Vehicle registration-rebuttable presumption.

2017
STATE OF WYOMING
17LSO-0086
Introduced
1.4

HOUSE BILL

NO.

HB0053

Vehicle registration-rebuttable presumption.

Sponsored by:
Joint Transportation, Highways & Military Affairs Interim Committee

A BILL

for

AN ACT relating to motor vehicles; creating a rebuttable presumption pertaining to ownership of vehicles registered under the laws of another jurisdiction for purposes of titling and registration; providing for notice and hearing as specified; providing a penalty; limiting admissibility of evidence in judicial proceedings as specified; providing rulemaking authority; and providing for effective dates.

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

Section 1
.

W.S.

31
‑
2
‑
201 by creatin
g new subsections (o) through (q
)
and 31
‑
2
‑
224(
a)(v)(A), (B) and by creating a new subparagraph (C)
are

amended to read:

31
‑
2
‑
201
.

Registration required; timelines.

(o)

If the department, in consultation with the department of revenue, a county treasurer or a Wyoming peace officer
, determines
that
a resident is in control of a vehicle owned by a shell business entity
organized under the laws of another jurisdiction
,
it shall be
rebuttably
presumed the resident is the actual owner of the
vehicle
f
or
purposes of
vehicle
registration
, certificate of title
and
sales and use
taxation only.

Th
e department shall notify the resident in writing
that
the resident is required to obtain a Wyoming certificate of title, to register the vehicle and to pay any sales or use taxes due on the purchase
or use
of the vehicle in accordance with W.S. 39
‑
15
‑
107(
b)(i) or 39
‑
16
‑
107(b)(ii) within thirty (30) days from the date of the notice
.
The department shall promulgate rules necessary to implement this subsection, including rules to provide the resident an opportunity for
a hearing and appeal in accordance with the Wyoming Administrative Procedure Act. Following a final determination in the appeal in favor of the department, the resident shall owe the taxes and fees determined to be due.
The department shall
consider the following factors when de
termining if a resident is in control of a vehicle owned by a shell business:

(i)

Factors that indicate a business entity organized under the laws of another jurisdiction is a shell business entity include
,
but are not limited to the following:

(A)

The business entity lacks a specific business activity or purpose;

(B)

The business entity fails to maintain a physical location in the foreign jurisdiction
in which the business entity is organized
. Under no circumstances shall a registered agent be deemed to provide the
business
entity with a physical location
;

(C)

The business entity fails to employ individual persons and provide those persons with internal revenue service form W
‑
2 wage and tax statements;

(D)

The business entity fails to file
required
federal tax returns or fails to file a required state tax return in the foreign jurisdiction
in which the business entity is organized
.

(ii)

Factors that indicate a resident is in control of a vehicle include
,
but are not limited to the following:

(A)

The resident was the initial purchaser of the vehicle;

(B)

The resident operated or stored the vehicle in Wyoming for any period of time;

(C)

The resident is a partner, member or shareholder of the business entity that purports to be the owner of the vehicle;

(D)

The resident is insured to drive the vehicle.

(
p
)

If a resident
found to be in control of a vehicle owned by a shell business under subsection (o) of this section fails to pay registration fees
, certificate of title fees
or applicable sales or use taxes due within thirty (30) days from the date of the notice required under subsection (
o
) of this section or within thirty (30) days following a final determination in favor of the department, the person shall be charged a penalty
equal to

seventy
‑
five percent (75%) of the unpaid registration fees
.

(q)

The determination that a resident is in control of a vehicle owned by a shell business shall not be admissible as evidence in any
judicial proceeding
other than:

(i)

J
udicial review of the
final
determination
that a resident is in control of a vehicle owned by a shell business
under the Wyoming Administrative Procedure Act
;

(ii)

An action to collect
delinquent
vehicle registration
fees,
certificate of title fees and
any interest or
penalties
due

under title 31;

(iii)

A
n
action
to
collect the tax
due on the purchase or use of
a
vehicle

imposed
in accordance with W.S. 39
‑
15
‑
107(b)(i) or 39
‑
16
‑
107(b)(ii)

and
any interest, penalties or costs of collection
.

31
‑
2
‑
224
.

Registration exemptions.

(a)

The following vehicles are exempt from the provisions of this article:

(v)

Vehicles owned by a nonresident, validly registered in another state or country, displaying registration numbers or plates in accordance with the laws of that state or country and:

(A)

Not operated for gain or profit in Wyoming nor used for transportation to or from employment in Wyoming;
and

(B)

Not owned or operated by a person employed in this state, unless that person is a daily commuter from another jurisdiction which exempts vehicles of daily commuters from Wyoming from registration under a reciprocity agreement
;
.

and

(C)

Not
operated by
a resident found
to be in control of a vehicle owned by a shell business
under W.S. 31
‑
2
‑
201(
o)
.

Section 2
.

The department of transportation shall promulgate rules and regulations necessary to implement this act on or before
October
1
5
, 2017.

Section 3
.

(a)

Except as provided in subsection (b) of this section, this act is effective July 1, 2018.

(b)

Section 2 of this act is effective immediately upon completion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constitution.

(END)

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HB0053