The proposed bill establishes an excise tax on the production and sale of electricity in Wyoming, effective January 1, 2026. The tax rate is set at 3.5% of the annual gross energy earnings from electricity produced in the state. The bill outlines various provisions, including exemptions for electricity produced by federal or state-owned facilities and for personal consumption not exceeding 500 kilowatt hours in a 24-hour period. It also mandates that producers report their earnings and pay the tax annually by February 1 of the following year. Additionally, the bill creates an electrical generation account to manage the tax proceeds, which will be used to support local governments.

The bill includes several amendments to existing laws, such as the addition of new definitions and provisions related to the administration and enforcement of the tax. Notably, it introduces a credit system allowing taxpayers to offset their tax liability with other taxes paid in Wyoming, including severance taxes on minerals used in electricity production. Furthermore, it specifies that sales of electricity subject to this new tax will be exempt from other sales taxes, ensuring clarity in tax obligations. The Department of Revenue is tasked with implementing necessary rules by July 1, 2025, to facilitate the administration of this new tax structure.

Statutes affected:
Introduced: 39-11-101, 39-15-103, 39-15-105