Electricity generation-equity and consumer protection.

24LSO-0499
2024
STATE OF WYOMING
24LSO-0499
Numbered
2.0

HOUSE BILL NO. HB0200

Electricity generation-equity and consumer protection.

Sponsored by: Representative(s) Burkhart, Conrad, Harshman, Heiner, Larsen, L, Walters and Wylie and Senator(s) Cooper and Driskill

A BILL

for

AN ACT relating to taxation and revenue; providing for an electricity generation tax as specified; specifying applicability, conditions and requirements for the electricity generation tax; specifying distribution; requiring rulemaking; providing confidentiality requirements; specifying penalties; providing a sales and use tax exemption on electricity as specified; making conforming amendments; repealing generation taxes on wind and nuclear energy; and providing for an effective date.

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

Section 1
.

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

CHAPTER 24
TAX UPON PRODUCTION OF ELECTRICITY

39
‑
24
‑
101.

Definitions.

(a)

As used in this chapter:

(i)

"Electric generation facility" means any facility or unit that generates electricity from any fuel, source or resource;

(ii)

"Electric public utility" means:

(A)

A public utility or person that provides electricity to customers in Wyoming; or

(B)

A generator, supplier or provider that provides electricity to customers.

(iii)

"Purchaser sales price" means the actual price of electricity that a purchaser pays for the electricity, including all fees, taxes and assessments, plus any state policy tax imposed on, assessed to and paid by a Wyoming purchaser or customer;

(iv)

"State policy tax" means any tax, fee or assessment imposed by any state on the basis of the fuel source or fuel content that is used in the generation of electricity that an electric public utility assesses or imposes on Wyoming purchasers or customers and that is paid by Wyoming purchasers or customers.

39
‑
24
‑
102.

Administration; confidentiality.

(a)

The department shall enforce the provisions of this chapter. The department shall promulgate rules and regulations necessary for the implementation and enforcement of this chapter. In implementing and enforcing this chapter, the department may consult with the public service commission and any other relevant state agency.

(b)

All taxpayer returns and return information shall be confidential and, except as otherwise authorized in this section, no current or former official, officer, employee or agent of the state of Wyoming or any political subdivision thereof shall disclose any information obtained by him in connection with his service as an officer or employee.

(c)

As used in this section, "taxpayer returns and return information" shall include, but is not limited to, all statements, reports, summaries and all other data and documents under audit or provided by the taxpayer in accordance with this chapter and any rules of the department promulgated under this chapter.

(d)

Without written authorization from the taxpayer, no current or former official, officer, employee or agent of the state of Wyoming or any political subdivision thereof shall release taxpayer returns and return information pertaining to taxes imposed by this article, except:

(i)

Information may be released to the governor or his designee, members of the board, to employees of the department of audit, the department of revenue, the consensus revenue estimating group and to the attorney general;

(ii)

Upon prior notice to the taxpayer, information may be released by the department, upon written application, to any other governmental entity if the governmental entity shows sufficient reason to obtain the information for official business;

(iii)

Information is admissible in court or administrative proceedings related to the tax required under this chapter.

(e)

Any person receiving information pursuant to subsection (d) of this section shall sign an agreement with the department to keep the information confidential.

(f)

Any person who negligently violates subsections (b) through (e) of this section is guilty of a misdemeanor and upon conviction shall be fined not more than one thousand dollars ($1,000.00).

Any person who intentionally violates subsections (b) through (e) of this section is guilty of a misdemeanor and upon conviction shall be fined not less than one thousand dollars ($1,000.00), but not more than five thousand dollars ($5,000.00) and imprisoned for not more than one (1) year.

39
‑
24
‑
103.

Imposition.

(a)

Taxable event. The following shall apply:

(i)

Except as provided by W.S. 39
‑
24
‑
105, there is levied an excise tax upon:

(A)

The purchaser sales price of all electricity generated in the state from any fuel, source or resource;

(B)

The purchaser sales price from the sale of electricity sold or generated in this state, regardless of the site of generation or the fuel, source or resource used to generate the electricity; or

(C)

The price of electricity that an electric public utility located in Wyoming is paid to accept and take for electricity that is imported into Wyoming.

(ii)

Except as otherwise provided in this subsection, the tax shall be imposed on the purchaser sales price of the electricity in accordance with the following:

(A)

For electricity taxed under subparagraph (i)(A) of this subsection, the tax shall be imposed at the point of interconnection with an electric transmission line;

(B)

For electricity taxed under subparagraph (i)(B) of this subsection, the tax shall be imposed at the point where the electricity is transmitted through the meter of the purchaser purchasing the electricity;

(C)

For electricity taxed under subparagraph (i)(C) of this subsection, the tax shall be imposed at the first point of interconnection after the electricity enters the state of Wyoming.

(iii)

For electricity that is imported into the state and for which the electric public utility is paid to take or accept, the tax under this chapter shall be paid by the electric public utility, unless the electricity imported into this state is sold to customers or purchasers in this state.

(b)

Basis of tax. Except as provided by W.S. 39
‑
24
‑
105, there is levied and shall be paid by the purchaser of electricity an excise tax upon all events as provided by subsection (a) of this section.

(c)

Taxpayer. The following shall apply:

(i)

Except as otherwise provided, each electric public utility shall collect the tax imposed by this chapter and is liable for the entire amount of taxes imposed;

(ii)

Every person purchasing electricity taxed by this chapter is liable for the taxes and shall pay any tax owed to the department unless the taxes have been paid to an electric public utility;

(iii)

Any tax due under this chapter constitutes a debt to the state from the persons who are party to the sale of electricity, other than any electric public utility that is prohibited or not authorized by law to collect any tax under this chapter, and is a lien from the date the tax is due on all the real and personal property of those persons, subject to W.S. 39
‑
24
‑
108(d);

(iv)

An electric public utility shall file a return within thirty (30) days after ceasing the sale of electricity in this state or after the closure or retirement of any electric generation of the utility located in this state. Any successor shall withhold sufficient funds to pay the taxes, penalties and interest due on the outstanding amount of all credit, installment and conditional sales upon which the tax required by this chapter has not been paid until the time the former owner of the public utility produces a receipt from the department showing that all taxes have been paid or a certificate that no taxes are due. The original electric public utility and successor are liable for the payment of any unpaid taxes, penalties and interest.

39
‑
24
‑
104.

Taxation rate.

Except as provided by W.S. 39
‑
24
‑
105, there is levied and shall be paid by the customer or purchaser an excise tax of two and twenty
‑
five hundredths percent (2.25%) upon the purchaser sales price or other specified price of all events as provided by W.S. 39
‑
24
‑
103(a).

39
‑
24
‑
105.

Exemptions.

(a)

No tax shall be imposed under this chapter upon electricity that is produced from any generating facility owned or operated by the federal government or a state, city or county in or outside of Wyoming.

(b)

No tax shall be imposed under this chapter upon electricity that is produced for the personal consumption of the producer. For purposes of this subsection, "electricity produced for the personal consumption of the producer" shall include only excess production of electricity that does not exceed five hundred (500) kilowatt hours in any twenty
‑
four (24) hour period.

39
‑
24
‑
106.

Licensing, permits.

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

39
‑
24
‑
107.

Compliance; collection procedures.

(a)

Returns, reports and preservation of records. The following shall apply:

(i)

Each electric public utility subject to taxes under this chapter shall, on or before the last day of each month, file a true return showing the preceding month's sales or electricity production and remit all taxes to the department. The returns shall contain such information and be made in the manner as the department by regulation prescribes. The department may provide an option for the return to be submitted and for any taxes to be remitted electronically. The department may allow extensions for filing returns and paying the taxes by regulation, but no extension may be for more than ninety (90) days. If the total tax to be remitted during any month is less than one hundred fifty dollars ($150.00), a quarterly or annual return as authorized by the department, and remittance in lieu of the monthly return may be made on or before the last day of the month following the end of the quarter or year for which the tax is collected. If the accounting methods regularly used by a utility would impose unnecessary hardships in the reporting of sales or production from a calendar month, the department after receiving a formal request filed by the electric public utility may accept reports at intervals that would be more convenient to the utility;

(ii)

Each electric public utility shall preserve for three (3) years at its principal place of business, suitable records and books as necessary to determine the amount of tax for which the utility is liable under this chapter, together with all invoices and books showing the electricity generated or sold in this state. All records, books and invoices shall be available for examination by the department during regular business hours except as arranged by mutual consent;

(iii)

If any electric public utility or person liable for the payment of tax under this chapter fails to comply with paragraph (ii) of this subsection, the utility or person shall bear the burden of proof as to the correctness of any assessment of taxes imposed by the department for the period for which records were not preserved in any court action or proceeding;

(iv)

If an electric public utility fails to file a return as required by this chapter, the department shall give written notice by mail to the utility to file a return on or before the last day of the month following the notice of delinquency. If the utility then fails to file a return, the department shall make a return from the best information available. The return shall be prima facie correct and the tax due therein is a deficiency and subject to penalties and interest as provided by this chapter;

(v)

The department shall preserve returns and reports for three (3) years;

(vi)

The electric public utility shall file a return within thirty (30) days after discontinuing or selling the business or after retirement of an electric generation facility of the utility;

(vii)

As soon as practicable after the return is filed, the department shall examine the return. If it appears from the information on the return that the tax to be remitted is incorrect, the tax shall be recomputed. If the amount remitted exceeds that which is due from the recomputed return, the excess shall be refunded or credited as provided in W.S. 39
‑
24
‑
109.

(b)

Payment. The following shall apply:

(i)

The taxes due under this chapter are due and payable on the last day of the month following the month in which they were collected or as required by the department as specified by this chapter;

(ii)

If a sale of electricity is made on credit, contract or conditional basis and the electricity does not pass until a future date, there shall be paid upon each payment that portion of the total tax which the amount paid bears to the purchase price. If an electric public utility discontinues its business, the tax shall be computed and paid on the outstanding amount of all credit, installment and conditional sales;

(iii)

If any electric public utility collects a tax in excess of that imposed by this chapter, the tax shall be remitted to the department after making reasonable attempts to identify and refund the excess tax to the taxpayer that originally paid the tax;

(iv)

When the department has reason to believe the collection of any tax, penalty or interest will be jeopardized by delay, the department shall immediately levy a jeopardy assessment and the amount assessed shall be immediately due and payable. Notice of the assessment shall be given to the electric public utility personally or by mail. If the jeopardy assessment is not paid within ten (10) days after the service of notice upon the electric public utility, the deficiency penalty and interest provided in W.S. 39
‑
24
‑
108 shall attach to the amount of the jeopardy assessment;

(v)

The department may enter into contracts with collection agencies for required collection services on deficiencies of tax occurring under this chapter. Any taxes recovered by the collection agencies and remitted to the department shall be distributed in accordance with W.S. 39
‑
24
‑
111. Any person owing a tax submitted to a collection agency may be assessed a fee in an amount necessary to cover the cost of collection, not to exceed twenty percent (20%) of the tax owed, as provided in W.S. 9
‑
1
‑
415(a). The collection agency shall collect the fee with the tax that is submitted for collection and the amount collected as a fee may be deducted from funds remitted to the department. The contracts entered into under this paragraph shall not be for a term of more than two (2) years and shall be awarded only after competition.

(c)

Timelines. Except as otherwise specifically provided, there are no general applicable provisions for timelines in this chapter.

39
‑
24
‑
108.

Enforcement.

(a)

Audits. There are no specific applicable provisions for audits for this chapter.

(b)

Interest. Interest at an annual rate equal to the average prime interest as determined by the state treasurer during the preceding fiscal year, plus four percent (4%), shall be added to all delinquent taxes under this chapter.

To determine the average prime interest rate, the state treasurer shall average the prime interest for at least seventy
‑
five percent (75%) of the thirty (30) largest banks in the United States. The interest rate on delinquent taxes shall be adjusted on January 1 of each year following the year in which the taxes first became delinquent. In no instance shall the delinquent interest rate be less than twelve percent (12%) nor greater than eighteen percent (18%).

(c)

Penalties. The following shall apply:

(i)

If any person fails to make or file a return and remit the tax as required by W.S. 39
‑
24
‑
107, the department shall impose a penalty of five percent (5%) of the taxes due for each thirty (30) day period, or fraction thereof, elapsing between the due date of the return and the date filed, unless the person for good cause obtains from the department an extension of time for filing prior to the due date for filing.

In the event of an extension, the person shall pay the interest due on delinquent payments set forth in subsection (b) of this section.

In no event shall the total penalty imposed by this subsection exceed twenty
‑
five percent (25%) of the tax due.

The department, for good cause, may waive a penalty imposed for failure to file a return for any one (1) calendar year, provided that:

(A)

The return was filed within five (5) business days following the due date, including an approved extension period; and

(B)

The taxpayer requests the waiver in writing within fifteen (15) days after the return was filed, setting forth the reasons for the late filing.

(ii)

If any part of a tax deficiency is due to the negligence or intentional disregard of rules and regulations, there shall be added a penalty of five percent (5%) of the amount of the deficiency plus interest as provided by subsection (b) of this section.

The taxes, penalty and interest shall be paid by the taxpayer within ten (10) days after receipt of notice and demand by the department;

(iii)

Taxes due together with interest, penalties and costs shall be collectible by the department by appropriate judicial proceedings;

(iv)

The department may credit or waive penalties imposed by this section as part of a settlement or for any other good cause.

(d)

Liens.

Any delinquent tax is a lien upon the property of any electric public utility from and after the time the tax is due until the tax is paid. The tax lien shall have preference over all liens except any valid mortgage or other liens of record filed or recorded prior to the date the tax became due.

(e)

Tax sales. There are no specific applicable provisions for tax sales for this chapter.

39
‑
24
‑
109.

Taxpayer remedies.

(a)

Subject to subsection (b) of this section, there are no specific applicable provisions for taxpayer remedies for this chapter.

(b)

No credit or refund shall be given to an electric public utility that produces for sale or sells electricity for zero dollars ($0.00) or for a negative cost.

(c)

Nothing in this chapter shall be construed to exempt an electric public utility from any sales or use tax levied on the purchase of electrical equipment or other equipment necessary for the production of electricity.

39
‑
24
‑
110.

Statute of limitations.

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

39
‑
24
‑
111.

Distribution.

(a)

Revenues earned under W.S. 39
‑
24
‑
104 during each fiscal year shall be recognized as revenue during that fiscal year for accounting purposes. The department shall:

(i)

Credit sixty
‑
nine percent (69%) to the state general fund for deposit by the state treasurer;

(ii)

Deduct one percent (1%) from the remaining share to cover all administrative expenses and costs attributable to the remaining share and credit for deposit by the state treasurer into the general fund for that amount;

(iii)

Distribute the remainder to each county in the proportion that the total population of the county bears to the total population of the state for distribution under this paragraph. The amount specified in this paragraph shall be paid monthly to the treasurers of the counties, cities and towns for payment into their respective general funds. The percentage of the balance shall be distributed within each county as follows:

(A)

To each 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;

(B)

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.

Section 2.

W.S. 39
‑
11
‑
101(a)(xviii), 39
‑
15
‑
101(a)(ix), 39
‑
15
‑
103(a)(i)(E), 39
‑
15
‑
105(a) by creating a new paragraph (xi), 39
‑
16
‑
101(a)(vi) and 39
‑
16
‑
105(a) by creating a new paragraph (xi) are amended to read:

39
‑
11
‑
101.

Definitions.

(a)

As used in this act unless otherwise specifically provided:

(xviii)

"This act" means W.S. 39
‑
11
‑
101 through
39
‑
23
‑
111
39
‑
24
‑
111
.

39
‑
15
‑
101.

Definitions.

(a)

As used in this article:

(ix)

"Tangible personal property" means all personal property that can be seen, weighed, measured, felt or touched, or that is in any other manner perceptible to the senses. "Tangible personal property" includes
electricity,
water, gas, steam and prewritten computer software; and includes any controlled substances as defined by W.S. 35
‑
7
‑
1002(a)(iv) which are not sold pursuant to a written prescription of or through a licensed practitioner as defined by W.S. 35
‑
7
‑
1002(a)(xx);

39
‑
15
‑
103.

Imposition.

(a)

Taxable event.

The following shall apply:

(i)

Except as provided by W.S. 39
‑
15
‑
105, there is levied an excise tax upon:

(E)

The sales price paid to public utilities as defined in W.S. 37
‑
1
‑
101 through 37
‑
3
‑
114 and to persons furnishing gas
, electricity
or heat for domestic, industrial or commercial consumption;

39
‑
15
‑
105.

Exemptions.

(a)

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

(xi)

Sales of electricity subject to the generation tax imposed under chapter 24 of this title.

39
‑
16
‑
101.

Definitions.

(a)

As used in this article:

(vi)

"Tangible personal property" means all personal property that can be seen, weighed, measured, felt or touched, or that is in any other manner perceptible to the senses.

"Tangible personal property" includes
electricity,
water, gas, steam and prewritten computer software and includes any controlled substance as defined by W.S. 35
‑
7
‑
1002(a)(iv) which is not sold pursuant to a written prescription of or through a licensed practitioner as defined by W.S. 35
‑
7
‑
1002(a)(xx);

39
‑
16
‑
105.

Exemptions.

(a)

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

(xi)

Purchases of electricity subject to the generation tax imposed under chapter 24 of this title.

Section 3.

W.S. 39
‑
22
‑
101 through 39
‑
23
‑
111 are repealed.

Section 4
.

This act is effective January 1, 2025
.

(END)

1
HB0200