HB0135 - Excise tax amendments.

2001

State of Wyoming

01LSO-0131

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; and
12 providing for an effective date.

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

16 Section 1. W.S. 39-15-101(a)(vii)(M) and
17 39-16-101(a)(iii)(M) are amended to read:

Page 1

2 39-15-101. Definitions.

4 (a) As used in this article:

6 (vii) "Sale" means any transfer of title or
7 possession in this state for a consideration including the
8 fabrication of tangible personal property when the
9 materials are furnished by the purchaser but excluding an
10 exchange or transfer of tangible personal property upon
11 which the seller has directly or indirectly paid sales or
12 use tax incidental to:

14 (M) The sale of a business entity when sold
15 to a purchaser of all or ~~substantially all~~ not less than
16 eighty percent (80%) of the value of all of the assets
17 which are located in this state of the business entity when
18 the purchaser continues to use the tangible personal
19 property in the operation of an ongoing business entity in
20 this state. As used in this subparagraph, "business entity"
21 means and includes an individual, partnership, corporation,
22 corporate division, joint stock company or any other
23 association or entity, public or private, or separate
24 business unit thereof.

Page 2

2 39-16-101. Definitions.

4 (a) As used in this article:

6 (iii) "Sale" means the transfer of title or
7 possession of tangible personal property from a vendor for
8 a consideration for storage, use or other consumption in
9 Wyoming excluding the exchange or transfer of tangible
10 personal property upon which the seller has directly or
11 indirectly paid sales or use tax incidental to:

13 (M) The sale of a business entity when sold
14 to a purchaser of all or ~~substantially all~~ not less than
15 eighty percent (80%) of the value of all of the assets
16 which are located in this state of the business entity when
17 the purchaser continues to use the tangible personal
18 property in the operation of an ongoing business entity in
19 this state. As used in this subparagraph, "business entity"
20 means and includes an individual, partnership, corporation,
21 corporate division, joint stock company or any other
22 association or entity, public or private, or separate
23 business unit thereof.

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1 Section 2. W.S. 39-15-103(a)(i)(H),
2 39-15-105(a)(ii)(B) and 39-16-105(a)(ii)(A) are amended to
3 read:

5 39-15-103. Imposition.

7 (a) Taxable event. The following shall apply:

9 (i) Except as provided by W.S. 39-15-105, there
10 is levied an excise tax upon:

12 (H) The sales price paid for each admission
13 to, or user fee charged for the use of any place of
14 amusement, entertainment, recreation, games or athletic
15 event or the equipment located on such facility, whether
16 indoors or outdoors. If any persons other than employees,
17 officers of the law on official business or children under
18 twelve (12) years of age are admitted free or at reduced
19 rates to any such place when an admission charge is made to
20 other persons, an equivalent tax shall be paid by these
21 persons based on the price charged to other persons;

23 39-15-105. Exemptions.

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1 (a) The following sales or leases are exempt from the
2 excise tax imposed by this article:

4 (ii) For the purpose of exempting sales of
5 services and tangible personal property protected by
6 federal law, the following are exempt:

8 (B) Sales of railroad rolling stock
9 including locomotives purchased by interstate railroads,
10 aircraft purchased by interstate air carriers which are
11 holders of valid United States civil aeronautics board
12 permits or authorities and trucks, truck-tractors,
13 trailers, semitrailers and passenger buses in excess of ten
14 thousand (10,000) pounds gross vehicle weight which are
15 purchased by common or contract interstate carriers or
16 which are operating in interstate commerce under exemption
17 clauses in federal law if they are to be ~~substantially~~ used
18 in interstate commerce;

20 39-16-105. Exemptions.

22 (a) The following purchases or leases are exempt from
23 the excise tax imposed by this article:

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1 (ii) For the purpose of exempting sales of
2 services and tangible personal property protected by
3 federal law, the following are exempt:

5 (A) Railroad rolling stock including
6 locomotives purchased by interstate railroads, aircraft
7 purchased by interstate air carriers which are holders of
8 valid United States civil aeronautics board permits or
9 authorities and trucks, truck-tractors, trailers,
10 semitrailers and passenger buses in excess of ten thousand
11 (10,000) pounds gross vehicle weight which are purchased by
12 common or contract interstate carriers or which are
13 operating in interstate commerce under exemption clauses in
14 federal law if they are to be ~~substantially~~ used in
15 interstate commerce;

17 Section 3. W.S. 39-15-108(c)(iv) and
18 39-16-108(c)(xiv) are amended to read:

20 39-15-108. Enforcement.

22 (c) Penalties. The following shall apply:

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1 (iv) Any vendor who under the pretense of
2 collecting the taxes imposed by this article collects and
3 retains an excessive amount or who intentionally fails to
4 remit to the department the full amount of taxes when due
5 is guilty of:

7 (A) A misdemeanor if the amount of taxes
8 collected is five hundred dollars ($500.00) or less
9 punishable by a fine of not more than seven hundred fifty
10 dollars ($750.00), or imprisonment in the county jail for
11 not more than six (6) months, or both; or

13 (B) A felony if the amount of taxes
14 collected exceeds five hundred dollars ($500.00) punishable
15 by a fine of not more than five thousand dollars
16 ($5,000.00), or imprisonment for not to exceed three (3)
17 years, or both.

19 39-16-108. Enforcement.

21 (c) Penalties. The following shall apply:

23 (xiv) W.S. 39-15-108(b)(ii), (c)(iv) and
24 39-15-107(b)(iv) apply to use taxes under this article;

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2 Section 4. W.S. 39-15-303(b) by creating a new
3 paragraph (iv) and 39-16-303(b) by creating a new paragraph
4 (iv) are amended to read:

6 39-15-303. Imposition.

8 (b) Taxpayer. The following shall apply:

10 (iv) Any nonresident prime contractor and any
11 resident prime contractor who hires a nonresident
12 subcontractor shall register any project with the
13 department of revenue not less than fifteen (15) days
14 following the start of a project pursuant to a contract.
15 The nonresident prime contractor shall provide a properly
16 executed bond as required by paragraph (iii) of this
17 subsection, or a cash deposit of not less than four percent
18 (4%) of the total payments due under the contract. The
19 cash deposit shall be refunded to the contractor upon the
20 department's receipt of a properly executed surety bond or
21 upon satisfactory completion of the project. Failure to
22 register with the department within the time period
23 required by this paragraph shall result in a penalty

Page 8

1 assessment of one percent (1%) of the total payments due
2 under the contract.

4 39-16-303. Imposition.

6 (b) Taxpayer. The following shall apply:

8 (iv) Any nonresident prime contractor and any
9 resident prime contractor who hires a nonresident
10 subcontractor shall register any project with the
11 department of revenue not less than fifteen (15) days
12 following the start of a project pursuant to a contract.
13 The nonresident prime contractor shall provide a properly
14 executed bond as required by paragraph (iii) of this
15 subsection, or a cash deposit of not less than four percent
16 (4%) of the total payments due under the contract. The cash
17 deposit shall be refunded to the contractor upon the
18 department's receipt of a properly executed surety bond or
19 upon satisfactory completion of the project. Failure to
20 register with the department within the time period
21 required by this paragraph shall result in a penalty
22 assessment of one percent (1%) of the total payments due
23 under the contract.

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1 Section 5. W.S. 39-15-303(b)(ii) and 39-16-303(b)(ii)
2 are amended to read:

4 39-15-303. Imposition.

6 (b) Taxpayer. The following shall apply:

8 (ii) Any subcontractor who contracts with a
9 general or prime contractor is liable for sales taxes as a
10 general or prime contractor. The general or prime
11 contractor shall withhold three percent (3%), plus the
12 increased rate under W.S. 39-15-104(b) if the tax under
13 that section is in effect, of the payments due a
14 nonresident subcontractor arising out of the contract
15 entered into between both contractors. The contractor shall
16 withhold the payments until the subcontractor furnishes him
17 with a certificate issued by the department showing all
18 sales taxes accruing by reason of the contract between them
19 have been paid. The department may demand the withholdings
20 at any time to satisfy the sales tax liability of the
21 subcontractor and any balance shall be released by the
22 department to him. If a contractor fails to withhold
23 payments or refuses to remit them upon demand by the
24 department he is liable for any sales taxes due the state

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1 by the nonresident subcontractor. This paragraph shall not
2 apply to any subcontractor hired to provide labor only to
3 alter, construct, improve or repair real property;

5 39-16-303. Imposition.

7 (b) Taxpayer. The following shall apply:

9 (ii) Any subcontractor who contracts with a
10 general or prime contractor is liable for use taxes as a
11 general or prime contractor. The general or prime
12 contractor shall withhold three percent (3%), plus the
13 increased rate under W.S. 39-16-104(b) if the tax under
14 that section is in effect, of the payments due a
15 nonresident subcontractor arising out of the contract
16 entered into between both contractors. The contractor shall
17 withhold the payments until the subcontractor furnishes him
18 with a certificate issued by the department showing all use
19 taxes accruing by reason of the contract between them have
20 been paid. The department may demand the withholdings at
21 any time to satisfy the use tax liability of the
22 subcontractor and any balance shall be released by the
23 department to him. If a contractor fails to withhold
24 payments or refuses to remit them upon demand by the

Page 11

1 department he is liable for any use taxes due the state by
2 the nonresident subcontractor. This paragraph shall not
3 apply to any subcontractor hired to provide labor only to
4 alter, construct, improve or repair real property;

6 Section 6. This act is effective July 1, 2001.

8 (END)

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