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22LSO-0220
2022
STATE OF WYOMING
22LSO-0220
Numbered
2.0
HOUSE BILL NO. HB0035
County optional real estate tax.
Sponsored by: Joint Revenue Interim Committee
A BILL
for
AN ACT relating to taxation and revenue; providing for an optional excise tax on the sale of real property as specified; providing for distribution of the tax; providing for a reduction of local distributions based on revenue collected from 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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101 through 39
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111 are created to read:
CHAPTER 24
REAL ESTATE TRANSFER TAX
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101.
Definitions.
(a)
As used in this chapter:
(i)
"Agricultural land" means land which meets the requirements of W.S. 39
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103(b)(x) for the purpose of tax assessment;
(ii)
"Consideration" means any property or thing of legal value whether delivered in the past, present or to be delivered in the future and includes like kind exchanges of property;
(iii)
"Conveyance" means as defined by W.S. 34
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102;
(iv)
"Deed" means a conveyance of real property, in writing signed by the grantor, whereby the interest held by the grantor to real property is transferred from one to another;
(v)
"Real property" means as defined by W.S. 39
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l0l(a)(xv).
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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. A county may impose an excise tax on the sale of real property under W.S. 39
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104(a), provided that:
(i)
The revenue from the tax shall be used by the county in specific percentages for specific purposes as provided in the proposition submitted to the qualified electors;
(ii)
No tax shall be imposed under W.S. 39
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104(a) until the proposition to impose the tax in specific percentages for specific purposes is submitted to the vote of the qualified electors of the county, and a majority of those casting their ballots at the election vote in favor of imposing the tax;
(iii)
The proposition to impose the tax shall be at the expense of the county and be submitted to the electors of the county upon the receipt by the board of county commissioners of a petition requesting the election signed by at least five percent (5%) of the electors of the county or of a resolution approving the proposition from the governing body of the county and the governing bodies of at least fifty percent (50%) of the incorporated municipalities within the county. If proposed by petition by electors, the number of electors required shall be determined by the total number of votes cast at the last general election. The election shall be at the direction and under the supervision of the board of county commissioners;
(iv)
The proposition to impose the tax may be submitted at an election held on a date authorized under W.S. 22
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103. A notice of election shall be given in at least one (1) newspaper of general circulation published in the county in which the election is to be held, and the notice shall specify the object of the election. The notice shall be published at least once each week for a thirty (30) day period preceding the election. At the election the ballots shall contain the words "for the county real estate transfer tax" and "against the county real estate transfer tax". The ballot in an election under this section shall specify the amount of sale that is excluded from the tax as provided in W.S. 39
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104(a)(i) and shall specify how funds from the tax will be used in a clear and appropriate manner;
(v)
If the proposition to impose the tax under W.S. 39
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104(a) is approved, the same proposition shall be submitted, until defeated, at the second general election following the election at which the proposition was initially approved and at the general election held every four (4) years thereafter;
(vi)
If the proposition to impose or continue the tax is defeated the proposition shall not again be submitted to the electors of the county for at least eleven (11) months. If the proposition is defeated at any general election following initial adoption of the proposition, the tax is repealed;
(vii)
If the proposition is approved by the qualified electors the board of county commissioners shall by resolution impose the tax upon the sale of real property.
(b)
Basis of tax.
The tax shall be collected based on the full actual consideration paid for the legal title or beneficial interest conveyed including any lien assumed using the best available information. For a gift or any deed transferred with nominal consideration or without stated consideration, the tax shall be collected based on the most recent fair market value, as determined by the county assessor, of the real property or interest that is transferred.
(c)
Taxpayer. The grantee shall pay the tax under this chapter.
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104.
Taxation rate.
(a)
The tax shall be based on the total amount of the real property sale in the following percentages as specified in the proposition submitted to the qualified electors:
(i)
For any amount of a sale up to the amount determined in the initial proposition not to exceed one million five hundred thousand dollars ($1,500,000.00): zero percent (0%);
(ii)
For any amount of a sale in excess of the amount specified in paragraph (i) of this subsection: one percent (1%).
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105.
Exemptions.
(a)
The tax under this chapter shall not be imposed upon any deed of legal title to or beneficial interest in real property that is recorded:
(i)
Prior to July 1, 2022, including any deed recorded as the result of any transfer of real property that is completed pursuant to a contract that was executed prior to July 1, 2022;
(ii)
To confirm, correct, modify or supplement a previously recorded instrument without added 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 held in the name of one (1) spouse to both spouses as joint tenants, tenants in common, tenants by the entirety 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 or from a trust;
(viii)
For any transfer between a parent and child, including a gift;
(ix)
For any transfer 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 corporation and its parent corporation or a subsidiary 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 transfer of agricultural land;
(xiii)
For any exchange of real property, the tax shall not apply to the portion of the properties' combined value equal to the value of the lowest valued property being exchanged, as determined by the county assessor for the previous calendar year;
(xiv)
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;
(xv)
For any transfer of real property interests in a mineral estate;
(xvi)
For any transfer of real property used for industrial purposes as defined by W.S. 39
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101(a)(xiv)(B);
(xvii)
For a lease;
(xviii)
For an easement;
(xix)
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;
(xx)
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 section 509(a) of the Internal Revenue Code;
(xxi)
Any other transfer which the department exempts by rule upon a finding that the transfer does not
represent a taxable conveyance of property 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 or other instrument. The tax shall be collected on the full actual consideration paid for real property, provided that if the property is transferred with nominal consideration or without stated consideration, the tax shall be collected based on the most recent fair market value, as determined by the county assessor, of the real property that is transferred as the best available information. The county
clerk shall not record a document 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 shall sign, on a form prescribed by the department, a statement eliciting the information necessary for the assessment of the tax. The statement, receipt and revenues, if disclosure of the revenues would identify the amount of a single sale, are not public records and shall be held confidential by the county clerk, county assessor, county treasurer, county board of equalization, state board of equalization and by the department.
(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. The grantee shall pay the tax under this chapter. Payment shall be collected from the grantee at the time of recording the deed or other instrument in the form prescribed by the department. The grantee 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 the property being transferred 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. If one (1) or more of the counties where the property is located has not imposed a tax under this chapter, the ratio of the property located in that county shall not be subject to the tax.
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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.
(a)
Taxes collected by the county treasurer under this chapter shall be distributed as follows:
(i)
To the county in the proportion that the population of the county situated outside the corporate
limits of its cities and towns bears to the total population of the county including cities and towns;
(ii)
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.
(b)
The revenue from the tax under this chapter shall be used in specific percentages for specific purposes as provided in the proposition submitted to the qualified electors under W.S. 39
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103(a).
(c)
Any fiscal year distribution to a local government by the office of state lands and investments under 2020 Wyoming Session Laws, Chapter 33 shall be reduced by fifty percent (50%) of the tax distributed to that local government under this section in the same fiscal year. It is the intent of the legislature that a similar reduction be included in any similar or subsequent bill establishing a distribution of state funds to local governments for local government funding. The amount of the
local government distribution that is reduced under this subsection shall revert to the general fund.
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, 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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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
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111
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111
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Section 3.
The department of revenue shall adopt rules necessary to implement the county option real estate transfer tax not later than July 1, 2022.
Section 4
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(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 July 1, 2022
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(END)
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HB0035