Amortization of sales and use tax.

21LSO-0217
2021
STATE OF WYOMING
21LSO-0217
ENGROSSED
3.0

SENATE FILE NO. SF0061

Amortization of sales and use tax.

Sponsored by: Joint Minerals, Business & Economic Development Interim Committee

A BILL

for

AN ACT relating to sales and use taxes; providing for amortized payments of sales and use taxes for projects with specified expenditures; providing for distribution of payments; 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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107(b) by creating a new paragraph (xii), 39
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111 by creating a new subsection (r), 39
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107(b) by creating a new paragraph (x) and 39
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111 by creating a new subsection (p) are amended to read:

39
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107.

Compliance; collection procedures.

(b)

Payment.

The following shall apply:

(xii)

If on or after July 1, 2021 any taxpayer develops a project to be completed in Wyoming that is reasonably anticipated to have expenditures subject to Wyoming sales and use tax over the first two (2) years of construction and operation of the project in excess of five million dollars ($5,000,000.00), the taxpayer may apply to the department to amortize the sales taxes imposed under W.S. 39-15-104 and transferred under W.S. 39-15-111(b)(i) and (ii) and the use taxes imposed under W.S. 39-16-104 and transferred under W.S. 39-16-111(b)(i) and (ii) due over the expected life of the project not to exceed a period of ten (10) years. The department shall establish amortization schedules, fees, terms and conditions for each project that is approved for amortization under this paragraph. Interest rates for approved projects under this paragraph shall be established by the department to account for inflation during the term of amortization. The department shall establish and publish not less than once annually fixed terms, fees and rates that are available for taxpayers to amortize the sales and use taxes as provided by this paragraph. The amortization agreement shall include a lien
upon the property of the project for which sales and use taxes are amortized under this paragraph. The lien shall be paramount and superior to any other lien or encumbrance created before or after. A failure to pay pursuant to the terms and conditions established by the department shall subject the taxpayer to all enforcement provisions under this article. The department shall adopt rules necessary to administer the amortization program under this paragraph including requiring full payment of any outstanding amount of payments within thirty (30) days if the taxpayer discontinues his business or discontinues the project. If a taxpayer is approved for amortization of sales and use tax payments under this paragraph, no vendor shall be liable for returns, reports or payment of taxes related to the applicable project under this section. As used in this paragraph, "project" means any land, building or other improvement and all real and personal property including machinery and equipment that results in an increase to the assessed valuation of the county or counties in which the project will be located, that creates employment opportunities within the state or that otherwise adds economic value to goods, services or resources within the state.

39
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111.

Distribution.

(r)

Revenues from amortized payments made for a project that is approved for amortized payments under W.S. 39
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107(b)(xii) shall be recognized as revenue during the fiscal year the payments are made for accounting purposes. Revenue collected from amortization payments shall be distributed in accordance with subsection (b) of this section.

39
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107.

Compliance; collection procedures.

(b)

Payment.

The following shall apply:

(x)

Payments of use taxes that are for a project that has been approved for amortized payments under W.S. 39
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107(b)(xii) shall be made in accordance with the amortization schedule, terms and conditions established for the project by the department pursuant to W.S. 39
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107(b)(xii).

39
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111.

Distribution.

(p)

Revenues from amortized payments made for a project that is approved for amortized payments as provided in W.S. 39
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107(b)(x) shall be recognized as revenue during the fiscal year the payments are made for accounting purposes. Revenue collected from amortization payments shall be distributed in accordance with subsection (b) of this section.

Section 2.

This act is effective July 1, 2021.

(END)

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SF0061