HB0107 • 2026

Local government distributions.

AN ACT relating to local government funding; continuously distributing a portion of the state sales and use taxes collected and accrued each fiscal year for cities, towns and counties; creating a statutory funding formula; providing legislative intent; and providing for an effective date.

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Appropriations
Last action: 2026-03-05
Official status: enrolled
Effective date: 7/1/2026

Plain English Breakdown

The exact formula details were not fully covered in the candidate explanation, but they are mentioned in the official bill text.

Local Government Funding Act

This act creates an annual transfer equal to eight percent of state sales and use tax collections from the General Fund to cities, towns, and counties starting in fiscal year 2027.

What This Bill Does

Creates an annual statutory transfer equal to eight percent (8%) of the previous fiscal year’s sales and use tax collections from the General Fund to the Office of State Lands and Investments for distribution to cities, towns, and counties beginning in fiscal year 2027.
Establishes a formula and schedule for distributing funds, with payments made on October 15th and March 15th each year.
Codifies the funding formula based on factors such as population, assessed valuation, and per capita sales and use tax collections.

Who It Names or Affects

Cities
Towns
Counties

Terms To Know

General Fund: A fund that holds and manages money for the state government to use for various purposes.
Sales and Use Taxes: Taxes collected on sales of goods and services, as well as taxes paid when those goods are used or consumed.

Limits and Unknowns

The exact amount distributed to local governments in fiscal year 2027 is an estimate and may change based on final tax figures.
This act does not specify how the funds should be spent by local governments, only that certain uses are prohibited.

Bill History

2026-03-05 LSO
Assigned Chapter Number 40
2026-03-05 Governor
Governor Signed HEA No. 0011
2026-03-02 Senate
S President Signed HEA No. 0011
2026-03-02 House
H Speaker Signed HEA No. 0011
2026-02-27 LSO
Assigned Number HEA No. 0011
2026-02-27 House
H Concur:Passed 55-0-5-2-0
2026-02-26 House
H Received for Concurrence
2026-02-26 Senate
S 3rd Reading:Passed 30-0-1-0-0
2026-02-25 Senate
S 2nd Reading:Passed
2026-02-24 Senate
S COW:Passed
2026-02-23 Senate
S Placed on General File
2026-02-23 Senate
S02 - Appropriations:Recommend Amend and Do Pass 5-0-0-0-0
2026-02-17 Senate
S Introduced and Referred to S02 - Appropriations
2026-02-16 Senate
S Received for Introduction
2026-02-16 House
H 3rd Reading:Passed 61-0-1-0-0
2026-02-13 House
H 3rd Reading:Laid Back
2026-02-12 House
H 2nd Reading:Passed
2026-02-11 House
H COW:Passed
2026-02-10 House
H Placed on General File
2026-02-10 House
H02 - Appropriations:Recommend Do Pass 7-0-0-0-0
2026-02-09 House
H Introduced and Referred to H02 - Appropriations 60-2-0-0-0
2026-02-06 House
H Received for Introduction
2026-02-05 LSO
Bill Number Assigned

Official Summary Text

Bill Summary - 26LSO-0295

Bill No.:

HB0107

Effective:

7/1/2026

LSO No.:

26LSO-0295

Enrolled Act No.:

HEA No. 0011

Chapter No.:

Prime Sponsor:

Joint Appropriations Committee

Catch Title:

Local government distributions.

Has Report:

Subject:

Local government distributions.

Summary/Major Elements:

This act creates an annual statutory transfer equal to eight percent (8%) of the previous fiscal year’s sales and use tax collections from the General Fund to the Office of State Lands and Investments for distribution to cities, towns and counties beginning in fiscal year 2027.

This act establishes a formula and schedule for making those distributions, specifying that payments to local governments shall occur on October 15 and March 15 each year.

This act codifies the local government direct distribution and the formula used in recent years' local government distribution bills, which is based on factors including population, assessed valuation and per capita sales and use tax collections. The act uses the sales and use tax data from the immediately preceding fiscal year instead of the two-year lagging data used in recent years' bills.

This act specifies legislative intent for prohibited uses of distributed funds.

LSO estimates the 2027–2028 biennial transfer to total one hundred fifty-one million one hundred thousand dollars ($151,100,000.00). The amount distributed to cities, towns and counties in fiscal year 2027 is an estimate and may differ once final sales and use tax figures are available.

Comments:

Creates a major program.

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

Read the full stored bill text

26LSO-0295

ORIGINAL House

ENGROSSED
Bill No
.
HB0107

ENROLLED ACT NO. 11,

HOUSE OF REPRESENTATIVES

SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
2026 Budget Session

AN ACT relating to local government funding; continuously distributing a portion of the state sales and use taxes collected and accrued each fiscal year for cities, towns and counties; creating a statutory funding formula; providing legislative intent; 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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15
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601 through 39
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15
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603 are created to read:

ARTICLE 6
LOCAL GOVERNMENT DISTRIBUTIONS

39
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15
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601.

Definitions.

(a)

As used in this article:

(i)

"Population" of a city, town or county shall be determined by resort to the most recently completed federal decennial census as reported by the economic analysis division within the department of administration and information.

39
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15
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602.

Local government distributions of state sales and use taxes; supplemental funding formula; revenue challenged formula.

(a)

An amount equal to eight percent (8%) of all sales taxes imposed under W.S. 39
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15
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104(a) and (b) and use taxes imposed under W.S. 39
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16
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104(a) and (b) that are collected and accrued for the immediately preceding fiscal year, as determined by the department of revenue, shall be transferred from the general fund to the office of state lands and investments for distribution to cities, towns and counties to be allocated as follows and as further provided in this section:

(i)

Two
‑
thirds (2/3) of eighty
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nine percent (89%) of the total amount for direct distribution to cities and towns provided that five percent (5%) of the amount available under this paragraph shall only be distributed for direct distributions to cities and towns using the revenue challenged formula as provided in paragraph (b)(ii) of this section;

(ii)

One
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third (1/3) of eighty
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nine percent (89%) of the total amount for direct distribution to counties;

(iii)

Five and one
‑
half percent (5.5%) of the total amount for direct distribution to cities and towns provided that five percent (5%) of the amount available under this paragraph shall only be distributed for direct distributions to cities and towns using the revenue challenged formula as provided in paragraph (b)(ii) of this section;

(iv)

Five and one
‑
half percent (5.5%) of the total amount for direct distribution to counties.

(b)

Funds distributed in paragraphs (a)(i) and (iii) of this section shall be distributed to cities and towns each fiscal year. Distributions shall be made in equal amounts on October 15 and March 15 of each fiscal year as calculated from revenues collected and accrued in the immediately preceding fiscal year prior to the October 15 distribution, subject to the following:

(i)

Except as provided in paragraph (ii) of this subsection, from these distributions each municipality with a population of thirty
‑
five (35) or less shall first receive fifteen thousand dollars ($15,000.00) and each municipality with a population over thirty
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five (35) shall first receive thirty
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five thousand dollars ($35,000.00). From the remainder, each municipality shall receive amounts in accordance with a municipal supplemental funding formula as provided in this paragraph. The municipal supplemental funding formula shall be calculated by the office of state lands and investments as follows:

(A)

Calculate the per capita sales and use tax revenues available to each municipality using the sales and use tax distributions to the county where each municipality is located attributable to the most recently completed fiscal year, including distributions to each municipality within that county under W.S. 39
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15
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111 and 39
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16
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111 but excluding the distribution exclusively to counties under W.S. 39
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15
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111(b)(iii) made from an amount equivalent to one percent (1%) of the tax collected under W.S. 39
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15
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104 and excluding the distribution exclusively to counties under W.S. 39
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16
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111(b)(iii) made from an amount equivalent to one percent (1%) of the tax collected under W.S. 39
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16
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104;

(B)

Calculate the inverse by dividing one (1) by the per capita sales and use tax numbers determined under subparagraph (A) of this paragraph for each municipality;

(C)

Calculate the normalized per capita sales and use tax number for each municipality by dividing the number determined under subparagraph (B) of this paragraph for the municipality by the total of all inverse per capita sales and use tax numbers calculated under subparagraph (B) of this paragraph;

(D)

Multiply the normalized per capita sales and use tax number for each municipality by seventy
‑
five percent (75%);

(E)

Calculate the per capita assessed value for the prior tax year corresponding to the most recently completed calendar year for each municipality by dividing the total assessed valuation within the municipality by the population of the municipality;

(F)

Calculate the inverse by dividing one (1) by the per capita assessed value determined under subparagraph (E) of this paragraph for each municipality;

(G)

Calculate the normalized per capita assessed value number for each municipality by dividing the number determined under subparagraph (F) of this paragraph for the municipality by the total of all inverse per capita assessed value numbers calculated under subparagraph (F) of this paragraph;

(H)

Multiply the normalized per capita assessed value number for each municipality by twenty
‑
five percent (25%);

(J)

Multiply the sum of subparagraphs (D) and (H) of this paragraph for each municipality by the population of the municipality;

(K)

Calculate the normalized index for each municipality by dividing the number determined under subparagraph (J) of this paragraph for the municipality by the sum of all numbers calculated under subparagraph (J) of this paragraph;

(M)

Determine the amount to distribute to each municipality by multiplying the normalized index number determined under subparagraph (K) of this paragraph by the amount remaining available for distribution under this paragraph.

(ii)

From the funds distributed in paragraphs (a)(i) and (iii) of this section, each city or town shall receive amounts in accordance with a city and town revenue challenged formula as provided in this paragraph. The revenue challenged formula shall be calculated by the office of state lands and investments as follows:

(A)

Calculate the lowest quartile amount received by cities and towns on a per capita basis using amounts received under this section plus amounts distributed to each city and town using the sales and use tax distributions to the county where each municipality is located attributable to the most recently completed fiscal year under this paragraph, including distributions to each municipality within that county under W.S. 39
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15
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111 and 39
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16
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111 but excluding the distribution exclusively to counties under W.S. 39
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15
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111(b)(iii) made from an amount equivalent to one percent (1%) of the tax collected under W.S. 39
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15
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104 and excluding the distribution exclusively to counties under W.S. 39
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16
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111(b)(iii) made from an amount equivalent to one percent (1%) of the tax collected under W.S. 39
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16
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104;

(B)

Determine each city or town that received a per capita amount that is less than the lowest quartile amount determined under subparagraph (A) of this paragraph;

(C)

For each city or town that received a per capita amount that is less than the lowest quartile amount as provided in subparagraph (B) of this paragraph, determine the amount that would be necessary to increase the per capita amount distributed to that city or town to the lowest quartile amount determined under subparagraph (A) of this paragraph;

(D)

Determine the amount to distribute to each city or town that received an amount that is less than the lowest quartile amount determined under subparagraph (A) of this paragraph by distributing the amount available under this paragraph on a pro rata basis, up to the lowest quartile amount, based on the amounts determined under subparagraph (C) of this paragraph.

(c)

Funds distributed in paragraphs (a)(ii) and (iv) of this section are to be distributed to counties each fiscal year. Distributions shall be made in equal amounts on October 15 and March 15 of each fiscal year as calculated from revenues collected and accrued for the immediately preceding fiscal year prior to the October 15 distribution. From these distributions each county shall receive the following:

(i)

Each county with an assessed value for the tax year prior to the most recently completed calendar year of less than three hundred thousand dollars ($300,000.00) per mill shall first receive an amount equal to three (3) times the difference between three hundred thousand dollars ($300,000.00) and the actual value of one (1) mill within the county. From the remainder, each county shall receive amounts in accordance with a county supplemental funding formula as provided in this paragraph. The county supplemental funding formula shall be calculated by the office of state lands and investments as follows:

(A)

Calculate the per capita sales and use tax revenues available to each county using the sales and use tax distributions to each county attributable to the most recently completed fiscal year, excluding distributions to each municipality within that county under W.S. 39
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15
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111 and 39
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16
‑
111;

(B)

Calculate the inverse by dividing one (1) by the per capita sales and use tax number determined under subparagraph (A) of this paragraph for each county;

(C)

Calculate the normalized per capita sales and use tax number for each county by dividing the number determined under subparagraph (B) of this paragraph for the county by the total of all inverse per capita sales and use tax numbers calculated under subparagraph (B) of this paragraph;

(D)

Multiply the normalized per capita sales and use tax number determined under subparagraph (C) of this paragraph for each county by twenty
‑
four percent (24%);

(E)

Calculate the per capita assessed value for each county by dividing the total assessed valuation within the county for the tax year prior to the most recently completed calendar year by the population of the county;

(F)

Calculate the inverse by dividing one (1) by the per capita assessed value determined under subparagraph (E) of this paragraph for each county;

(G)

Calculate the normalized per capita assessed value number for each county by dividing the number determined under subparagraph (F) of this paragraph for the county by the total of all inverse per capita assessed value numbers calculated under subparagraph (F) of this paragraph;

(H)

Multiply the normalized per capita assessed value number determined under subparagraph (G) of this paragraph for each county by seventy
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six percent (76%);

(J)

Calculate a cost of government index for each county, which shall be determined by multiplying six hundred twenty
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eight (628) by the population of the county and then adding nine million nine hundred thousand (9,900,000) to the result;

(K)

Calculate the normalized cost of government index number for each county by dividing the number determined under subparagraph (J) of this paragraph for the county by the total of all cost of government index numbers calculated under subparagraph (J) of this paragraph;

(M)

Multiply the sum of subparagraphs (D) and (H) of this paragraph by the normalized cost of government index number determined in subparagraph (K) of this paragraph for each county;

(N)

Calculate the normalized index for each county by dividing the number determined under subparagraph (M) of this paragraph for the county by the total of all numbers calculated under subparagraph (M) of this paragraph;

(O)

Determine the amount to distribute to each county by multiplying the normalized index number determined under subparagraph (N) of this paragraph by the amount remaining available for distribution under this paragraph.

39
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15
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603.

Legislative intent.

(a)

It is the intent of the legislature that the funds distributed under this article shall not be used for:

(i)

Salary adjustments, additional personnel or increased personnel benefits;

(ii)

Any compensation to the members of any board for which the board of county commissioners appoints members, unless compensation is otherwise required by law.

Section 2
.

This act is effective July 1, 2026
.

(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