HB0151 • 2021

Rolling stock tax exemption sunset extension.

AN ACT relating to taxation; extending the sunset of the exemption on the imposition of state sales and use taxes on the repair of railroad rolling stock; phasing out the exemption as specified; and providing for an effective date.

Taxes

Inactive

Wyoming marks this bill as inactive, which usually means it is no longer moving in the current session.

Sponsor: Representative Henderson
Last action: 2021-04-07
Official status: inactive
Effective date: 3/1/2021

Plain English Breakdown

The bill did not pass during this session as it died in committee.

Extending Tax Break for Railroad Repairs

The bill extends a tax exemption on the repair of railroad equipment and gradually reduces it over time.

What This Bill Does

Extends an existing tax break that allows railroads to avoid paying state sales and use taxes when repairing their rolling stock (railroad vehicles like trains).
Phases out this tax exemption starting July 1, 2021, reducing the percentage of exempt repairs each year until it ends in 2026.

Who It Names or Affects

Railroad companies that repair their equipment in Wyoming.
The state of Wyoming's revenue from sales and use taxes.

Terms To Know

Rolling stock: Railroad vehicles such as trains, locomotives, and rail cars.
Sunset clause: A provision that sets a specific date for the expiration of a law or tax break.

Limits and Unknowns

The bill is marked as inactive in Wyoming, meaning it did not pass during this session.
It does not specify how much revenue will be affected by phasing out the exemption.

Amendments

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

HB0151H2001

2nd reading • Representative Sommers

Adopted

Plain English: The amendment extends a tax exemption on repairs to railroad rolling stock but phases out the exemption over time until it ends in 2026.

Adds language that specifies how much of the sales and use taxes will be exempt for repairing railroad equipment each year, starting at 100% in 2021 and decreasing by 20% every year until it reaches 20% in 2025.
Repeals the exemption entirely on July 1, 2026.

The exact impact of phasing out the tax exemption is not detailed beyond percentages and dates.

Bill History

2021-04-07 Senate
S:Died in Committee Returned Bill Pursuant to SR 5-4
2021-04-01 Senate
S No report prior to CoW Cutoff
2021-03-30 Wyoming Legislature
Recalled from Committee Failed: 14-16-0-0-0
2021-03-19 Senate
S Introduced and Referred to S03 - Revenue
2021-03-18 Senate
S Received for Introduction
2021-03-18 House
H 3rd Reading:Passed 34-24-0-0-2
2021-03-17 House
H 2nd Reading:Passed
2021-03-12 House
H 2nd Reading:Laid Back
2021-03-11 House
H COW:Passed 30-28-0-0-2
2021-03-09 House
H Placed on General File
2021-03-09 House
H03 - Revenue:Recommend Do Pass 7-2-0-0-0
2021-03-02 House
H Introduced and Referred to H03 - Revenue
2021-03-01 House
H Received for Introduction
2021-02-25 LSO
Bill Number Assigned

Current Bill Text

Read the full stored bill text

21LSO-0531
2021
STATE OF WYOMING
21LSO-0531
ENGROSSED
3.0

HOUSE BILL NO. HB0151

Rolling stock tax exemption sunset extension.

Sponsored by: Representative(s) Henderson, Burkhart, Duncan and O'Hearn and Senator(s) Baldwin, Furphy, Landen and Schuler

A BILL

for

AN ACT relating to taxation; extending the sunset of the exemption on the imposition of state sales and use taxes on the repair of railroad rolling stock; phasing out the exemption as specified; and providing for an effective date.

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

Section 1.

W.S. 39
‑
15
‑
105(a)(viii)(Q) and 39
‑
16
‑
105(a)(viii)(F) are amended to read:

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:

(Q)

That portion of s
ales of tangible personal property or services performed for the repair, assembly, alteration or improvement of railroad rolling stock
specified by this subparagraph
. This subparagraph is repealed effective
July 1, 2021;
July 1, 2026. Beginning July 1, 2021, this exemption shall apply to the following percentage of the applicable sales and services:

(I)

One hundred percent (100%) for the period beginning July 1, 2021 and ending June 30, 2022;

(II)

Eighty percent (80%) for the period beginning July 1, 2022 and ending June 30, 2023;

(III)

Sixty percent (60%) for the period beginning July 1, 2023 and ending June 30, 2024;

(IV)

Forty percent (40%) for the period beginning July 1, 2024 and ending June 30, 2025;

(V)

Twenty percent (20%) for the period beginning July 1, 2025 and ending June 30, 2026.

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:

(F)

That portion of p
urchases of tangible personal property or services performed for the repair, assembly, alteration or improvement of railroad rolling stock
specified by this subparagraph
. This subparagraph is repealed effective
July 1, 2021;
July 1, 2026. Beginning July 1, 2021, this exemption shall apply to the following percentage of the applicable purchases and services:

(I)

One hundred percent (100%) for the period beginning July 1, 2021 and ending June 30, 2022;

(II)

Eighty percent (80%) for the period beginning July 1, 2022 and ending June 30, 2023;

(III)

Sixty percent (60%) for the period beginning July 1, 2023 and ending June 30, 2024;

(IV)

Forty percent (40%) for the period beginning July 1, 2024 and ending June 30, 2025;

(V)

Twenty percent (20%) for the period beginning July 1, 2025 and ending June 30, 2026.

Section 2
.

This act is effective July 1, 2021
.

(END)

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HB0151