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HB0174 • 2021

Local government sales and use taxes.

AN ACT relating to sales and use taxes; imposing a one percent sales and use tax for distribution to local governments; authorizing local governments to impose a portion of the local optional sales and use tax by resolution; decreasing the maximum amount of local optional sales and use taxes; providing applicability; providing that the bill is effective contingent upon enactment of other legislation; and providing for an effective date.

Elections Taxes
Did Not Pass

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

Sponsor
HEducation
Last action
2021-03-23
Official status
inactive
Effective date
3/1/2021

Plain English Breakdown

The bill did not pass, so there are no details provided about fund distribution methods beyond what was stated in the summary.

Local Government Sales and Use Taxes

This act proposes to impose an additional one percent sales and use tax for distribution to local governments, allows local governments to impose up to one percent optional taxes through resolutions, limits the total amount of optional excise taxes in any county to two percent, and delays implementation until a specific financial condition is met.

What This Bill Does

  • Imposes an extra one percent sales tax on all purchases in addition to existing state taxes.
  • Requires this new tax revenue to be distributed among local governments as if each county had a one percent tax of its own.
  • Allows local governments to impose up to one percent additional optional sales and use taxes through resolutions instead of requiring voter approval.
  • Limits the total amount of optional excise taxes that can be imposed in any county to two percent.
  • Delays implementation of this new tax until three months after the state treasurer certifies a specific reserve account balance.

Who It Names or Affects

  • Local governments and their residents who will pay the additional sales and use taxes.
  • Businesses that collect these taxes from customers.

Terms To Know

Excise tax
A tax on specific goods, activities, or transactions.
Optional excise tax
An additional local sales and use tax that can be imposed by a resolution or voter approval.

Limits and Unknowns

  • The bill did not pass in the session.
  • Implementation of the new taxes is delayed until after a specific financial condition is met.

Amendments

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

HB0174H3001

3rd reading • Representative Stith

Withdrawn

Plain English: The amendment proposes to remove a specific line from the bill that relates to sales and use taxes for local governments.

  • Removes a particular line from the original bill text.
  • The exact content of the line being removed is not provided, so it's unclear what specific change this amendment would make.
HB0174HW001

Committee of the Whole • Representative Newsome

Withdrawn

Plain English: The amendment allows counties to choose not to collect a one percent sales and use tax by passing a resolution, and it specifies that no revenue will be distributed to such counties if they opt out.

  • Counties can now adopt a resolution to forego the collection of the one percent local optional sales and use tax.
  • Revenue distribution under this tax is prohibited for any county that has adopted a resolution to forego the tax.
  • The amendment text does not specify what happens if a county opts out after revenue has already been distributed, leaving some uncertainty in how such situations would be handled.
HB0174HW002

Committee of the Whole • Representative Sommers

Withdrawn

Plain English: The amendment changes the effective date for a new local government sales and use tax, making it dependent on when another related tax is first imposed.

  • Changes the start date of the one percent sales and use tax to six months after it is first imposed under section 3 of this act.
  • Adds a requirement that the department of revenue must certify to the secretary of state before the new tax can be imposed, ensuring that another related tax has been implemented.
  • The exact details about when and how the other related taxes will be imposed are not provided in this amendment text.
  • It is unclear what specific conditions must be met for the department of revenue to certify the new tax can begin.
HB0174HW003

Committee of the Whole • Representative Harshman

Adopted

Plain English: The amendment changes the timing for implementing a new sales tax, delaying it until three months after the state treasurer certifies that the legislative stabilization reserve account balance is less than $650 million.

  • Adds a delay in implementing certain taxes until three months after the state treasurer certifies that the legislative stabilization reserve account has less than $650 million.
  • The amendment does not specify what happens if the balance remains above $650 million for an extended period.
  • It is unclear how this delay will affect local governments' ability to impose their portion of the tax as planned.
HB0174HS001

Standing Committee • House Education Committee

Adopted

Plain English: The amendment adds another bill to the reference list in the existing legislation.

  • Adds 'or House Bill 0173' after 'House Bill 0061' in the text.
  • It is unclear what specific changes this addition will cause beyond referencing another bill.

Bill History

  1. 2021-03-23 House

    H 3rd Reading:Failed 10-50-0-0-0

  2. 2021-03-22 House

    H 3rd Reading:Laid Back

  3. 2021-03-19 House

    H 3rd Reading:Laid Back

  4. 2021-03-18 House

    H 3rd Reading:Laid Back

  5. 2021-03-17 House

    H 3rd Reading:Laid Back

  6. 2021-03-12 House

    H 2nd Reading:Passed

  7. 2021-03-11 House

    H COW:Passed

  8. 2021-03-03 House

    H Placed on General File

  9. 2021-03-03 House

    H04 - Education:Recommend Amend and Do Pass 6-3-0-0-0

  10. 2021-03-02 House

    H Introduced and Referred to H04 - Education

  11. 2021-03-02 House

    H Received for Introduction

  12. 2021-03-01 LSO

    Bill Number Assigned

Current Bill Text

Read the full stored bill text
21LSO-0669
2021
STATE OF WYOMING
21LSO-0669
Introduced
2.0

HOUSE BILL NO. HB0174

Local government sales and use taxes.

Sponsored by: House Education Committee

A BILL

for

AN ACT relating to sales and use taxes; imposing a one percent sales and use tax for distribution to local governments; authorizing local governments to impose a portion of the local optional sales and use tax by resolution; decreasing the maximum amount of local optional sales and use taxes; providing applicability; providing that the bill is effective contingent upon enactment of other legislation; 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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104 by creating a new subsection (j), 39
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111(b)(intro) and by creating a new subsection (r), 39
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203(a)(i)(F)(intro), (I), (II), (IV) and (V), 39
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204(a)(iv), 39
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104 by creating a new subsection (g), 39
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111(b)(intro) and by creating a new
subsection (p), 39
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203(a)(i)(F)(intro), (I), (II), (IV) and (V) and 39
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204(a)(iii) are amended to read:

39
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104.

Taxation rate.

(j)

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 this section was increased from four percent (4%) to five percent (5%). The revenue from the additional tax under this subsection shall be distributed as provided in W.S. 39
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111(r).

39
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111.

Distribution.

(b)

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

(r)

All revenue collected by the department under W.S. 39
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104(j) shall be distributed under W.S. 39
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211(a)(i) as if each county had imposed a one percent (1%) tax under W.S. 39
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204(a)(i), provided that no funds distributed under this subsection shall be expended pursuant to W.S. 39
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211(a)(i)(C).

39
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203.

Imposition.

(a)

Taxable event.

The following shall apply:

(i)

The following provisions apply to imposition of the general purpose excise tax under W.S. 39
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204(a)(i):

(F)

In lieu of the requirements of
subparagraph (C) of
this paragraph providing for the submission of the proposition
at subsequent elections,
to the electors, up to one percent (1%) of
the tax authorized under W.S. 39
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204(a)(i)
may be imposed by a resolution under this subparagraph and any tax imposed under this paragraph
may be continued by an election or by a resolution as provided in this subparagraph. For the tax to
be continued by an election, the county commissioners, with the concurrence of the governing bodies of fifty percent (50%) of the municipalities, shall submit a proposition to the voters establishing the term of the tax as permanent. The proposition under this subparagraph shall be submitted in the same manner as a proposition to impose the tax under subparagraph (C) of this paragraph provided that the proposition shall be submitted as a separate question at the same election with a proposition to impose or continue the tax under subparagraph (C) of this paragraph. The tax may be
imposed or
continued by resolution, subject to the following terms and conditions:

(I)

If the tax is in excess of the one percent (1%) that can be imposed by resolution under this subparagraph, t
he tax shall be initially imposed following approval of the electorate in accordance with subparagraphs (B) and (C) of this paragraph;

(II)

The tax shall be
imposed or
continued if favorably supported by a resolution adopted by the governing body of the county and by ordinances adopted
by the governing bodies of at least a majority of the incorporated municipalities within the county;

(IV)

Excise taxes shall be imposed under this subparagraph only if the county clerk has certified to the county treasurer that a sufficient number of ordinances or resolutions to impose the tax under this subparagraph have been adopted and that the amount of the tax imposed does not exceed one percent (1%). Within five (5) days of receipt of such certification from the county clerk, the county treasurer shall notify the department of revenue of this tax.
Excise taxes shall be continued under this subparagraph only if the county clerk has certified to the county treasurer that a sufficient number of ordinances or resolutions to continue the tax under this subparagraph have been adopted at least ninety (90) days prior to the election to determine the continuation of the tax. Within five (5) days of receipt of such certification from the county clerk, the county treasurer shall notify the department of revenue of this tax. If the tax is not continued pursuant to this subparagraph it shall be subject to the provisions of subparagraph (C) of this paragraph for continuation;

(V)

The tax may be terminated in the same manner as it was
imposed or
continued under subdivisions (II) and (IV) of this subparagraph except that ordinances and resolutions shall be for the rescinding of the tax. If the tax is continued under subdivisions (II) and (IV) of this subparagraph, it may also be terminated by an election to rescind the tax conducted subject to subparagraphs (B) through (D) of this paragraph.

39
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204.

Taxation rate.

(a)

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

(iv)

In no event shall the total excise tax imposed within any county under the provisions of paragraphs (i), (iii) and (vi) of this subsection exceed
three percent (3%)
two percent (2%)
;

39
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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 this section was increased from four percent (4%) to five percent (5%). The revenue from the additional tax under this subsection shall be distributed as provided in W.S. 39
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111(p).

39
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111.

Distribution.

(b)

Revenues earned under this article during each fiscal year shall be recognized as revenue during that fiscal 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:

(p)

All revenue collected by the department under W.S. 39
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104(g) shall be distributed under W.S.
39
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211(a)(i) as if each county had imposed a one percent (1%) tax under W.S. 39
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204(a)(i), provided that no funds distributed under this subsection shall be expended pursuant to W.S. 39
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211(a)(i)(C).

39
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203.

Imposition.

(a)

Taxable event.

The following shall apply:

(i)

The following provisions apply to imposition of the general purpose excise tax under W.S. 39
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204(a)(i):

(F)

In lieu of the requirements of
subparagraph (C) of
this paragraph providing for the submission of the proposition
at subsequent elections, the
to the electors, up to one percent (1%) of the
tax authorized under W.S. 39
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204(a)(i)
may be imposed by a resolution under this subparagraph and any tax imposed under this paragraph
may be continued by an election or by a resolution as provided in this subparagraph. For the tax to be continued by an election, the county commissioners, with the concurrence of the governing bodies of fifty
percent (50%) of the municipalities, shall submit a proposition to the voters establishing the term of the tax as permanent. The proposition under this subparagraph shall be submitted in the same manner as a proposition to impose the tax under subparagraph (C) of this paragraph provided that the proposition shall be submitted as a separate question at the same election with a proposition to impose or continue the tax under subparagraph (C) of this paragraph. The tax may be
imposed or
continued by resolution, subject to the following terms and conditions:

(I)

If the tax is in excess of the one percent (1%) that can be imposed by resolution under this subparagraph, t
he tax shall be initially imposed following approval of the electorate in accordance with subparagraphs (B) and (C) of this paragraph;

(II)

The tax shall be
imposed or
continued if favorably supported by a resolution adopted by the governing body of the county and by ordinances adopted by the governing bodies of at least a majority of the incorporated municipalities within the county;

(IV)

Excise taxes shall be imposed under this subparagraph only if the county clerk has certified to the county treasurer that a sufficient number of ordinances or resolutions to impose the tax under this subparagraph have been adopted and that the amount of the tax imposed does not exceed one percent (1%). Within five (5) days of receipt of such certification from the county clerk, the county treasurer shall notify the department of revenue of this tax.
Excise taxes shall be continued under this subparagraph only if the county clerk has certified to the county treasurer that a sufficient number of ordinances or resolutions to continue the tax under this subparagraph have been adopted at least ninety (90) days prior to the election to determine the continuation of the tax. Within five (5) days of receipt of such certification from the county clerk, the county treasurer shall notify the department of revenue of this tax. If the tax is not continued pursuant to this subparagraph it shall be subject to the provisions of subparagraph (C) of this paragraph for continuation;

(V)

The tax may be terminated in the same manner as it was
imposed or
continued under
subdivisions (II) and (IV) of this subparagraph except that ordinances and resolutions shall be for the rescinding of the tax. If the tax is continued under subdivisions (II) and (IV) of this subparagraph, it may also be terminated by an election to rescind the tax conducted subject to subparagraphs (B) through (D) of this paragraph.

39
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204.

Taxation rate.

(a)

In addition to the state tax imposed under W.S. 39
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101 through 39
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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:

(iii)

In no event shall the total excise tax imposed within any county under the provisions of paragraphs (i), (ii) and (v) of this subsection exceed
three percent (3%)
two percent (2%)
;

Section 2
.

For any tax under W.S. 39
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204(a)(i), or 39
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204(a)(i) that is currently in effect, the provisions
of this act shall be effective in each county upon the expiration of the current optional tax in the county and no optional tax shall be continued in excess of the amounts specified in W.S. 39
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204(a)(iv) and 39
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204(a)(iii) as amended by this act.

Section 3
.

This act shall only be effective if 2021 House Bill 0061 is enacted into law.

Section 4
.

This act is effective July 1, 2021
.

(END)

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HB0174