2000 State of Wyoming 00LSO-0410 SUBSTUTUTE NO. 1
1
2 That Substitute No. 1 for HB0196 DO PASS. HINES, CHAIRMAN
HOUSE BILL NO. HB0196
Taxation of services.
Sponsored by: Representative(s) Hines and Tanner
A BILL
for
1 AN ACT relating to taxation and revenue; imposing an excise
2 tax on services as specified; providing exemptions;
3 requiring a report; and providing for an effective date.
4
5 Be It Enacted by the Legislature of the State of Wyoming:
6
7 Section 1. W.S. 39-15-101(a) by creating a new
8 paragraph (xvii), 39-15-103(a)(i) by creating a new
9 subparagraph (P), 39-15-105(a)(intro) and by creating a new
10 subsection (b), 39-16-103(a) by creating a new paragraph
11 (iv) and 39-16-105(a)(intro) and by creating a new
12 subsection (b) are amended to read:
13
14 39-15-101. Definitions.
15
16 (a) As used in this article:
17
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1 (xvii) The following definitions apply to the
2 sales tax on services imposed under W.S.39-15-103(a)(i)(P)
3 and use tax on services imposed under W.S.
4 39-16-103(a)(iv):
5
6 (A) "Sales price for services" means a fee,
7 retainer, commission or other monetary charge for a
8 service, but excludes charges to the purchaser, which the
9 service provider separately identifies to the purchaser,
10 for:
11
12 (I) Tangible personal property used in
13 providing the service; and
14
15 (II) A service provided by another
16 service provider.
17
18 (B) "Service" means all activities engaged
19 in for other persons for a fee, retainer, commission, or
20 other monetary charge, which activities involve
21 predominantly the performance of a service as distinguished
22 from selling property. In determining what is a service,
23 the intended use, principal objective or ultimate objective
24 of the contracting parties shall not be controlling. For
Page 2
1 the purposes of this definition, service shall not include
2 any service rendered by an employee for his employer or any
3 service taxable under W.S. 39-15-103(a)(i)(A) through (O);
4
5 (C) "Service provider" means any person
6 engaged in the business of selling at retail or wholesale
7 services which are subject to taxation under W.S.
8 39-15-103(a)(i)(P). For the purpose of this article, and
9 unless otherwise specifically provided, a service provider
10 is deemed to be a vendor. A person who is both a vendor and
11 service provider under this article, or article 16 of this
12 title, shall only be required to obtain one (1) sales tax
13 license under this article, or article 16 of this title as
14 applicable.
15
16 39-15-103. Imposition.
17
18 (a) Taxable event. The following shall apply:
19
20 (i) Except as provided by W.S. 39-15-105, there
21 is levied an excise tax upon:
22
Page 3
1 (P) The sales price for services provided
2 by a service provider not otherwise subject to tax under
3 subparagraphs (A) through (O) of this paragraph.
4
5 39-15-105. Exemptions.
6
7 (a) The following sales or leases are exempt from the
8 excise tax imposed by this article under W.S.
9 39-15-103(a)(i)(A) through (O):
10
11 (b) The following sales of services are exempt from
12 the excise tax imposed by this article under W.S.
13 39-15-103(a)(i)(P):
14
15 (i) For the purpose of exempting sales of
16 services which are protected by the United States
17 constitution and the Wyoming constitution, the following
18 are exempt:
19
20 (A) Sales which the state of Wyoming is
21 prohibited from taxing under the laws or constitutions of
22 the United States or Wyoming.
23
Page 4
1 (ii) For the purpose of exempting sales of
2 services protected by federal law, the following are
3 exempt:
4
5 (A) Interstate transportation of freight or
6 passengers.
7
8 (iii) For the purpose of exempting sales of
9 services consumed in production, the following are exempt:
10
11 (A) Intrastate transportation by public
12 utility or others of raw farm products to processing or
13 manufacturing plants.
14
15 (iv) For the purpose of exempting sales of
16 services sold to or by government, irrigation districts and
17 weed and pest control districts, the following are exempt:
18
19 (A) Sales of services to or by the state of
20 Wyoming or its political subdivisions;
21
22 (B) Labor or service charges, including
23 transportation and travel, for the repair, alteration or
24 improvement of real property or tangible personal property
Page 5
1 owned by, or incorporated in projects under contract to the
2 state of Wyoming or any of its political subdivisions,
3 including an irrigation district created under W.S.
4 41-7-201 through 41-7-210, and a weed and pest control
5 district created under W.S. 11-5-101 et seq.
6
7 (v) For the purpose of exempting sales of
8 services which are alternatively taxed, the following are
9 exempt:
10
11 (A) The gross receipts from furnishing
12 goods or services to the purchaser or his successor in
13 interest of tangible personal property to fulfill a
14 warranty obligation of the manufacturer to the extent that
15 such goods or services are not charged to the purchaser or
16 his successor in interest;
17
18 (B) All sales of services subject to
19 taxation under W.S. 39-15-103(a)(i)(A) through (O).
20
21 (vi) For the purpose of exempting sales of
22 services which are essential human services, the following
23 are exempt:
24
Page 7
1 (A) Intrastate transportation by public
2 utility or others of sick, injured or deceased persons by
3 ambulance or hearse;
4
5 (B) Health services as follows:
6
7 (I) Services which constitute the
8 practice of dentistry, as defined under W.S.
9 33-15-128(a)(ii), when provided directly by a person
10 licensed to practice dentistry under W.S. 33-15-108(a);
11
12 (II) Services which constitute the
13 practice of medicine when provided directly by a person
14 licensed to practice medicine under W.S. 33-26-303.
15
16 (vii) For the purpose of exempting sales of
17 services provided primarily to businesses, the following
18 are exempt:
19
20 (A) Interstate or intrastate transportation
21 of drilling rigs, including charges for the movement or
22 conveyance of the drilling rig to or away from the well
23 site and the loading, unloading, assembly or disassembly of
24 the drilling rig;
Page 7
1
2 (B) A person regularly engaged in the
3 business of making loans or a supervised financial
4 institution, as defined in W.S. 40-14-140(a)(xix), that
5 forecloses a lien or repossesses a motor vehicle on which
6 it has filed a lien shall not be liable for payment of
7 sales or use tax, penalties or interest due under this
8 section or W.S. 39-16-108 for that vehicle.
9
10 (viii) For the purpose of exempting sales of
11 services as an economic incentive, the following are
12 exempt:
11
14 (A) Intrastate transportation by public
15 utility or others of:
16
17 (I) Employees to or from work when
18 paid or contracted for by the employee or employer;
19
20 (II) Freight and property including
21 oil and gas by pipeline.
22
23 (B) Sales of the services of professional
24 engineers, geologists or members of similar professions and
Page 8
1 charges made by contractors, whether on a per diem, lineal
2 footage, fee or other contract basis for the drilling of
3 any wells for the production or attempted production of oil
4 or gas, or for the deepening of any wells previously
5 drilled for oil or gas below the maximum depth to which
6 they were initially drilled, or for the drilling of
7 stratigraphic test or core holes for the sole purpose of
8 obtaining geologic information;
9
10 (C) Sales of services performed for the
11 repair, assembly, alteration or improvement of railroad
12 rolling stock;
13
14 (D) Sales of lodging services provided by a
15 person known to the trade and public as a guide or
16 outfitter, including but not limited to sleeping
17 accommodations, placement of tents, snow shelters, base
18 camps, temporary structures which are dismantled or
19 abandoned after use and all other forms of temporary
20 shelter are exempt from the excise tax imposed by W.S.
21 39-15-204(a)(ii) as distributed by W.S. 39-15-211(a)(ii);
22
23 (E) The sale of all services used for
24 aircraft repair, remodeling and maintenance services when
Page 9
1 the services are performed on an aircraft, aircraft engine
2 or aircraft component materials or parts. For purposes of
3 this subparagraph, "aircraft" means aircraft used in a
4 scheduled interstate federal aviation administration air
5 carrier operation;
6
7 (F) The gross receipts from transaction
8 from persons performing services if the use of the service
9 or execution of the project occurs entirely outside the
10 state.
11
12 39-16-103. Imposition.
13
14 (a) Taxable event. The following shall apply:
15
16 (iv) There is levied an excise tax upon the
17 sales price for services provided by a service provider not
18 otherwise subject to tax under paragraphs (i) through (iii)
19 of this subsection.
20
21 39-16-105. Exemptions.
22
Page 10
1 (a) The following purchases or leases are exempt from
2 the excise tax imposed by this article under W.S.
3 39-16-103(a)(i) through (iii):
4
5 (b) The following sales of services are exempt from
6 the excise tax imposed by this article under W.S.
7 39-16-103(a)(iv):
8
9 (i) For the purpose of exempting sales of
10 services which are protected by the United States
11 constitution and the Wyoming constitution, the following
12 are exempt:
13
14 (A) Sales which the state of Wyoming is
15 prohibited from taxing under the laws or constitutions of
16 the United States or Wyoming.
17
18 (ii) For the purpose of exempting sales of
19 services protected by federal law, the following are
20 exempt:
21
22 (A) Interstate transportation of freight or
23 passengers.
24
Page 11
1 (iii) For the purpose of exempting sales of
2 services consumed in production, the following are exempt:
3
4 (A) Intrastate transportation by public
5 utility or others of raw farm products to processing or
6 manufacturing plants.
7
8 (iv) For the purpose of exempting sales of
9 services sold to or by government, irrigation districts and
10 weed and pest control districts, the following are exempt:
11
12 (A) Sales of services to or by the state of
13 Wyoming or its political subdivisions;
14
15 (B) Labor or service charges, including
16 transportation and travel, for the repair, alteration or
17 improvement of real property or tangible personal property
18 owned by, or incorporated in projects under contract to the
19 state of Wyoming or any of its political subdivisions,
20 including an irrigation district created under W.S.
21 41-7-201 through 41-7-210, and a weed and pest control
22 district created under W.S. 11-5-101 et seq.
23
Page 12
1 (v) For the purpose of exempting sales of
2 services which are alternatively taxed, the following are
3 exempt:
4
5 (A) The gross receipts from furnishing
6 goods or services to the purchaser or his successor in
7 interest of tangible personal property to fulfill a
8 warranty obligation of the manufacturer to the extent that
9 such goods or services are not charged to the purchaser or
10 his successor in interest;
11
12 (B) All sales of services subject to
13 taxation under W.S. 39-15-103(a)(i)(A) through (O).
14
15 (vi) For the purpose of exempting sales of
16 services which are essential human services, the following
17 are exempt:
18
19 (A) Intrastate transportation by public
20 utility or others of sick, injured or deceased persons by
21 ambulance or hearse;
22
23 (B) Health services as follows:
24
Page 13
1 (I) Services which constitute the
2 practice of dentistry, as defined under W.S.
3 33-15-128(a)(ii), when provided directly by a person
4 licensed to practice dentistry under W.S. 33-15-108(a);
5
6 (II) Services which constitute the
7 practice of medicine when provided directly by a person
8 licensed to practice medicine under W.S. 33-26-303.
9
10 (vii) For the purpose of exempting sales of
11 services provided primarily to businesses, the following
12 are exempt:
13
14 (A) Interstate or intrastate transportation
15 of drilling rigs, including charges for the movement or
16 conveyance of the drilling rig to or away from the well
17 site and the loading, unloading, assembly or disassembly of
18 the drilling rig;
19
20 (B) A person regularly engaged in the
21 business of making loans or a supervised financial
22 institution, as defined in W.S. 40-14-140(a)(xix), that
23 forecloses a lien or repossesses a motor vehicle on which
24 it has filed a lien shall not be liable for payment of
Page 14
1 sales or use tax, penalties or interest due under this
2 section or W.S. 39-16-108 for that vehicle.
3
4 (viii) For the purpose of exempting sales of
5 services as an economic incentive, the following are
6 exempt:
7
8 (A) Intrastate transportation by public
9 utility or others of:
10
11 (I) Employees to or from work when
12 paid or contracted for by the employee or employer;
13
14 (II) Freight and property including
15 oil and gas by pipeline.
16
17 (B) Sales of the services of professional
18 engineers, geologists or members of similar professions and
19 charges made by contractors, whether on a per diem, lineal
20 footage, fee or other contract basis for the drilling of
21 any wells for the production or attempted production of oil
22 or gas, or for the deepening of any wells previously
23 drilled for oil or gas below the maximum depth to which
24 they were initially drilled, or for the drilling of
Page 15
1 stratigraphic test or core holes for the sole purpose of
2 obtaining geologic information;
3
4 (C) Sales of services performed for the
5 repair, assembly, alteration or improvement of railroad
6 rolling stock;
7
8 (D) Sales of lodging services provided by a
9 person known to the trade and public as a guide or
10 outfitter, including but not limited to sleeping
11 accommodations, placement of tents, snow shelters, base
12 camps, temporary structures which are dismantled or
13 abandoned after use and all other forms of temporary
14 shelter are exempt from the excise tax imposed by W.S.
15 39-15-204(a)(ii) as distributed by W.S. 39-15-211(a)(ii);
16
17 (E) The sale of all services used for
18 aircraft repair, remodeling and maintenance services when
19 the services are performed on an aircraft, aircraft engine
20 or aircraft component materials or parts. For purposes of
21 this subparagraph, "aircraft" means aircraft used in a
22 scheduled interstate federal aviation administration air
23 carrier operation;
24
Page 16
1 (F) The gross receipts from transaction
2 from persons performing services if the use of the service
3 or execution of the project occurs entirely outside the
4 state.
5
6 Section 2.
7
8 (a) The department of revenue shall consult with
9 boards and commissions created under law for the licensing
10 of professions and occupations in developing proposed rules
11 and regulations to implement the excise tax on services
12 provided by this act. The department shall use the results
13 of that consultation to the extent practicable so that the
14 tax imposed can be collected as efficiently as possible
15 under a system that encourages taxpayer compliance.
16
17 (b) Not later than October 1, 2000, the department of
18 revenue shall report to the joint revenue interim committee
19 recommendations for modifications to this act necessary for
20 proper and efficient administration of the tax on services
21 established herein.
22
Page 17
1 Section 3. Section 2 of this act is effective
2 immediately upon completion of all acts necessary for a
3 bill to become law as provided by Article 4, Section 8 of
4 the Wyoming Constitution. The balance of this act is
5 effective April 1, 2001.
6
7 (END)
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