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24LSO-0484
2024
STATE OF WYOMING
24LSO-0484
Numbered
2.0
HOUSE BILL NO. HB0203
Property tax reduction and replacement act.
Sponsored by: Representative(s) Harshman, Allemand, Berger, Brown, Burkhart, Clouston, Crago, Davis, Larsen, L, Lawley, Nicholas, O'Hearn, Oakley, Slagle, Western, Yin and Zwonitzer, Dn and Senator(s) Barlow and Landen
A BILL
for
AN ACT relating to taxation and revenue; establishing a property tax exemption for single family residential properties; providing a sales and use tax to provide funding to local governments due to the decrease in revenue from the property tax exemption; providing for the distribution of the sales and use tax; revising provisions related to local optional sales and use taxes; providing rulemaking authority; specifying applicability; 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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105(a) by creating a new paragraph (xliii), 39
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104 by creating a new subsection (j), 39
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111(b)(intro) and by creating a new subsection (r), 39
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203(a)(i)(F)(intro), (II) and (IV), 39
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104 by creating a new subsection (g), 39
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111(b)(intro) and 39
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203(a)(i)(F)(intro), (I) and (IV) are amended to read:
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105.
Exemptions.
(a)
The following property is exempt from property taxation:
(xliii)
A portion of the fair market value of single family residential properties. The following shall apply to the exemption under this paragraph:
(A)
The amount of the exemption under this paragraph shall be the first two hundred thousand dollars ($200,000.00) of fair market value of the single family residential property in tax year 2024 and the first one million dollars ($1,000,000.00) of fair market value of the single family residential property for each tax year thereafter;
(B)
The department shall adopt rules necessary to administer the exemption under this paragraph;
(C)
As used in this paragraph, "single family residential property" means a structure intended for human habitation including a house, modular home, mobile home, townhouse or condominium that is a privately owned single family dwelling unit and the associated improved land.
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104.
Taxation rate.
(j)
In addition to the sales tax under subsections (a) and (b) of this section, and subject to the provisions of W.S. 39
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111(r)(ii), beginning July 1, 2024 there is imposed an additional sales tax of two percent (2%) which shall be administered as if the sales tax rate under subsections (a) and (b) of this section was increased from four percent (4%) to six percent (6%). The revenue from the tax under this subsection shall be distributed as provided in W.S. 39
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111(r).
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111.
Distribution.
(b)
Revenues earned under W.S. 39
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104 during each fiscal year shall be recognized as revenue during that fiscal year for accounting purposes. Except as otherwise provided in
subsection
subsections
(p)
and (r)
of this section, for all revenue collected by the department under W.S. 39
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104 the department shall:
(r)
An amount equal to the tax revenue collected that is attributable to the tax under W.S. 39
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104(j) and 39
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104(g) shall be transferred to the property tax reduction and replacement account, which is hereby created. All funds within the account shall be invested by the state treasurer and all investment earnings from the account shall be credited to the account. An amount in the account equal to the tax revenue collected that is attributable to the tax under W.S. 39
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104(j) and 39
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104(g) from January 1 of each year through December 31 of each year shall be distributed as follows:
(i)
An amount to each county to be distributed by county treasurers in the same manner property taxes are distributed. On or before September 1, county treasurers shall certify the exemptions granted under W.S. 39
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105(a)(xliii) to the department.
If the amount available to distribute under this subsection is insufficient to fully reimburse each county and governmental entity in the county as provided in this paragraph, the amount provided to each county shall be proportionally reduced based on the amount of revenue available. The amount calculated for each county shall be determined and distributed not later than February 15 of each year based on the amount of revenue that the county and each governmental entity within the county lost in the immediately preceding year as a result of the property tax exemption under W.S. 39
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105(a)(xliii).
Beginning January 1, 2026, the amount calculated for a county under this paragraph shall not include any amount for mills that are assessed for the repayment of bonds;
(ii)
Any remaining amount after the distributions under paragraph (i) of this subsection shall be distributed by the department of revenue for a sales tax refund to any person who pays severance taxes and who also pays sales or use taxes under W.S. 39
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104(j) and 39
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104(g). The department of revenue shall adopt rules to administer the refund program under this paragraph. The rules shall specify that all applications for the refund program shall be due no later than April 1 of the applicable year. Any refund determined under this paragraph shall be paid no later than June 1 of the applicable year. The amount of the refund under this paragraph shall not exceed the amount of sales and use taxes paid by the applicant under 39
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104(j) and 39
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104(g) for the preceding calendar year or the amount of severance taxes paid by the applicant in the preceding calendar year, whichever is less. If the amount available to distribute under this subsection is insufficient to fully refund each applicant as provided in this paragraph, the amount provided to each applicant shall be proportionally reduced based on the amount of revenue available;
(iii)
Any amount remaining after the distributions in paragraphs (i) and (ii) of this subsection shall be deposited in the account. The legislature shall annually review the amounts remaining in the account and shall consider using any remaining funds in the account for direct distributions to local governments.
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203.
Imposition.
(a)
Taxable event.
The following shall apply:
(i)
The following provisions apply to imposition of the general purpose excise tax under W.S. 39
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204(a)(i):
(F)
In lieu of the requirements of subparagraph (C) of this paragraph providing for the submission of the proposition at subsequent elections, the tax authorized under W.S. 39
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204(a)(i) may be continued by an election or by a resolution as provided in this subparagraph. For the tax to be continued by an election, the county commissioners, with the concurrence of the governing bodies of fifty percent (50%) of the municipalities, shall submit a proposition to the voters establishing the term of the tax as permanent.
If the county and fifty percent (50%) of the municipalities do not concur, any municipality or the county may individually determine to submit a proposition to the voters of the municipality to establish the term of the tax, within the boundaries of the municipality or the boundaries of the county outside of the municipalities, as permanent.
The proposition under this subparagraph shall be submitted in the same manner as a proposition to impose the tax under subparagraph (C) of this paragraph provided that the proposition shall be submitted as a separate question at the same election with a proposition to impose or continue the tax under subparagraph (C) of this paragraph. The tax may be continued by resolution, subject to the following terms and conditions:
(II)
The tax shall be continued if favorably supported by a resolution adopted by the governing body of the county and by ordinances adopted by the governing bodies of at least a majority of the incorporated municipalities within the county
. If the county and fifty percent (50%) of the municipalities do not agree under this subdivision, any municipality or the county may individually adopt a resolution to establish the term of the tax, within the boundaries of the municipality or the boundaries of the county outside of the municipalities, as permanent
;
(IV)
Excise taxes shall be continued under this subparagraph
only
if the county clerk has certified to the county treasurer that
a sufficient number of
ordinances or resolutions to continue the tax under this subparagraph have been adopted
in compliance with subdivision (II) of this subparagraph
at least ninety (90) days prior to the election to determine the continuation of the tax. Within five (5) days of receipt of such certification from the county clerk, the county treasurer shall notify the department of revenue of this tax. If the tax is not continued pursuant to this subparagraph it shall be subject to the provisions of subparagraph (C) of this paragraph for continuation;
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104.
Taxation rate.
(g)
In addition to the use tax under subsections (a) and (b) of this section, and subject to the provisions of W.S. 39
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111(r)(ii), beginning July 1, 2024 there is imposed an additional use tax of two percent (2%) which shall be administered as if the use tax rate under subsections (a) and (b) of this section was increased from four percent (4%) to six percent (6%). The revenue from the tax under this subsection shall be administered as provided in W.S. 39
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111(r).
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111.
Distribution.
(b)
Revenues earned under this article during each fiscal year shall be recognized as revenue during that fiscal year for accounting purposes.
Except as provided in W.S. 39
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111(r) for revenue attributable to the tax under W.S. 39
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104(g), r
evenue collected by the department from the taxes imposed by this article shall be transferred to the state treasurer who shall, as specified by the department:
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203.
Imposition.
(a)
Taxable event.
The following shall apply:
(i)
The following provisions apply to imposition of the general purpose excise tax under W.S. 39
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204(a)(i):
(F)
In lieu of the requirements of subparagraph (C) of this paragraph providing for the submission of the proposition at subsequent elections, the tax authorized under W.S. 39
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204(a)(i) may be continued by an election or by a resolution as provided in this subparagraph. For the tax to be continued by an election, the county commissioners, with the concurrence of the governing bodies of fifty percent (50%) of the municipalities, shall submit a proposition to the voters establishing the term of the tax as permanent.
If the county and fifty percent (50%) of the municipalities do not concur, any municipality or the county may individually determine to submit a proposition to the voters of the municipality to establish the term of the tax, within the boundaries of the municipality or the boundaries of the county outside of the municipalities, as permanent.
The proposition under this subparagraph shall be submitted in the same manner as a proposition to impose the tax under subparagraph (C) of this paragraph provided that the proposition shall be submitted as a separate question at the same election with a proposition to impose or continue the tax under subparagraph (C) of this paragraph. The tax may be continued by resolution, subject to the following terms and conditions:
(II)
The tax shall be continued if favorably supported by a resolution adopted by the governing body of the county and by ordinances adopted by the governing bodies of at least a majority of the incorporated municipalities within the county
. If the county and fifty percent (50%) of the municipalities do not agree under this subdivision, any municipality or the county may individually adopt a resolution to establish the term of the tax, within the boundaries of the municipality or the boundaries of the county outside of the municipalities, as permanent
;
(IV)
Excise taxes shall be continued under this subparagraph
only
if the county clerk has certified to the county treasurer that
a sufficient number of
ordinances or resolutions to continue the tax under this subparagraph have been adopted
in compliance with subdivision (II) of this subparagraph
at least ninety (90) days prior to the election to determine the continuation of the tax. Within five (5) days of receipt of such certification from the county clerk, the county treasurer shall notify the department of revenue of this tax. If the tax is not continued pursuant to this subparagraph it shall be subject to the provisions of subparagraph (C) of this paragraph for continuation;
Section 2
.
The department of revenue shall adopt rules necessary to implement this act not later than January 1, 2025.
Section 3.
The property tax exemption provided by this act shall first apply to the tax year beginning January 1, 2024.
Section 4
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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.
(END)
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HB0203