Exemption for transported fuel and power sales-amendments.

Plain English Breakdown

The official summary does not provide specific details about the exact definition of 'pipeline', only that it includes pipes and equipment used for transportation. The candidate explanation's wording was narrowed to match this.

Pipeline Fuel and Power Sales Tax Exemption

This law clarifies a sales tax exemption for power and fuel used to transport tangible personal property by pipeline, regardless of who owns the transported property.

What This Bill Does

• Clarifies that the sales tax exemption applies even if someone else owns the property being transported in the pipeline.
• Provides a definition of 'pipeline' as a system of connected pipes and equipment used to move oil, natural gas, or other hydrocarbons from well sites to customers.
• Requires the Department of Revenue to make rules for implementing this law.

Who It Names or Affects

• Companies and individuals who transport fuel or power through pipelines.
• The Wyoming Department of Revenue, which will create new rules based on this act.

Terms To Know

pipeline

A system of connected pipes and equipment used to move oil, natural gas, or other hydrocarbons from a well site to an interstate or intrastate transmission customer sales delivery point, including between intermediate points.

sales tax exemption

An exception that allows certain businesses to not pay sales tax on specific items or services.

Limits and Unknowns

• The rules for implementing the law will be made after it is enacted.
• Some parts of the law take effect immediately, while others start in July 2025.

Official Summary Text

Bill Summary - 25LSO-0733

Bill No.:

HB0311

Effective:

7/1/2025

LSO No.:

25LSO-0733

Enrolled Act No.:

HEA No. 0050

Chapter No.:

104

Prime Sponsor:

Locke

Catch Title:

Exemption for transported fuel and power sales-amendments.

Has Report:

No

Subject:

Amending requirements for a sales tax exemption for power and fuel sales.

Summary/Major Elements:

Current law provides a sales-tax exemption for sales of power or fuel to a person transporting tangible personal property by railroad or pipeline when the power or fuel is consumed directly for the transportation of the property.

This act clarifies that the exemption applies regardless of who owns the tangible personal property that is being transported.

This act provides a definition of "pipeline" to be used to interpret and apply the exemption. "Pipeline" includes pipes and other equipment that is used to transport oil, natural gas, or other hydrocarbons from a well site to an interstate or intrastate transmission customer sales delivery point, including between intermediate points.

The act requires the Department of Revenue to promulgate rules to implement the act.

Comments:

This act has a split effective date. Rulemaking provisions are effective immediately, while the substantive provisions concerning the exemption are effective July 1, 2025.

The above summary is not an official publication of the Wyoming Legislature and is not an official statement of legislative intent.

While the Legislative Service Office endeavored to provide accurate information in this summary, it should not be relied upon as a comprehensive abstract of the bill.

Current Bill Text

25LSO-0733

ORIGINAL House

ENGROSSED
Bill No
.
HB0311

ENROLLED ACT NO. 50,

HOUSE OF REPRESENTATIVES

SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
2025 General Session

AN ACT relating to taxation and revenue; providing a definition associated with a sales tax exemption for power and fuel sales related to pipeline transportation as specified; clarifying ownership requirements for the exemption; requiring rulemaking; and providing for effective dates.

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

Section 1
.

W.S. 39
‑
15
‑
105(a)(iii)(E) is amended to read:

39
‑
15
‑
105.

Exemptions.

(a)

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

(iii)

For the purpose of exempting sales of services and tangible personal property consumed in production, the following are exempt:

(E)

Sales of power or fuel to a person transporting tangible personal property by railroad or by pipeline when the power or fuel is consumed directly in generating motive power for actual transportation purposes,
regardless of ownership of the transported tangible personal property,
except power or fuel which is not taxed as gasoline or gasohol under W.S. 39
‑
17
‑
101 through 39
‑
17
‑
111 or as diesel fuel under W.S. 39
‑
17
‑
201 through 39
‑
17
‑
211 and which is used to propel a motor vehicle upon the highway as defined in W.S. 39
‑
17
‑
201(a)(xii)
. As used in this subparagraph, "pipeline" means a system of connected pipes and other equipment that is used to transport oil, natural gas or other hydrocarbons from a well site to an interstate or intrastate transmission customer sales delivery point, including between intermediate points along a transportation path
;

Section 2.

The department of revenue shall promulgate all rules necessary to implement this act.

Section 3
.

(a)

Except as provided in subsection (b) of this section, 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.

(b)

Section 1 of this act is effective July 1, 2025
.

(END)

Speaker of the House

President of the Senate

Governor

TIME APPROVED: _________

DATE APPROVED: _________

I hereby certify that this act originated in the House.

Chief Clerk

1