Statewide real estate transfer tax.

21LSO-0604
2021
STATE OF WYOMING
21LSO-0604
Numbered
2.0

HOUSE BILL NO. HB0262

Statewide real estate transfer tax.

Sponsored by: Representative(s) Clifford and Connolly and Senator(s) Rothfuss

A BILL

for

AN ACT relating to taxation and revenue; providing for an excise tax on the sale of real property as specified; providing for distribution of the tax; requiring rulemaking; imposing penalties; and providing for effective dates.

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

Section 1.

W.S. 39
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24
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101 through 39
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111 are created to read:

CHAPTER 24
REAL ESTATE TRANSFER SALES TAX

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101.

Definitions.

(a)

As used in this chapter:

(i)

"Consideration" means any property or thing of value whether delivered in the past, present or to be delivered in the future and includes like
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kind exchanges of property;

(ii)

"Conveyance" means as defined by W.S. 34
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1
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102;

(iii)

"Deed" means a written conveyance of real property, signed by the grantor, whereby the interest held by the grantor to real property is transferred from one (1) person to another.

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102.

Administration.

The department shall enforce the provisions of this chapter. The department shall promulgate rules necessary for the implementation and enforcement of this chapter.

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103.

Imposition.

(a)

Taxable event. There is levied a tax for the privilege of recording a deed upon the transfer of legal title to or beneficial interest in real property in Wyoming. The recoding of any deed purporting to transfer legal title to or beneficial interest in real property shall be presumed taxable under this chapter unless it clearly appears on the face of the deed that the instrument is exempt under W.S. 39
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24
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105.

(b)

Basis of tax.

The tax shall be collected based on the full actual consideration paid for the legal title or beneficial interest conveyed by the deed including any lien assumed. For a gift or any deed transferred with nominal consideration or without stated consideration, the tax shall be collected based on the most recent assessed
value of the real property by the county assessor in the county where the property that is transferred is located.

(c)

Taxpayer. The grantor and the grantee may agree on the party responsible for payment of the tax under this chapter. In the absence of an agreement the grantee shall pay the tax under this chapter.

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104.

Taxation rate.

(a)

Except as provided by W.S. 39
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105, there is levied and shall be paid a tax based on the value of the property being transferred by the deed as determined under W.S. 39
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103(b) as follows:

(i)

For any amount that is five hundred thousand dollars ($500,000.00) or less: zero percent (0%);

(ii)

For any amount that is in excess of five hundred thousand dollars ($500,000.00): two percent (2%).

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105.

Exemptions.

(a)

The tax under this chapter shall not be imposed upon the privilege of recording a deed that is recorded:

(i)

Prior to July 1, 2021, including any deed recorded as the result of any transfer of real property that is completed pursuant to a contract or conveyance that was executed prior to July 1, 2021;

(ii)

To confirm, correct, modify or supplement a previously recorded deed or conveyance without additional consideration;

(iii)

For any transfer without consideration from one (1) joint tenant or tenant in common to one (1) or more remaining joint tenants or tenants in common;

(iv)

For any transfer without consideration when the property is held in the name of one (1) spouse and the transfer of property is to both spouses as joint tenants, tenants in common or as community property;

(v)

For any transfer between spouses, including any gift between spouses;

(vi)

For any transfer pursuant to a court order or decree including any transfer of legal title to or beneficial interest in real property between spouses to effect a property settlement agreement or between former spouses in compliance with a decree of divorce;

(vii)

For any transfer without consideration to a trust where the grantor is the same as the beneficiary of the trust, or for any transfer without consideration from a trust where the grantee is the same as the beneficiary of the trust;

(viii)

For any transfer between a parent and child, including a gift;

(ix)

For any transfer without consideration to make effective any plan of reorganization or adjustment under which a mere change in identity, form or place of organization is effected, including a transfer between a
parent corporation and a wholly owned subsidiary or affiliate corporation;

(x)

For any transfer due to the sale of the property for delinquent taxes or assessments or due to a sale or transfer pursuant to foreclosure;

(xi)

For any transfer conducted through a county certificate of purchase or a sheriff's deed;

(xii)

For any exchange of real property between parties, the tax shall not apply to the portion of the value equal to lowest total value of properties being exchanged by one (1) party, as determined by the county assessor for the previous calendar year;

(xiii)

For any transfer of real property exempted from property taxation under W.S. 39
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105(a)(i) through (viii) and any property protected from taxation under the Wyoming constitution;

(xiv)

For a lease;

(xv)

For an easement;

(xvi)

For any transfer of real property located within the boundaries of the Wind River Indian reservation if the grantor or grantee is a member of the Eastern Shoshone or Northern Arapahoe Indian Tribes;

(xvii)

For any transfer of real property without consideration to a nonprofit organization that is exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code and that is not a private foundation as defined in 509(a) of the Internal Revenue Code;

(xviii)

Any other transfer which the department exempts by rule upon a finding that the transfer does not represent a conveyance of property that should be subject to tax under this chapter due to the relationship of the parties or the nature of the real property.

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106.

Licensing; permits.

There are no specific applicable provisions for licenses and permits for this chapter.

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107.

Compliance; collection procedures.

(a)

Returns and reports. Taxes imposed by this chapter are due and payable at the office of the county treasurer of the county in which the real property is located on the date of recordation of the deed. The tax shall be collected on the value of the property being transferred by the deed as determined under W.S. 39
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103(b). The county clerk shall not record a conveyance transferring legal title to or beneficial interest in real property until all taxes due under this chapter have been paid to the county treasurer.

The grantor and grantee of the deed shall sign before a notarial officer on a form prescribed by the department a statement eliciting the information necessary for the assessment of the tax.

The statement shall not be a public record and shall be held confidential by any state or local entity that has access to the statement.

(b)

It is a misdemeanor for a person to willfully disclose, except as specifically authorized by law, any information on the statement required by subsection (a) of this section. Upon conviction, the offender is subject to a fine of not more than seven hundred fifty dollars ($750.00), imprisonment for not more than six (6) months, or both.

(c)

Payment. Payment shall be collected at the time of recording the deed or other instrument in the form prescribed by the department. The party responsible for payment shall sign under penalty of perjury on a form prescribed by the department that the tax required under this chapter has been paid.

(d)

Timelines. There are no specific applicable provisions for timelines for this chapter.

(e)

If property subject to the tax imposed by this chapter is located in more than one (1) county and the value has not been determined by the grantor and grantee as to each county, the value and resulting taxes due under
this chapter shall be established by applying the ratio of the assessed valuation in each county to the assessed valuation of all property being transferred.

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108.

Enforcement.

There are no specific applicable provisions for enforcement for this chapter.

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109.

Taxpayer remedies.

There are no specific applicable provisions for taxpayer remedies for this chapter.

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110.

Statute of limitations.

There are no specific applicable provisions for a statute of limitations for this chapter.

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111.

Distribution.

Taxes collected by the county treasurer pursuant to this chapter shall be transferred to the state treasurer for deposit in the school foundation program account.

Section 2.

W.S. 34
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119(a) and 39
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101(a)(xviii) are amended to read:

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119.

Duties of county clerk generally.

(a)

The county clerk of each county within this state shall receive and record at length all deeds, mortgages, conveyances, patents, certificates and instruments left with him for that purpose, and he shall endorse on every such instrument the day and hour on which it was filed for record. The county clerk shall not record any document until
the clerk receives documentation that the tax required by W.S. 39
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103 for recoding the deed, if any, has been paid to the county treasurer. The county clerk shall not record any document until
the address of the grantee, mortgagee or assignee of the mortgagee is furnished to the county clerk, but this requirement shall not affect the validity of the recording of any instrument
except to the extent provided in W.S. 34
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142(b). Only instruments which are the originally signed documents, including electronic documents recorded pursuant to the Uniform Real Property Electronic Recording Act, W.S. 34
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1
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401 through 34
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407, or properly certified or authenticated copies thereof may be properly recorded. A document is properly certified if in compliance with Rule 902 of the Wyoming Rules of Evidence or other applicable rule or statute.

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101.

Definitions.

(a)

As used in this act unless otherwise specifically provided:

(xviii)

"This act" means W.S. 39
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101 through
39
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111
39
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111
.

Section 3
.

The department of revenue shall adopt rules necessary to implement the real estate transfer sales tax not later than January 1, 2022.

Section 4
.

(a)

Except as provided in subsection (b) of this section, this 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.

(b)

Sections 1 and 2 of this act
are effective January 1, 2022
.

(END)

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HB0262