;

(iii)

Any interest earned from investment of the revenues may only be used for costs related to the purposes approved on the ballot, including operation and maintenance costs, and shall be distributed to each sponsoring entity in the same proportion as its cost is to the total cost of all purposes identified on the ballot;

(iv)

If taxes collected exceed the amount necessary for the approved purpose, the excess funds shall be retained by the municipality for one (1) year for refund of overpayments of the tax imposed upon order of the department. After one (1) year any interest earned on the excess funds and the excess funds less any refunds ordered shall be transferred to the municipality as specified in the resolution adopted pursuant to W.S. 39
‑
15
‑
203(a)(vi).

39
‑
16
‑
203.

Imposition.

(a)

Taxable event. The following shall apply:

(v)

The following provisions apply to imposition of the municipal specific purpose excise tax under W.S. 39
‑
16
‑
204(a)(vi):

(A)

Any incorporated municipality located in a county wherein no
incorporated municipality contains more than fifty percent (50%) of the population of the county may impose a specific purpose excise tax as authorized by W.S. 39
‑
16
‑
204(a)(vi). Population figures shall be based upon the official ten (10) year federal census preceding the time of election. Population figures based upon the official census may be periodically revised by a state population estimate not later than five (5) years following the federal census publication date. If a county has currently imposed a specific purpose excise tax as authorized by W.S. 39
‑
16
‑
204(a)(ii), an incorporated municipality may still impose a municipal specific purpose excise tax in the amount authorized by W.S. 39
‑
16
‑
204(a)(v
i
);

(B)

The revenue from the tax shall be used in a specified amount for specific purposes authorized by the qualified electors. Specific purposes shall not include ordinary operations of local government except those operations related to a specific project;

(C)

No tax shall be imposed under this paragraph until the proposition to impose the tax for specific purposes in specific amounts is approved by the vote of the majority of the qualified electors voting on the proposition. The amount of revenue to be collected and the purpose or purposes for which it is proposed to be used shall be specified in the proposition. The election shall be held in accordance with W.S. 22
‑
21
‑
101 through 22
‑
21
‑
112. Any debt created may also be repaid, in whole or in part, by a property tax levy if general obligation bonds are authorized by the electors. Any excise tax imposed under this subsection shall commence on the first day of the second month following the election approving the imposition of the tax, except that it shall commence on the first day of any subsequent month following the receipt of tax funds in the approved amount by any tax previously imposed under this subsection as provided by subparagraph
(E) of this paragraph. Unless terminated earlier by the sponsoring entities pursuant to subparagraph (G) of this paragraph, the tax shall terminate on the last day of the month following the month in which the amount approved by the electors is collected;

(D)

No debt may be incurred or approved which when added to the existing indebtedness of the sponsoring entity or entities, would exceed the constitutional debt limitation of the sponsoring entity or entities. However, nothing herein prohibits the approval of a proposition which establishes a fund for accumulation of funds sufficient to carry out the purpose approved or to pay a sufficient amount of the cost so as to bring the remainder of the debt within the debt limitation of the sponsoring entity or entities;

(E)

Upon certification of the election results by the municipality, the municipality shall, within ten (10) days, notify the department of revenue of the requirement for imposition of any tax under this paragraph and shall, upon the receipt of all tax funds in the amount approved, notify the department of revenue that the special sales tax levy is terminated. The department of revenue
shall, upon notification, inform all holders of sales tax licenses within the municipality of the requirement for the collection and payment of the additional tax. After receipt of notice that the amount has been collected or that the sponsoring entities have terminated the tax pursuant to subparagraph (G) of this paragraph, the department shall notify the license holders of the termination of the tax;

(F)

The first municipality imposing the tax provided by this paragraph shall be responsible for payment of costs incurred by the department to initially set up computer records and support systems for administration of this tax. These costs shall be withheld by the state treasurer from the proceeds to be distributed pursuant to the preceding paragraph until such costs are fully recovered;

(G)

The sponsoring entities may agree to terminate the tax if the tax collected reaches the actual cost of the completed projects and the amount specified in the proposition exceeds the actual cost of the completed projects. The sponsoring entities shall inform the department of revenue and the county treasurer that the tax is terminated.

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 city or town may impose the tax authorized by paragraph (vi) of this subsection,

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

(ii)

An excise tax not to exceed two percent (2%) upon sales and storage, use and consumption of tangible personal property, within the county. The total excise tax imposed within any county under this paragraph shall not exceed two percent (2%).
If an incorporated municipality has
previously
imposed a tax under paragraph (vi) of this subsection, the rate of the tax imposed under this paragraph
within the boundaries of the municipality
shall be reduced by the rate imposed under paragraph (vi) of this subsection so that the total rate of tax within the boundaries of the municipality does not exceed two percent (2%)
.

The revenue from the tax shall be used in a specified amount for specific purposes authorized by the qualified electors. Specific purposes shall not include
ordinary operations of local government except those operations related to a specific project;

(vi)

An excise tax not to exceed two percent (2%) upon sales and storage, use and consumption of tangible personal property, admissions and services made within an incorporated municipality, less the rate of any tax
previously
imposed by a county government under paragraph (ii) of this subsection. If the rate imposed under paragraph (ii) of this subsection is two percent (2%), the rate under this paragraph shall be zero (0). The revenue from the tax shall be used in a specified amount for specific purposes authorized by the qualified electors. Specific purposes shall not include ordinary operations of local government except those operations related to a specific project.

39
‑
16
‑
211.

Distribution.

(d)

All revenue collected by the department from the taxes imposed by W.S. 39
‑
16
‑
204(a)(vi) shall be transferred to the state treasurer who shall:

(i)

Deduct one percent (1%) to defray the costs of collecting the tax and administrative expenses incident thereto which shall be deposited into the general fund;

(ii)

Deposit the remainder into the trust and agency fund for monthly distribution to the incorporated municipality in which the tax has been imposed to be distributed immediately to the sponsoring entity;

(iii)

Any interest earned from investment of the revenues may only be used for costs related to the purposes approved on the ballot, including operation and maintenance costs, and shall be distributed to each sponsoring entity in the same proportion as its cost is to the total cost of all purposes identified on the ballot;

(iv)

If taxes collected exceed the amount necessary for the approved purpose, the excess funds shall be retained by the municipality for one (1) year for refund of overpayments of the tax imposed upon order of the department. After one (1) year any interest earned on the excess funds and the excess funds less any refunds ordered shall be transferred to the municipality as specified in the resolution adopted pursuant to W.S. 39
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16
‑
203(a)(v).

Section 2.
This act is effective January 1, 2013
.

(END)

1
HB0106