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SF0025 • 2020

Energy production inventory exemption.

AN ACT relating to ad valorem taxation; providing an exemption for the storage of energy production equipment prior to installation in this state as specified; requiring rulemaking; requiring a report; and providing for an effective date.

Energy Taxes
Did Not Pass

The latest official action shows that this bill did not move forward in that session.

Sponsor
Corporations
Last action
2020-02-11
Official status
inactive
Effective date
3/1/2020

Plain English Breakdown

The official source material does not provide a detailed summary or digest text, so some information was inferred from the bill text itself.

Energy Production Inventory Exemption

This act provides an exemption from property taxes for energy production equipment stored in Wyoming before installation if sales or use tax has been paid on the equipment.

What This Bill Does

  • Exempts certain energy production equipment from property taxes when stored in Wyoming before installation, provided that sales or use tax is paid at the county rate where the equipment is stored.
  • Requires the department of revenue to create rules for verifying and granting exemptions by January 1, 2021.
  • Requires a report on the amount of exemptions granted and related taxes by December 31, 2021.

Who It Names or Affects

  • Companies storing energy production equipment in Wyoming before installation.
  • The department of revenue tasked with creating rules and reporting on exemptions.

Terms To Know

ad valorem taxation
A type of property tax based on the value of the property being taxed.
sales or use tax
Taxes charged when goods are sold or used, often at a percentage of the purchase price.

Limits and Unknowns

  • The exemption only applies to energy production equipment and not to storage or transportation equipment.
  • This act did not pass in its session and is no longer active legislation.

Bill History

  1. 2020-02-11 Senate

    S Failed Introduction 14-15-1-0-0

  2. 2020-02-10 Senate

    S Received for Introduction

  3. 2019-12-17 LSO

    Bill Number Assigned

Current Bill Text

Read the full stored bill text 
20LSO-0031
2020
STATE OF WYOMING
20LSO-0031
Numbered
2.0

SENATE FILE NO. SF0025

Energy production inventory exemption.

Sponsored by: Joint Corporations, Elections & Political Subdivisions Interim Committee

A BILL

for

AN ACT relating to ad valorem taxation; providing an exemption for the storage of energy production equipment prior to installation in this state as specified; requiring rulemaking; requiring a report; and providing for an effective date.

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

Section 1.

W.S. 39
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105(a) by creating a new paragraph (xlii) is amended to read:

39
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105.

Exemptions.

(a)

The following property is exempt from property taxation:

(xlii)

For tax years commencing January 1, 2021 and ending December 31, 2025, property that is temporarily stored in this state prior to the first installation of the property as energy production equipment in this state, if Wyoming sales or use tax is paid on the property at the rate imposed in the county where the property is stored. The county assessor or department may require any documentation necessary to verify that property is eligible for the exemption under this paragraph. The amount of any exemption granted under this paragraph shall be reported by the department and county assessor on the abstract submitted to the state board of equalization as prescribed by W.S. 39
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102.1(c)(ii). As used in this paragraph, "energy production equipment" means any specialized equipment designed specifically for use in the production of energy from natural gas, coal, oil, wind, solar, hydro or nuclear sources but shall not include any equipment used to store or transport energy products, mobile energy product equipment,
standard building materials, construction equipment or other equipment or materials that will not be directly used in the production of energy. The department shall promulgate rules to implement and administer this paragraph. The rules shall at a minimum provide:

(A)

Definitions of terms as necessary;

(B)

An application and verification process for the exemption.

Section 2.

The department of revenue shall promulgate rules pursuant to W.S. 39
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105(a)(xlii), as created by this act, to be effective by January 1, 2021.

Section 3.

The department of revenue shall report to the legislature by December 31, 2021 on the amount of any exemptions granted and the sales and use taxes paid pursuant to W.S. 39
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105(a)(xlii), as created by this act.

Section 4.

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

(END)

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SF0025