Back to Wyoming

HB0176 • 2021

Digital streaming tax.

AN ACT relating to sales and use tax; amending provisions governing the imposition of sales and use tax on specified digital products; specifying distribution of the sales and use tax on specified digital products as specified; and providing for an effective date.

Education Taxes
Did Not Pass

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

Sponsor
Representative Henderson
Last action
2021-03-22
Official status
inactive
Effective date
3/1/2021

Plain English Breakdown

The bill did not pass and was not considered for further action, which means it has no legal effect.

Digital Streaming Tax Act

The bill proposes a new sales and use tax on digital products accessed through streaming or subscription services without permanent ownership.

What This Bill Does

  • Adds a new tax on the sale price of specified digital products accessed via streaming or subscription services that do not provide permanent ownership to the buyer.
  • Defines vendors who purchase digital products for commercial purposes as wholesalers and exempts them from this tax.
  • Specifies that trade association member benefits are also exempt from this tax.
  • Requires one-third of the collected tax revenue to be distributed to three different state education funds: common school account, school foundation program account, and school capital construction account.

Who It Names or Affects

  • Consumers who buy digital products through streaming or subscription services without owning them permanently.
  • Vendors selling digital products for commercial use.
  • Trade associations providing member benefits.

Terms To Know

specified digital products
Digital content like movies, music, and games that can be accessed through streaming or subscription services.
permanent use
Having ownership of a product that allows the buyer to keep it indefinitely without any restrictions.

Limits and Unknowns

  • The bill did not pass and was not considered for further action.
  • It is unclear how this tax would be enforced or collected from consumers.
  • There are no details on exemptions or penalties for non-compliance with the proposed tax.

Amendments

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

HB0176HS001

Standing Committee • House Revenue Committee

Filed

Plain English: The amendment changes how digital products sold through streaming or subscription services are taxed and specifies that taxes collected from these sales go into the state's general fund.

  • Removes existing provisions about digital product taxation and replaces them with new rules focusing on access to specified digital products via streaming or subscription services.
  • Specifies that vendors who purchase digital products for further commercial use are considered wholesalers and are not subject to tax under this section.
  • Clarifies that certain trade association member benefits and multichannel video programming distributor services are exempt from the tax imposed by this amendment.
  • The exact definition of 'specified digital products' is not provided in the amendment text, which could lead to ambiguity about what types of digital products are affected.
  • Some technical language and references to specific legal codes may be difficult for a general audience to understand without additional context.

Bill History

  1. 2021-03-22 House

    H COW:H Did not consider for COW

  2. 2021-03-09 House

    H Placed on General File

  3. 2021-03-09 House

    H03 - Revenue:Recommend Amend and Do Pass 6-3-0-0-0

  4. 2021-03-03 House

    H Introduced and Referred to H03 - Revenue

  5. 2021-03-02 House

    H Received for Introduction

  6. 2021-03-01 LSO

    Bill Number Assigned

Current Bill Text

Read the full stored bill text
21LSO-0608
2021
STATE OF WYOMING
21LSO-0608
Numbered
2.0

HOUSE BILL NO. HB0176

Digital streaming tax.

Sponsored by: Representative(s) Henderson, Harshman, Sweeney and Yin

A BILL

for

AN ACT relating to sales and use tax; amending provisions governing the imposition of sales and use tax on specified digital products; specifying distribution of the sales and use tax on specified digital products as specified; and providing for an effective date.

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

Section 1
.

W.S. 21
‑
15
‑
111(a)(i), 39
‑
15
‑
103(a)(i)(P), 39
‑
15
‑
111(b)(intro) and by creating a new subsection (r), 39
‑
16
‑
103(a)(i) and 39
‑
16
‑
111(b)(intro) and by creating a new subsection (p) are amended to read:

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
‑
601(a)(vii), (b)(i) and (iv), into which the proceeds from any revenue bonds are credited under W.S. 21
‑
15
‑
108, and into which any other funds are appropriated
or otherwise credited
to the account for purposes of this act. All funds within the account shall be invested by the state treasurer and all investment earnings from the account shall be credited to the account.

Funds within the account shall be expended only for purposes of and in the manner prescribed by this act;

39
‑
15
‑
103.

Imposition.

(a)

Taxable event.

The following shall apply:

(i)

Except as provided by W.S. 39
‑
15
‑
105, there is levied an excise tax upon:

(P)

Except as otherwise provided in this subparagraph, the sales price of every retail sale of specified digital products within the state
,
. A sale of

including the sales price for access to
specified digital products
is only subject to the tax under this section if
through a streaming or subscription service that does not provide
the purchaser
has
with
permanent use of the specified digital product.

A vendor who purchases specified digital products for further commercial broadcast, rebroadcast, transmission, retransmission, licensing, relicensing, distribution, redistribution or exhibition in whole or in part to another person shall be considered a wholesaler and not subject to the tax imposed by this article. Those services provided by a trade association as part of a member benefit are not subject to the tax imposed by this subparagraph.

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
subsections
(p)
and (r)
of this
section, for all revenue collected by the department under W.S. 39
‑
15
‑
104 the department shall:

(r)

The sales tax applied to the sales price paid for access to specified digital products through a streaming or subscription service that does not provide the purchaser with permanent use of the specified digital product pursuant to W.S. 39
‑
15
‑
103(a)(i)(P) shall be credited as follows:

(i)

One
‑
third (1/3) to the common school account in the permanent land fund;

(ii)

One
‑
third (1/3) to the school foundation program account;

(iii)

One
‑
third (1/3) to the school capital construction account.

39
‑
16
‑
103.

Imposition.

(a)

Taxable event.

The following shall apply:

(i)

Persons making first use of taxable services or storing, using or consuming tangible personal property or specified digital products, except as otherwise provided in this paragraph, are liable for the tax imposed by this article.
Specified digital products are only subject to the tax imposed by this article if the purchaser has permanent use of the specified digital product.
A vendor who purchases specified digital products for further commercial broadcast, rebroadcast, transmission, retransmission, licensing, relicensing, distribution, redistribution or exhibition in whole or in part to another person shall be considered a wholesaler and not subject to the tax imposed by this article. Those services provided by a trade association as part of a member benefit are not subject to the tax imposed by this subparagraph.

The liability is not extinguished until the tax has been paid to the state but a receipt given to the person by a registered vendor in accordance with paragraph (c)(i) of this section is sufficient to relieve the purchaser from further liability;

39
‑
16
‑
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)

The use tax applied to the use of specified digital products through a streaming or subscription service that does not provide the user with permanent use of the specified digital product pursuant to W.S. 39
‑
16
‑
103(a)(i) shall be credited as follows:

(i)

One
‑
third (1/3) to the common school account in the permanent land fund;

(ii)

One
‑
third (1/3) to the school foundation program account;

(iii)

One
‑
third (1/3) to the school capital construction account.

Section 2
.

This act is effective July 1, 2021
.

(END)

1
HB0176