Tax free enterprise zones.

13LSO-0277.L6

FISCAL NOTE

The fiscal impact, in the form of increased expenditures by the Wyoming Business Council (WBC) in the form of payments of property tax credits for property taxes paid by manufacturers, is indeterminable. There is no way to determine which cities, towns or counties may create a tax free enterprise zone and where those zones might be created.

Any city, town or county may submit an application to the WBC for certification of a tax free enterprise zone. The WBC may authorize a tax credit for property taxes paid by a manufacturer conducting manufacturing activity within a tax free enterprise zone. Any tax credit shall be referred to the State Loan & Investment Board for final approval or disapproval.

A tax credit shall only be provided if the manufacturer applies to the WBC and demonstrates that the tax free enterprise zone program enticed the manufacturer to begin or continue manufacturing within the tax free enterprise zone. The bill allows a tax credit of 100 percent of the 12 mill property taxes paid to the School Foundation Program in the first year. The credit shall decrease twelve and one-half percent every year thereafter so that after eight years the property of the manufacturer shall no longer be eligible for any credit under this program.

A city, town or county may also grant a tax credit to the manufacturer for any property tax paid to the city, town or county in the amount of 100 percent of any tax paid to the city town or county in the first year. This credit shall decrease twelve and one-half percent every year thereafter so that after eight years the property of the manufacturer shall no longer be eligible for any credit. No city, town or county shall grant this tax credit unless the city, town or county commits to provide revenue to the tax free enterprise zone account equal to the amount of the credit for each year that the credit is authorized.

The WBC shall provide reimbursement for any credit allowed from the tax free enterprise zone account. The WBC shall request the Governor to transfer funds to this account from funds previously appropriated to the WBC. If a tax credit is authorized and the WBC does not have funds available to pay the credit, no credit shall be allowed.

The Office of state Lands & Investments indicates that existing staff can absorb the anticipated workload without adding additional personnel.  However, in the event other pending legislation is enacted, additional personnel may be required because of the cumulative impact to existing staff levels.

NOTICE-AGENCY ESTIMATE OF ADMINISTRATIVE IMPACT REQUESTED

This bill has administrative impact that appears to increase (or decrease) duties or responsibilities of one or more state agencies and may impact agency spending or staffing requirements. As introduced, the bill does not modify any state agency budget or current personnel authorizations.

The following state agencies will be asked to provide their estimate of the administrative fiscal impact prior to the first committee meeting held to consider the bill:

Wyoming Business Council

Prepared by:   Dean Temte, LSO       Phone: 777-7881

(Information provided by Marvin Applequist, Dept. of Revenue; 777-5235)