Bill No.: HB0117                     Drafter:  DKG

LSO No.:   11LSO-0349                 Effective Date:  2/18/2011

Enrolled Act No.:    HEA0017

Chapter No.:         48

Prime Sponsor:       Representative Illoway

Catch Title:         Data processing services centers-tax exemptions.

Subject:              Sales and use tax exemptions.

Summary/Major Elements:

· Current law provides a sales and use tax exemption for the purchase or rental of qualifying computer equipment necessary for the operation of a data processing services center.  To qualify for the current exemption, the purchaser must make a capital asset investment in a physical location in this state of not less than five million dollars.

· This act extends the sales and use tax exemption to the purchase of computer software and containers used to transport and house computer equipment.  

· This act also extends the exemption to the purchase or rental of qualifying uninterrupted power supplies, back up power generators, and specialized HVAC equipment necessary for operation of a data processing center if the purchase exceeds two million dollars in any calendar year.

· This act requires a capital asset investment in a physical location in this state of not less than fifty million dollars in order to qualify for the exemption on purchases of power supplies and HVAC equipment.

· This act allows more than one entity to meet the aggregate capital asset investment requirements if they occupy the same facility and offer data services as a single entity.

Comments:

· Report Required:  Report required from Wyoming business council to joint minerals and joint revenue committees on or before December 1 every four years.  Report must include amount of taxes exempted, history of employment generated and a comprehensive history of taxes paid by any entity claiming the exemption.