Wyoming Legislature

Committee Meeting Summary of Proceedings

Joint Revenue Committee

Intangible Property Subcommittee Meeting Information

October 22, 2004

Room 302, Capitol Building

Cheyenne, Wyoming

Committee Members Present

Senator Jayne Mockler, Chairman

Representative Rodney “Pete” Anderson

Representative Tom Lockhart

Brenda Arnold, Laramie County Assessor

Wade Hall, Department of Revenue

Casey Parker, Attorney General's Office

Bobby Rolston, Anadarko Corporation

Ken Uhrich, Department of Revenue

Michael Walden-Newman, Wyoming Taxpayer's Association

Liz Zerga, Attorney

Legislative Service Office Staff

Mark Quiner, Assistant Director

Others Present at Meeting

Please refer to Appendix 1 to review the Committee Sign-in Sheet
for a list of other individuals who attended the meeting.

Call To Order

Chairman Mockler called the meeting to order at 8:30 a.m..  Mr. Quiner called the roll.  Chairman Mockler then had all the members of the audience introduce themselves and indicate who they were representing.  The following sections summarize the Subcommittee proceedings by topic.  The meeting generally followed the prepared agenda.  Attachment 2.

Update on Verizon Case

Ms. Casey Parker, Attorney General's Office, informed the Subcommittee that Verizon Wireless and the Department of Revenue had settled the case for current tax years.  However, this does not change the issue of intangibles for future tax years.

9.5% property classification solution

Ms. Brenda Arnold, Laramie County Assessor, explained her suggested solution for keeping property in the 9.5% tax classification at status quo (with the inclusion of intangibles) for the current tax years until a permanent solution is reached.  Attachment 3.  Three approaches were presented in Attachment 3:  amend the definition of real property to include intangible property, define intangible real property, or amend the property tax exemption statute.

Following discussion, Representative Anderson moved that a bill be drafted for submission to the Joint Revenue Interim Committee to address the first option.  The motion passed.

Preliminary list of intangibles by category

Chairman Mockler explained the list of intangibles by category that she and Don Richards of LSO worked on.  Attachment 4.  Chairman Mockler indicated the list was just for study by the Subcommittee.

Interim study discussion

Chairman Mockler explained there are two proposals for a bill draft for an interim study on the topic of intangible property taxation. 

Ms. Liz Zerga and Ms. Casey Parker explained their respective proposals for the interim study.  Attachments 5 & 6.  Representative Anderson explained his proposed amendment to the study bill.  Attachment 7. 

Mr. Norm Ross, Pacificorp, provided information on the 2003 Wyoming property assessment.  Attachment 8.  He indicated that centrally assessed non-minerals property represents around 7% of the total state's assessed value.  The majority of the intangible property that the Subcommittee is discussing if exempted by the Department of Revenue is less than 0.2% of the total state assessed value.

Following discussion, the Subcommittee proposed a bill draft to create a joint task force composed of members from the public and private sectors to study the issue of intangibles in-depth during the 2005 interim.  The bill would basically incorporate the draft by Ms. Parker except create a task force.

Mr. Bobby Rolston moved that the bill be drafted as agreed upon by the Subcommittee for submission to the Joint Revenue Interim Committee.  The motion passed.

Department of Revenue Information

Mr. Ken Uhrich and Mr. Wade Hall of the Department of Revenue explained the information on the 2004 tax year summary including 2004 state assessed values.  Attachments 9 & 10.

Following discussion, Representative Anderson moved that a bill be drafted for submission to the Joint Revenue Interim Committee with the following language:  "For the tax year 2005, the department of revenue shall exempt from property taxation all intangible property that is separately identified from the taxpayer's books and records or is reported on the taxpayer's federal tax returns."  The motion passed.

Meeting Adjournment

There being no further business, Chairman Mockler adjourned the meeting at 12:00 pm..

Respectfully submitted,

Senator Jayne Mockler, Chairman