Real estate transfer tax.

2018
STATE OF WYOMING
18LSO-0056
Numbered
1.3

HOUSE BILL

NO.
HB0098

Real estate transfer tax.

Sponsored by:
Representative(s) Schwartz and Madden

A BILL

for

AN ACT relating to taxation and revenue; providing for an excise tax on the sale of real property as specified; providing for distribution of the tax; requiring rulemaking; imposing penalties; and providing for an effective date.

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

Section 1
.

W.S. 3
9
‑
2
3
‑
101 through 3
9
‑
2
3
‑
1
11
are created to read:

Chapter 2
3
Real estate transfer
tax

3
9
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2
3
‑
101
.

Definitions.

(a)

As used in this chapter:

(i)

"Agricultural land" means as defined by W.S. 39
‑
13
‑
l0l(a)(iii);

(ii)

"Department" means the department of revenue or its authorized agent;

(iii)

"Real property" means as defined by W.S. 39
‑
11
‑
l0l(a)(xv) and includes easements on real property.

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2
3
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102
.

Administration.

The department shall enforce the provisions of this chapter. The department shall promulgate rules and regulations necessary for the implementation and enforcement of this chapter.

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2
3
‑
103
.

Imposition.

(a)

A county may impose a
n excise tax on the sale
of real property under W.S. 3
9
‑
2
3
‑
104(a), provided that:

(i)

No
tax
shall be imposed under W.S. 3
9
‑
2
3
‑
104(a) except in counties where the total real estate sales volume exceeded six hundred fifty million dollars ($650,000,000.00) in calendar year 2017;

(ii)

No
tax
shall be imposed under W.S. 3
9
‑
2
3
‑
104(a) 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
;

(iii)

The proposition to impose
the

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;

(iv)

The proposition to impose
the
tax
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 real estate transfer
tax
" and "against the county real estate transfer
tax
". The ballot in an election under this section shall specify how funds from the
tax
will be used in a clear and appropriate manner;

(v)

I
f the proposition to impose the

tax
under W.S. 3
9
‑
2
3
‑
104(a) is approved, the same proposition shall be submitted, until defeated, at the second general election following the election at which the proposition was initially approved and at the general election held every four (4) years thereafter;

(vi)

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 on any subsequent sale of real property;

(vii)

If the proposition is approved by the qualified electors the board of county commissioners shall by
resolution
impose the
tax
upon the sale of real property.

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9
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2
3
‑
104
.

Tax
ation rate
.

(a)

The
tax
shall be based on the total amount of the real property sale as follows:

(i)

One million dollars ($1,000,000.00) or less:
one
one
‑
hundredth
of one
percent (.
01
%)
;

(i
i
)

For any amount of a sale in excess of one million dollars ($1,000,000.00) but less than or equal to t
wo million dollars ($2,000,000.00): one percent (1%);

(
i
ii)

For any amount of a sale in excess of two million dollars ($2,000,000.00) but less than or equal to five million dollars ($5,000,000.00): one and one
‑
half percent (1.5%);

(i
v
)

For any amount of a sale in excess of five million dollars ($5,000,000.00): two percent (2%).

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2
3
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105
.

Exemptions.

(a)

The
tax
shall not be imposed upon any of the following:

(
i
)

Any transfer described in an instrument that confirms, corrects, modifies or supplements a previously recorded instrument without added consideration;

(i
i
)

Any transfer of title without consideration from one (1) joint tenant or tenant in common to one (1) or more remaining joint tenants or tenants in common;

(i
ii
)

Any transfer of title to property without consideration when held in the name of one (1) spouse to both spouses as joint tenants or tenants in common, or as community property;

(
i
v)

Any transfer of title between spouses, including any gift between spouses;

(v)

Any transfer of title between spouses to effect a property settlement agreement or between former spouses in compliance with a decree of divorce;

(v
i
)

Any transfer of title without consideration to or from a trust;

(v
i
i)

Any transfer or other conveyance of real property to or from a corporation or other business entity by one (1) or more persons if the transfer or conveyance
does not alter the percentage of ownership interest in the real property of any person;

(
viii
)

Any transfer or other conveyance of real property if the owner of the property is related, within the first degree of consanguinity of blood or marriage, to the person to whom it is conveyed;

(
i
x)

Any transfer or other conveyance of real property to make effective any plan of reorganization or adjustment under which a mere change in identity, form or place of organization is effected, such as a transfer between a corporation and its parent corporation or a subsidiary corporation;

(x)

Any transfer of real property due to the sale of the property for delinquent taxes or assessments or a sale or transfer pursuant to foreclosure;

(x
i
)

Any transfer of real property by a county certificate of purchase or a sheriff's deed;

(xii)

That portion of the value of any transfer of agricultural land up to one and one
‑
half (1 1/2) times the agricultural value of the land as determined by the county assessor for the previous calendar year;

(xi
ii
)

Any exchange of real property up to the lesser value of the properties being exchanged as determined by the county assessor;

(x
i
v)

Any transfer of real property exempted from property taxation under W.S. 39
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11
‑
105(a)(i) through (viii) and any property protected from taxation under the Wyoming constitution;

(xv)

Any transfer of property pursuant to a contract executed prior to July 1, 2018;

(xvi)

Any transfer of real property interests in a mineral estate;

(xvi
i
)

Any transfer of real property used for industrial purposes as defined by W.S. 39
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11
‑
101(a)(xiv)(B);

(x
viii
)

Any transfer of real property used for commercial purposes;

(xix)

Any transfer of real property that is subject to an affordable housing deed restriction;

(xx)

Any other transfer or other conveyance which the department exempts upon a finding that the transfer does not represent a true conveyance of property.

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106
.

Licensing; permits.

There are no specific applicable provisions for licenses and permits for this chapter.

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7
.

Compliance; collection procedures.

(a)

Returns and reports.
Taxe
s imposed by this chapter are due and payable at the office of the county treasurer of the county in which the real property is located on the date of recordation of the deed or other instrument making the sale a matter of public record. The
tax
shall only be collected on the price paid for real property. The county clerk shall not record a document transferring legal or equitable title to real property until all
taxe
s due under this chapter have been paid to the county treasurer. The buyer and seller shall sign before a
notarial officer
on a form prescribed by the department, a statement eliciting the information necessary for the assessment of the
tax
. The statement is not a public record and shall be held confidential by the county clerk, county assessor, county treasurer, county board of equalization, state board of equalization and by the department.

(b)

It is a misdemeanor for a person to willfully falsify or publicly disclose, except as specifically authorized by law, any information on the statement required by subsection (a) of this section. Upon conviction, the offender is subject to a fine of not more than seven hundred fifty dollars ($750.00), imprisonment for not more than six (6) months, or both.

(c)

Payment.
Payment of the
tax
may be negotiated between the purchaser and seller of the real property and
shall be collected from the party recording the deed or other instrument making the sale a matter of public record by the county treasurer in the form prescribed by the department.

(d)

Timelines. There are no specific applicable provisions for timelines for this chapter.

(
e
)

If the property being transferred is located in more than one (1) county and the value has not been determined by the buyer and seller as to each county, the value shall be established by applying the ratio of the assessed valuation in each county to the assessed valuation of all property being transferred.

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108
.

Enforcement.

There are no specific applicable provisions for enforcement for this chapter.

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109
.

Taxpayer remedies.

There are no specific applicable provisions for taxpayer remedies for this chapter.

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110
.

Statute of limitations.

There are no specific applicable provisions for a statute

of limitations for this chapter.

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1
11
.

Distribution.

(a)

Taxe
s collected by the county treasurer shall be distributed as follows:

(
i
)

To
the
county in the proportion that the population of the county situated outside the corporate limits of its cities and towns bears to the total population of the county including cities and towns;

(
ii
)

To each city and town within the county in the proportion the population of the city or town bears to the population of the county
.

Section 2
.

This act is effective July 1, 201
8
.

(END)

1
HB0098