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HB0025 • 2020

County reserve accounts.

AN ACT relating to local sales and use tax; authorizing the deposit of certain specific purpose excise taxes into reserve accounts as specified; requiring approval from the governing body and qualified electors of a county; specifying the use of funds in reserve accounts; and providing for an effective date.

Elections Taxes
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Corporations
Last action
2020-03-13
Official status
enrolled
Effective date
3/13/2020

Plain English Breakdown

The bill summary does not provide specific details about the amount of revenue that can be deposited into reserve accounts.

County Reserve Accounts

This act allows counties to deposit a certain amount of revenue from specific purpose excise taxes into reserve accounts, with approval from governing bodies and voters.

What This Bill Does

  • Allows counties to deposit a specified amount of revenue from special purpose excise taxes or the tax revenue from a specified period not exceeding that amount into reserve accounts.
  • Requires the use of funds in these reserve accounts be approved by both county government and qualified electors voting on the proposition.
  • Specifies that funds in reserve accounts can be used for previously authorized specific purposes or ordinary operations of local government.
  • Allows counties to designate reserve accounts as maintenance and sinking funds for specific projects or permanent trust funds.

Who It Names or Affects

  • Counties
  • Qualified electors

Terms To Know

specific purpose excise taxes
Taxes collected for specific projects or purposes, such as road maintenance.
reserve accounts
Accounts where tax revenue can be saved and used for future needs.

Limits and Unknowns

  • The bill does not specify the exact amount of revenue that can be deposited into reserve accounts.
  • It is unclear what happens if there are no incorporated municipalities within a county.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HB0025H3001

3rd reading • Representative Stith

Failed

Plain English: The amendment changes how funds from reserve accounts can be spent by counties and cities, setting limits based on population proportions and allowing for higher spending if the county's revenue dropped significantly.

  • Limits the expenditure of up to five percent (5%) of reserve account funds to be distributed according to population proportions between the county and its incorporated municipalities.
  • Allows an additional twenty percent (20%) expenditure from the reserve account under specific conditions, such as a significant drop in operational revenues for the county.
  • The amendment text does not specify how the funds are initially deposited into the reserve accounts or what happens if the conditions for higher spending are met but there is insufficient funding.
  • It's unclear from the provided text whether these changes apply to all counties or only specific ones.
HB0025H3002

3rd reading • Representative Clem

Adopted

Plain English: The amendment removes certain phrases and sections from the bill, specifically deleting references to acting alone and removing detailed provisions about government use.

  • Removes 'alone or' where it appears in the bill text.
  • Deletes parts of sentences that follow 'government.'
  • Eliminates specific lines detailing uses and requirements.
  • The exact impact of these deletions on the overall meaning and implementation of the bill is not fully explained by this amendment alone.
HB0025HS001

Standing Committee • House Corporations, Elections & Political Subdivis

Adopted

Plain English: The amendment allows counties to deposit specific amounts of sales and use tax revenue collected over certain periods into reserve accounts instead of just the taxes themselves.

  • Adds language allowing for the deposit of a specified amount of tax revenue from a particular period, not just the full tax itself, into reserve accounts.
  • The amendment does not specify how long these periods can be or what specific amounts are allowed, leaving those details to be determined by other parts of the bill or local authorities.
HB0025S2001

2nd reading • Senator Kinskey

Adopted

Plain English: The amendment allows reserve accounts to be used for specific projects or as permanent trust funds with strict investment rules.

  • Adds the ability to designate a reserve account as a maintenance and sinking fund for specific projects, allowing earnings and principal amounts to be spent on those projects.
  • Permits reserve accounts to be designated as inviolate accounts that are permanent or perpetual trust funds, which must be invested to maximize returns while preserving the original amount.
  • Specifies that any income from these trust funds must go into a separate account and can only be used according to rules set in the amendment.
  • The exact details of how earnings are authorized for expenditure remain unclear without further context.
HB0025S3001

3rd reading • Senator Anselmi-Dalton

Failed

Plain English: The amendment adds a requirement for certain entities to specify how they will manage reserve accounts according to specific state laws.

  • Adds language on Page 3, line 4 and Page 7, line 8 to include the management of reserve accounts as specified by W.S. 39-15-211(b)(ii) and W.S. 39-16-211(b)(ii).
  • The amendment text does not provide details on what exactly W.S. 39-15-211(b)(ii) and W.S. 39-16-211(b)(ii) entail, so the specific requirements for managing reserve accounts are unclear.
HB0025SW001

Committee of the Whole • Senator Kinskey

Withdrawn

Plain English: The amendment changes how certain tax funds are treated, making them permanent or perpetual trusts that aim to maximize returns while preserving the original amount.

  • Changes 'may be' to 'are intended to be inviolate and constitute a permanent or perpetual trust fund which shall be' in multiple places.
  • Modifies language about how earnings from investments of these funds should be handled, specifying that they must aim for maximum returns while preserving the original amount (corpus) and can be deposited into separate accounts.
  • The exact implications of making these funds 'inviolable' and part of a permanent trust are not fully explained in plain terms by the amendment text.
  • It is unclear how this change will affect the practical management and use of these tax funds beyond the specified language modifications.

Bill History

  1. 2020-03-13 LSO

    Assigned Chapter Number 88

  2. 2020-03-13 Governor

    Governor Signed HEA No. 0049

  3. 2020-03-10 Senate

    S President Signed HEA No. 0049

  4. 2020-03-10 House

    H Speaker Signed HEA No. 0049

  5. 2020-03-09 LSO

    Assigned Number HEA No. 0049

  6. 2020-03-09 House

    H Concur:Passed 48-10-2-0-0

  7. 2020-03-09 House

    H Received for Concurrence

  8. 2020-03-09 Senate

    S 3rd Reading:Passed 18-11-1-0-0

  9. 2020-03-09 Senate

    S 3rd Reading:Bill Reconsideration Motion Passed by Roll Call 17-12-1-0-0

  10. 2020-03-06 Senate

    S 3rd Reading:Failed 6-22-2-0-0

  11. 2020-03-05 Senate

    S 2nd Reading:Passed

  12. 2020-03-04 Senate

    S COW:Passed

  13. 2020-03-03 Senate

    S Placed on General File

  14. 2020-03-03 Senate

    S07 - Corporations:Recommend Do Pass 4-1-0-0-0

  15. 2020-02-26 Senate

    S Introduced and Referred to S07 - Corporations

  16. 2020-02-21 Senate

    S Received for Introduction

  17. 2020-02-20 House

    H 3rd Reading:Passed 46-14-0-0-0

  18. 2020-02-19 House

    H 3rd Reading:Laid Back

  19. 2020-02-18 House

    H 2nd Reading:Passed

  20. 2020-02-17 House

    H COW:Passed

  21. 2020-02-14 House

    H Placed on General File

  22. 2020-02-14 House

    H07 - Corporations:Recommend Amend and Do Pass 5-4-0-0-0

  23. 2020-02-11 House

    H Introduced and Referred to H07 - Corporations 46-13-1-0-0

  24. 2020-02-07 House

    H Received for Introduction

  25. 2019-12-16 LSO

    Bill Number Assigned

Official Summary Text

Bill Summary - 20LSO-0080
Bill No.:

HB0025

Effective:

Immediately

LSO No.:

20LSO-0080

Enrolled Act No.:

HEA No. 0049

Chapter No.:

88

Prime Sponsor:

Joint Corporations, Elections & Political Subdivisions Interim Committee

Catch Title:

County reserve accounts.

Subject:

County reserve accounts.

Summary/Major Elements:

The bill authorizes counties to deposit into a county reserve account a specified amount of revenue from special purpose excise taxes or the tax revenue from a specified period not to exceed the specified amount. The use of the revenue in this way must be:

Approved in a resolution adopted by the governing body of a county and the governing bodies of at least two-thirds (2/3) of the incorporated municipalities within the county;
Approved by the vote of the majority of the qualified electors voting on the proposition.

Funds in a reserve account may be expended for specific purposes previously authorized and for the ordinary operations of local government.

A reserve account may be designated as a maintenance and sinking fund for specific projects or as an inviolate account to constitute a permanent or perpetual trust fund.

Excess funds collected by a special purpose excise tax that exceed the amount necessary for the approved purpose of the tax may be deposited in the reserve account.

The bill also authorizes a county that has already imposed a special purpose excise tax prior to the effective date of the act to allow a specified amount of revenue from the tax or the tax revenue from a specified period not to exceed the specified amount to be deposited into a reserve account.

The above summary is not an official publication of the Wyoming Legislature and is not an official statement of legislative intent. While the Legislative Service Office endeavored to provide accurate information in this summary, it should not be relied upon as a comprehensive abstract of the bill.

Current Bill Text

Read the full stored bill text
20LSO-0080

ORIGINAL House

ENGROSSED
Bill No
.
HB0025

ENROLLED ACT NO. 49,

HOUSE OF REPRESENTATIVES

SIXTY-FIFTH LEGISLATURE OF THE STATE OF WYOMING
2020 Budget Session

AN ACT relating to local sales and use tax; authorizing the deposit of certain specific purpose excise taxes into reserve accounts as specified; requiring approval from the governing body and qualified electors of a county; specifying the use of funds in reserve accounts; and providing for an effective date.

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

Section 1
.

W.S. 39
‑
15
‑
203(a)(iii)(B) and by creating a new subparagraph (H), 39
‑
15
‑
204(a)(iii), 39
‑
15
‑
211(b)(iv), 39
‑
16
‑
203(a)(ii)(B) and by creating a new subparagraph (H), 39
‑
16
‑
204(a)(ii) and 39
‑
16
‑
211(b)(iv) are amended to read:

39
‑
15
‑
203.

Imposition.

(a)

Taxable event. The following shall apply:

(iii)

The following provisions apply to imposition of the specific purpose excise tax under W.S. 39
‑
15
‑
204(a)(iii):

(B)

The revenue from the tax shall be used in a specified amount for specific purposes authorized by the qualified electors. Specific purposes may include one (1) time major maintenance, renovation or reconstruction of a specifically defined section of a public roadway
and may include, in conjunction with another specific purpose, funding a reserve account as provided in subparagraph (H) of this paragraph
. Specific purposes shall not include ordinary operations of local government except those operations related to a specific project
or as authorized by subparagraph (H) of this paragraph
;

(H)

If approved in the resolution adopted pursuant to subparagraph (A) of this paragraph and approved by the qualified electors pursuant to subparagraph (C) of this paragraph, a specified amount of revenue from the tax or the tax revenue from a specified period not to exceed the specified amount may be deposited into a reserve account. Funds in the reserve account may be invested as provided in W.S. 9
‑
4
‑
831 and may be expended for specific purposes previously authorized under this paragraph and for the ordinary operations of local government. A reserve account under this paragraph may be designated as a maintenance and sinking fund for a specific project or projects and the earnings and principal amount in the fund may be expended for the applicable project or projects. A reserve account under this paragraph may be designated as an inviolate account to constitute a permanent or perpetual trust fund which shall be invested in a manner to obtain the highest return possible consistent with preservation of the corpus. Any earnings from investment of the corpus of a permanent or perpetual trust fund designated under this subsection shall be deposited in a separate account and may be expended as authorized in this subparagraph.

39
‑
15
‑
204.

Taxation rate.

(a)

In addition to the state tax imposed under W.S. 39
‑
15
‑
101 through 39
‑
15
‑
111 any county of the state may impose the following excise taxes and any city or town may impose the tax authorized by paragraph (ii) of this subsection and any resort district may impose the tax authorized by paragraph (v) of this subsection:

(iii)

An excise tax not to exceed two percent (2%) upon retail sales of tangible personal property,
admissions and services made within the county. The total excise tax imposed within any county under this paragraph shall not exceed two percent (2%). The revenue from the tax shall be used in a specified amount for specific purposes authorized by the qualified electors and as provided in W.S. 39
‑
15
‑
211(b)(iv). Specific purposes shall not include ordinary operations of local government except those operations related to a specific project
or as authorized by W.S. 39
‑
15
‑
203(a)(iii)(H)
;

39
‑
15
‑
211.

Distribution.

(b)

For all revenue collected by the department from the taxes imposed by W.S. 39
‑
15
‑
204(a)(iii) the department shall:

(iv)

If taxes collected exceed the amount necessary for the approved purpose, the excess funds shall be retained by the county treasurer for one (1) year for refund of overpayments of the tax imposed pursuant to this act upon order of the department. After one (1) year any interest earned on the excess funds and the excess funds less any refunds ordered shall be
deposited in the applicable reserve account authorized by W.S. 39
‑
15
‑
203(a)(iii)(H) or
transferred to the county or municipality as specified in the resolution adopted pursuant to W.S. 39
‑
15
‑
203(a)(iii)(A). If the resolution fails to specify how excess funds will be expended and after all approved purposes have been completed, the county treasurer shall transfer the excess funds less any refunds ordered 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 and to the county in the proportion that the population of the unincorporated areas of the county bears to the population of the county. After
a public hearing, with notice of the public hearing published in a newspaper of general circulation in the county at least thirty (30) days before the public hearing, the governing body of the county and each municipality may appropriate its proportion of excess funds for other specific purposes authorized by a majority vote of the governing body, which shall not include the ordinary operations of local government. Excess funds collected on the propositions approved prior to January 1, 1989, and any interest earned shall be retained by the county treasurer for use in any purposes approved by the electors in accordance with procedures set forth in this section and for refunds of overpayment of taxes imposed pursuant to this act upon the order of the department, except that, with the approval of the governing bodies adopting the initial resolution, the excess funds and any interest earned may be used for the needs of the project for which the tax was approved.

39
‑
16
‑
203.

Imposition.

(a)

Taxable event. The following shall apply:

(ii)

The following provisions apply to imposition of the specific purpose excise tax under W.S. 39
‑
16
‑
204(a)(ii):

(B)

The revenue from the tax shall be used in a specified amount for specific purposes authorized by the qualified electors. Specific purposes may include one (1) time major maintenance, renovation or reconstruction of a specifically defined section of a public roadway
and may include, in conjunction with another specific purpose, funding a reserve account as provided in subparagraph (H) of this paragraph
. Specific purposes shall not include
ordinary operations of local government except those operations related to a specific project
or as authorized by subparagraph (H) of this paragraph
;

(H)

If approved in the resolution adopted pursuant to subparagraph (A) of this paragraph and approved by the qualified electors pursuant to subparagraph (C) of this paragraph, a specified amount of revenue from the tax or the tax revenue from a specified period not to exceed the specified amount may be deposited into a reserve account. Funds in the reserve account may be invested as provided in W.S. 9
‑
4
‑
831 and may be expended for specific purposes previously authorized under this paragraph and for the ordinary operations of local government. A reserve account under this paragraph may be designated as a maintenance and sinking fund for a specific project or projects and the earnings and principal amount in the fund may be expended for the applicable project or projects. A reserve account under this paragraph may be designated as an inviolate account to constitute a permanent or perpetual trust fund which shall be invested in a manner to obtain the highest return possible consistent with preservation of the corpus. Any earnings from investment of the corpus of a permanent or perpetual trust fund designated under this subsection shall be deposited in a separate account and may be expended as authorized in this subparagraph.

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 and any resort district may impose the tax authorized by paragraph (iv) of this subsection:

(ii)

An excise tax not to exceed two percent (2%) upon sales and storage, use and consumption of tangible personal property, within the county. The total excise tax imposed within any county under this paragraph shall not exceed two percent (2%). The revenue from the tax shall be used in a specified amount for specific purposes authorized by the qualified electors and as provided in W.S. 39
‑
16
‑
211(b)(iv). Specific purposes shall not include ordinary operations of local government except those operations related to a specific project
or as authorized by W.S. 39
‑
16
‑
203(a)(ii)(H)
;

39
‑
16
‑
211.

Distribution.

(b)

For all revenue collected by the department from the taxes imposed by W.S. 39
‑
16
‑
204(a)(ii), the department shall:

(iv)

If taxes collected exceed the amount necessary for the approved purpose, the excess funds shall be retained by the county treasurer for one (1) year for refund of overpayments of the tax imposed pursuant to this act upon order of the department. After one (1) year any interest earned on the excess funds and the excess funds less any refunds ordered shall be
deposited in the applicable reserve account authorized by W.S. 39
‑
16
‑
203(a)(ii)(H) or
transferred to the county or municipality as specified in the resolution adopted pursuant to W.S. 39
‑
16
‑
203(a)(ii)(A). If the resolution fails to specify how excess funds will be expended and after all approved purposes have been completed, the county treasurer shall transfer the excess funds less any refunds ordered 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 and to the county in the
proportion that the population of the unincorporated areas of the county bears to the population of the county. After a public hearing, with notice of the public hearing published in a newspaper of general circulation in the county at least thirty (30) days before the public hearing, the governing body of the county and each municipality may appropriate its proportion of excess funds for other specific purposes authorized by a majority vote of the governing body, which shall not include the ordinary operations of local government. Excess funds collected on the propositions approved prior to January 1, 1989, and any interest earned shall be retained by the county treasurer for use in any purposes approved by the electors in accordance with procedures set forth in this section and for refunds of overpayment of taxes imposed pursuant to this act upon the order of the department, except that, with the approval of the governing bodies adopting the initial resolution, the excess funds and any interest earned may be used for the needs of the project for which the tax was approved.

Section 2.

(a)

If a county imposed an excise tax under W.S. 39
‑
15
‑
204(a)(iii) or 39
‑
16
‑
204(a)(ii) prior to the effective date of this act, the governing body of the county may submit to the qualified electors of the county the question of whether to allow a specified amount of revenue from the tax or the tax revenue from a specified period not to exceed the specified amount to be deposited into a reserve account and expended as authorized by W.S. 39
‑
15
‑
203(a)(iii)(H) or 39
‑
16
‑
203(a)(ii)(H), as created by this act. The election shall be held in accordance with W.S. 22
‑
21
‑
101 through 22
‑
21
‑
112. No revenue from a tax imposed under W.S. 39
‑
15
‑
204(a)(iii) or 39
‑
16
‑
204(a)(ii)
prior to the effective date of this act shall be deposited into a reserve account until the proposition authorizing such use is submitted in accordance with this section and approved by the vote of the majority of the qualified electors voting on the proposition.

(b)

Before any proposition under this section shall be placed before the electors, a resolution approving the proposition and setting forth a procedure for qualification of a ballot question for placement on the ballot shall be adopted in the same manner as provided in W.S. 39
‑
15
‑
203(a)(iii)(A) and 39
‑
16
‑
203(a)(ii)(A).

(c)

This section shall be repealed effective January 1, 2022.

Section 3.

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)

Speaker of the House

President of the Senate

Governor

TIME APPROVED: _________

DATE APPROVED: _________

I hereby certify that this act originated in the House.

Chief Clerk

1