HOUSE BILL NO.         

Sales & use tax-specific purpose tax.

Sponsored by:  Joint Revenue Interim Committee

A BILL

for

AN ACT relating to taxation and revenue; providing for authorized uses of the local optional specific purpose sales and use tax as specified; specifying applicability of the act; and providing for an effective date.

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

Section 1.  W.S. 39-15-203(a)(iii)(B) and (C) and 39-16-203(a)(ii)(B) and (C) are amended to read:

39-15-203.  Imposition.

(a)  Taxable event.  The following shall apply:

(iii)  The following provisions apply to imposition of the specific purpose excise tax under W.S. 39-15-204(a)(iii):

(B)  The revenue from the tax shall be used in a specified amount for specific purposes authorized by the qualified electors. Specific purposes shall not include ordinary operations of local government except those operations related to a specific project.  The specific purposes for which the tax is authorized shall equate to not less than ninety percent (90%) of the specified amount.  The remaining ten percent (10%) of the specified amount may be distributed to the governing body of any municipality in the county which will not receive a direct benefit from any specified purpose of the tax.  If the remaining ten percent (10%) is distributed to any municipality under this subparagraph, the distribution shall be in the proportion the population of the municipality bears to the total population of the municipalities in the county which are not receiving a direct benefit from any specified purpose of the tax;

(C)  No tax shall be imposed under this paragraph until the proposition to impose the tax for specific purposes in specific amounts is approved by the vote of the majority of the qualified electors voting on the proposition. The amount of revenue to be collected and the purpose or purposes for which it is proposed to be used shall be specified in the proposition pursuant to subparagraph (B) of this paragraph. The election shall be held in accordance with W.S. 22-21-101 through 22-21-112. Any debt created may also be repaid, in whole or in part, by a property tax levy if general obligation bonds are authorized by the electors. Any excise tax imposed under this subsection shall commence on the first day of the second month following the election approving the imposition of the tax, except that it shall commence on the first day of any subsequent month following the receipt of tax funds in the approved amount by any tax previously imposed under this subsection as provided by subparagraph (E) of this paragraph.  Unless terminated earlier by the sponsoring entities pursuant to subparagraph (G) of this paragraph, the tax shall terminate on the last day of the month following the month in which the amount approved by the electors is collected;

39-16-203.  Imposition.

(a)  Taxable event.  The following shall apply:

(ii)  The following provisions apply to imposition of the specific purpose excise tax under W.S. 39-16-204(a)(ii):

(B)  The revenue from the tax shall be used in a specified amount for specific purposes authorized by the qualified electors. Specific purposes shall not include ordinary operations of local government except those operations related to a specific project.  The specific purposes for which the tax is authorized shall equate to not less than ninety percent (90%) of the specified amount.  The remaining ten percent (10%) of the specified amount may be distributed to the governing body of any municipality in the county which will not receive a direct benefit from any specified purpose of the tax.  If the remaining ten percent (10%) is distributed to any municipality under this subparagraph, the distribution shall be in the proportion the municipality bears to the total population of the municipalities in the county which are not receiving a direct benefit from any specified purpose of the tax;

(C)  No tax shall be imposed under this subsection until the proposition to impose the tax for specific purposes in specific amounts is approved by the vote of the majority of the qualified electors voting on the proposition. The amount of revenue to be collected and the purpose or purposes for which it is proposed to be used shall be specified in the proposition pursuant to subparagraph (B) of this paragraph. The election shall be held in accordance with W.S. 22-21-101 through 22-21-112. Any debt created may also be repaid, in whole or in part, by a property tax levy if general obligation bonds are authorized by the electors. provided, Any excise tax imposed under this subsection shall commence on the first day of the second month following the election approving the imposition of the tax, except that it shall commence on the first day of any subsequent month following the receipt of tax funds in the approved amount by any tax previously imposed under this subsection as provided by subparagraph (E) of this paragraph.  Unless terminated earlier by the sponsoring entities pursuant to subparagraph (G) of this paragraph, the tax shall terminate on the last day of the month following the month in which the amount approved by the electors is collected;

Section 2.  This act shall apply to any tax initially imposed under the provisions of W.S. 39-15-203(a)(iii) or 39-16-203(a)(ii) on or after the effective date of this act.

Section 3.  This act is effective July 1, 2001.

(END)