Tax free enterprise zones.

WORKING DRAFT
2013
STATE OF
WYOMING
13LSO-0277

SENATE FILE
NO.

SF0151

Tax free enterprise zones.

Sponsored by:
Senator(s) Meier

A BILL

for

AN ACT relating to
economic development
;
providing for
establishment of a tax free enterprise zone program; authorizing tax credits for ce
rtain manufacturers as specified
;

providing definitions
;

providing rulemaking authority;
and providing for an effective date.

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

Section 1
.

W.S.
9
‑
12
‑
1401 through 9
‑
12
‑
1403

are
created to read:

ARTICLE 14
TAX FREE ENTERPRISE ZONES

9
‑
12
‑
14
01.

Tax free
enterprise
zone
program; purpose; creation; rulemaking.

(a)

It is the purpose of this article to promote economic development at the
city, town and
county level in order to create additional economic health and a stronger state economy.

(b)

The council shall establish and administer a
tax free
enterprise
zone
program as provided by this article. Any
city, town or
county may submit an application to the council for
certification of a tax free enterprise zone
on forms prescribed by and subject to rules promulgated by the council.
The council may certify a tax free enterprise zone
if it determines that the area to be designated as a tax free enterprise zone has the necessary infrastructure to support manufacturing
including, but not limited to, utilities and
sewer or water infrastructure
.

(c)

If a
tax free enterprise zone
is certified under subsection (b) of this section
, the council may by rule and regulation authorize a tax credit
for property tax paid by a manufacturer conducting manufacturing activity within a tax free enterprise zone.

Any tax credit
under this article shall be referred by the council to the state loan and investment board for final approval or disapproval. The
state loan and investment board may adopt rules as necessary to implement its duties under this article.

(d
)

A tax credit shall only be provided
under this article
if the
manufacturer applies to the business council and
demonstrates that
the
tax free enterprise zone program
enticed the
manufacturer
to begin or continue manufacturing within the tax free enterprise zone.

(
e
)

A tax credit
authorized
under this article
shall be for o
ne hundred percent (100%) of any
tax
paid

under W.S. 39
‑
13
‑
104(
a)(iv)
in the first year and shall decrease
twelve and one-half
percent (
12.
5%) every year thereafter so that after year
eight
(
8
) the property of the manufacturer shall no longer be
eligible for any credit under this program.

(f)

In addition to any tax credit under subs
ection (e) of this section, a city, town or county may
grant
a tax credit to the manufacturer
who applies to the city, town or county

for
any property tax paid to the city, town or county in the amount of
one hundred percent (
100%) of any
tax
paid

to the city, town or county
in the first year
. The credit
shall decrease
twelve and one-half
percent (
12.
5%)
every year thereafter so that after year
eight
(
8
) the property of the manufacturer shall no longer be
eligible for any credit under this subsection.
No city, town or county shall grant a tax credit under this subsection unless the city, town or county commits to provide revenue to the tax free enterprise zone account equal to the amount of the credit for each year that the credit is authorized.

(g
)

If a tax credit is authorized under this article and the
council does not have funds available
in the tax free enterprise zone account
to pay the credit, no credit shall be allowed under this article. Nothing in this article shall be deemed to create an enforceable right against the council or the state of Wyoming.

(
h
)

As used in this article
"m
anufacturing" means as defined in W.S. 39
‑
15
‑
101(
a)(xxi).

9
‑
12
‑
1402.

Tax free enterprise zone
account.

(a)

There is created the
tax free enterprise zone
account. Funds shall be credited to the account as provided by law. Funds in the account are continuously appropriated
to the council to be used only for
tax credits authorized
under this article.

(b)

The
council
may accept, and shall deposit to the account, any gifts, contributions, donations, grants or federal funds specifically given to the division for the
tax free enterprise zone program
.

9
‑
12
‑
14
03
.

Council duties; actions on
tax credit
applications.

All complete applications
for a tax credit under
this article which conform
with the criteria established by law and rules promulgated under this article which are submitted to the council shall be considered by the council. The council shall approve or disapprove each application
for a tax credit
it considers in accordance with this article and rules of the council.
The council shall not approve any tax credit unless it determines that the benefit
to the community,
the state or both is of equal or greater value than the value of the credit.

Section 2.

W.S. 39
‑
13
‑
109(
d) by creating a new paragraph (ii) is amended to read:

39-13-109. Taxpayer remedies.

(d)

Credits. The following shall apply:

(ii)

The following shall apply to the credit under W.S. 9
‑
12
‑
1401:

(A)

The Wyoming business council shall provide
reimbursement
for any credit allowed
from the tax free enterprise zone account created pursuant to W.S. 9
‑
12
‑
1402.

Section 3
.

The Wyoming business council
shall request that the governor, pursuant to W.S. 9
‑
2
‑
1005(
b), transfer funds to the tax free enterprise zone account created under section 1 of this act from funds previously appropriated to
the
Wyoming business council.

Section 4
.

This act is effective July 1, 2013.

(END)

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SF0151