The proposed bill establishes a new framework for the continuous distribution of a portion of state sales and use taxes to local governments, specifically cities, towns, and counties in Wyoming. It creates a statutory funding formula that allocates 5.6% of the collected sales and use taxes from the previous fiscal year for distribution. The bill outlines specific allocations, with two-thirds of 89% of the total amount designated for cities and towns, and one-third for counties. Additionally, it includes provisions for a revenue challenged formula to ensure that municipalities facing financial difficulties receive adequate support.

The bill also specifies the distribution process, which will occur biannually on October 15 and March 15, and sets minimum funding thresholds for municipalities based on population size. It prohibits the use of distributed funds for salary adjustments, additional personnel, or increased benefits, ensuring that the funds are directed towards essential services and infrastructure. The act is set to take effect on July 1, 2026.