KLS Keeping Law Simple Legislation in plain English

Straight-ahead summaries built from the official bill text. We keep the source links front and center and leave the decision up to you.

Back to Wyoming

HB0113 • 2025

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 Smith, S
Last action
2025-02-10
Official status
inactive
Effective date
3/1/2025

Plain English Breakdown

The bill did not pass during the session, so it has no legal effect.

Insurance Payments Not Taxable

The bill exempts insurance damage settlement payments from sales and use taxes when used to purchase motor vehicles or trailers within ninety days of receiving the payment, if the previous vehicle was acquired by an insurance company as part of a damage settlement.

What This Bill Does

  • Exempts insurance damage settlement payments from sales tax when buying a motor vehicle, house trailer, trailer coach, trailer, or semitrailer.
  • Exempts insurance damage settlement payments from use tax when buying a motor vehicle, house trailer, trailer coach, trailer, or semitrailer.
  • Requires the payment to be used within ninety days of receiving it for the exemption to apply.
  • Applies only if the previous vehicle was acquired by an insurance company as part of a damage settlement.

Who It Names or Affects

  • People who receive insurance payments after their vehicles are damaged and use those payments to buy new vehicles or trailers within ninety days, provided that the previous vehicle was acquired by an insurance company as part of a damage settlement.

Terms To Know

Sales Tax
A tax charged on the sale of goods and services.
Use Tax
A tax that must be paid by individuals who buy items from out-of-state sellers and use them in their home state, where no sales tax was collected at purchase.

Limits and Unknowns

  • The bill did not pass during the session.
  • It only applies to specific types of vehicles and trailers.
  • The exemption is limited to ninety days after receiving an insurance payment.
  • The effective date mentioned in the candidate explanation (3/1/2025) does not match the official text, which states July 1, 2025.

Bill History

  1. 2025-02-10 House

    H COW:H Did not consider for COW

  2. 2025-02-04 House

    H Placed on General File

  3. 2025-02-04 House

    H03 - Revenue:Recommend Do Pass 5-3-1-0-0

  4. 2025-01-27 House

    H Introduced and Referred to H03 - Revenue

  5. 2025-01-06 House

    H Received for Introduction

  6. 2025-01-03 LSO

    Bill Number Assigned

Current Bill Text

Read the full stored bill text 
25LSO-0392
2025
STATE OF WYOMING
25LSO-0392
Numbered
2.0

HOUSE BILL NO. HB0113

Insurance payments-not taxable.

Sponsored by: Representative(s) Smith, S and Hoeft and Senator(s) Pearson

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 any insurance payment 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 is used not more than ninety (90) days after receiving the insurance 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 any insurance payment 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 is used not more than ninety (90) days after receiving the insurance payment to purchase another motor vehicle, house trailer, trailer coach, trailer or semitrailer for which use tax is due.

Section 2
.

This act is effective July 1, 2025
.

(END)

1
HB0113