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HB0105 • 2024

Insurance payments-not taxable.

AN ACT relating to taxation and revenue; exempting insurance damage settlement payments from sales and use taxation; and providing for an effective date.

Taxes
Did Not Pass

The latest official action shows that this bill did not move forward in that session.

Sponsor
Representative Slagle
Last action
2024-02-14
Official status
inactive
Effective date
3/1/2024

Plain English Breakdown

The official source material does not provide additional details beyond what is included in the summary text.

Insurance Payments Not Taxable

The bill proposes to exempt insurance damage settlement payments from sales and use taxes when used to buy new vehicles or trailers within 90 days of receiving the payment.

What This Bill Does

  • Exempts insurance damage settlement payments from sales tax when buying a motor vehicle, house trailer, trailer coach, trailer, or semitrailer if the previous vehicle was acquired by an insurance company as part of a damage settlement and the purchase is made within 90 days after receiving the payment.
  • Applies similar rules for use tax exemptions.

Who It Names or Affects

  • People who receive insurance payments for damaged vehicles and buy new ones with those funds.
  • Insurance companies that pay out damage settlements.
  • Tax authorities responsible for collecting sales and use taxes.

Terms To Know

Sales Tax
A tax charged on the sale of goods or services, usually a percentage of the purchase price.
Use Tax
A tax that must be paid by individuals who use or consume taxable items in a state without paying sales tax on them.

Limits and Unknowns

  • The bill did not pass and was introduced but failed to move forward.
  • It only applies if the previous vehicle was acquired through an insurance damage settlement within 90 days of receiving the payment.
  • Effective date is July 1, 2024, but this will not happen as the bill did not pass.

Bill History

  1. 2024-02-14 House

    H Failed Introduction 35-26-1-0-0

  2. 2024-02-07 House

    H Received for Introduction

  3. 2024-02-02 LSO

    Bill Number Assigned

Current Bill Text

Read the full stored bill text
24LSO-0211
2024
STATE OF WYOMING
24LSO-0211
Numbered
2.0

HOUSE BILL NO. HB0105

Insurance payments-not taxable.

Sponsored by: Representative(s) Slagle, Allemand, Andrew, Banks, Bear, Davis, Haroldson, Heiner, Hornok, Jennings, Penn and Smith and Senator(s) Hutchings and Ide

A BILL

for

AN ACT relating to taxation and revenue; exempting insurance damage settlement payments from sales and use taxation; and providing for an effective date.

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

Section 1
.

W.S. 39
‑
15
‑
105(a)(ix)(A), (B) and by creating a new subparagraph (C) and 39
‑
16
‑
105(a)(x)(A), (B) and by creating a new subparagraph (C) are amended to read:

39
‑
15
‑
105.

Exemptions.

(a)

The following sales or leases are exempt from the excise tax imposed by this article:

(ix)

For the purpose of avoiding application of the sales tax more than once on the same article of tangible property for the same taxpayer:

(A)

The trade
‑
in value of tangible personal property shall be excluded from the sales price of new tangible personal property when trade
‑
in and purchase occur in one (1) transaction;
and

(B)

The sales price paid for a motor vehicle, house trailer, trailer coach, trailer or semitrailer as defined in W.S. 31
‑
1
‑
101 if the vehicle is purchased by a nonresident of Wyoming and the vehicle is to be removed from the state of Wyoming within thirty (30) days of purchase.

The purchaser shall declare under penalty of perjury on a form prescribed by the department that he is not a resident of Wyoming
;
.

and

(C)

The amount of insurance payments used to purchase motor vehicles, house trailers, trailer coaches, trailers or semitrailers shall be excluded from the sale price of those items to the extent the owner's previous motor vehicle, house trailer, trailer coach, trailer or semitrailer was acquired by an insurance company pursuant to a damage settlement and the insurance payment was used within ninety (90) days of receiving the payment to purchase another motor vehicle, house trailer, trailer coach, trailer or semitrailer for which sales tax is due.

39
‑
16
‑
105.

Exemptions.

(a)

The following purchases or leases are exempt from the excise tax imposed by this article:

(x)

For the purpose of avoiding application of the use tax more than once on the same article of tangible property for the same taxpayer:

(A)

The trade
‑
in value of tangible personal property shall be excluded from the sales price of new tangible personal property when trade
‑
in and purchase occur in one (1) transaction;
and

(B)

The purchase price paid for a motor vehicle, house trailer, trailer coach, trailer or semitrailer as defined in W.S. 31
‑
1
‑
101 if the vehicle is purchased by a nonresident of Wyoming and the vehicle is to be removed from the state of Wyoming within thirty (30) days of purchase.

The purchaser shall declare under penalty of perjury on a form prescribed by the department that he is not a resident of Wyoming
;
.

and

(C)

The amount of insurance payments used to purchase motor vehicles, house trailers, trailer coaches, trailers or semitrailers shall be excluded from the sale price of those items to the extent the owner's previous motor vehicle, house trailer, trailer coach, trailer or semitrailer was acquired by an insurance company pursuant to a damage settlement and the insurance payment was used within ninety (90) days of receiving the payment to purchase another motor vehicle, house trailer, trailer coach, trailer or semitrailer for which sales tax is due.

Section 2
.

This act is effective July 1, 2024
.

(END)

1
HB0105