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22LSO-0221
2022
STATE OF WYOMING
22LSO-0221
Numbered
2.0
HOUSE BILL NO. HB0041
Special taxation zone-optional tax.
Sponsored by: Joint Revenue Interim Committee
A BILL
for
AN ACT relating to sales and use taxes; authorizing the imposition of a special taxation zone tax as an alternative to an optional municipal tax; providing for formation of special taxation zones; providing for administration and implementation of the tax; providing for distribution of the taxes; and providing for an effective date.
Be It Enacted by the Legislature of the State of Wyoming:
Section 1.
W.S. 39
‑
15
‑
203(a)(vi)(intro), (A) through (C), (E), (F)(intro), (G)(intro), (I) through (IV), (H), (J) and by creating a new subparagraph (K), 39
‑
15
‑
204(a)(intro) and (vii), 39
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15
‑
211(d)(ii),
39
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16
‑
203(a)(v)(intro), (A) through (C), (E), (F)(intro), (G)(intro), (I) through (IV), (H), (J) and by creating a new subparagraph (K), 39
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16
‑
204(a)(intro) and (vi) and 39
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16
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211(d)(ii) are amended to read:
39
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15
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203.
Imposition.
(a)
Taxable event.
The following shall apply:
(vi)
The following provisions apply to imposition of the municipal
or special taxation zone
tax under W.S. 39
‑
15
‑
204(a)(vii):
(A)
The tax authorized by W.S. 39
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15
‑
204(a)(vii) shall be in addition to and not in lieu of any tax imposed by a county under W.S. 39
‑
15
‑
204(a)(i), (iii) or (vi) if those taxes are imposed
. If a city or town imposes a municipal tax under this paragraph or is part of a special taxation zone that imposes a tax under this paragraph, the city or town shall not participate in any other special taxation zone that is formed to impose a special taxation zone tax under subparagraph (K) of this
paragraph. No portion of a county that is part of a special taxation zone under this paragraph shall be a part of any other special taxation zone formed under subparagraph (K) of this paragraph. In no case shall any area be subject to a tax under W.S. 39
‑
15
‑
204(a)(vii) in excess of one percent (1%) as provided in that paragraph
;
(B)
If a county has imposed at least one percent (1%) of the tax under W.S. 39
‑
15
‑
204(a)(i) and has voted to initially approve or continue a tax under W.S. 39
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15
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204(a)(iii), or if the board of county commissioners has adopted a resolution by the county under subparagraph (J) of this paragraph, a city or town within the county where the tax was imposed
, or the city or town and county comprising a special taxation zone under subparagraph (K) of this paragraph
may propose an excise tax as provided in this paragraph. Except for a tax authorized under subparagraph (J) of this paragraph, the tax shall not be proposed until at least ninety (90) days following the approval or continuation of a tax under W.S. 39
‑
15
‑
204(a)(iii).
Except for a tax authorized under subparagraph (J) of this paragraph, t
he
amount
rate
of the
tax proposed under this subparagraph shall not exceed
a rate equivalent to
the amount of tax that the city
,
or
town
or special taxation zone
collects during the same time period pursuant to the tax imposed under W.S. 39
‑
15
‑
204(a)(iii). The tax imposed under this paragraph shall terminate not more than ninety (90) days following the termination of the tax imposed under W.S. 39
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204(a)(iii) or as provided in subparagraph (J) of this paragraph;
(C)
Revenue from the tax shall be used for general purposes or for a specific purpose in a specified amount as specified in the proposition to impose the tax. A city
,
or
town
or special taxation zone
may impose a portion of the tax for separate purposes provided that the purposes are voted on separately, each proposition specifies the purpose of the tax and the total amount of the tax does not exceed the full amount authorized in W.S. 39
‑
15
‑
204(a)(vii) and subparagraph (B) of this paragraph;
(E)
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 proposition that will be considered at the election. The notice shall be published at least once each week for a thirty (30) day period preceding the election. At the election for each proposition, the ballots shall contain the words "for the municipal
(or special taxation zone)
sales and use tax" and "against the municipal
(or special taxation zone)
sales and use tax". The ballot shall describe the purposes of the tax in a clear and appropriate manner;
(F)
If the proposition to impose or continue the tax is defeated the proposition shall not again be submitted to the electors of the city
,
or
town
or special taxation zone
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 and shall not be collected following June 30 of the year immediately following the year in which the proposition is defeated except:
(G)
If the proposition is approved by the qualified electors, the city or town council
for a municipal tax or each city or town and county comprising the special taxation zone for a special taxation zone tax
shall adopt an ordinance for the tax authorized by W.S. 39
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15
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204(a)(vii) consistent with the approved proposition. The ordinance shall include the following:
(I)
A provision imposing sales tax upon retail sales of tangible personal property, admissions and services made within the city
,
or
town
or special taxation zone
, whichever is appropriate;
(II)
Provisions identical to those contained in article 1 of this chapter except for W.S. 39
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15
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102(a), insofar as it relates to sales taxes, except the name of the city
,
or
town
or special taxation zone
as the taxing agency shall be substituted for that of the state and an additional license to engage in business shall not be required if the vendor has been issued a state license pursuant to law;
(III)
A provision that any amendments made to article 1 of this chapter or to chapter 16 of this title that are not in conflict with article 1 of this chapter or to chapter 16 of this title shall automatically become a part of the sales tax ordinances of the city
,
or
town
or members of the special taxation zone
;
(IV)
A provision that the city
,
or
town
or special taxation zone
shall contract with the department prior to the effective date of the sales tax ordinances whereby the department shall perform all functions incident to the administration of the sales tax ordinances
;
of the city or town;
(H)
Subject to subparagraphs (B) and (J) of this paragraph, if the tax is imposed for a specific purpose and in a specified amount the tax shall terminate when the amount specified in the proposition approved by the electors is collected.
A city
,
or
town
or special taxation zone
may agree to terminate the tax if the tax collected reaches the actual cost of the completed projects and the amount specified in the proposition exceeds the
actual cost of the completed projects.
A city
,
or
town
or special taxation zone
shall inform the department that a tax is terminated;
(J)
If a county has not imposed taxes under W.S. 39
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15
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204(a)(i) and 39
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15
‑
204(a)(iii) as provided in subparagraph (B) of this paragraph, the board of county commissioners may adopt a resolution to authorize cities
,
and
towns
and special taxation zones
within the county to propose a
municipal
tax under this paragraph. The resolution shall establish the maximum taxation rate in increments of one
‑
quarter of one percent (.25%) not to exceed a rate of one percent (1%). The proposition by a city
,
or
town
or special taxation zone
for a
municipal
tax authorized under this subparagraph shall specify that the
municipal
tax shall terminate after two (2) years
;
.
(K)
If a tax under this paragraph will benefit residents of the county residing beyond the boundaries of a city or town, the city or town may request the board of county commissioners to form a special taxation zone comprising of one (1) or more cities or towns
and areas in the county that are outside the boundaries of the city or town. The request to form a special taxation zone shall be filed with the county commissioners.
Prior to filing a request with the county commissioners, the request shall be filed with the county assessor, county clerk and the department of revenue which shall review, within sixty (60) days of receiving the request, the boundaries of the proposed zone for any conflict, overlap, gap or other boundary issue and make written comments thereon to be submitted to the county commissioners. The request shall be approved by the governing body of each city or town requested to be part of the special taxation zone prior to submission to the county commissioners. If the request satisfies the requirements of this subparagraph, the county commissioners shall:
(I)
Set a date for a hearing on the petition. The hearing shall be held not less than forty
‑
five (45) days nor more than ninety (90) days after the date the petition is filed;
(II)
Cause notice of the hearing to be posted in at least three (3) public places, one (1) of which may be online, and published by two (2) insertions in a newspaper of general circulation in the county in which the zone is proposed to be located. The last of the notices shall be published at least ten (10) business days prior to the hearing. The notice shall state:
(1)
The purpose for which the special taxation zone is to be formed;
(2)
The boundaries of the proposed zone;
(3)
The time and place of the hearing on the request; and
(4)
That all interested persons may appear and be heard.
(III)
At the time stated in the notice, hear the petition and determine if the area could
be benefited by the formation of the special taxation zone. It may adjourn the hearing from time to time, but not exceeding four (4) weeks in all unless additional notice is given. The county commissioners may alter the boundaries set forth in the petition to either include or exclude territory. In determining the boundaries of the proposed zone, the board shall consider the benefit the proposed special taxation zone will have within the areas of the county in or out of the proposed zone. The commissioners shall not modify the boundaries so as to exclude from the proposed zone any land which could be benefited by its formation, nor shall there be included any land which will not, in the judgment of the commissioners, be benefited;
(IV)
If the county commissioners approve the request for formation as presented or as modified, enter an order declaring formation of the special taxation zone. The order shall set forth a description of the boundaries of the special taxation zone.
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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15
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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
taxes
tax
authorized by
paragraphs
paragraph
(ii)
and (vii)
of this subsection
, any city, town or special taxation zone may impose the tax authorized by paragraph (vii) of this subsection
and any resort district may impose the tax authorized by paragraph (v) of this subsection:
(vii)
An excise tax at a rate in increments of one
‑
quarter of one percent (.25%) not to exceed a rate of one percent (1%) upon retail sales of tangible personal property, admissions and services made within the city
,
or
town
or special taxation zone
, the purpose of which is for general revenue or for a specific purpose and in a specified amount as provided in the proposition to impose the tax.
39
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15
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211.
Distribution.
(d)
For all revenue collected by the department from the taxes imposed by W.S. 39
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15
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204(a)(vii) the department shall:
(ii)
Deposit the remainder into an account for monthly distribution to the city
,
or
town
or special taxation zone
in which the tax has been imposed which shall only be used by the city
,
or
town
or special taxation zone
for costs related to the purposes approved in the proposition to impose the tax.
39
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16
‑
203.
Imposition.
(a)
Taxable event.
The following shall apply:
(v)
The following provisions apply to imposition of the municipal
or special taxation zone
tax under W.S. 39
‑
16
‑
204(a)(vi):
(A)
The tax authorized by W.S. 39
‑
16
‑
204(a)(vi) shall be in addition to and not in lieu of any tax imposed by a county under W.S. 39
‑
16
‑
204(a)(i),
(ii) or (v) if those taxes are imposed
. If a city or town imposes a municipal tax under this paragraph or is part of a special taxation zone that imposes a tax under this paragraph, the city or town shall not participate in any other special taxation zone that is formed to impose a special taxation zone tax under subparagraph (K) of this paragraph. No portion of a county that is part of a special taxation zone under this paragraph shall be a part of any other special taxation zone formed under subparagraph (K) of this paragraph. In no case shall any area be subject to a tax under W.S. 39
‑
16
‑
204(a)(vi) in excess of one percent (1%) as provided in that paragraph
;
(B)
If a county has imposed at least one percent (1%) of the tax under W.S. 39
‑
16
‑
204(a)(i) and has voted to initially approve or continue a tax under W.S. 39
‑
16
‑
204(a)(ii), or if the county has adopted a resolution by the county under subparagraph (J) of this paragraph, a city or town within the county where the tax was imposed
, or the city or town and county comprising a special taxation zone under subparagraph (K) of this paragraph
may propose an excise tax as provided in this paragraph. Except
for a tax authorized under subparagraph (J) of this paragraph, the tax shall not be proposed until at least ninety (90) days following the approval or continuation of a tax under W.S. 39
‑
16
‑
204(a)(ii).
Except for a tax authorized under subparagraph (J) of this paragraph, t
he
amount
rate
of the tax proposed under this subparagraph shall not exceed
a rate equivalent to
the amount of tax that the city
,
or
town
or special taxation zone
collects during the same time period pursuant to the tax imposed under W.S. 39
‑
16
‑
204(a)(ii). The tax imposed under this paragraph shall terminate not more than ninety (90) days following the termination of the tax imposed under W.S. 39
‑
16
‑
204(a)(ii) or as provided in subparagraph (J) of this paragraph;
(C)
Revenue from the tax shall be used for general purposes or for a specific purpose in a specified amount as specified in the proposition to impose the tax. A city
,
or
town
or special taxation zone
may impose a portion of the tax for separate purposes provided that the purposes are voted on separately, each proposition specifies the purpose of the tax and the total amount of the tax does not
exceed the full amount authorized in W.S. 39
‑
16
‑
204(a)(vi) and subparagraph (B) of this paragraph;
(E)
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 proposition that will be considered at the election. The notice shall be published at least once each week for a thirty (30) day period preceding the election. At the election for each proposition, the ballots shall contain the words "for the municipal
(or special taxation zone)
sales and use tax" and "against the municipal
(or special taxation zone)
sales and use tax". The ballot shall describe the purposes of the tax in a clear and appropriate manner;
(F)
If the proposition to impose or continue the tax is defeated the proposition shall not again be submitted to the electors of the city
,
or
town
or special taxation zone
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 and shall not be collected following June 30 of the year immediately following the year in which the proposition is defeated except:
(G)
If the proposition is approved by the qualified electors, the city or town council
for a municipal tax or each city or town and county comprising the special taxation zone for a special taxation zone tax
shall adopt an ordinance for the tax authorized by W.S. 39
‑
16
‑
204(a)(vi) consistent with the approved proposition. The ordinance shall include the following:
(I)
A provision imposing a use tax upon sales and storage, use and consumption of tangible personal property made within the city
,
or
town
or special taxation zone
, whichever is appropriate;
(II)
Provisions identical to those contained in article 1 of this chapter, insofar as it relates to use taxes, except the name of the city
,
or
town
or special taxation zone
as the taxing agency shall be substituted for that of the state and an additional license
to engage in business shall not be required if the vendor has been issued a state license pursuant to law;
(III)
A provision that any amendments made to article 1 of this chapter or to chapter 15 of this title not in conflict with article 1 of this chapter or to chapter 15 of this title shall automatically become a part of the use tax ordinances of the city
,
or
town
or members of the special taxation zone
;
(IV)
A provision that the city
,
or
town
or special taxation zone
shall contract with the department prior to the effective date of the use tax ordinances whereby the department shall perform all functions incident to the administration of the use tax ordinances
;
of the city or town;
(H)
Subject to subparagraphs (B) and (J) of this paragraph, if the tax is imposed for a specific purpose and in a specified amount the tax shall terminate when the amount specified in the proposition approved by the electors is collected.
A city
,
or
town
or special
taxation zone
may agree to terminate the tax if the tax collected reaches the actual cost of the completed projects and the amount specified in the proposition exceeds the actual cost of the completed projects.
A city
,
or
town
or special taxation zone
shall inform the department that a tax is terminated;
(J)
If a county has not imposed taxes under W.S. 39
‑
16
‑
204(a)(i) and 39
‑
16
‑
204(a)(ii) as provided in subparagraph (B) of this paragraph,
,
the board of county commissioners may adopt a resolution to authorize cities
,
and
towns
and special taxation zones
within the county to propose a
municipal
tax under this paragraph. The resolution shall establish the maximum taxation rate in increments of one
‑
quarter of one percent (.25%) not to exceed a rate of one percent (1%). The proposition by a city
,
or
town
or special taxation zone
for a
municipal
tax authorized under this subparagraph shall specify that the
municipal
tax shall terminate after two (2) years
;
.
(K)
If a tax under this paragraph will benefit residents of the county residing beyond the
boundaries of a city or town, the city or town may request the board of county commissioners to form a special taxation zone comprising of one (1) or more cities or towns and areas in the county that are outside the boundaries of the city or town. The request to form a special taxation zone shall be filed with the county commissioners.
Prior to filing a request with the county commissioners, the request shall be filed with the county assessor, county clerk and the department of revenue which shall review, within sixty (60) days of receiving the request, the boundaries of the proposed zone for any conflict, overlap, gap or other boundary issue and make written comments thereon to be submitted to the county commissioners. The request shall be approved by the governing body of each city or town requested to be part of the special taxation zone prior to submission to the county commissioners. If the request satisfies the requirements of this subparagraph, the county commissioners shall:
(I)
Set a date for a hearing on the petition. The hearing shall be held not less than
forty
‑
five (45) days nor more than ninety (90) days after the date the petition is filed;
(II)
Cause notice of the hearing to be posted in at least three (3) public places, one (1) of which may be online, and published by two (2) insertions in a newspaper of general circulation in the county in which the zone is proposed to be located. The last of the notices shall be published at least ten (10) business days prior to the hearing. The notice shall state:
(1)
The purpose for which the special taxation zone is to be formed;
(2)
The boundaries of the proposed zone;
(3)
The time and place of the hearing on the request; and
(4)
That all interested persons may appear and be heard.
(III)
At the time stated in the notice, hear the petition and determine if the area could be benefited by the formation of the special taxation zone. It may adjourn the hearing from time to time, but not exceeding four (4) weeks in all unless additional notice is given. The county commissioners may alter the boundaries set forth in the petition to either include or exclude territory. In determining the boundaries of the proposed zone, the board shall consider the benefit the proposed special taxation zone will have within the areas of the county in or out of the proposed zone. The commissioners shall not modify the boundaries so as to exclude from the proposed zone any land which could be benefited by its formation, nor shall there be included any land which will not, in the judgment of the commissioners, be benefited;
(IV)
If the county commissioners approve the request for formation as presented or as modified, enter an order declaring formation of the special taxation zone. The order shall set forth a description of the boundaries of the special taxation zone.
39
‑
16
‑
204.
Taxation rate.
(a)
In addition to the state tax imposed under W.S. 39
‑
16
‑
101 through 39
‑
16
‑
111 any county of the state may impose the following excise taxes, any city
,
or
town
or special taxation zone
may impose the tax authorized by paragraph (vi) of this subsection and any resort district may impose the tax authorized by paragraph (iv) of this subsection:
(vi)
An excise tax at a rate in increments of one
‑
quarter of one percent (.25%) not to exceed a rate of one percent (1%) upon sales and storage, use and consumption of tangible personal property made within the city
,
or
town
or special taxation zone
, the purpose of which is for general revenue or for a specific purpose in a specified amount as specified in the proposition to impose the tax.
39
‑
16
‑
211.
Distribution.
(d)
For all revenue collected by the department from the taxes imposed by W.S. 39
‑
16
‑
204(a)(vi) the department shall:
(ii)
Deposit the remainder into an account for monthly distribution to the city
,
or
town
or special taxation zone
in which the tax has been imposed which shall only be used by the city
,
or
town
or special taxation zone
for costs related to the purposes approved in the proposition to impose the tax.
Section 2
.
This act is effective July 1, 2022
.
(END)
1
HB0041