HB0135 - Excise tax amendments.
2001 |
State of Wyoming |
01LSO-0131.E1 ENGROSSED |
HOUSE BILL NO. HB0135
Excise tax amendments.
Sponsored by: Joint Revenue Interim Committee
A BILL
for
1 AN ACT relating to
taxation and revenue; providing
2
amendments to excise tax provisions as specified;
3
clarifying the exemption for business personal property
4
when a business is sold; providing for a tax on admission
5
to places of recreation and equipment used as specified;
6
clarifying the exemption for motor vehicles used in
7
interstate commerce; imposing penalties for failure to
8
remit collected excise taxes; requiring a nonresident
9
contractor to register a construction project as specified;
10 clarifying tax liability of a
subcontractor hired to
11 provide labor only to the
improvement of real property;
12 repealing sales tax exemption for
admission to county or
13 municipal recreation facilities; and
providing for
14 effective dates.
15
16 Be It Enacted by the Legislature of the State of Wyoming:
17
Page 1
1 Section
1. W.S.
39-15-101(a)(vii)(M) and
2
39-16-101(a)(iii)(M) are amended to read:
3
4 39-15-101. Definitions.
5
6 (a) As used in this article:
7
8 (vii) "Sale"
means any transfer of title or
9
possession in this state for a consideration including the
10 fabrication of tangible personal
property when the
11 materials are furnished by the
purchaser but excluding an
12 exchange or transfer of tangible
personal property upon
13 which the seller has directly or
indirectly paid sales or
14 use tax incidental to:
15
16 (M) The sale of
a business entity when sold
17 to a purchaser of all or substantially all not
less than
18 eighty percent (80%) of the value of all of the
assets
19 which are
located in this state of the business entity
when
20 the purchaser continues to use the
tangible personal
21 property in the operation of an
ongoing business entity in
22 this state. As used in
this subparagraph, "business entity"
23 means and includes an individual, partnership, corporation,
24 corporate division, joint stock company or any other
Page 2
1 association or entity, public or private, or separate
2 business unit thereof.
3
4 39-16-101. Definitions.
5
6 (a) As used in this article:
7
8 (iii) "Sale"
means the transfer of title or
9
possession of tangible personal property from a vendor for
10 a consideration for storage, use or
other consumption in
11 Wyoming excluding the exchange or
transfer of tangible
12 personal property upon which the
seller has directly or
13 indirectly paid sales or use tax
incidental to:
14
15 (M) The sale of
a business entity when sold
16 to a purchaser of all or substantially all not
less than
17 eighty percent (80%) of the value of all of the
assets
18 which are
located in this state of the business entity
when
19 the purchaser continues to use the
tangible personal
20 property in the operation of an
ongoing business entity in
21 this state. As used in
this subparagraph, "business entity"
22 means and includes an individual, partnership, corporation,
23 corporate division, joint stock company or any other
Page 3
1 association or entity, public or private, or separate
2 business unit thereof.
3
4 Section
2. W.S. 39-15-103(a)(i)(H) is amended to
5
read:
6
7 39-15-103. Imposition.
8
9 (a) Taxable event. The following shall apply:
10
11 (i) Except as
provided by W.S. 39-15-105, there
12 is levied an excise tax upon:
13
14 (H) The sales
price paid for each admission
15 to, or
user fee charged for the use of any place of
16 amusement, entertainment,
recreation, games or athletic
17 event or
the equipment located on such facility, whether
18 indoors or outdoors. If any persons other than
employees,
19 officers of the law on official
business or children under
20 twelve (12) years of age are
admitted free or at reduced
21 rates to any such place when an
admission charge is made to
22 other persons, an equivalent tax
shall be paid by these
23 persons based on the price charged
to other persons;
24
Page 4
1 Section 3. W.S. 39-15-105(a)(ii)(B) and
2
39-16-105(a)(ii)(A) are amended to read:
3
4 39-15-105. Exemptions.
5
6 (a) The
following sales or leases are exempt from the
7
excise tax imposed by this article:
8
9 (ii) For the
purpose of exempting sales of
10 services and tangible personal
property protected by
11 federal law, the following are
exempt:
12
13 (B) Sales of
railroad rolling stock
14 including locomotives purchased by
interstate railroads,
15 aircraft purchased by interstate air
carriers which are
16 holders of valid United States civil
aeronautics board
17 permits or authorities and trucks,
truck-tractors,
18 trailers, semitrailers and passenger
buses in excess of ten
19 thousand (10,000) pounds gross vehicle weight
which are
20 purchased by common or contract
interstate carriers or
21 which are operating in interstate
commerce under exemption
22 clauses in federal law if they are
to be substantially used
23 in interstate commerce;
24
Page 5
1 39-16-105. Exemptions.
2
3 (a) The
following purchases or leases are exempt from
4
the excise tax imposed by this article:
5
6 (ii) For the
purpose of exempting sales of
7
services and tangible personal property protected by
8
federal law, the following are exempt:
9
10 (A) Railroad
rolling stock including
11 locomotives purchased by interstate
railroads, aircraft
12 purchased by interstate air carriers
which are holders of
13 valid United States civil
aeronautics board permits or
14 authorities and trucks, truck-tractors,
trailers,
15 semitrailers and passenger buses in excess of ten thousand
16 (10,000) pounds gross vehicle weight which are
purchased by
17 common or contract interstate
carriers or which are
18 operating in interstate commerce
under exemption clauses in
19 federal law if they are to be substantially used in
20 interstate commerce;
21
22 Section 4. W.S. 39-15-108(c)(iv) and
23 39-16-108(c)(xiv) are amended to
read:
24
Page 6
1 39-15-108. Enforcement.
2
3 (c) Penalties. The following shall apply:
4
5 (iv) Any vendor
who under the pretense of
6
collecting the taxes imposed by this article collects and
7
retains an excessive amount or who intentionally fails to
8
remit to the department the full amount of taxes when due
9
is guilty of:
10
11 (A) A misdemeanor if the
amount of taxes
12 collected is five hundred dollars ($500.00) or less
13 punishable by a fine of not more than seven hundred fifty
14 dollars ($750.00), or imprisonment in the county jail for
15 not more than six (6) months, or both; or
16
17 (B) A felony if the amount of taxes
18 collected
exceeds five hundred dollars ($500.00) punishable
19 by a fine of not more than five thousand dollars
20 ($5,000.00), or imprisonment for not to exceed three (3)
21 years, or both.
22
23 39-16-108. Enforcement.
24
Page 7
1 (c) Penalties. The following shall apply:
2
3 (xiv) W.S. 39-15-108(b)(ii), (c)(iv) and
4
39-15-107(b)(iv) apply to use taxes under this article;
5
6 Section 5. W.S. 39-15-303(b)
by creating a new
7
paragraph (iv) and 39-16-303(b) by creating a new paragraph
8
(iv) are amended to read:
9
10 39-15-303. Imposition.
11
12 (b) Taxpayer. The following shall apply:
13
14 (iv) Any nonresident prime contractor and any
15 resident
prime contractor who hires a nonresident
16 subcontractor shall register any project with the
17 department of revenue not less than fifteen (15) days
18 following the start of a project pursuant to a contract.
19 The nonresident prime contractor shall provide a properly
20 executed bond as required by paragraph (iii) of this
21 subsection, or a cash deposit of not less than four percent
22 (4%) of the total payments due under the contract. The
23 cash deposit shall be refunded to the contractor upon the
24 department's receipt of a properly executed surety bond or
Page 8
1 upon satisfactory completion of the project. Failure to
2 register with the department within
the time period
3 required by this paragraph shall
result in a penalty
4 assessment of one percent (1%) of the
total payments due
5 under the contract.
6
7 39-16-303. Imposition.
8
9 (b) Taxpayer. The following shall apply:
10
11 (iv) Any nonresident prime contractor and any
12 resident
prime contractor who hires a nonresident
13 subcontractor shall register any project with the
14 department of revenue not less than fifteen (15) days
15 following the start of a project pursuant to a contract.
16 The nonresident prime contractor shall provide a properly
17 executed bond as required by paragraph (iii) of this
18 subsection, or a cash deposit of not less than four percent
19 (4%) of the total payments due under the contract. The cash
20 deposit shall be refunded to the contractor upon the
21 department's receipt of a properly executed surety bond or
22 upon satisfactory completion of the project. Failure to
23 register with the department within the time period
24 required by this paragraph shall result in a penalty
Page 9
1 assessment of one percent (1%) of the total payments due
2 under the contract.
3
4 Section
6. W.S. 39-15-303(b)(ii) and 39-16-303(b)(ii)
5
are amended to read:
6
7 39-15-303. Imposition.
8
9 (b) Taxpayer. The following shall apply:
10
11 (ii) Any
subcontractor who contracts with a
12 general or prime contractor is
liable for sales taxes as a
13 general or prime contractor. The
general or prime
14 contractor shall withhold three
percent (3%), plus the
15 increased rate under W.S. 39-15-104(b)
if the tax under
16 that section is in effect, of the
payments due a
17 nonresident subcontractor arising
out of the contract
18 entered into between both
contractors. The contractor shall
19 withhold the payments until the
subcontractor furnishes him
20 with a certificate issued by the
department showing all
21 sales taxes accruing by reason of
the contract between them
22 have been paid. The department may
demand the withholdings
23 at any time to satisfy the sales tax
liability of the
24 subcontractor and any balance shall
be released by the
Page 10
1 department
to him. If a contractor fails to withhold
2
payments or refuses to remit them upon demand by the
3
department he is liable for any sales taxes due the state
4
by the nonresident subcontractor. This
paragraph shall not
5 apply to any subcontractor hired to
provide labor only to
6 alter, construct, improve or repair
real property;
7
8 39-16-303. Imposition.
9
10 (b) Taxpayer. The following shall apply:
11
12 (ii) Any
subcontractor who contracts with a
13 general or prime contractor is
liable for use taxes as a
14 general or prime contractor. The
general or prime
15 contractor shall withhold three
percent (3%), plus the
16 increased rate under W.S. 39-16-104(b)
if the tax under
17 that section is in effect, of the
payments due a
18 nonresident subcontractor arising
out of the contract
19 entered into between both
contractors. The contractor shall
20 withhold the payments until the
subcontractor furnishes him
21 with a certificate issued by the department
showing all use
22 taxes accruing by reason of the
contract between them have
23 been paid. The department may demand
the withholdings at
24 any time to satisfy the use tax
liability of the
Page 11
1 subcontractor
and any balance shall be released by the
2
department to him. If a contractor fails to withhold
3
payments or refuses to remit them upon demand by the
4
department he is liable for any use taxes due the state by
5
the nonresident subcontractor. This paragraph
shall not
6 apply to any subcontractor hired to
provide labor only to
7 alter, construct, improve or repair
real property;
8
9 Section 7. W.S. 39-15-105(a)(iv)(E) is repealed.
10
12
13 (a) Except as provided under subsection (b) of this
14 section, this act is
effective July 1, 2001.
15
16 (b) Section 2 of this act is effective July 1, 2002.
17
18 (END)
Page 12