Optional sales tax on food.

2016
STATE OF WYOMING
16LSO-0417
Introduced
1.2

HOUSE BILL

NO.

HB0131

Optional sales tax on food.

Sponsored by:
Representative(s) Lindholm, Brown, Esquibel, K. and Hunt and Senator(s) Barnard, Driskill and Meier

A BILL

for

AN ACT relating to sales tax; providing an exception to the exemption for sales tax on food for domestic home consumption; authorizing the imposition of an excise tax on food for domestic home consumption following approval of voters of a county as specified; providing for distribution of the tax; and providing for an effective date.

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

Section 1
.

W.S. 39
‑
15
‑
105(
a)(vi)(E), 39
‑
15
‑
203(a) by creating a new paragraph (vi), 39
‑
15
‑
204(a) by creating a new paragraph (vii)
and
39
‑
15
‑
211(a)
(into) and
by creating a new paragraph (v) are amended to read:

39
‑
15
‑
105
.

Exemptions.

(a)

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

(
vi)

For the purpose of
exempting sales of services and tangible personal property which are essential human goods and services, the following are exempt:

(E)

Sales of food for domestic home consumption
, except for any tax imposed under W.S. 39
‑
15
‑
203(
a)(vi)
.

39
‑
15
‑
203
.

Imposition.

(a)

Taxable event. The following shall apply:

(vi)

The following provisions apply to imposition of the
excise
tax on food
for domestic home consumption
under W.S. 39
‑
15
‑
204(
a)(v
i
i):

(A)

No tax shall be imposed under W.S. 39
‑
15
‑
204(
a)(v
i
i) until the proposition to impose the tax is submitted to the vote of the qualified electors of the county, and a majority of those casting their ballots vote in favor of imposing the tax. Except as otherwise provided,
an
excise tax imposed under
this paragraph shall commence
as provided by W.S. 39
‑
15
‑
207(c) following the election approving the imposition of the tax;

(B)

The proposition to impose an excise tax shall be at the expense of the county and be submitted to the electors of the county upon the receipt by the board of county commissioners of a petition requesting the election signed by at least five percent (5%) of the electors of the county or of a resolution approving the proposition from the governing body of the county and the governing bodies of at least two
‑
thirds (2/3) of the incorporated municipalities within the county. If proposed by petition by electors, the number of electors required shall be determined by the number of votes cast at the last general election. The election shall be at the direction and under the supervision of the board of county commissioners;

(C)

The proposition may be submitted at an election held on a date authorized under W.S. 22
‑
21
‑
103. A notice of election shall be given in at least one (1) newspaper of general circulation published in the county in which the election is to be held, and the notice shall specify the object of the election. The notice shall be published at least once each week for a thirty (30) day period preceding the election. At the election the ballots shall contain the words "for the county sales tax
on food
" and "against the county sales tax
on food
". If the proposition is appr
oved the same proposition
shall be submitted at every other subsequent general election un
til the proposition is defeated
;

(D)

If the proposition to impose or continue the tax is defeated the proposition shall not
again
be submitted to the electors of the county for at least eleven (11) months. If the proposition is defeated at any general election following initial adoption of the proposition the tax is repealed and shall not be collected
following June 30 of the year immediately following the year in which the proposition is defeated;

(E)

If the proposition is approved by the qualified electors the board of county commissioners shall by ordinance impose an excise tax upon retail sales of
food for domestic home consumption
. The board of county commissioners or the city or town council shall adopt an ordinance for the tax authorized by W.S. 39
‑
15
‑
204(
a)(
v
i
i). The ordinance shall include the following:

(I)

A provision imposing an excise tax upon every retail sale of
food for domestic home consumption
made within the county
and storage, use and consumption of food for domestic home consumption within the county, whichever is appropriate
;

(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 or to chapter 16 not in conflict with article 1 of this chapter or to chapter 16 shall automatically become a part of the sales tax ordinances of the county, city or town;

(IV)

A provision that the county, city or town, as appropriate, shall contract with the department prior to the effective date of the county sales tax ordinances whereby the department shall perform all functions incident to the administration of the sales tax ordinances of the county, city or town;

(V)

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

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 (ii) 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
‑
half of one percent (.5%) not to exceed a rate of two percent (2%) upon retail sales of food for domestic home consumption.

39
‑
15
‑
211
.

Distribution.

(a)

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

and
(vi)

and (vii)
the department shall:

(v)

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

(A)

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;

(B)

Deposit the remainder into an account for monthly distribution to counties imposing the tax and its cities and towns. The distribution to the county and its cities and towns shall be equal to the amount collected in each county less the costs of collection as provided by subparagraph (A) of this paragraph. The distribution shall be as follows:

(I)

To the county for deposit into its general fund in the proportion the population of the county situated outside the corporate limits of its cities and towns bears to the total population of the county;

(II)

To the incorporated cities and towns within the county for deposit into their treasuries in the proportion the population of each city or town bears to the total population of the county.

Section
2
.

This
act is effective July 1,
201
6
.

(END)

1
HB0131