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HB0181 • 2021

Specific purpose excise tax revisions.

AN ACT relating to sales and use taxes; removing limits on the expenditure of tax revenues on the ordinary operations of local government; 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 Yin
Last action
2021-04-07
Official status
inactive
Effective date
3/1/2021

Plain English Breakdown

The bill did not pass in its current session, so it has no legal effect at this time.

Changes to Local Government Tax Rules

The bill removes limits on how local governments can spend tax revenue collected for specific projects.

What This Bill Does

  • Removes restrictions that prevent local government from using tax revenue for regular operations, except when related to a specific project or as allowed by certain rules.

Who It Names or Affects

  • Local government entities such as counties, cities, and towns in Wyoming.

Terms To Know

Specific purpose excise tax
A special tax that local governments can collect for specific projects like road repairs or renovations.
Ordinary operations of local government
Day-to-day activities and regular expenses of running a city, town, or county.

Limits and Unknowns

  • The bill is marked as inactive by Wyoming's legislature, meaning it did not pass in the current session.
  • It does not specify how local governments should spend tax money on ordinary operations when allowed.
  • Details about public hearings and distribution of excess funds are complex and may vary based on existing rules.

Bill History

  1. 2021-04-07 House

    H:Died in Committee Returned Bill Pursuant to HR 5-4

  2. 2021-03-23 House

    H No report prior to CoW Cutoff

  3. 2021-03-03 House

    H Introduced and Referred to H03 - Revenue

  4. 2021-03-02 House

    H Received for Introduction

  5. 2021-03-01 LSO

    Bill Number Assigned

Current Bill Text

Read the full stored bill text
21LSO-0649
2021
STATE OF WYOMING
21LSO-0649
Numbered
2.0

HOUSE BILL NO. HB0181

Specific purpose excise tax revisions.

Sponsored by: Representative(s) Yin and Harshman and Senator(s) Case and Gierau

A BILL

for

AN ACT relating to sales and use taxes; removing limits on the expenditure of tax revenues on the ordinary operations of local government; 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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203(a)(iii)(B), 39
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204(a)(iii), 39
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211(b)(iv), 39
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203(a)(ii)(B), 39
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204(a)(ii) and 39
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211(b)(iv) are amended to read:

39
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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
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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;

39
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15
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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 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
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15
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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
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203(a)(iii)(H);

39
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211.

Distribution.

(b)

For all revenue collected by the department from the taxes imposed by W.S. 39
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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
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203(a)(iii)(H) or transferred to the county or municipality as specified in the resolution adopted pursuant to W.S. 39
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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
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16
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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;

39
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16
‑
204.

Taxation rate.

(a)

In addition to the state tax imposed under W.S. 39
‑
16
‑
101 through 39
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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
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16
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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
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203(a)(ii)(H);

39
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211.

Distribution.

(b)

For all revenue collected by the department from the taxes imposed by W.S. 39
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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
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203(a)(ii)(H) or transferred to the county or municipality as specified in the resolution adopted pursuant to W.S. 39
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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
.

This act is effective July 1, 2021
.

(END)

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HB0181