Comprehensive tax reform.

2018
STATE OF WYOMING
18LSO-0391
Numbered
1.4

HOUSE BILL

NO.
HB0177

Comprehensive tax reform.

Sponsored by:
Representative(s) Connolly and Senator(s) Rothfuss

A BILL

for

AN ACT relating to taxation and revenue; implementing an income tax; authorizing a real estate transfer tax; eliminating the maximum transfer to the school capital construction account from royalties from leases on school lands; revising the distribution of federal mineral royalties; increasing the maximum profit to the state from alcoholic liquor sales; removing the state excise tax on malt beverages; authorizing cities, towns and counties to implement a tax on malt beverages; increasing property tax assessment rates; providing sunset dates; providing for the creation of and distribution of funds to the property tax refund program account; imposing a state mill levy for school capital construction; increasing severance tax rates for all minerals as specified; increasing the sales and use tax rate; establishing a statewide lodging tax; revising specified sales and use tax exemptions related to economic incentives; revising the distribution of sales and use taxes as specified; authorizing an optional municipal sales and use tax; increasing fuel tax rates; increasing tobacco taxes; creating crimes and penalties; providing applicability; amending related provisions; repealing a conflicting provision; and providing for effective dates.

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

Section 1
.

W.S. 39
‑
12
‑
102 through 39
‑
12
‑
111 and 39
‑
23
‑
101 through 39
‑
23
‑
111 are created to read:

39
‑
12
‑
102
.

Administration; confidentiality.

(a)

This chapter is known and may be cited as the "Wyoming Income Tax Act
.
"

(b)

The administration of this chapter is vested in the department of revenue.

(c)

The department shall, to the extent practical, obtain information from the federal internal revenue service
to
verify taxable income under this chapter. The department shall adopt rules and regulations necessary to efficiently secure the payment, collection and accounting for taxes imposed by this chapter.

(d)

Notices required to be mailed by the department under this
chapter
if mailed to the address shown on the records of the department shall be sufficient for the purposes of this chapter.

(e)

No state employee or other person who
by
his employment has knowledge of the business affairs of any person filing or required to file any tax returns under this chapter shall make known their contents in any manner or permit any person to have access to any returns or information contained therein except as provided by law. The department may also allow the following:

(i)

The delivery to the taxpayer or his legal representatives upon written request of a copy of any return or report in connection with his tax;

(ii)

The publication of statistics so classified to prevent the identification of particular returns or reports;

(iii)

The inspection by the attorney general of the state of the report or return of any person who brings an action against the state
relating to the report or return
, or against whom an action is contemplated or has been instituted;

(iv)

The introduction into evidence of any report or return or information therefrom in any administrative or court proceeding
relating to the report or return and
to which the person making the report or return is a party;

(v)

The furnishing of any information to the United States government and its territories, the District of Columbia, any state allowing similar privileges to the department or to the multistate tax commission for relay to tax officials of cooperating states. Information furnished shall be only for tax purposes;

(vi)

The inspection of tax returns and records by the state department of audit;

(vii)

The sharing of information with local government
al
entities and other state agencies, provided a written request is made to the department and the governmental entity or agency demonstrates sufficient reason to obtain the information for official business purposes.

(f)

No person shall fail or refuse to make any return or payment required by this
chapter
or shall make any false return or statement or shall evade the payment of any tax due. No person shall aid or abet another in any attempt to evade payment of the tax due. No person shall knowingly attest by signature to a false or fraudulent return. The district court of the county in which violations of this subsection occur shall have jurisdiction.

39
‑
12
‑
103
.

Imposition.

(a)

Taxable event. T
here is levied an income tax upon the taxable income of each taxpayer in this state.

(b)

Apportionment of taxable income shall be as follows:

(i)

If a taxpayer has no income
from activity that is taxable
outside of Wyoming
, the taxpayer's entire
taxable
incom
e shall be allocated to Wyoming;

(ii)

A taxpayer having income from activity that is taxable both within and without
Wyoming
shall apportion and allocate the
taxable
inc
ome as provided in this section;

(iii)

Income

is taxable in another state if:

(A)

In that other
state, the
income
is subject to a net income tax, a franchise tax measured by net income, a franchise tax for the privilege of doing b
usiness, a corporate stock tax
or any similar tax; or

(B)

That
other
state has jurisdiction to subject the
income
to a net income tax regardless of whether, in fact, the state su
bjects the taxpayer to such tax;

(iv)

Taxable
income shall be apportioned to
Wyoming
by multiplying
the
income by a fraction, the numerator of which is the total
income earned
in
Wyoming
during the tax period and the denominator of which is the
income
of the taxpayer everywhere during the tax period.
To the extent necessary, the department shall by rule and regulation determine whether income was
earned in Wyoming or elsewhere;

(v)

The department may
require taxpayers to provide additional information related to apportionment and allocation of income to support an income tax return
under this chapter
.

39
‑
12
‑
104
.

Taxation rate.

(a)

There is levied and shall be paid by the taxpayer an income tax on taxable income apportioned to Wyoming as provided in W.S. 39
‑
12
‑
103
as follows
:

(i)

Zero percent (0%) on the first two hundred thousand dollars ($200,000.00) of taxable income; and

(ii)

Four percent (4%) upon all taxable income over two hundred thousand dollars ($200,000.00).

39
‑
12
‑
105
.

Exemptions

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

39
‑
12
‑
106
.

Licenses and permits.

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

39
‑
12
‑
107
.

Compliance; collection procedures.

(a)

Returns and reports. E
xcept as otherwise provided in this subsection, e
ach taxpayer shall report their total taxable income and the po
r
tion of the income that is apportioned to Wyoming
as provided in W.S. 39
‑
12
‑
103
to the department
on the same date the taxpayer is required to file a federal income tax return under the provisions of section 6012 of the
I
nternal
R
evenue
C
ode
.
If a taxpayer has two hundred thousand dollars ($200,000.00) or less in taxable income
for the applicable tax year
, the taxpayer shall not be required to file a return or report under this subsection.

(b)

Payment. Any taxpayer owing a tax under
this chapter shall pay the tax once each year at the same time the report under subsection (a) is provided
.
The tax shall be collec
ted by the department
.

(c)

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

39
‑
12
‑
108
.

Enforcement.

(a)

Audits. To assess credits and deficiencies against taxpayers, the department is authorized to rely on final audit findings made by the department of audit, taxpayer information, information reported
by the taxpayer
to the internal revenue service or department
of revenue
review subject to the following conditions:

(i)

Audits shall commence when
the taxpayer
receives written notice of the engagement of the audit. The issuance of the written notice of the audit shall toll the statute of limitations provided in W.S. 39
‑
12
‑
110 for the audit period specified in this subsection;

(ii)

After receiving notice of an audit under this subsection, the taxpayer shall preserve all records and books necessary to determine the amount of tax due for the time period that is being audited;

(iii)

Except as otherwise provided in this paragraph, audits shall encompass a time period not to exceed three (3) years immediately preceding the reporting period when the audit is engaged. The three (3) year limit shall not apply to an audit if there is evidence of gross negligence by the taxpayer in reporting or remitting taxes for the
reporting period being audited;

(iv)

If a taxpayer is not willing or able to produce adequate records to demonstrate taxes due, the department or the department of audit may project taxes based on the best information available;

(v)

The department of audit may contract with or employ auditors or other technical assistance necessary to determine whether the taxes imposed by this
chapter
have been properly reported and paid;

(vi)

Audits under this subsection are subject to the authority and procedures provided in W.S. 9
‑
2
‑
2003.

(b)

Interest. The following shall apply:

(i)

If the amount of tax paid is less than the amount due, the difference together with interest thereon at the rate of one percent (1%) per month from the time the return was due shall be paid by the taxpayer within ten (10) days after notice and demand is made by the department. Interest at an annual rate equal to the average prime interest rate as determined by the state treasurer during the preceding fiscal year plus four percent (4%) shall be added to the delinquent tax. To determine the average prime interest rate, the state treasurer shall average the prime interest rate for at least seventy
‑
five percent (75%) of the thirty (30) largest banks in the United States. The interest rate on delinquent taxes shall be adjusted on January 1 of each year following the year in which the taxes first became delinquent. In no instance shall the delinquent tax rate be greater than eighteen percent (18%);

(ii)

The department may credit or waive interest imposed by this subsection as part of a settlement or for any other good cause.

(c)

Penalties. The following shall apply:

(i)

If any part of the deficiency is due to negligence or intentional disregard of rules and regulations but without intent to defraud there shall be added a penalty of ten percent (10%) of the amount of the deficiency plus interest as provided by paragraph (b)(i) of this section. The taxes, penalty and interest shall be paid by the taxpayer within ten (10) days after notice and demand is made by the department;

(ii)

If any part of the deficiency is due to fraud with intent to evade there shall be added a penalty of twenty
‑
five percent (25%) of the amount of the deficiency plus interest as provided by paragraph (b)(i) of this section. The taxes, penalty and interest shall be paid by the taxpayer within ten (10) days after notice and demand is made by the department;

(iii)

Any person who files a false or fraudulent return is subject to the provisions of W.S. 6
‑
5
‑
303;

(iv)

Any person who violates any provision of this
chapter
for which there are no specific penalties is guilty of a misdemeanor. Each violation is a separate offense;

(v)

If a taxpayer fails to file a return as required by this chapter, the department shall give written notice by mail to the taxpayer to file a return on or before the last day of the month following the notice of delinquency. If a taxpayer then fails to file a return the department shall make a return from the best information available which will be prima facie correct and the tax due therein is a deficiency and subject to penalties and interest as provided by this chapter;

(vi)

The department may credit or waive penalties imposed by this subsection as part of a settlement or for any other good cause.

(d)

Liens. The following shall apply:

(i)

Any tax due under this chapter constitutes a debt to the state from the taxpayer, and is a lien from the
date the tax is due on all the real and personal property of the taxpayer. Notice of the lien shall be filed with the county clerk of the county in which the taxpayer resides or conducts business. The lien does not have preference over preexisting
secured
indebtedness but shall have priority from and after the date of filing or recording. The department shall cancel lien statements within sixty (60) days after taxes due are paid or collected. No other action by the department is required to perfect a lien under this paragraph regardless of the type of property involved.

(e)

Tax sales. The following shall apply:

(i)

The tax due together with interest, penalties and costs may be collected by appropriate judicial proceedings or the department, with board approval, or its representative, may seize and sell at public auction so much of the taxpayer's property as will pay all the tax, interest, penalties and costs. Notice of the auction must be published for four (4) weeks in a newspaper published in the resident county of the taxpayer
or the county in which the majority of the property is located
.

39
‑
12
‑
109
.

Taxpayer remedies.

(a)

Interpretation requests. A taxpayer may request and the department shall provide written interpretations of these statutes and rules. When requesting an interpretation, a taxpayer
shall
set forth the facts and circumstances pertinent to the issue. If the department deems the facts and circumstances provided to be insufficient, it may request additional information. A taxpayer may act in reliance upon a written interpretation through the end of the calendar year in which the interpretation was issued, or until revoked by the department, whichever occurs last if the pertinent facts and circumstances were substantially correct and fully disclosed.

(b)

Appeals. Except as provided by this subsection, no person who feels aggrieved by the payment of the taxes, penalty and interest imposed by this
chapter
may appeal a decision of the state board of equalization until all taxes, penalty and interest have been paid. For good cause
shown, the court to which the decision of the board is appealed may stay enforcement of the tax during the pendency of the appeal. The court's stay of enforcement shall not affect the accruing of interest upon any assessment and levy.

(c)

Refunds. The following shall apply:

(i)

Any tax, penalty or interest which has been erroneously paid, computed or remitted to the department by a taxpayer shall either be credited against any subsequent tax liability of the taxpayer or refunded. No credit or refund shall be allowed after three (3) years from the date of overpayment. The receipt of a claim for a refund by the department shall toll the statute of limitations
under W.S. 39
‑
12
‑
110
. All refund requests received by the department shall be approved or denied within ninety (90) days of receipt. Any refund or credit erroneously made or allowed may be recovered in an action brought by the attorney general in any court of competent jurisdiction.

(d)

Credits. The following shall apply:

(i)

Each taxpayer is entitled to a credit against tax liability under this chapter for all sales, use and ad valorem taxes paid in the taxable year by the same taxpayer to any taxing authority in Wyoming. The taxpayer shall report the credit to the department on the return filed under W.S. 39
‑
12
‑
107. The department may require supporting documentation on the credit claimed under this paragraph. In no case shall any refund be due or payable if the amount of the credit claimed by any taxpayer under this paragraph exceeds the amount of tax due under this chapter.

False claims are punishable as provided by W.S. 6
‑
5
‑
303;

(ii)

The taxpayer is entitled to receive an offsetting credit for any overpaid tax identified by an audit that is within the scope of the audit period, without regard to the limitation period for requesting refunds.

(e)

Redemption. There are no specific applicable provisions for redemption for this
chapter
.

(f)

Escrow. There are no specific applicable provisions for escrow for this
chapter
.

39
‑
12
‑
110
.

Statute of limitations.

(a)

Except as otherwise provided in this chapter, n
o credit or refund shall be allowed after three (3) years from the date of overpayment. The receipt of a claim for a refund by the department shall toll the statute of limitations.

(b)

The department may bring an action to recover any delinquent taxes, penalty or interest in any appropriate court within three (3) years following the delinquency. In the case of an assessment created by an audit, the delinquency period is deemed to start thirty (30) days after the date the assessment letter is sent. Any tax penalty and interest related to the audit assessment shall be calculated from the filing period during which the deficiency occurred. In any such action a certificate by the department is prima facie evidence of the amount due.

39
‑
12
‑
111
.

Distribution.

The proceeds from the tax imposed by this chapter shall be deposited in the general fund.

CHAPTER 23
REAL ESTATE TRANSFER TAX

39
‑
23
‑
101
.

Definitions.

(a)

As used in this chapter:

(i)

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

(ii
)

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

39
‑
23
‑
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.

39
‑
23
‑
103
.

Imposition

(a)

A county may impose an excise tax on the sale of real property under W.S. 39
‑
23
‑
104(a), provided that:

(i)

No tax shall be imposed under W.S. 39
‑
23
‑
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;

(ii)

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;

(iii)

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;

(iv)

If the proposition to impose the tax under W.S. 39
‑
23
‑
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;

(v)

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;

(vi)

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.

39
‑
23
‑
104
.

Taxation rate.

A county may impose a tax on the sale of real property
in increments of one
‑
quarter of one percent (.25%)
at a rate not to exceed two percent (2%)
of the sales price of the property
.

39
‑
23
‑
105
.

Exemptions.

(a)

The tax under this chapter 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;

(ii)

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;

(iii)

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;

(iv)

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;

(vi)

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

(vii)

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;

(ix)

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;

(xi)

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;

(xiii)

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

(xiv)

Any transfer of real property exempted from property taxation under W.S. 39
‑
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;

(xvii)

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

(xviii)

Any transfer of real property used for commercial purposes;

(xix)

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

39
‑
23
‑
106
.

Licenses; permits.

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

39
‑
23
‑
107
.

Compliance; collection procedures.

(a)

Taxes 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 taxes due under this chapter have been paid to the county treasurer. The buyer and seller shall sign before a not
arial 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 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)

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.

39
‑
23
‑
108
.

Enforcement.

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

39
‑
23
‑
109
.

Taxpayer remedies.

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

39
‑
23
‑
110
.

Statute of limitations.

There are no specific applicable provisions for statute of limitations for this chapter.

39
‑
23
‑
111
.

Distribution.

(a)

Taxes 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
.

W.S. 9
‑
4
‑
305(b),
9
‑
4
‑
601(a)(ii), (iii), (vi),
(ix),
(x) and by creating a new paragraph (xii)
,
9
‑
4
‑
605(a), 12
‑
2
‑
201(c), 12
‑
2
‑
302(a),
12
‑
2
‑
303(a), 12
‑
3
‑
101
,
21
‑
15
‑
111(a)(i),
39
‑
11
‑
101(a)(xvii)(B), (C)
,
by creating a new subparagraph (D)
and (xviii)
,
39
‑
12
‑
101, 39
‑
13
‑
103(b)(iii)(B), (C)
and by creating a new subparagraph (D)
, 39
‑
13
‑
104(a) by creating a new paragraph (v), 39
‑
13
‑
109(c)(v) by creating a new subparagraph (F), 39
‑
14
‑
104(b)
(intro),
(iii)
and by creating a new paragraph (iv)
, 39
‑
14
‑
111(a), 39
‑
14
‑
204(a)
(intro),
(iv)
and by creating a new paragraph (v)
, 39
‑
14
‑
211(a), 39
‑
14
‑
304(a)
(intro),
(ii)
and by creating a new paragraph (iii)
, 39
‑
14
‑
311(a), 39
‑
14
‑
404, 39
‑
14
‑
411(a), 39
‑
14
‑
504(a)
(intro),
(ii)
and by creating a new paragraph (iii)
, 39
‑
14
‑
511(a), 39
‑
14
‑
604, 39
‑
14
‑
611(a), 39
‑
14
‑
704, 39
‑
14
‑
711(a), 39
‑
15
‑
104 by creating
new subsection
s
(h)
and (j)
, 39
‑
15
‑
105(a)
(
viii)(O)(intro), (R) and
(S)
(intro)
, 39
‑
15
‑
111(b)(intr
o), (i) and by creating
new subsection
s
(p)
and (q)
, 39
‑
15
‑
203(a) by creating a new paragraph (vi), 39
‑
15
‑
204(a)
(intro) and
by creating a new paragraph (vii), 39
‑
15
‑
211 by creating a new subsection (d), 39
‑
16
‑
104 by creating a new subsection (g), 3
9
‑
16
‑
105(a)(viii)(D)(intro), (G) and
(H)
(intro)
, 39
‑
16
‑
111(b)
(intro),
(i) and by creating a new subsection (p), 39
‑
16
‑
203(a) by creating a new paragraph (v), 39
‑
16
‑
204(a)
(intro) and
by creating a new paragraph (vi), 39
‑
16
‑
211 by creating a new subsection (d), 39
‑
17
‑
104(a)
(intro)
and

(i),
39
‑
17
‑
111(c)(intro),
39
‑
17
‑
204(a)
(intro)
and (i)
, 39
‑
17
‑
211(d)(ii)(intro)
,

39
‑
17
‑
304(a)(intro) and (i),
39
‑
17
‑
311(a)(iv)(intro),
39
‑
18
‑
104(a)(ii), (b)(ii)
and
(c) through (f) and 39
‑
18
‑
111(c) are amended to read:

9
‑
4
‑
305
.

Disposition of state land revenue.

(b)

Proceeds from the sale of state lands, mineral royalties and any money designated by the Wyoming constitution or Wyoming statutes as collected shall be transmitted to the state treasurer and credited to the proper accounts within the permanent land fund, except as provided by article 7, section 2 of the Wyoming constitution, thirty
‑
three and one
‑
third percent (33 1/3%) of the mineral royalties received from the lease of any school lands
,

but not to exceed eight million dollars ($8,000,000.00) during any one (1) year,
shall be deposited
into the public school capital construction account. To the extent constitutionally permissible and notwithstanding any other provision of law, at the end of every fiscal year, the state treasurer shall transfer to the corpus of each account within the permanent land fund, except the common school account, from the income earned on the corresponding account within the permanent land fund, to the extent available, an amount as provided by this subsection. In determining the amount to be withheld, the state treasurer shall calculate the fiscal year beginning balance and ignore any appropriations made from the account within that fiscal year. For the fiscal year 2000, he shall transfer an amount equal to five percent (5%) of the inflation rate for the previous twelve (12) month period as determined by the department of administration and information multiplied by the beginning balance of each permanent land fund account, except the common school account. At the end of each succeeding fiscal year, the state treasurer shall increase the amount to be multiplied by that year's inflation rate by five percent (5%) until such time as the multiplier reaches one hundred percent (100%) of the inflation rate, and then multiply that amount by the beginning balance of each permanent land fund account, except the common school account.

9
‑
4
‑
601
.

Distribution and use; funds, accounts, cities and towns benefited; exception for bonus payments.

(a)

All monies received by the state of Wyoming from the secretary of the treasury of the United States under the provisions of the act of congress of February 25, 1920 (41 Stat. 437, 450; 30 U.S.C. §§ 181, 191), as amended, or from lessees or authorized mine operators and all monies received by the state from its sale of production from federal mineral leases subject to the act of congress of February 25, 1920 (41 Stat. 437, 450; 30 U.S.C. §§ 181, 191) as amended, except as provided by subsection (b) of this section, shall be deposited into an account and the first two hundred million dollars ($200,000,000.00) of revenues received in any fiscal year shall be distributed by the state treasurer as provided in this subsection. One percent (1%) of these revenues shall be credited to the general fund as an administrative fee, and the remainder shall be distributed as follows:

(ii)

Subject to
paragraph

paragraphs
(xi)

and (xii)
of this section,
forty
‑
four and eight
‑
tenths percent (44.8%)

forty
‑
seven and five hundredths percent (47.05%)
to the public school foundation program account subject to allocations under W.S. 9
‑
4
‑
605;

(iii)

Except as provided by W.S. 9
‑
4
‑
605(a), and as otherwise provided in this paragraph, twenty
‑
six and one
‑
quarter percent (26 1/4%) to the
highway fund

school foundation program account
subject to allocations under W.S. 9
‑
4
‑
607. For fiscal years 2017 and 2018 funds under this paragraph shall be distributed to the general fund;

(vi)

Three and seventy
‑
five hundredths percent (3.75%) to the capital construction account to be expended as provided by W.S. 9
‑
4
‑
604(k)(i) or to fund bonds the proceeds of which will be used under W.S. 9
‑
4
‑
604(g) and one and twenty
‑
five hundredths percent (1.25%) to the
highway fund, except for fiscal years 2017 and 2018 funds directed to the highway fund

under this paragraph shall be distributed to the general fund

school foundation program account
;

(ix)

Two and twenty
‑
five one
‑
hundredths percent (2.25%), to the
highway fund, except for fiscal years 2017 and 2018 funds under this paragraph shall be distributed to the general fund

school foundation program account
;

(x)

Five
‑
eighths percent (.625%) to the
highway fund, except for fiscal years 2017 and 2018 funds under this paragraph shall be distributed to the general fund

school foundation program account
;

(xii)

Beginning July 1, 2019, for payments attributable to fiscal year 2020, and each year thereafter the amount under paragraph (ii) of this
sub
section shall be reduced to forty
‑
six and thirty
‑
five hundredths percent (46.35
%). The remaining seven
‑
tenths percent (0.7%) shall be deposited in the property tax refund program account as provided in W.S. 39
‑
13
‑
109(c)(v)(F). This paragraph is repealed July 1, 2024 or on July 1 of the year immediately following the calendar year the state board of equalization certifies to the state treasurer that the assessed valuation for all mineral production in the previous calendar year was at least twelve billion five hundred
million dollars ($12,500,000,000.00), whichever occurs first.

9
‑
4
‑
605
.

Distribution and use; capital construction projects and bonds; purposes.

(a)

Prior to distribution to the public school foundation program account under W.S. 9
‑
4
‑
601(a)(ii), sufficient revenues for the purposes of this section shall be deducted therefrom and credited to a bond repayment account pursuant to the terms of the resolution, indenture or other appropriate proceeding authorizing the issuance of revenue bonds under this section. To the extent that sufficient revenues are not available to fully fund the bond repayment account as provided by this subsection, prior to any distribution to the
highway fund

school foundation program account
under W.S. 9
‑
4
‑
601(a)(iii), sufficient additional revenues for the purpose of this subsection shall be deducted therefrom and credited to the bond repayment account. The revenues deducted shall be used as provided by this section. The balance of the revenues shall be credited to the public school foundation program account.

12
‑
2
‑
201
.

Wholesale license for sale of malt beverages only; fee.

(c)

A malt beverage wholesaler may sell to or purchase from another malt beverage wholesaler only those products the purchasing wholesaler is licensed to sell within his designated territory. A copy of the invoice of the transaction shall be submitted to the division by the seller.
State excise tax shall be reported and paid by the licensed malt beverage wholesaler who has imported the products into the state.

12
‑
2
‑
302
.

Collection of excise taxes; disposition of revenue and fees.

(a)

The division shall collect all
state
excise taxes provided by this title relating to alcoholic
and malt

beverages for deposit into the general fund.

12
‑
2
‑
303
.

Purchase and sale of alcoholic liquors; shortages.

(a)

The Wyoming liquor division shall purchase and sell alcoholic liquors to qualified licensees within the state including, at the discretion of the division, any retail distributors or permittees operating within any military post or national park located within the boundaries of the state of Wyoming. Except as provided in subsection (c) of this section, sales shall be made at prices sufficient to return the cost of merchandise and all expenses of operation together with a profit, not to exceed
seventeen and six
‑
tenths percent (17.6%)

twenty and six
‑
tenths percent (20.6%)
above the cost of the merchandise.

12
‑
3
‑
101
.

Excise tax to be paid; limit
ation on liquor
importation; penalties.

(a)

An excise tax is assessed and shall be collected by the division equal to three
‑
fourths of one cent ($.0075) per one hundred (100) milliliters (3.4 ounces) or fraction thereof on wine
,

and
two and one
‑
half cents ($.025) per one hundred (100) milliliters (3.4 ounces) or fraction thereof on spirituous liquors
.

and one
‑
half cent ($.005) per liter (33.8 ounces) or fraction thereof on malt beverages.

The appropriate excise tax shall be collected on all alcoholic

or malt beverages

liquor and wine
sold, offered for sale or use in this state.

(b)

It is unlawful for any licensee to receive or possess any alcoholic

liquor
or
malt beverage

wine
upon which state excise taxes have not been paid.

(c)

Any licensee or permittee who violates subsection (b)
or (f)
of this section is guilty of a misdemeanor and upon conviction shall be fined not more than five hundred dollars ($500.00), imprisoned for not more than one (1) year, or both.

(d)

No person shall, without authorization from the division or by law, personally transport alcoholic liquor or
malt beverages
wine

into Wyoming for sale, use or consumption in the state when the applicable state excise tax has not been paid. No person shall import or transport at any given time more than three (3) liters of alcoholic liquor excluding wine
,

or
nine (9) liters of wine
or five
(5) gallons of malt beverage

for the personal use of the possessor into Wyoming if the applicable state taxes have not been paid. This subsection shall not apply to a person importing manufactured wine in accordance with the provisions of W.S. 12
‑
2
‑
204.

(e)

Any person importing or transporting alcoholic liquor in violation of subsection (d) of this section is guilty of a misdemeanor. All alcoholic liquor or
malt beverages

wine
illegally imported or transported shall be forfeited and delivered to the division for disposition as inventory stock.

(f)

In addition to any other tax
imposed
under this section, any city, town or county may impose a tax on malt beverages sold or offered for sale within the boundaries of the city, town or county.
The tax shall be imposed by a resolution of the city, town or county setting out the rate of the tax and providing for its collection by the city, town or county. If imposed by a county, the tax shall only apply to unincorporated areas within the county, provided that a county may agree with one (1) or more cities or towns within the county to jointly impose a tax under this subsection.
It is unlawful for any licensee to receive or possess any malt beverage
upon which any applicable city, town or county malt beverage taxes have not been paid.

21
‑
15
‑
111
.

Definitions.

(a)

As used in this act, unless the context requires otherwise:

(i)

"Capital construction account" or "school capital construction account" means the account into which revenues are deposited pursuant to W.S. 9
‑
4
‑
305(b)
,

and

9
‑
4
‑
601(a)(vii), (b)(i) and (iv)
and 39
‑
13
‑
104(a)(v)
, into which the proceeds from any revenue bonds are credited under W.S. 21
‑
15
‑
108, and into which any other funds are appropriated to the account for purposes of this act. Funds within the account shall be expended only for purposes of and in the manner prescribed by this act;

39
‑
11
‑
101
.

Definitions.

(a)

As used in this act unless otherwise specifically provided:

(xvii)

"Taxable value" means a percent of the fair market value of property in a particular class as follows:

(B)

Property used for industrial purposes, eleven and one
‑
half percent (11.5%)

plus any additional percentage provided in subparagraph (D) of this paragraph
;

(C)

All other property, real and personal, including property valued and assessed under W.S. 39
‑
13
‑
102(m)(vi) and (ix), nine and one
‑
half percent (9.5%)
.

plus any additional percentage provided in subparagraph (D) of this paragraph;

(D)

The percentage applicable in subparagraphs (B) and (C) of this paragraph shall be increased so the applicable percent under subparagraph (B) of this paragraph is thirteen and one
‑
half percent (13.5%) and the applicable percent under subparagraph (C) of this paragraph is ten and one
‑
half percent (10.5%). This subparagraph is repealed January 1, 2024 or on January 1 of the year immediately following the calendar year the state board of equalization certifies to the state treasurer that the assessed valuation for all mineral production in the previous calendar year was at least twelve billion five hundred million dollars ($12,500,000,000.00), whichever occurs first.

(xviii)

"This act" means W.S. 39
‑
11
‑
101 through 39
‑
19
‑
111
and 39
‑
23
‑
101 through 39
‑
23
‑
111
.

39
‑
12
‑
101
.

Preemption by state; definitions.

(a)

The state of Wyoming does hereby preempt for itself the field of imposing and levying income taxes, earning taxes, or any other form of tax based on wages or other income and no county, city, town or other political subdivision shall have the right to impose, levy or collect such taxes.

(b)

As used in this chapter:

(i)

"Taxable income" means the adjusted gross income reported by the taxpayer to the
I
nternal
R
evenue
S
ervice;

(ii)

"Taxpayer" means any person
, including individuals and corporations, who is
subject to the federal income tax administered by the
I
nternal
R
evenue
S
ervice. "Taxpayer" includes a married couple filing jointly if the married couple files jointly for purposes of the federal income tax;

(iii)

"Tax year" means the taxable year used by the taxpayer for purposes of the federal income tax.

39
‑
13
‑
103
.

Imposition.

(b)

Basis of tax. The following shall apply:

(iii)

Beginning January 1, 1989, "taxable value" means a percent of the fair market value of property in a particular class as follows:

(B)

Property used for industrial purposes, eleven and one
‑
half percent (11.5%)

plus any additional percentage provided in subparagraph (D) of this paragraph
;

(C)

All other property, real and personal, nine and one
‑
half percent (9.5%)
.

plus any additional percentage provided in subparagraph (D) of this paragraph;

(D)

The percentage applicable in subparagraphs (B) and (C) of this paragraph shall be increased so the applicable percent under subparagraph (B) of this paragraph is thirteen and one
‑
half percent (13.5%) and the applicable percent under subparagraph (C) of this paragraph is ten and one
‑
half percent (10.5%). This subparagraph is repealed January 1, 2024 or on January 1 of the year immediately following the calendar year the state board of equalization certifies to the state treasurer that the assessed valuation for all mineral production in the previous calendar year was at least twelve billion five hundred million dollars ($12,500,000,000.00), whichever occurs first.

39
‑
13
‑
104
.

Taxation rate.

(a)

Authorized mill levies. There shall be annually levied and assessed upon the taxable value of property within Wyoming the following state taxes when applicable:

(v)

Three (3) mills for school capital construction to be deposited in the school capital construction account created by W.S. 21
‑
15
‑
111(a)(i).

39
‑
13
‑
109
.

Taxpayer remedies.

(c)

Refunds. The following shall apply:

(v)

The following shall apply to the property tax refund program:

(F)

There is hereby created the property tax refund program account. The account shall consist of appropriations from the legislature and such other funds as provided by law. Funds in the account are continuously appropriated to the department and shall only be expended to fund the property tax refund program as provided by this paragraph.

39
‑
14
‑
104
.

Tax rate.

(b)

The total severance tax rate for underground coal shall be
three and three
‑
quarters percent (3.75%)

seven percent (7%)
. The tax shall be distributed as provided in W.S. 39
‑
14
‑
111 and is imposed as follows:

(iii)

One percent (1%)
;
.

plus

(iv)

Three and one
‑
quarter percent (3.25%).

39
‑
14
‑
111
.

Distribution.

(a)

As provided by W.S. 39
‑
14
‑
104(a), the total severance tax rate for surface coal shall be seven percent (7%). As provided by W.S. 39
‑
14
‑
104(b), the total severance tax rate for underground coal shall be
three and three
‑
quarters percent (3.75%)
seven percent
(7%)
. A one and one
‑
half percent (1.5%) tax imposed by W.S. 39
‑
14
‑
104(a)(i) and a one and one
‑
half percent (1.5%) tax imposed by W.S. 39
‑
14
‑
104(b)(i) shall be deposited into the
permanent Wyoming mineral trust fund. All other taxes imposed by W.S. 39
‑
14
‑
104(a) and (b) shall be deposited into the severance tax distribution account.

39
‑
14
‑
204
.

Tax rate.

(a)

Except as otherwise provided by this section and W.S. 39
‑
14
‑
205, the total severance tax on crude oil, lease condensate or natural gas shall be
six percent (6%)

seven percent (7%)
, comprising one and one
‑
half percent (1.5%) imposed by the Wyoming constitution a
rticle 15, section 19 and
the remaining amount imposed by Wyoming statute. The tax shall be distributed as provided in W.S. 39
‑
14
‑
211 and is imposed as follows:

(iv)

Two percent (2%)
;
.

plus

(v)

One percent (1%).

39
‑
14
‑
211
.

Distribution.

(a)

The state treasurer shall transfer the revenue collected from the severance tax imposed by W.S. 39
‑
14
‑
204(a)(i) into the permanent Wyoming mineral trust fund. The state treasurer shall transfer the revenue collected from the severance tax imposed by W.S. 39
‑
14
‑
204(a)(ii), (iii)
,

and
(iv)
and (v)
into the severance tax distribution account.

39
‑
14
‑
304
.

Tax rate.

(a)

The total severance tax rate for trona shall be
four percent (4%)

seven percent (7%)
. The tax shall be distributed as provided in W.S. 39
‑
14
‑
311 and is imposed as follows:

(ii)

Two percent (2%)
;
.

plus

(iii)

Three percent (3%).

39
‑
14
‑
311
.

Distribution.

(a)

As provided by W.S. 39
‑
14
‑
304(a), the total severance tax rate for trona shall be
four percent (4%)
seven percent (7%)
. The taxes imposed by W.S. 39
‑
14
‑
304(a)
shall be deposited into the severance tax distribution account.

39
‑
14
‑
404
.

Tax rate.

The total severance tax rate for bentonite shall be
two percent (2%)

seven percent (7%)
. The tax shall be distributed as provided in W.S. 39
‑
14
‑
411.

39
‑
14
‑
411
.

Distribution.

(a)

As provided by W.S. 39
‑
14
‑
404, the total severance tax rate for bentonite shall be
two percent (2%)
seven percent (7%)
, and shall be deposited in the severance tax distribution account.

39
‑
14
‑
504
.

Tax rate.

(a)

The total severance tax rate for uranium shall be
four percent (4%)

seven percent (7%)
. The tax shall be distributed as provided in W.S. 39
‑
14
‑
511 and is imposed as follows:

(ii)

Two percent (2%)
;
.

plus

(iii)

Three percent (3%).

39
‑
14
‑
511
.

Distribution.

(a)

As provided by W.S. 39
‑
14
‑
504(a), the total severance tax rate for uranium shall be
four percent (4%)
seven percent (7%)
. The taxes imposed by W.S. 39
‑
14
‑
504(a) shall be deposited into the severance tax distribution account.

39
‑
14
‑
604
.

Tax rate.

The total severance tax rate for sand and gravel shall be
two percent (2%)

seven percent (7%)
. The tax shall be distributed as provided in W.S. 39
‑
14
‑
611.

39
‑
14
‑
611
.

Distribution.

(a)

As provided by W.S. 39
‑
14
‑
604, the total severance tax rate for sand and gravel shall be
two percent
(2%)
seven percent (7%)
, and shall be deposited in the severance tax distribution account.

39
‑
14
‑
704
.

Tax rate.

The total severance tax rate for other valuable deposits shall be
two percent (2%)

seven percent (7%)
. The tax shall be distributed as provided in W.S. 39
‑
14
‑
711.

39
‑
14
‑
711
.

Distribution.

(a)

As provided by W.S. 39
‑
14
‑
704, the total severance tax rate for other valuable deposits shall be
two percent (2%)
seven percent (7%)
, and shall be deposited in the severance tax distribution account.

39
‑
15
‑
104
.

Taxation rate.

(h)

In addition to the sales tax under subsections (a) and (b) of this section there is imposed an additional sales tax of one percent (1%) which shall be administered as if the sales tax rate under subsections (a) and (b) of this section was increased from four percent (4%) to five percent (5%). The revenue from the increase under this subsection shall be distributed as provided in W.S. 39
‑
15
‑
111(p).

(j
)

In addition to the sale
s tax under subsections (a),
(b)
and (h)
of this section there is imposed a lodging tax of three and one
‑
half percent (3.5%) on sales of lodging services which shall be administered as if the sales tax rate under subsections
(a), (b) and (h
) of this section was
increased from five percent (5
%) to
eight and one
‑
half percent (8
.5%) for sales of lodging services. The revenue from the three and one
‑
half percent (3.5%) lodging tax shall be distributed to the general fund
as provided in W.S. 39
‑
15
‑
111(q
).

39
‑
15
‑
105
.

Exemptions.

(a)

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

(viii)

For the purpose of exempting sales of services and tangible personal property as an economic incentive, the following are exempt:

(O)

Until December 31, 2027, the sale or lease of machinery to be used in this state directly and predominantly in manufacturing tangible personal property, if the sale or lease

is made by the purchaser during the first two (2) years of the operation of the business of the purchaser and
:

(R)

The sale of equipment used to construct a new coal gasification or coal liquefaction facility. The exemption provided by this subparagraph shall be limited to the acquisition of equipment used in a project to make it operational. The exemption shall not apply to tools and other equipment used in construction of a new facility, contracted services required for construction and routine maintenance activities nor to equipment utilized or acquired

more than two (2) years
after the facility is operational;

(S)

Subject to meeting the applicable provisions of this subparagraph, the following purchases by a data processing services center as defined in W.S. 39
‑
15
‑
101(a)(xliv)

if the purchases are made by the purchaser during the first two (2) years of the operation of the business of the data processing services center and
:

39
‑
15
‑
111
.

Distribution.

(b)

Revenues earned under W.S. 39
‑
15
‑
104 during each fiscal year shall be recognized as revenue during that fiscal year for accounting purposes.
Except as otherwise provided in subsection
s
(p)
and (q)
of this section
, f
or all revenue collected by the department under W.S. 39
‑
15
‑
104 the department shall:

(i)

Credit
sixty
‑
nine percent (69%)

forty
‑
nine percent (49%)
to the state general fund for deposit by the state treasurer except as provided by subsections (c) and (d) of this section and less any credit allowed pursuant to W.S. 39
‑
15
‑
107(b)(xi);

(p)

For all revenue collected by the department under W.S. 39
‑
15
‑
104(h) the department shall distribute the revenue to each county in the proportion that the total population of the county bears to the total population of the state. The distribution within each county, for payment into the general fund of the city, town or county, shall be as
determined
in subparagraphs (b)(iii)(A) and (B) of this section.

(q
)

For all revenue
collected
by the department
under W.S. 39
‑
15
‑
104(j
), the department shall credit one hundred percent (100%) to the state general fund. To the extent practical, revenue distributed to the general fund under this subsection shall be used to fund the tourism board and the Wyoming office of tourism.

39
‑
15
‑
203
.

Imposition.

(a)

Taxable event. The following shall apply:

(vi)

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

(A)

The tax authorized by W.S. 39
‑
15
‑
204(a)(vii) shall be in addition to and not in lieu of any tax imposed by a county under W.S. 39
‑
15
‑
204(a)(i), (iii) or (vi) if those taxes are imposed;

(B)

Revenue from the tax shall be used for general revenue, in a specified amount for a specific purpose or for economic development, as specified in the proposition. A city or town may impose a portion of the tax for separate purposes provided that the purposes are voted on separately, each proposition specifies the purpose of the tax and the total amount of the tax does not exceed the maximum amount specified in W.S. 39
‑
15
‑
204(a)(vii);

(C)

No tax shall be imposed under this paragraph until the specific proposition to impose the tax is approved by the vote of the majority of the qualified electors voting on the specific proposition. The purpose of the tax and the amount of revenue to be collected, if applicable, shall be specified in the proposition. The election shall be held in accordance with W.S. 22
‑
21
‑
101
through 22
‑
21
‑
112. Any 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;

(D)

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 proposition that will be considered at the election. The notice shall be published at least once each week for a thirty (30) day period preceding the election. At the election for each proposition, the ballots shall contain the words "for the municipal sales and use tax" and "against the municipal sales and use tax". The ballot shall describe if the tax will be for general revenue, in a specified amount for a specific purpose or for economic development in a clear and appropriate manner. If the proposition is approved the same proposition shall be submitted every four (4) years until the proposition is defeated;

(E)

If the proposition to impose or continue the tax is defeated the proposition shall not again be submitted to the electors of the municipality 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 except:

(I)

If the proposition was for less than the full amount authorized in W.S. 39—15
‑
204(a)(vii), this subparagraph shall not prohibit a separate proposition for the remaining authorized amount of the tax as provided in subparagraph (A) of this paragraph;

(II)

If the proposition was to increase the amount of the tax originally adopted by the electors or to impose a tax for a different purpose, subject to the maximum amount of the tax, the defeat of the proposition shall not repeal the proposition originally adopted by the electors.

(F)

If the proposition is approved by the qualified electors, the city or town council shall adopt an ordinance for the tax authorized by W.S. 39
‑
15
‑
204(a)(vii). The ordinance shall include the following:

(I)

A provision imposing an excise tax upon retail sales of tangible personal property, admissions and services made within the municipality, 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 municipality 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 of this chapter or to chapter 16 of this title not in conflict with article 1 of this chapter or to chapter 16
of this title
shall automatically become a part of the sales tax ordinances of the city or town;

(IV)

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

(ii)

and (vii)
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
‑
tenth
of one percent (.
1
%) not to exceed a rate of one
percent (1%) upon retail sales of tangible personal property, admissions and services made within the city or town, the purpose of which is for general revenue, for a specific purpose or for economic development as specified in the proposition.

39
‑
15
‑
211
.

Distribution.

(d)

For all revenue collected by the department from the taxes imposed by W.S. 39
‑
15
‑
204(a)(vii) the department 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 an account for monthly distribution to the municipality in which the tax has been imposed to be distributed immediately by the treasurer to the sponsoring entity which shall only be used by the municipality for costs related to the purposes approved on the ballot.

39
‑
16
‑
104
.

Taxation rate.

(g)

In addition to the use tax under subsections (a) and (b) of this section there is imposed an additional use tax of one percent (1%) which shall be administered as if the use tax rate under subsections (a) and (b) of this section was increased from four percent (4%) to five percent (5%). The revenue from the increase under this subsection shall be distributed as provided in W.S. 39
‑
16
‑
111(p).

39
‑
16
‑
105
.

Exemptions.

(a)

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

(viii)

For the purpose of exempting sales of services and tangible personal property as an economic incentive, the following are exempt:

(D)

Until December 31, 2027, the purchase or lease of machinery to be used in this state directly and
predominantly in manufacturing tangible personal property, if the sale or lease

is made by the purchaser during the first two (2) years of the operation of the business by the purchaser and
:

(G)

The purchase of equipment used to construct a new coal gasification or coal liquefaction facility. The exemption provided by this subparagraph shall be limited to the acquisition of equipment used in a project to make it operational. The exemption shall not apply to tools and other equipment used in construction of a new facility, contracted services required for construction and routine maintenance activities nor to equipment utilized or acquired

more than two (2) years
after the facility is operational;

(H)

Subject to meeting the applicable provisions of this subparagraph, the following purchases by a data processing services center as defined in W.S. 39
‑
15
‑
101(a)(xliv)

if the purchases are made by the purchaser during the first two (2) years of the operation of the data processing services center and
:

39
‑
16
‑
111
.

Distribution.

(b)

Revenues earned under this article during each fiscal year shall be recognized as revenue during that fisca
l year for accounting purposes.

Except as otherwise provided in subsection (p)
of this section
,
r
evenue collected by the department from the taxes imposed by this article shall be transferred to the state treasurer who shall, as specified by the department:

(i)

Credit
sixty
‑
nine percent (69%)

forty
‑
nine percent (49%)
for deposit by the state treasurer to the general fund except as provided by subsections (d) and (e) of this section and less any credit allowed pursuant to W.S. 39
‑
16
‑
107(b)(viii);

(p)

For all revenue collected by the department under W.S. 39
‑
16
‑
104(g) the department shall distribute the revenue to each county in the proportion that the total population of the county bears to the total population of the state. The distribution within each county, for payment into the general fund of the city, town or county, shall be
as determined in subparagraphs (b)(iii)(A) and (B) of this section.

39
‑
16
‑
203
.

Imposition.

(a)

Taxable event. The following shall apply:

(v)

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

(A)

The tax authorized by W.S. 39
‑
16
‑
204(a)(vi) shall be in addition to and not in lieu of any tax imposed by a county under W.S. 39
‑
16
‑
204(a)(i), (ii) or (v) if those taxes are imposed;

(B)

Revenue from the tax shall be used for general revenue, in a specified amount for a specific purpose or for economic development, as specified in the proposition. A city or town may impose a portion of the tax for separate purposes provided that the purposes are voted on separately, each proposition specifies the purpose of the tax and the total amount of the tax does not exceed the maximum amount specified in W.S. 39
‑
16
‑
204(a)(vi);

(C)

No tax shall be imposed under this paragraph until the specific proposition to impose the tax is approved by the vote of the majority of the qualified electors voting on the specific proposition. The purpose of the tax and the amount of revenue to be collected, if applicable, shall be specified in the proposition. The election shall be held in accordance with W.S. 22
‑
21
‑
101 through 22
‑
21
‑
112. Any excise tax imposed under this paragraph shall commence as provided by W.S. 39
‑
16
‑
207(c) following the election approving the imposition of the tax;

(D)

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 proposition that will be considered at the election. The notice shall be published at least once each week for a thirty (30) day period preceding the election. At the election for each proposition, the ballots shall
contain the words "for the municipal sales and use tax" and "against the municipal sales and use tax". The ballot shall describe if the tax will be for general revenue, in a specified amount for a specific purpose or for economic development in a clear and appropriate manner. If the proposition is approved the same proposition shall be submitted every four (4) years until the proposition is defeated;

(E)

If the proposition to impose or continue the tax is defeated the proposition shall not again be submitted to the electors of the municipality 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 except:

(I)

If the proposition was for less than the full amount authorized in W.S. 39—16
‑
204(a)(vi), this subparagraph shall not prohibit a separate proposition for the remaining authorized amount of the tax as provided in subparagraph (A) of this paragraph;

(II)

If the proposition was to increase the amount of the tax originally adopted by the electors or to impose a tax for a different purpose, subject to the maximum amount of the tax, the defeat of the proposition shall not repeal the proposition originally adopted by the electors.

(F)

If the proposition is approved by the qualified electors, the city or town council shall adopt an ordinance for the tax authorized by W.S. 39
‑
16
‑
204(a)(vi). The ordinance shall include the following:

(I)

A provision imposing an excise tax upon sales and storage, use and consumption of tangible personal property made within the municipality, whichever is appropriate;

(II)

Provisions identical to those contained in article 1 of this chapter, insofar as it relates to sales taxes, except the name of the municipality 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 of this chapter or to chapter 15 of this title not in conflict with article 1
of this chapter
or to chapter 15
of this title
shall automatically become a part of the use tax ordinances of the city or town;

(IV)

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

(V)

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

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
, any 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:

(vi)

An excise tax at a rate in increments of one
‑
tenth
of one percent (.
1
%) not to exceed a rate of one percent (1%) upon sales and storage, use and consumption of tangible personal property made within the city or town, the purpose of which is for general revenue, for a specific purpose or for economic development as specified in the proposition.

39
‑
16
‑
211
.

Distribution.

(d)

For all revenue collected by the department from the taxes imposed by W.S. 39
‑
16
‑
204(a)(vi) the department 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 an account for monthly distribution to the municipality in which the tax has been imposed to be distributed immediately by the treasurer to the sponsoring entity which shall only be used by the municipality for costs related to the purposes approved on the ballot.

39
‑
17
‑
104
.

Taxation rate.

(a)

Except as otherwise provided by this section and W.S. 39
‑
17
‑
105, the total tax on gasoline shall be
twenty
‑
four cents ($.24)

thirty
‑
four cents ($.34)
per gallon. The rate shall be imposed as follows:

(i)

There is levied and shall be collected a license tax of
twenty
‑
three cents ($.23)

thirty
‑
three cents ($.33)
per gallon on all gasoline used, sold or distributed for sale or use in this state except for those fuels exempted under W.S. 39
‑
17
‑
105;

39
‑
17
‑
111
.

Distribution.

(c)

The department shall
deposit an amount collected on ten cents ($.10) of the tax under
W.S.
39
‑
17
‑
104(a)(i) to the state highway account, from the remainder
credit to appropriate accounts based upon deductions from the taxes collected under this article in the following order:

39
‑
17
‑
204
.

Taxation rate.

(a)

Except as otherwise provided by this section and W.S. 39
‑
17
‑
205, the total tax on diesel fuels shall be
twenty
‑
four cents ($.24)

thirty
‑
four cents ($.34)
per gallon. The rate shall be imposed as follows:

(i)

There is levied and shall be collected a license tax of
twenty
‑
three cents ($.23)

thirty
‑
three cents ($.33)
per gallon on all diesel fuels used, sold or distributed for sale or use in this state;

39
‑
17
‑
211
.

Distribution.

(d)

The department shall:

(ii)

Deposit an amount collected on ten cents ($.10) of the tax under
W.S.
39
‑
17
‑
204(a)(i) to the state highway account, then d
istribute monthly the remainder as follows:

39
‑
17
‑
304
.

Taxation rate.

(a)

Except as otherwise provided by this section and W.S. 39
‑
17
‑
305, the total tax on alternative fuel used to propel a motor vehicle shall be
twenty
‑
four cents ($.24)

thirty
‑
four cents ($.34)
per gallon. The gasoline gallon equivalent (GGE) shall be used for compressed natural gas, liquid petroleum gas or electricity. The diesel gallon equivalent (DGE) shall be used for liquefied natural gas or renewable diesel. The rate shall be imposed as follows:

(i)

There is levied and shall be collected a license tax of
twenty
‑
three cents ($.23)

thirty
‑
three cents ($.33)
per gallon, gasoline gallon equivalent or diesel gallon equivalent as appropriate on all alternative fuel used, sold or distributed for sale or use in this state to propel a motor vehicle except for those fuels exempted under W.S. 39
‑
17
‑
305;

39
‑
17
‑
311
.

Distribution.

(a)

Except as otherwise provided in subsection (b) of this section, all alternative fuel license taxes and fees shall be distributed as follows:

(iv)

After certifying the amounts provided by paragraph (iii) of this subsection, the department shall
deposit an amount collected on ten cents ($.10) of the tax under
W.S.
39
‑
17
‑
304(a)(i) to the state highway account, then
certify the
remaining

balance of taxes collected under this article to the state treasurer who shall distribute the remainder into the accounts within the state highway fund created under this subsection as follows:

39
‑
18
‑
104
.

Taxation rate.

(a)

There is levied and shall be collected and paid to the department an excise tax upon the sale of each cigarette sold by wholesalers as follows:

(ii)

Two and four
‑
tenths cents ($.024)

Seven and four
‑
tenths cents ($.074)
.

(b)

There is levied and shall be paid to the department an excise tax upon the use or storage by consumers of cigarettes in Wyoming but only if the tax imposed by subsection (a) of this section has not been paid as follows:

(ii)

Two and four
‑
tenths cents ($.024)

Seven and four
‑
tenths cents ($.074)
.

(c)

In addition to the other taxes imposed by this section, there is levied and assessed upon cigars, snuff and other tobacco products purchased or imported into this state by wholesalers for resale, except cigarettes and moist snuff taxed under this section, an excise tax at the rate of
twenty percent (20%)

fifty
‑
three and one
‑
third percent (53 1/3%)
of the wholesale purchase price at which the tobacco products are purchased by wholesalers from manufacturers.

(d)

The tax imposed by subsection (c) of this section shall also be imposed upon the use or storage by consumers of cigars, snuff and other tobacco products other than cigarettes and moist snuff in this state, and upon those consumers, at the rate of
ten percent (10%)

twenty
‑
six and two
‑
thirds percent (26 2/3%)
of the retail price of the cigar, snuff or other tobacco product other than cigarettes
and moist snuff.
This tax shall not apply if the tax imposed by subsection (c) of this section has been paid.

(e)

In addition to the other taxes imposed by this section, there is levied and assessed upon moist snuff purchased or imported into this state by wholesalers for resale, an excise tax at the rate of
sixty cents ($0.60)

one dollar and sixty cents ($1.60)
for any amount of moist snuff up to one (1) ounce plus a proportionate tax at the like rate on any fractional parts of more than one (1) ounce. The tax on moist snuff shall be imposed based on the net weight as listed by the manufacturer.

(f)

The tax imposed by subsection (e) of this section shall also be imposed upon the use or storage by consumers of moist snuff in this state, and upon those consumers, at the rate of
sixty cents ($0.60)

one dollar and sixty cents ($1.60)
for any amount of moist snuff up to one (1) ounce plus a proportionate tax at the like rate on any fractional parts of more than one (1) ounce. This tax shall not apply if the tax imposed by subsection (e) of this section has been paid. The tax on moist snuff shall be imposed based on the net weight as listed by the manufacturer.

39
‑
18
‑
111
.

Distribution.

(c)

The revenue received from the tax imposed by W.S. 39
‑
18
‑
104(a)(ii) and (b)(ii) shall be deposited in the
general fund
tobacco settlement trust fund created by W.S. 9
‑
4
‑
1203(a)
.

Section 3
.

W.S. 9
‑
4
‑
601(a)(i) is repealed.

Section
4
.

(a)

The percentage rate increase imposed under W.S. 39
‑
11
‑
101(a)(xvii)(D) and 39
‑
13
‑
103(b)(iii)(D) as created by
section 2 of
this act shall apply to the valuation of property beginning in calendar year 2019.

(b)

The income tax imposed under W.S. 39
‑
12
‑
101 through 39
‑
12
‑
111 as created and amended by sections 1 and 2 of this act shall apply beginning in calendar year 2020 for income earned in the 2019 tax year.

Section 5
.

(a)

Each Wyoming licensed wholesaler required to pay taxes under W.S. 39
‑
18
‑
104 shall:

(i)

Take a physical inventory of all:

(A)

Cigarettes in packages bearing Wyoming tax stamps, and all unaffixed Wyoming cigarette tax stamps possessed by the wholesaler or in their control at 11:59 p.m. on the effective date of this section;

(B)

Units of moist snuff possessed by the wholesaler or in their control at 11:59 p.m. on the effective date of this section;

(C)

Cigars, snuff and other tobacco products possessed by the wholesaler or in their control at 11:59 p.m. on the effective date of this section.

(ii)

File a return with the department not later than ten (10) days after the effective date of this
section
, showing the inventories taken under paragraph (i) of this subsection;

(iii)

Pay a floor stock tax at a proportionate rate equal to the increase
in tobacco taxes under section 2
of this act for all cigarettes, moist snuff and cigars, snuff and other tobacco products in the possession or control of the wholesaler at 11:59 p.m. on the effective date of this section.

(b)

The floor stock tax imposed by subsection (a) of this section may be paid in three (3) installments. The first installment, in an amount equal to at least one
‑
third (1/3) of the total amount due, shall be remitted with the return provided to the department not later than ten (10) days following the effective date of this section. The second installment, in an amount that brings the total amount paid to at least two
‑
thirds (2/3) of the total amount due, shall be remit
ted one (1) month following the due date of the first installment. The third installment, in an amount equal to the remaining balance, shall be remitted two (2) months following the due date of the first installment. Penalties under W.S. 39
‑
18
‑
108(c)(iv) shall not be imposed against any outstanding installment payment not yet due from a wholesaler who files the return and makes payments as required under this section.

Section
6
.

T
his act is effective July 1, 201
8
.

(END)

1
HB0177