2022 22LSO-0221
STATE OF WYOMING
HOUSE BILL NO. HB0041
Special taxation zone-optional tax.
Sponsored by: Joint Revenue Interim Committee
A BILL
for
1 AN ACT relating to sales and use taxes; authorizing the
2 imposition of a special taxation zone tax as an alternative
3 to an optional municipal tax; providing for formation of
4 special taxation zones; providing for administration and
5 implementation of the tax; providing for distribution of
6 the taxes; and providing for an effective date.
7
8 Be It Enacted by the Legislature of the State of Wyoming:
9
10 Section 1. W.S. 39-15-203(a)(vi)(intro), (A) through
11 (C), (E), (F)(intro), (G)(intro), (I) through (IV), (H),
12 (J) and by creating a new subparagraph (K),
13 39-15-204(a)(intro) and (vii), 39-15-211(d)(ii),
14 39-16-203(a)(v)(intro), (A) through (C), (E), (F)(intro),
15 (G)(intro), (I) through (IV), (H), (J) and by creating a
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1 new subparagraph (K), 39-16-204(a)(intro) and (vi) and
2 39-16-211(d)(ii) are amended to read:
3
4 39-15-203. Imposition.
5
6 (a) Taxable event. The following shall apply:
7
8 (vi) The following provisions apply to
9 imposition of the municipal or special taxation zone tax
10 under W.S. 39-15-204(a)(vii):
11
12 (A) The tax authorized by W.S.
13 39-15-204(a)(vii) shall be in addition to and not in lieu
14 of any tax imposed by a county under W.S. 39-15-204(a)(i),
15 (iii) or (vi) if those taxes are imposed. If a city or town
16 imposes a municipal tax under this paragraph or is part of
17 a special taxation zone that imposes a tax under this
18 paragraph, the city or town shall not participate in any
19 other special taxation zone that is formed to impose a
20 special taxation zone tax under subparagraph (K) of this
21 paragraph. No portion of a county that is part of a special
22 taxation zone under this paragraph shall be a part of any
23 other special taxation zone formed under subparagraph (K)
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1 of this paragraph. In no case shall any area be subject to
2 a tax under W.S. 39-15-204(a)(vii) in excess of one percent
3 (1%) as provided in that paragraph;
4
5 (B) If a county has imposed at least one
6 percent (1%) of the tax under W.S. 39-15-204(a)(i) and has
7 voted to initially approve or continue a tax under W.S.
8 39-15-204(a)(iii), or if the board of county commissioners
9 has adopted a resolution by the county under subparagraph
10 (J) of this paragraph, a city or town within the county
11 where the tax was imposed, or the city or town and county
12 comprising a special taxation zone under subparagraph (K)
13 of this paragraph may propose an excise tax as provided in
14 this paragraph. Except for a tax authorized under
15 subparagraph (J) of this paragraph, the tax shall not be
16 proposed until at least ninety (90) days following the
17 approval or continuation of a tax under W.S.
18 39-15-204(a)(iii). Except for a tax authorized under
19 subparagraph (J) of this paragraph, the amount rate of the
20 tax proposed under this subparagraph shall not exceed a
21 rate equivalent to the amount of tax that the city, or town
22 or special taxation zone collects during the same time
23 period pursuant to the tax imposed under W.S.
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1 39-15-204(a)(iii). The tax imposed under this paragraph
2 shall terminate not more than ninety (90) days following
3 the termination of the tax imposed under W.S.
4 39-15-204(a)(iii) or as provided in subparagraph (J) of
5 this paragraph;
6
7 (C) Revenue from the tax shall be used for
8 general purposes or for a specific purpose in a specified
9 amount as specified in the proposition to impose the tax. A
10 city, or town or special taxation zone may impose a portion
11 of the tax for separate purposes provided that the purposes
12 are voted on separately, each proposition specifies the
13 purpose of the tax and the total amount of the tax does not
14 exceed the full amount authorized in W.S. 39-15-204(a)(vii)
15 and subparagraph (B) of this paragraph;
16
17 (E) A notice of election shall be given in
18 at least one (1) newspaper of general circulation published
19 in the county in which the election is to be held, and the
20 notice shall specify the proposition that will be
21 considered at the election. The notice shall be published
22 at least once each week for a thirty (30) day period
23 preceding the election. At the election for each
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1 proposition, the ballots shall contain the words "for the
2 municipal (or special taxation zone) sales and use tax" and
3 "against the municipal (or special taxation zone) sales and
4 use tax". The ballot shall describe the purposes of the tax
5 in a clear and appropriate manner;
6
7 (F) If the proposition to impose or
8 continue the tax is defeated the proposition shall not
9 again be submitted to the electors of the city, or town or
10 special taxation zone for at least eleven (11) months. If
11 the proposition is defeated at any general election
12 following initial adoption of the proposition the tax is
13 repealed and shall not be collected following June 30 of
14 the year immediately following the year in which the
15 proposition is defeated except:
16
17 (G) If the proposition is approved by the
18 qualified electors, the city or town council for a
19 municipal tax or each city or town and county comprising
20 the special taxation zone for a special taxation zone tax
21 shall adopt an ordinance for the tax authorized by W.S.
22 39-15-204(a)(vii) consistent with the approved proposition.
23 The ordinance shall include the following:
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1
2 (I) A provision imposing sales tax
3 upon retail sales of tangible personal property, admissions
4 and services made within the city, or town or special
5 taxation zone, whichever is appropriate;
6
7 (II) Provisions identical to those
8 contained in article 1 of this chapter except for W.S.
9 39-15-102(a), insofar as it relates to sales taxes, except
10 the name of the city, or town or special taxation zone as
11 the taxing agency shall be substituted for that of the
12 state and an additional license to engage in business shall
13 not be required if the vendor has been issued a state
14 license pursuant to law;
15
16 (III) A provision that any amendments
17 made to article 1 of this chapter or to chapter 16 of this
18 title that are not in conflict with article 1 of this
19 chapter or to chapter 16 of this title shall automatically
20 become a part of the sales tax ordinances of the city, or
21 town or members of the special taxation zone;
22
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1 (IV) A provision that the city, or
2 town or special taxation zone shall contract with the
3 department prior to the effective date of the sales tax
4 ordinances whereby the department shall perform all
5 functions incident to the administration of the sales tax
6 ordinances; of the city or town;
7
8 (H) Subject to subparagraphs (B) and (J) of
9 this paragraph, if the tax is imposed for a specific
10 purpose and in a specified amount the tax shall terminate
11 when the amount specified in the proposition approved by
12 the electors is collected. A city, or town or special
13 taxation zone may agree to terminate the tax if the tax
14 collected reaches the actual cost of the completed projects
15 and the amount specified in the proposition exceeds the
16 actual cost of the completed projects. A city, or town or
17 special taxation zone shall inform the department that a
18 tax is terminated;
19
20 (J) If a county has not imposed taxes under
21 W.S. 39-15-204(a)(i) and 39-15-204(a)(iii) as provided in
22 subparagraph (B) of this paragraph, the board of county
23 commissioners may adopt a resolution to authorize cities,
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1 and towns and special taxation zones within the county to
2 propose a municipal tax under this paragraph. The
3 resolution shall establish the maximum taxation rate in
4 increments of one-quarter of one percent (.25%) not to
5 exceed a rate of one percent (1%). The proposition by a
6 city, or town or special taxation zone for a municipal tax
7 authorized under this subparagraph shall specify that the
8 municipal tax shall terminate after two (2) years;.
9
10 (K) If a tax under this paragraph will
11 benefit residents of the county residing beyond the
12 boundaries of a city or town, the city or town may request
13 the board of county commissioners to form a special
14 taxation zone comprising of one (1) or more cities or towns
15 and areas in the county that are outside the boundaries of
16 the city or town. The request to form a special taxation
17 zone shall be filed with the county commissioners. Prior
18 to filing a request with the county commissioners, the
19 request shall be filed with the county assessor, county
20 clerk and the department of revenue which shall review,
21 within sixty (60) days of receiving the request, the
22 boundaries of the proposed zone for any conflict, overlap,
23 gap or other boundary issue and make written comments
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1 thereon to be submitted to the county commissioners. The
2 request shall be approved by the governing body of each
3 city or town requested to be part of the special taxation
4 zone prior to submission to the county commissioners. If
5 the request satisfies the requirements of this
6 subparagraph, the county commissioners shall:
7
8 (I) Set a date for a hearing on the
9 petition. The hearing shall be held not less than
10 forty-five (45) days nor more than ninety (90) days after
11 the date the petition is filed;
12
13 (II) Cause notice of the hearing to be
14 posted in at least three (3) public places, one (1) of
15 which may be online, and published by two (2) insertions in
16 a newspaper of general circulation in the county in which
17 the zone is proposed to be located. The last of the notices
18 shall be published at least ten (10) business days prior to
19 the hearing. The notice shall state:
20
21 (1) The purpose for which the
22 special taxation zone is to be formed;
23
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1 (2) The boundaries of the
2 proposed zone;
3
4 (3) The time and place of the
5 hearing on the request; and
6
7 (4) That all interested persons
8 may appear and be heard.
9
10 (III) At the time stated in the
11 notice, hear the petition and determine if the area could
12 be benefited by the formation of the special taxation zone.
13 It may adjourn the hearing from time to time, but not
14 exceeding four (4) weeks in all unless additional notice is
15 given. The county commissioners may alter the boundaries
16 set forth in the petition to either include or exclude
17 territory. In determining the boundaries of the proposed
18 zone, the board shall consider the benefit the proposed
19 special taxation zone will have within the areas of the
20 county in or out of the proposed zone. The commissioners
21 shall not modify the boundaries so as to exclude from the
22 proposed zone any land which could be benefited by its
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1 formation, nor shall there be included any land which will
2 not, in the judgment of the commissioners, be benefited;
3
4 (IV) If the county commissioners
5 approve the request for formation as presented or as
6 modified, enter an order declaring formation of the special
7 taxation zone. The order shall set forth a description of
8 the boundaries of the special taxation zone.
9
10 39-15-204. Taxation rate.
11
12 (a) In addition to the state tax imposed under W.S.
13 39-15-101 through 39-15-111 any county of the state may
14 impose the following excise taxes, and any city or town may
15 impose the taxes tax authorized by paragraphs paragraph
16 (ii) and (vii) of this subsection, any city, town or
17 special taxation zone may impose the tax authorized by
18 paragraph (vii) of this subsection and any resort district
19 may impose the tax authorized by paragraph (v) of this
20 subsection:
21
22 (vii) An excise tax at a rate in increments of
23 one-quarter of one percent (.25%) not to exceed a rate of
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1 one percent (1%) upon retail sales of tangible personal
2 property, admissions and services made within the city, or
3 town or special taxation zone, the purpose of which is for
4 general revenue or for a specific purpose and in a
5 specified amount as provided in the proposition to impose
6 the tax.
7
8 39-15-211. Distribution.
9
10 (d) For all revenue collected by the department from
11 the taxes imposed by W.S. 39-15-204(a)(vii) the department
12 shall:
13
14 (ii) Deposit the remainder into an account for
15 monthly distribution to the city, or town or special
16 taxation zone in which the tax has been imposed which shall
17 only be used by the city, or town or special taxation zone
18 for costs related to the purposes approved in the
19 proposition to impose the tax.
20
21 39-16-203. Imposition.
22
23 (a) Taxable event. The following shall apply:
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1
2 (v) The following provisions apply to imposition
3 of the municipal or special taxation zone tax under W.S.
4 39-16-204(a)(vi):
5
6 (A) The tax authorized by W.S.
7 39-16-204(a)(vi) shall be in addition to and not in lieu of
8 any tax imposed by a county under W.S. 39-16-204(a)(i),
9 (ii) or (v) if those taxes are imposed. If a city or town
10 imposes a municipal tax under this paragraph or is part of
11 a special taxation zone that imposes a tax under this
12 paragraph, the city or town shall not participate in any
13 other special taxation zone that is formed to impose a
14 special taxation zone tax under subparagraph (K) of this
15 paragraph. No portion of a county that is part of a special
16 taxation zone under this paragraph shall be a part of any
17 other special taxation zone formed under subparagraph (K)
18 of this paragraph. In no case shall any area be subject to
19 a tax under W.S. 39-16-204(a)(vi) in excess of one percent
20 (1%) as provided in that paragraph;
21
22 (B) If a county has imposed at least one
23 percent (1%) of the tax under W.S. 39-16-204(a)(i) and has
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1 vot