State Codes and Statutes

Statutes > Wyoming > Title39 > Chapter13

CHAPTER 16 - USE TAX

 

ARTICLE 1 - STATE USE TAX

 

39-16-101. Definitions.

 

(a) As used in this article:

 

(i) "Quarterly return" means a tax return for each offour (4) periods of three (3) consecutive months in a calendar year beginningwith January, April, July or October;

 

(ii) "Retail sale" means the sale of tangible personalproperty to a person for storage, use or consumption and not for subsequentresale;

 

(iii) "Sale" means the transfer of possession oftangible personal property from a vendor for a consideration for storage, useor other consumption in Wyoming excluding the exchange or transfer of tangiblepersonal property upon which the seller has directly or indirectly paid salesor use tax incidental to:

 

(A) A division of partnership assets among the partnersaccording to their interests in the partnership. As used in this subparagraph,"partnership" includes a limited partnership;

 

(B) The formation of a corporation by the owners of a businessand the transfer of their business assets to the corporation in exchange forall the corporation's outstanding stock, except qualifying shares, inproportion to assets contributed;

 

(C) The transfer of assets of shareholders in the formation ordissolution of professional corporations;

 

(D) The dissolution and the pro rata distribution of thecorporation's assets to its stockholders;

 

(E) The transfer of assets from a parent corporation to asubsidiary corporation which is owned at least eighty percent (80%) by theparent corporation, which transfer is solely in exchange for stock orsecurities of the subsidiary corporation;

 

(F) The transfer of assets from a subsidiary corporation whichis owned at least eighty percent (80%) by the parent corporation to a parentcorporation or to another subsidiary which is owned at least eighty percent(80%) by the parent corporation, which transfer is solely in exchange for stockor securities of the parent corporation or the subsidiary which received theassets;

 

(G) A transfer of a partnership interest;

 

(H) The formation of a partnership by the transfer of assets tothe partnership or transfers to a partnership in exchange for proportionateinterests in the partnership;

 

(J) The repossession of personal property by a chattel mortgageholder or foreclosure by a lienholder;

 

(K) The transfer of assets between parent and closely heldsubsidiary corporations, or between subsidiary corporations closely held by thesame parent corporation, or between affiliated companies, partnerships andcorporations which are owned in similar percentages by the same persons."Closely held subsidiary corporation" means a corporation in whichthe parent corporation owns stock possessing at least eighty percent (80%) ofthe total combined voting power of all classes of stock entitled to vote andowns at least eighty percent (80%) of the total number of shares of all otherclasses of stock;

 

(M) The sale of a business entity when sold to a purchaser ofall or not less than eighty percent (80%) of the value of all of the assetswhich are located in this state of the business entity when the purchasercontinues to use the tangible personal property in the operation of an ongoingbusiness entity in this state. As used in this subparagraph, "businessentity" means and includes an individual, partnership, corporation,corporate division, joint stock company or any other association or entity,public or private, or separate business unit thereof.

 

(iv) "Sales price" means the consideration paid by thepurchaser of tangible personal property excluding the actual trade-in valueallowed on tangible personal property and manufacturer rebates for motorvehicles exchanged at the time of the transaction;

 

(v) "Storage" means the keeping or retention in thisstate of tangible personal property purchased from a vendor for any purposeexcept for sale in the course of business or subsequent use outside the state;

 

(vi) "Tangible personal property" means all personalproperty that can be seen, weighed, measured, felt or touched, or that is inany other manner perceptible to the senses. "Tangible personalproperty" includes electricity, water, gas, steam and prewritten computersoftware and includes any controlled substance as defined by W.S.35-7-1002(a)(iv) which is not sold pursuant to a written prescription of orthrough a licensed practitioner as defined by W.S. 35-7-1002(a)(xx);

 

(vii) "Taxpayer" means the purchaser of tangiblepersonal property, admissions or services which are subject to taxation underthis article;

 

(viii) "This article" means W.S. 39-16-101 through 39-16-111;

 

(ix) "Use" means the exercise of any right or powerover tangible personal property incident to ownership or by any transactionwhere possession is given by lease or contract;

 

(x) "Vendor" means any person engaged in the businessof selling at retail or wholesale tangible personal property, having ormaintaining within this state, directly or by any subsidiary, an office,distribution house, sales house, warehouse or other place of business, or anyagents operating or soliciting sales or advertising within this state under theauthority of the vendor or its subsidiary, regardless of whether the place ofbusiness or agent is located in the state permanently or temporarily or whetherthe vendor or subsidiary is qualified to do business within this state. Agentsacting under the authority of the vendor include but are not limited totruckers, peddlers, canvassers, salespersons, representatives, employees,supervisors, distributors, delivery persons or any other persons performingservices in this state. "Vendor" also includes every person whoengages in regular or systematic solicitation by three (3) or more separatetransmittances of an advertisement or advertisements in any twelve (12) monthperiod in a consumer market in this state by the distribution of catalogs,periodicals, advertising flyers, or other advertising, or by means of print,radio, television or other electronic media, by mail, telegraph, telephone,computer data base, cable, optic, microwave, satellite or other communicationsystem for the purpose of effecting retail sales of tangible personal property;

 

(xi) "Tertiary production" means the crude oilrecovered from a petroleum reservoir by means of a tertiary enhanced recoveryproject to which one (1) or more tertiary enhanced recovery techniques meetingthe certification requirements of the Wyoming oil and gas conservationcommission or the United States government are being applied;

 

(xii) "Purchase price" means "sales price" asdefined under W.S. 39-15-101;

 

(xiii) "Directly and predominantly in manufacturing"means an item manufactured from inventoried raw or prepared material beginningat the point at which raw or prepared material is moved from plant inventory ona contiguous plant site and ending at a point at which manufacturing hasaltered the raw or prepared material to its completed form, includingpackaging, if required. Machinery used during the manufacturing process to movematerial from one direct production step to another in a continuous flow andmachinery used in testing during the manufacturing process shall be deemed tobe used directly and predominantly in manufacturing;

 

(xiv) "Machinery" means all tangible personal propertyeligible for a use tax exemption pursuant to W.S. 39-16-105(a)(viii)(D), usedto produce an article of tangible personal property. The term includes both thebasic unit and any adjunct or attachment necessary for the basic unit toaccomplish its intended function, the materials for the construction or repairof machinery, and machine tools;

 

(xv) "Manufacturing" means the operation of producinga new product, article, substance or commodity different from and having adistinctive nature, character or use from the raw or prepared material;

 

(xvi) "NAICS" means the Northern American IndustryClassification System manual of 2002 that organizes establishments intoindustries on the basis of the activity in which they are primarily engaged;

 

(xvii) Telecommunications definitions:

 

(A) "800 service" means a telecommunications servicethat allows a caller to dial a toll-free number without incurring a charge forthe call. The service is typically marketed under the name "800","855", "866", "877" and "888" toll-freecalling, and any subsequent numbers designated by the Federal CommunicationsCommission;

 

(B) "900 service" means an inbound tolltelecommunications service purchased by a subscriber that allows thesubscriber's customers to call in to the subscriber's prerecorded announcementor live service. 900 service shall not include the charge for collectionservices provided by the seller of the telecommunications services to thesubscriber or service or product sold by the subscriber to the subscriber'scustomer. The service is typically marketed under the name "900"service, and any subsequent numbers designated by the Federal CommunicationsCommission;

 

(C) "Ancillary services" means services that areassociated with or incidental to the provision of telecommunications services,including but not limited to detailed telecommunications billing, directoryassistance, vertical service and voice mail services;

 

(D) "Coin-operated telephone service" means atelecommunications service paid for by inserting money into a telephoneaccepting direct deposits of money to operate;

 

(E) "Conference bridging service" means an ancillaryservice that links two (2) or more participants of an audio or videoconference call and may include the provision of a telephone number. Conference bridging service shall not include the telecommunications servicesused to reach the conference bridge;

 

(F) "Detailed telecommunications billing service"means an ancillary service of separately stating information pertaining toindividual calls on a customer's billing statement;

 

(G) "Directory assistance" means an ancillary serviceof providing telephone number information or address information;

 

(H) "Fixed wireless service" means atelecommunications service that provides radio communication between fixedpoints;

 

(J) "International" means a telecommunicationsservice that originates or terminates in the United States and terminates ororiginates outside the United States, respectively. United States includes theDistrict of Columbia or a United States territory or possession;

 

(K) "Interstate" means a telecommunications servicethat originates in one (1) state of the United States or a United Statesterritory or possession and terminates in a different state of the UnitedStates or a United States territory or possession;

 

(M) "Intrastate" means a telecommunications servicethat originates in one (1) state of the United States or a United Statesterritory or possession and terminates in the same state of the United Statesor a United States territory or possession;

 

(N) "Mobile wireless service" means atelecommunications service that is transmitted, conveyed or routed regardlessof the technology used, whereby the origination or termination points of thetransmission, conveyance or routing are not fixed, including, by way of exampleonly, telecommunications services that are provided by a commercial mobileradio service provider;

 

(O) "Paging service" means a telecommunicationsservice that provides transmission of coded radio signals for the purpose ofactivating specific pagers which transmissions may include messages or sounds;

 

(P) "Pay telephone service" means atelecommunications service provided through any pay telephone;

 

(Q) "Prepaid calling service" means the right toaccess exclusively telecommunications services, which requires advance paymentand which enables the origination of calls using an access number orauthorization code, whether manually or electronically dialed, and that is soldin predetermined units or dollars of which the number declines with use in aknown amount;

 

(R) "Prepaid wireless calling service" means atelecommunications service that provides the right to utilize mobile wirelessservice as well as other nontelecommunications services including the downloadof digital products delivered electronically, content and ancillary services,which require advance payment that is sold in predetermined units of dollars ofwhich the number declines with use in a known amount;

 

(S) "Private communications service" means atelecommunications service that entitles the customer to exclusive or priorityuse of a communications channel or group of channels between or amongtermination points, regardless of the manner in which the channel or channelsare connected, and includes switching capacity, extension lines, stations andany other associated services that are provided in connection with the use ofthe channel or channels;

 

(T) "Residential telecommunications service" means atelecommunications service or ancillary services provided to an individual forpersonal use at a residential address, including an individual dwelling unitsuch as an apartment. In the case of institutions where individuals reside suchas schools or nursing homes, telecommunications service is consideredresidential if it is provided to and paid for by an individual resident ratherthan the institution;

 

(U) "Telecommunications service" means the electronictransmission, conveyance or routing of voice, data, audio, video, or any otherinformation or signals to a point, or between or among points. The termtelecommunications service includes such transmission, conveyance, or routingin which computer processing applications are used to act on the form, code orprotocol of the content for purposes of transmission, conveyance or routingwithout regard to whether such service is referred to as voice over Internetprotocol services or is classified by the Federal Communications Commission asenhanced or value added. Telecommunications service shall not include:

 

(I) Data processing and information services that allow data tobe generated, acquired, stored, processed, or retrieved and delivered by anelectronic transmission to a purchaser where the purchaser's primary purposefor the underlying transaction is the processed data or information;

 

(II) Installation or maintenance of wiring or equipment on acustomer's premises;

 

(III) Tangible personal property;

 

(IV) Advertising, including but not limited to directoryadvertising;

 

(V) Billing and collection services provided to third parties;

 

(VI) Internet access service;

 

(VII) Radio and television audio and video programming services,regardless of the medium, including the furnishing of transmission, conveyanceand routing of the services by the programming service provider. Radio andtelevision audio and video programming services shall include but not belimited to cable service as defined in 47 U.S.C. 522(6) and audio and videoprogramming services delivered by commercial mobile radio service providers, asdefined in 47 C.F.R. 20.3;

 

(VIII) Ancillary services; or

 

(IX) Digital products delivered electronically, including butnot limited to software, music, video, reading materials or ring tones.

 

(W) "Value-added nonvoice data service" means aservice that otherwise meets the definition of telecommunications services inwhich computer processing applications are used to act on the form, content,code or protocol of the information or data primarily for a purpose other thantransmission, conveyance or routing;

 

(Y) "Vertical service" means an ancillary servicethat is offered in connection with one (1) or more telecommunications services,which offers advanced calling features that allow customers to identify callersand to manage multiple calls and call connections, including conferencebridging services;

 

(Z) "Voice mail service" means an ancillary servicethat enables the customer to store, send or receive recorded messages. Voicemail service does not include any vertical services that the customer may berequired to have in order to utilize the voice mail service.

 

(xviii) "Food" means food for domestic home consumptionas defined by department rule and regulation.

 

(b) Definitions under W.S. 39-15-101 shall apply to thisarticle unless otherwise specified.

 

39-16-102. Administration; confidentiality.

 

(a) This article is known and may be cited as the "Use TaxAct of 1937".

 

(b) The administration of this article is vested in thedepartment of revenue.

 

(c) No state employee or other person who by virtue of hisemployment has knowledge of the business affairs of any person filing orrequired to file any tax returns under this article shall make known theircontents in any manner or permit any person to have access to any returns orinformation contained therein except as provided by law. The department mayalso allow the following:

 

(i) The delivery to the taxpayer or his legal representativesupon written request of a copy of any return or report in connection with histax;

 

(ii) The publication of statistics so classified to prevent theidentification of particular returns or reports;

 

(iii) The inspection by the attorney general of the state of thereport or return of any person who brings an action against the state, oragainst whom an action is contemplated or has been instituted;

 

(iv) The introduction into evidence of any report or return orinformation therefrom in any administrative or court proceeding to which theperson making the report or return is a party;

 

(v) The furnishing of any information to the United Statesgovernment and its territories, the District of Columbia, any state allowingsimilar privileges to the department or to the multistate tax commission forrelay to tax officials of cooperating states. Information furnished shall beonly for tax purposes;

 

(vi) The inspection of tax returns and records by the office ofthe director of the state department of audit;

 

(vii) The sharing of information with local government entitiesand other state agencies, provided a written request is made to the departmentand the governmental entity or agency demonstrates sufficient reason to obtainthe information for official business purposes.

 

(d) The state preempts the field of imposing tax upon sales andstorage, use and consumption of tangible personal property as provided by thisarticle. No county, city, town or other political subdivision may impose, levyor collect taxes upon sales or storage, use or consumption of tangible personalproperty except as provided in this section.

 

(e) Revenue collected pursuant to this section shall beadministered in accordance with W.S. 39-16-202(c) and distributed in accordancewith W.S. 39-16-211.

 

39-16-103. Imposition.

 

(a) Taxable event. The following shall apply:

 

(i) Persons storing, using or consuming tangible personalproperty or specified digital products, except as otherwise provided in thisparagraph, are liable for the tax imposed by this article. Specified digitalproducts are only subject to the tax imposed by this article if the purchaserhas permanent use of the specified digital product. A vendor who purchasesspecified digital products for further commercial broadcast, rebroadcast,transmission, retransmission, licensing, relicensing, distribution,redistribution or exhibition in whole or in part to another person shall beconsidered a wholesaler and not subject to the tax imposed by this article.Those services provided by a trade association as part of a member benefit arenot subject to the tax imposed by this subparagraph. The liability is notextinguished until the tax has been paid to the state but a receipt given tothe person by a registered vendor in accordance with paragraph (c)(i) of thissection is sufficient to relieve the purchaser from further liability;

 

(ii) Specified digital products sold and tangible personalproperty sold by any person for delivery in this state is deemed sold forstorage, use or consumption herein and is subject to the tax imposed by thisarticle unless the person selling the property has received from the purchasera signed certificate stating the property was purchased for resale and showinghis name and address. Specified digital products are only subject to the taximposed by this article as specified in paragraph (i) of this subsection;

 

(iii) Computer hardware, including the basic set of operatinginstructions called system software which is necessary to the basic operationof the computer hardware and hardware media used to transfer computer softwareprograms are subject to the provisions of paragraphs (i) and (ii) of this subsection.

 

(b) Basis of tax. The following shall apply:

 

(i) Specified digital products sold and tangible personalproperty sold by any person for delivery in this state is deemed sold forstorage, use or consumption herein and is subject to the tax imposed by thisarticle unless the person selling the property has received from the purchasera signed certificate stating the property was purchased for resale and showinghis name and address. Specified digital products are only subject to the taximposed by this article as specified in paragraph (a)(i) of this section;

 

(ii) For purposes of W.S. 39-16-107(b)(ii), the sales price ofmotor vehicles, house trailers, trailer coaches, trailers or semitrailers asdefined by W.S. 31-1-101 shall be declared by the purchaser upon a copy of theoriginal invoice from the vendor or upon an affidavit furnished by thedepartment if not purchased from a vendor and the tax collected shall be basedupon the declaration or invoice;

 

(iii) Except for those vehicles specified under W.S.39-16-107(b)(iv), the use tax imposed by this article upon a motor vehicle,house trailer, trailer coach, trailer or semitrailer purchased outside thestate of Wyoming as a gift shall be collected from the donee prior to the firstregistration based upon the fair market value of the gift at the time of thegift;

 

(iv) The tax imposed by this article upon the sale of atransportable home shall be collected upon the first sale of the transportablehome. The tax shall be collected on seventy percent (70%) of the sales priceof the transportable home. No tax shall be collected upon any subsequent saleof the home.

 

(c) Taxpayer. The following shall apply:

 

(i) Except as otherwise provided, there is levied and shall bepaid by the purchaser an excise tax at the same rate applied under W.S.39-15-104 upon sales in Wyoming. The vendor shall collect the tax and give thepurchaser a receipt therefor displaying the tax paid separately;

 

(ii) Persons storing, using or consuming tangible personalproperty or specified digital products are liable for the tax imposed by thisarticle. Specified digital products are only subject to the tax imposed by thisarticle as specified in paragraph (a)(i) of this section. The liability is notextinguished until the tax has been paid to the state but a receipt given tothe person by a registered vendor in accordance with paragraph (i) of thissubsection is sufficient to relieve the purchaser from further liability;

 

(iii) For purposes of W.S. 39-16-107(b)(ii), the sales price ofmotor vehicles, house trailers, trailer coaches, trailers or semitrailers asdefined by W.S. 31-1-101 shall be declared by the purchaser upon a copy of theoriginal invoice from the vendor or upon an affidavit furnished by thedepartment if not purchased from a vendor and the tax collected shall be basedupon the declaration or invoice;

 

(iv) Except for those vehicles specified under W.S. 39-16-107(b)(iv), the use tax imposed by this article upon a motor vehicle, housetrailer, trailer coach, trailer or semitrailer purchased outside the state ofWyoming as a gift shall be collected from the donee prior to the firstregistration based upon the fair market value of the gift at the time of thegift;

 

(v) Every vendor shall collect the tax imposed by this articleand is liable for the entire amount of taxes imposed;

 

(vi) Every person storing, using or consuming tangible personalproperty or specified digital products purchased from a vendor who does notmaintain a place of business in this state is liable for the tax imposed bythis article. Specified digital products are only subject to the tax imposedby this article as specified in paragraph (a)(i) of this section;

 

(vii) If any vendor discontinues his business or sells his stockof goods he shall make a final return and payment within thirty (30) daysthereafter. His successor in business shall withhold from the purchase price anamount equal to any taxes, penalty or interest due until the time the formerowner produces a receipt from the department showing that all amounts due havebeen paid or a certificate that no taxes are due. If the successor fails towithhold from the purchase price the amount due he is liable for same;

 

(viii) Any tax due under this article constitutes a debt to thestate from the persons who are parties to the transaction and is a lien fromthe date due on all the property of those persons. The tax lien shall havepreference over all liens except any valid mortgage or other liens of recordfiled or recorded prior to the date the tax became due. When the tax iscollected by a retailer or his agent, the tax lien has the same status as salestax liens under W.S. 39-15-108(d)(i).

 

39-16-104. Taxation rate.

 

(a) Except as otherwise provided, there is levied and shall bepaid by the purchaser an excise tax at the same rate applied under W.S. 39-15-104upon sales in Wyoming.

 

(b) Effective July 1, 1993, in addition to the use tax undersubsection (a) of this section, there is imposed an additional use tax of onepercent (1%) which shall be administered as if the use tax rates undersubsection (a) of this section were increased from three percent (3%) to fourpercent (4%). The revenue from these increases shall be distributed in thesame manner as other use tax revenue under that subsection.

 

(c) Repealed by Laws 2000, Ch. 26, 1.

 

(d) Repealed By Laws 2007, Ch. 140, 2.

 

(e) The tax rate imposed upon a transaction subject to thischapter shall be sourced as follows:

 

(i) The retail purchase, excluding lease or rental, of aproduct shall be sourced as follows:

 

(A) When the product is received by the purchaser at a businesslocation of the seller, the purchase shall be sourced to that businesslocation;

 

(B) When the product is not received by the purchaser at abusiness location of the seller, the purchase shall be sourced to the locationwhere receipt by the purchaser, or the purchaser's agent designated as such bythe purchaser, occurs, including the location indicated by instruction fordelivery to the purchaser or donee, known to the seller;

 

(C) When subparagraphs (A) and (B) of this paragraph do notapply, the purchase shall be sourced to the location indicated by an addressfor the purchaser that is available from the business records of the sellerthat are maintained in the ordinary course of the seller's business when use ofthis address does not constitute bad faith;

 

(D) When subparagraphs (A) through (C) of this paragraph do notapply, the purchase shall be sourced to the location indicated by an addressfor the purchaser obtained during the consummation of the purchase, includingthe address of a purchaser's payment instrument, if no other address isavailable, when use of this address does not constitute bad faith;

 

(E) When none of the previous rules of subparagraphs (A)through (D) of this paragraph apply, including the circumstance in which theseller is without sufficient information to apply any of the previous rules,then the location shall be determined by the address from which tangiblepersonal property was shipped, from which the digital good or the computersoftware delivered electronically was first available for transmission by theseller, or from which the service was provided, disregarding for these purposesany location that merely provided the digital transfer of the productpurchased;

 

(F) For the purposes of this paragraph the terms"receive" and "receipt" mean taking possession of tangiblepersonal property, making first use of services or taking possession or makingfirst use of digital goods, whichever comes first. The terms"receive" and "receipt" do not include possession by ashipping company on behalf of the purchaser.

 

(ii) The lease or rental of tangible personal property, otherthan property identified in paragraph (iii) or (iv) of this subsection, shallbe sourced as follows:

 

(A) For a lease or rental that requires recurring periodicpayments, the first periodic payment shall be sourced the same as a retailpurchase in accordance with the provisions of paragraph (i) of thissubsection. Periodic payments made subsequently to the first payment shall besourced to the primary property location for each period covered by thepayment. The primary property location shall be as indicated by an address forthe property provided by the lessee that is available to the lessor from itsrecords maintained in the ordinary course of business, when use of this addressdoes not constitute bad faith. The property location shall not be altered byintermittent use at different locations, such as use of the business property thataccompanies employees on business trips and service calls;

 

(B) For a lease or rental that does not require recurringperiodic payments, the payment shall be sourced the same as a retail purchasein accordance with the provisions of paragraph (i) of this subsection;

 

(C) This paragraph shall not affect the imposition orcomputation of sales or use tax on leases or rentals based on a lump sum oraccelerated basis, or on the acquisition of property for lease.

 

(iii) The lease or rental of a motor vehicle, trailer,semi-trailer or aircraft that does not qualify as transportation equipment, asdefined in paragraph (iv) of this subsection shall be sourced as follows:

 

(A) For a lease or rental that requires recurring periodicpayment, each periodic payment shall be sourced to the primary propertylocation. The primary property location shall be as indicated by an addressfor the property provided by the lessee that is available to the lessor fromits records maintained in the ordinary course of business, when use of thisaddress does not constitute bad faith. This location shall not be altered byintermittent use at different locations;

 

(B) For a lease or rental that does not require recurringperiodic payments, the payment shall be sourced the same as a retail purchasein accordance with the provisions of paragraph (i) of this subsection;

 

(C) This paragraph shall not affect the imposition orcomputation of sales or use tax on a lease or rental based on a lump sum oraccelerated basis, or on the acquisition of property for lease.

 

(iv) The retail purchase, including lease or rental oftransportation equipment shall be sourced the same as a retail purchase inaccordance with the provisions of paragraph (i) of this subsection. As used inthis paragraph, "transportation equipment" means any of thefollowing:

 

(A) Locomotives and railcars that are utilized for the carriageof persons or property in interstate commerce;

 

(B) Trucks and truck-tractors with a gross vehicle weightrating (GVWR) of greater than ten thousand (10,000) pounds, trailers,semi-trailers or passenger buses that are:

 

(I) Registered through the international registration plan; and

 

(II) Operated under authority of a carrier authorized andcertified by the United States department of transportation or another federalor a foreign authority to engage in the carriage of personnel or property ininterstate or foreign commerce.

 

(C) Aircraft that are operated by an air carrier authorized andcertified by the United States department of transportation or another federalauthority or a foreign authority to engage in the carriage of persons orproperty in interstate or foreign commerce;

 

(D) Containers designed for use on and component parts attachedor secured on the items set forth in subparagraphs (A) through (C) of thisparagraph.

 

(v) Except for the defined telecommunication services inparagraph (vii) of this subsection, the purchase of telecommunication servicesold on a call-by-call basis shall be sourced to:

 

(A) Each level of taxing jurisdiction where the call originatesand terminates in that jurisdiction; or

 

(B) Each level of taxing jurisdiction where the call eitheroriginates or terminates and in which the service address is also located.

 

(vi) Except for the defined telecommunication services inparagraph (vii) of this subsection, a purchase of telecommunication servicesold on a basis other than a call-by-call basis and any ancillary serviceincidental to the sale, shall be sourced to the customer's place of primaryuse;

 

(vii) The purchase of the following telecommunication servicesshall be sourced to each level of taxing jurisdiction as follows:

 

(A) A purchase of mobile telecommunications services other thanair-to-ground radio telephone service and prepaid calling service, shall besourced to the customer's place of primary use as required by the MobileTelecommunications Sourcing Act, P.L. 106-252;

 

(B) A purchase of post-paid calling service shall be sourced tothe origination point of the telecommunications signal as first identified byeither:

 

(I) The seller's telecommunications system; or

 

(II) Information received by the seller from its serviceprovider, where the system used to transport such signals is not that of theseller.

 

(C) A purchase of prepaid calling service and prepaid wirelesscalling service shall be sourced in accordance with paragraph (i) of thissubsection. Provided however, in the case of a purchase of a prepaid wirelesscalling service, the rule provided in subparagraph (i)(E) of this subsectionshall include as an option the location associated with the mobile telephonenumber;

 

(D) A purchase of a private communication service shall besourced as follows:

 

(I) Service for a separate charge related to a customer channeltermination point shall be sourced to each level of jurisdiction in which thecustomer channel termination point is located;

 

(II) Service where all customer termination points are locatedentirely within one (1) jurisdiction or levels of jurisdiction shall be sourcedin the jurisdiction in which the customer channel termination points arelocated;

 

(III) Service for segments of a channel between two (2) customerchannel termination points located in different jurisdictions and which segmentsof a channel are separately charged shall be sourced fifty percent (50%) ineach level of jurisdiction in which the customer channel termination points arelocated;

 

(IV) Service for segments of a channel located in more than one(1) jurisdiction or levels of jurisdiction and which segments are notseparately billed shall be sourced in each jurisdiction based on the percentagedetermined by dividing the number of customer channel termination points in thejurisdiction by the total number of customer channel termination points.

 

(E) The definitions in W.S. 39-15-104(f)(xi)(E) shall apply toparagraphs (v) through (viii) of this subsection.

 

(f) Any vendor or certified service provider relying on anincorrect rate, boundary or jurisdictional information provided by thedepartment in its tax rate database required under the streamlined sales anduse tax agreement shall not be held liable for any under collection of taxcaused by the department's error.

 

39-16-105. Exemptions.

 

(a) The following purchases or leases are exempt from theexcise tax imposed by this article:

 

(i) For the purpose of exempting sales of services and tangiblepersonal property which are protected by the United States constitution and theWyoming constitution, the following are exempt:

 

(A) Purchases which the state of Wyoming is prohibited fromtaxing under the laws or constitutions of the United States or Wyoming.

 

(ii) For the purpose of exempting sales of services and tangiblepersonal property protected by federal law, the following are exempt:

 

(A) Railroad rolling stock including locomotives purchased byinterstate railroads, aircraft purchased by interstate air carriers which areholders of valid United States civil aeronautics board permits or authorities,and trucks, truck-tractors, trailers, semitrailers and passenger buses inexcess of ten thousand (10,000) pounds gross vehicle weight which are purchasedby common or contract interstate carriers or which are operating in interstatecommerce under exemption clauses in federal law if they are to be used ininterstate commerce;

 

(B) Purchases by Wyoming joint apprenticeship and trainingprograms approved by the department of labor.

 

(iii) For the purpose of exempting sales of services and tangiblepersonal property consumed in production, the following are exempt:

 

(A) Purchases of tangible personal property by a person engagedin the business of manufacturing, processing or compounding when the tangiblepersonal property purchased becomes an ingredient or component of the tangiblepersonal property manufactured, processed or compounded for sale or use andpurchases of containers, labels or shipping cases used for the tangiblepersonal property so manufactured, processed or compounded. This subparagraphshall apply to chemicals and catalysts used directly in manufacturing,processing or compounding which are consumed or destroyed during that process;

 

(B) Purchases of livestock, feeds for use in feeding livestockor poultry for marketing purposes and seeds, roots, bulbs, small plants andfertilizer planted or applied to land, the products of which are to be sold.This exemption applies to, but is not limited to, sales of seeds, roots, bulbs,small plants and fertilizer planted or applied to land subject to a state orfederal crop set aside program;

 

(C) Sales of fuel for use as boiler fuel in the production ofelectricity.

 

(iv) For the purpose of exempting sales of services and tangiblepersonal property sold to government, charitable and nonprofit organizations,irrigation districts and weed and pest control districts, the following areexempt:

 

(A) Purchases made by the state of Wyoming or its politicalsubdivisions;

 

(B) Purchases made by religious or charitable organizations inthe conduct of their regular religious or charitable functions;

 

(C) Purchases by a joint powers board organized under theWyoming Joint Powers Act;

 

(D) Labor or service charges, including transportation andtravel, for the repair, alteration or improvement of real property or tangiblepersonal property owned by, or incorporated in projects under contract to thestate of Wyoming or any of its political subdivisions, including an irrigationdistrict created under W.S. 41-7-201 through 41-7-210, and a weed and pestcontrol district created under W.S. 11-5-101 et seq.;

 

(E) Sales to an irrigation district created under W.S. 41-7-201through 41-7-210;

 

(F) Sales to a weed and pest control district created underW.S. 11-5-101 et seq.

 

(v) For the purpose of exempting sales of services and tangiblepersonal property which are alternatively taxed, the following are exempt:

 

(A) Purchases which are taxable under the provisions of theSelective Sales Tax Act of 1937, and purchases for which a sales tax has beenpreviously paid;

 

(B) Motor vehicle fuel which is subject to taxation under W.S.39-17-101 through 39-17-111 or 39-17-201 through 39-17-211. The exemptionprovided by this subparagraph shall not apply to gasoline or gasohol taxedunder W.S. 39-17-104(a)(iii) or to diesel fuel taxed under W.S.39-17-204(a)(ii).

 

(vi) For the purpose of exempting sales of services and tangiblepersonal property and services which are essential human goods and services,the following are exempt:

 

(A) Purchases of the following tangible personal property soldunder a prescription: drugs for human relief excluding"over-the-counter-drugs", insulin for human relief and any syringe,needle or other device necessary for the administration thereof, oxygen formedical use, blood plasma, prosthetic devices, hearing aids, eyeglasses,contact lenses, mobility enhancing equipment, durable medical equipment and anyassistive device. As used in this subparagraph, "assistive device"means any item, piece of equipment or product system, as defined by departmentrule, which is used to increase, maintain or improve the functionalcapabilities of an individual with a permanent disability, excluding anymedical device, surgical device or organ implanted or transplanted into orattached directly to an individual.

 

(B) Tangible personal property sold by any person for deliveryin this state is deemed sold for storage, use or consumption herein and issubject to the tax imposed by this article unless the person selling theproperty has received from the purchaser a signed certificate stating theproperty was purchased for resale and showing his name and address;

 

(C) Purchases of all noncapitalized equipment and disposablesupplies which are used in the direct medical or dental care of a patient. Theexemption in this subparagraph shall not include capitalized equipment oroffice supplies used in the normal course of business;

 

(D) Sales of water delivered by pipeline or truck;

 

(E) Purchases of food for domestic home consumption.

 

(vii) For the purpose of exempting sales of services providedprimarily to businesses, exemptions shall be as specified by the legislatureand as follows:

 

(A) A person regularly engaged in the business of making loansor a supervised financial institution, as defined in W.S. 40-14-140(a)(xix),that forecloses a lien or repossesses a motor vehicle on which it has filed alien shall not be liable for payment of sales or use tax, penalties or interestdue under W.S. 39-16-108(b) and (c) for that vehicle;

 

(B) The purchase of farm implements. For purposes of thissubparagraph, "farm implements" means any tractor or other machinerydesigned or adapted and used exclusively for agricultural operations andspecifically excludes any vehicle titled under chapter 2 of title 31,snowmobiles, lawn tractors, all-terrain vehicles and repair or replacementparts.

 

(viii) For the purpose of exempting sales of services and tangiblepersonal property as an economic incentive, the following are exempt:

 

(A) Sales of carbon dioxide and other gases used in tertiaryproduction;

 

(B) The purchase of aircraft repair, remodeling or maintenanceservices at a federal aviation administration certified repair stationincluding, but not limited to, repair or replacement materials or parts;

 

(C) Sales of equipment used to generate electricity fromrenewable resources. As used in this subparagraph, "renewableresources" includes wind generation, solar, biomass, landfill gas, hydro,hydrogen and geothermal energy. The exemption provided by this subparagraphshall be limited to the acquisition of equipment used in a project to make itoperational up to the point of interconnection with an existing transmissiongrid including wind turbines, generating equipment, control and monitoringsystems, power lines, substation equipment, lighting, fencing, pipes and otherequipment for locating power lines and poles. The exemption shall not apply totools and other equipment used in construction of a new facility, contractedservices required for construction and routine maintenance activities andequipment utilized or acquired after the project is operational. Thissubparagraph is applicable as follows:

 

(I) On and after January 1, 2010, the exemption shall apply tosales of equipment for projects where either the project developer is thelandowner for the project prior to January 1, 2010, or where the projectdeveloper has, prior to January 1, 2010, entered into a written contract with alandowner that describes the project with specificity, including a descriptionof equipment to be purchased and placed on the landowner's land and has madepayment to the landowner under terms of the contract. To be eligible for theexemption, the project developer shall have received all required permits andapprovals from all governmental agencies for the development and constructionof the project. Evidence of compliance with this subparagraph shall besubmitted to the department with the request for an exemption. Equipmenteligible for the exemption shall be purchased and delivered within the state ofWyoming on or before December 31, 2011 for storage, use or consumption by thedeveloper to qualify for the exemption. The exemption provided under thissubdivision of this subparagraph is repealed effective December 31, 2011;

 

(II) On and after January 1, 2010, the exemption shall apply tosales of equipment used to generate electricity from renewable resources with atotal net rating capacity of not more than twenty-five (25) kilowatts, or wherethe entire renewable energy system is to be for off-grid use. The exemptionprovided under this subdivision of this subparagraph is repealed effective June30, 2012.

 

(D) Until December 31, 2011, the purchase or lease of machineryto be used in this state directly and predominantly in manufacturing tangiblepersonal property, if the sale or lease:

 

(I) Is to a manufacturer classified by the department under theNAICS code manufacturing sector 31 - 33; and

 

(II) Does not include noncapitalized machinery except machineryexpensed in accordance with section 179 of the Internal Revenue Code.

 

(III) Repealed By Laws 2010, Ch. 33, 2.

 

(E) The purchase or lease of any aircraft used in a federalaviation administration air carrier operation including the purchase of all:

 

(I) Tangible personal property permanently affixed or attachedas a component part of the aircraft, including, but not limited to, repair orreplacement materials or parts;

 

(II) Aircraft repair, remodeling and maintenance servicesperformed on the aircraft, its engine or its component materials or parts.

 

(F) Purchases of tangible personal property or servicesperformed for the repair, assembly, alteration or improvement of railroadrolling stock. This subparagraph is repealed effective July 1, 2015;

 

(G) The purchase of equipment used to construct a new coal gasificationor coal liquefaction facility. The exemption provided by this subparagraphshall be limited to the acquisition of equipment used in a project to make itoperational. The exemption shall not apply to tools and other equipment usedin construction of a new facility, contracted services required forconstruction and routine maintenance activities nor to equipment utilized oracquired after the facility is operational;

 

(H) The sales price paid for the purchase or rental ofqualifying computer equipment including computers, servers, monitors,keyboards, storage devices and other peripherals, racking systems, cabling andtrays that are necessary for the operation of a data processing services centerwhen the aggregate purchase of the qualifying computer equipment exceeds twomillion dollars ($2,000,000.00) in any calendar year. For the purpose ofclaiming this exemption, the purchaser shall demonstrate to the department thathe:

 

(I) Has a physical location in this state where the qualifyingcomputer equipment purchased shall be maintained and operated until thequalifying computer equipment is scheduled for replacement or until it hasreached the end of its serviceable life;

 

(II) Shall make an initial total capital asset investment in aphysical location in this state of not less than five million dollars($5,000,000.00) or has made a capital investment in a physical location in thisstate of not less than five million dollars ($5,000,000.00) in the five (5)years immediately preceding the effective date of this subparagraph;

 

(III) Has retained adequate documentation to demonstrate that thetotal purchase of qualifying computer equipment exceeds the annual threshold oftwo million dollars ($2,000,000.00);

 

(IV) Has received annual certification from the Wyoming businesscouncil that the purchaser has created or will create a number of jobs inWyoming that is appropriate to the size and stage of development of the dataprocessing services center as determined by the Wyoming business council;

 

(V) Will accrue the excise tax on purchase of otherwisequalifying computer equipment where the annual threshold of two million dollars($2,000,000.00) was not met. The tax shall be remitted to the department notlater than the end of January immediately following the end of the calendaryear where the threshold was not met to avoid the assessment of penalty andinterest on any amount of tax due;

 

(VI) Shall keep adequate written records and documentation inaccordance with department rule and regulation to show compliance with therequirements of this subparagraph. If the purchaser does not meet all therequirements of this subparagraph, any tax owed shall be remitted to thedepartment not later than the end of January immediately following the end ofthe calendar year in which the requirements were not met.

 

(ix) W.S. 39-15-108(b)(ii) and 39-15-107(b)(iv) apply to usetaxes under this article;

 

(x) For the purpose of avoiding application of the use tax morethan once on the same article of tangible property for the same taxpayer:

 

(A) The trade-in value of tangible personal property shall beexcluded from the sales price of new tangible personal property when trade-inand purchase occur in one (1) transaction; and

 

purchase. Thepurchaser shall declare under penalty of perjury on a form prescribed by thedepartment that he is not a resident of Wyoming.

 

(b) The Wyoming business council and the department of revenueshall jointly report to the joint revenue interim committee on or beforeDecember 1 of each year that the exemption provided by subparagraph(a)(viii)(D), (G) or (H) of this section is in effect. The report shallevaluate the cumulative effects of each exemption that is in effect frominitiation of the exemption and shall include:

 

(i) A history of employment in terms of numbers of employees,full-time and part-time employees and rates of turnover;

 

(ii) A history of wages and benefits disaggregated by gender foreach job category; and

 

(iii) A comprehensive history of taxes paid to the state ofWyoming.

 

39-16-106. Licenses; permits.

 

(a) Every vendor shall register with the department of revenue,giving the name and address of all agents operating in the state and thelocation of all places of business together with other information as requiredby the department. Effective July 1, 1997, a license fee of sixty dollars($60.00) shall be required from each new vendor, except for any remote vendorwho has no requirement to register in this state, or who is using one (1) ofthe technology models pursuant to the streamlined sales and use tax agreement.Failure of a vendor to timely file any return may result in forfeiture of thelicense granted under this section. The department shall charge sixty dollars($60.00) for reinstatement of any forfeited license. Any out-of-state vendornot otherwise subject to this article may voluntarily register with thedepartment and if registered, shall collect and remit the state use tax imposedby W.S. 39-16-104.

 

(b) Notwithstanding subsection (a) of this section, andpursuant to department rules and regulations, a vendor who purchases wholesalegoods for use in manufacturing, processing or compounding as provided by W.S.39-16-105(a)(viii), and who does not engage in any retail sale of those goods,shall not be required to obtain a use tax registration.

 

39-16-107. Compliance; collection procedures.

 

(a) Returns, reports and preservation of records. Thefollowing shall apply:

 

(i) Every vendor shall collect the tax imposed by this articleand is liable for the entire amount of taxes imposed. The taxes are due andpayable on the last day of the month following the month in which they werecollected or as required by the department and each vendor shall on or beforethe last day of each month file a return showing the total sales of tangiblepersonal property subject to the tax imposed by this article sold during thepreceding month and remit all taxes due to the department. The returns shallcontain such information required by the department. Any vendor shall reportwhether the vendor sells cigarettes, cigars, snuff or other tobacco products inthis state to the department in the form and manner required by the department.The department may reject any report required under this paragraph of anyvendor who does not comply with the tobacco sales reporting requirements. Ifthe total tax to be remitted by a vendor is less than one hundred fifty dollars($150.00) a quarterly or annual return as authorized by the department, andremittance in lieu of the monthly return may be made on or before the last dayof the month following the end of the quarter or year for which the tax iscollected. Returns shall be signed by the vendor or his agent;

 

(ii) Every person storing, using or consuming tangible personalproperty purchased from a vendor who does not maintain a place of business inthis state is liable for the tax imposed by this article and shall on or beforethe last day of each month file a return showing the total sales price oftangible personal property purchased subject to the tax imposed by this articleduring the preceding month and remit all taxes due to the department. If thetotal tax to be remitted by the person during any month is less than onehundred fifty dollars ($150.00), a quarterly or annual return as authorized bythe department, and remittance in lieu of the monthly return may be made on orbefore the last day of the month following the end of the quarter or year forwhich the tax is collected. The return shall contain such information asrequested by the department. Returns shall be signed by the person liable forthe tax or his agent;

 

(iii) The department may allow for extensions for filing returns,but no extension may be for more than ninety (90) days;

 

(iv) If the department believes any return and the taxes paidare incorrect it shall recompute the return and the tax based upon the bestinformation available;

 

(v) Taxes collected under paragraphs (b)(ii) and (iii) of thissection shall be remitted in full by the county treasurer to the departmentmonthly or as required by the department together with reports as required bythe department;

 

(vi) Any out-of-state vendor not otherwise subject to thisarticle may voluntarily register with the department and if registered, shallcollect and remit the state use tax imposed by W.S. 39-16-104(a).

 

(b) Payment. The following shall apply:

 

(i) Except as otherwise provided, there is levied and shall bepaid by the purchaser an excise tax at the same rate applied under W.S. 39-15-104 upon sales in Wyoming. The vendor shall collect the tax and give thepurchaser a receipt therefor displaying the tax paid separately;

 

(ii) Except as provided by paragraph (iv) of this subsection, novendor shall collect the taxes imposed by this article upon the sale of motorvehicles, house trailers, trailer coaches, trailers or semitrailers as definedby W.S. 31-1-101. The taxes imposed shall be collected by the county treasurerprior to the first registration in Wyoming and not upon subsequent registrationby the same owner. The county treasurer shall collect and remit to thedepartment the tax in effect in the county of the owner's principal residence.The tax shall not be collected if previously registered by the same nonresidentowner in another state. The county treasurer may also collect the tax due

State Codes and Statutes

Statutes > Wyoming > Title39 > Chapter13

CHAPTER 16 - USE TAX

 

ARTICLE 1 - STATE USE TAX

 

39-16-101. Definitions.

 

(a) As used in this article:

 

(i) "Quarterly return" means a tax return for each offour (4) periods of three (3) consecutive months in a calendar year beginningwith January, April, July or October;

 

(ii) "Retail sale" means the sale of tangible personalproperty to a person for storage, use or consumption and not for subsequentresale;

 

(iii) "Sale" means the transfer of possession oftangible personal property from a vendor for a consideration for storage, useor other consumption in Wyoming excluding the exchange or transfer of tangiblepersonal property upon which the seller has directly or indirectly paid salesor use tax incidental to:

 

(A) A division of partnership assets among the partnersaccording to their interests in the partnership. As used in this subparagraph,"partnership" includes a limited partnership;

 

(B) The formation of a corporation by the owners of a businessand the transfer of their business assets to the corporation in exchange forall the corporation's outstanding stock, except qualifying shares, inproportion to assets contributed;

 

(C) The transfer of assets of shareholders in the formation ordissolution of professional corporations;

 

(D) The dissolution and the pro rata distribution of thecorporation's assets to its stockholders;

 

(E) The transfer of assets from a parent corporation to asubsidiary corporation which is owned at least eighty percent (80%) by theparent corporation, which transfer is solely in exchange for stock orsecurities of the subsidiary corporation;

 

(F) The transfer of assets from a subsidiary corporation whichis owned at least eighty percent (80%) by the parent corporation to a parentcorporation or to another subsidiary which is owned at least eighty percent(80%) by the parent corporation, which transfer is solely in exchange for stockor securities of the parent corporation or the subsidiary which received theassets;

 

(G) A transfer of a partnership interest;

 

(H) The formation of a partnership by the transfer of assets tothe partnership or transfers to a partnership in exchange for proportionateinterests in the partnership;

 

(J) The repossession of personal property by a chattel mortgageholder or foreclosure by a lienholder;

 

(K) The transfer of assets between parent and closely heldsubsidiary corporations, or between subsidiary corporations closely held by thesame parent corporation, or between affiliated companies, partnerships andcorporations which are owned in similar percentages by the same persons."Closely held subsidiary corporation" means a corporation in whichthe parent corporation owns stock possessing at least eighty percent (80%) ofthe total combined voting power of all classes of stock entitled to vote andowns at least eighty percent (80%) of the total number of shares of all otherclasses of stock;

 

(M) The sale of a business entity when sold to a purchaser ofall or not less than eighty percent (80%) of the value of all of the assetswhich are located in this state of the business entity when the purchasercontinues to use the tangible personal property in the operation of an ongoingbusiness entity in this state. As used in this subparagraph, "businessentity" means and includes an individual, partnership, corporation,corporate division, joint stock company or any other association or entity,public or private, or separate business unit thereof.

 

(iv) "Sales price" means the consideration paid by thepurchaser of tangible personal property excluding the actual trade-in valueallowed on tangible personal property and manufacturer rebates for motorvehicles exchanged at the time of the transaction;

 

(v) "Storage" means the keeping or retention in thisstate of tangible personal property purchased from a vendor for any purposeexcept for sale in the course of business or subsequent use outside the state;

 

(vi) "Tangible personal property" means all personalproperty that can be seen, weighed, measured, felt or touched, or that is inany other manner perceptible to the senses. "Tangible personalproperty" includes electricity, water, gas, steam and prewritten computersoftware and includes any controlled substance as defined by W.S.35-7-1002(a)(iv) which is not sold pursuant to a written prescription of orthrough a licensed practitioner as defined by W.S. 35-7-1002(a)(xx);

 

(vii) "Taxpayer" means the purchaser of tangiblepersonal property, admissions or services which are subject to taxation underthis article;

 

(viii) "This article" means W.S. 39-16-101 through 39-16-111;

 

(ix) "Use" means the exercise of any right or powerover tangible personal property incident to ownership or by any transactionwhere possession is given by lease or contract;

 

(x) "Vendor" means any person engaged in the businessof selling at retail or wholesale tangible personal property, having ormaintaining within this state, directly or by any subsidiary, an office,distribution house, sales house, warehouse or other place of business, or anyagents operating or soliciting sales or advertising within this state under theauthority of the vendor or its subsidiary, regardless of whether the place ofbusiness or agent is located in the state permanently or temporarily or whetherthe vendor or subsidiary is qualified to do business within this state. Agentsacting under the authority of the vendor include but are not limited totruckers, peddlers, canvassers, salespersons, representatives, employees,supervisors, distributors, delivery persons or any other persons performingservices in this state. "Vendor" also includes every person whoengages in regular or systematic solicitation by three (3) or more separatetransmittances of an advertisement or advertisements in any twelve (12) monthperiod in a consumer market in this state by the distribution of catalogs,periodicals, advertising flyers, or other advertising, or by means of print,radio, television or other electronic media, by mail, telegraph, telephone,computer data base, cable, optic, microwave, satellite or other communicationsystem for the purpose of effecting retail sales of tangible personal property;

 

(xi) "Tertiary production" means the crude oilrecovered from a petroleum reservoir by means of a tertiary enhanced recoveryproject to which one (1) or more tertiary enhanced recovery techniques meetingthe certification requirements of the Wyoming oil and gas conservationcommission or the United States government are being applied;

 

(xii) "Purchase price" means "sales price" asdefined under W.S. 39-15-101;

 

(xiii) "Directly and predominantly in manufacturing"means an item manufactured from inventoried raw or prepared material beginningat the point at which raw or prepared material is moved from plant inventory ona contiguous plant site and ending at a point at which manufacturing hasaltered the raw or prepared material to its completed form, includingpackaging, if required. Machinery used during the manufacturing process to movematerial from one direct production step to another in a continuous flow andmachinery used in testing during the manufacturing process shall be deemed tobe used directly and predominantly in manufacturing;

 

(xiv) "Machinery" means all tangible personal propertyeligible for a use tax exemption pursuant to W.S. 39-16-105(a)(viii)(D), usedto produce an article of tangible personal property. The term includes both thebasic unit and any adjunct or attachment necessary for the basic unit toaccomplish its intended function, the materials for the construction or repairof machinery, and machine tools;

 

(xv) "Manufacturing" means the operation of producinga new product, article, substance or commodity different from and having adistinctive nature, character or use from the raw or prepared material;

 

(xvi) "NAICS" means the Northern American IndustryClassification System manual of 2002 that organizes establishments intoindustries on the basis of the activity in which they are primarily engaged;

 

(xvii) Telecommunications definitions:

 

(A) "800 service" means a telecommunications servicethat allows a caller to dial a toll-free number without incurring a charge forthe call. The service is typically marketed under the name "800","855", "866", "877" and "888" toll-freecalling, and any subsequent numbers designated by the Federal CommunicationsCommission;

 

(B) "900 service" means an inbound tolltelecommunications service purchased by a subscriber that allows thesubscriber's customers to call in to the subscriber's prerecorded announcementor live service. 900 service shall not include the charge for collectionservices provided by the seller of the telecommunications services to thesubscriber or service or product sold by the subscriber to the subscriber'scustomer. The service is typically marketed under the name "900"service, and any subsequent numbers designated by the Federal CommunicationsCommission;

 

(C) "Ancillary services" means services that areassociated with or incidental to the provision of telecommunications services,including but not limited to detailed telecommunications billing, directoryassistance, vertical service and voice mail services;

 

(D) "Coin-operated telephone service" means atelecommunications service paid for by inserting money into a telephoneaccepting direct deposits of money to operate;

 

(E) "Conference bridging service" means an ancillaryservice that links two (2) or more participants of an audio or videoconference call and may include the provision of a telephone number. Conference bridging service shall not include the telecommunications servicesused to reach the conference bridge;

 

(F) "Detailed telecommunications billing service"means an ancillary service of separately stating information pertaining toindividual calls on a customer's billing statement;

 

(G) "Directory assistance" means an ancillary serviceof providing telephone number information or address information;

 

(H) "Fixed wireless service" means atelecommunications service that provides radio communication between fixedpoints;

 

(J) "International" means a telecommunicationsservice that originates or terminates in the United States and terminates ororiginates outside the United States, respectively. United States includes theDistrict of Columbia or a United States territory or possession;

 

(K) "Interstate" means a telecommunications servicethat originates in one (1) state of the United States or a United Statesterritory or possession and terminates in a different state of the UnitedStates or a United States territory or possession;

 

(M) "Intrastate" means a telecommunications servicethat originates in one (1) state of the United States or a United Statesterritory or possession and terminates in the same state of the United Statesor a United States territory or possession;

 

(N) "Mobile wireless service" means atelecommunications service that is transmitted, conveyed or routed regardlessof the technology used, whereby the origination or termination points of thetransmission, conveyance or routing are not fixed, including, by way of exampleonly, telecommunications services that are provided by a commercial mobileradio service provider;

 

(O) "Paging service" means a telecommunicationsservice that provides transmission of coded radio signals for the purpose ofactivating specific pagers which transmissions may include messages or sounds;

 

(P) "Pay telephone service" means atelecommunications service provided through any pay telephone;

 

(Q) "Prepaid calling service" means the right toaccess exclusively telecommunications services, which requires advance paymentand which enables the origination of calls using an access number orauthorization code, whether manually or electronically dialed, and that is soldin predetermined units or dollars of which the number declines with use in aknown amount;

 

(R) "Prepaid wireless calling service" means atelecommunications service that provides the right to utilize mobile wirelessservice as well as other nontelecommunications services including the downloadof digital products delivered electronically, content and ancillary services,which require advance payment that is sold in predetermined units of dollars ofwhich the number declines with use in a known amount;

 

(S) "Private communications service" means atelecommunications service that entitles the customer to exclusive or priorityuse of a communications channel or group of channels between or amongtermination points, regardless of the manner in which the channel or channelsare connected, and includes switching capacity, extension lines, stations andany other associated services that are provided in connection with the use ofthe channel or channels;

 

(T) "Residential telecommunications service" means atelecommunications service or ancillary services provided to an individual forpersonal use at a residential address, including an individual dwelling unitsuch as an apartment. In the case of institutions where individuals reside suchas schools or nursing homes, telecommunications service is consideredresidential if it is provided to and paid for by an individual resident ratherthan the institution;

 

(U) "Telecommunications service" means the electronictransmission, conveyance or routing of voice, data, audio, video, or any otherinformation or signals to a point, or between or among points. The termtelecommunications service includes such transmission, conveyance, or routingin which computer processing applications are used to act on the form, code orprotocol of the content for purposes of transmission, conveyance or routingwithout regard to whether such service is referred to as voice over Internetprotocol services or is classified by the Federal Communications Commission asenhanced or value added. Telecommunications service shall not include:

 

(I) Data processing and information services that allow data tobe generated, acquired, stored, processed, or retrieved and delivered by anelectronic transmission to a purchaser where the purchaser's primary purposefor the underlying transaction is the processed data or information;

 

(II) Installation or maintenance of wiring or equipment on acustomer's premises;

 

(III) Tangible personal property;

 

(IV) Advertising, including but not limited to directoryadvertising;

 

(V) Billing and collection services provided to third parties;

 

(VI) Internet access service;

 

(VII) Radio and television audio and video programming services,regardless of the medium, including the furnishing of transmission, conveyanceand routing of the services by the programming service provider. Radio andtelevision audio and video programming services shall include but not belimited to cable service as defined in 47 U.S.C. 522(6) and audio and videoprogramming services delivered by commercial mobile radio service providers, asdefined in 47 C.F.R. 20.3;

 

(VIII) Ancillary services; or

 

(IX) Digital products delivered electronically, including butnot limited to software, music, video, reading materials or ring tones.

 

(W) "Value-added nonvoice data service" means aservice that otherwise meets the definition of telecommunications services inwhich computer processing applications are used to act on the form, content,code or protocol of the information or data primarily for a purpose other thantransmission, conveyance or routing;

 

(Y) "Vertical service" means an ancillary servicethat is offered in connection with one (1) or more telecommunications services,which offers advanced calling features that allow customers to identify callersand to manage multiple calls and call connections, including conferencebridging services;

 

(Z) "Voice mail service" means an ancillary servicethat enables the customer to store, send or receive recorded messages. Voicemail service does not include any vertical services that the customer may berequired to have in order to utilize the voice mail service.

 

(xviii) "Food" means food for domestic home consumptionas defined by department rule and regulation.

 

(b) Definitions under W.S. 39-15-101 shall apply to thisarticle unless otherwise specified.

 

39-16-102. Administration; confidentiality.

 

(a) This article is known and may be cited as the "Use TaxAct of 1937".

 

(b) The administration of this article is vested in thedepartment of revenue.

 

(c) No state employee or other person who by virtue of hisemployment has knowledge of the business affairs of any person filing orrequired to file any tax returns under this article shall make known theircontents in any manner or permit any person to have access to any returns orinformation contained therein except as provided by law. The department mayalso allow the following:

 

(i) The delivery to the taxpayer or his legal representativesupon written request of a copy of any return or report in connection with histax;

 

(ii) The publication of statistics so classified to prevent theidentification of particular returns or reports;

 

(iii) The inspection by the attorney general of the state of thereport or return of any person who brings an action against the state, oragainst whom an action is contemplated or has been instituted;

 

(iv) The introduction into evidence of any report or return orinformation therefrom in any administrative or court proceeding to which theperson making the report or return is a party;

 

(v) The furnishing of any information to the United Statesgovernment and its territories, the District of Columbia, any state allowingsimilar privileges to the department or to the multistate tax commission forrelay to tax officials of cooperating states. Information furnished shall beonly for tax purposes;

 

(vi) The inspection of tax returns and records by the office ofthe director of the state department of audit;

 

(vii) The sharing of information with local government entitiesand other state agencies, provided a written request is made to the departmentand the governmental entity or agency demonstrates sufficient reason to obtainthe information for official business purposes.

 

(d) The state preempts the field of imposing tax upon sales andstorage, use and consumption of tangible personal property as provided by thisarticle. No county, city, town or other political subdivision may impose, levyor collect taxes upon sales or storage, use or consumption of tangible personalproperty except as provided in this section.

 

(e) Revenue collected pursuant to this section shall beadministered in accordance with W.S. 39-16-202(c) and distributed in accordancewith W.S. 39-16-211.

 

39-16-103. Imposition.

 

(a) Taxable event. The following shall apply:

 

(i) Persons storing, using or consuming tangible personalproperty or specified digital products, except as otherwise provided in thisparagraph, are liable for the tax imposed by this article. Specified digitalproducts are only subject to the tax imposed by this article if the purchaserhas permanent use of the specified digital product. A vendor who purchasesspecified digital products for further commercial broadcast, rebroadcast,transmission, retransmission, licensing, relicensing, distribution,redistribution or exhibition in whole or in part to another person shall beconsidered a wholesaler and not subject to the tax imposed by this article.Those services provided by a trade association as part of a member benefit arenot subject to the tax imposed by this subparagraph. The liability is notextinguished until the tax has been paid to the state but a receipt given tothe person by a registered vendor in accordance with paragraph (c)(i) of thissection is sufficient to relieve the purchaser from further liability;

 

(ii) Specified digital products sold and tangible personalproperty sold by any person for delivery in this state is deemed sold forstorage, use or consumption herein and is subject to the tax imposed by thisarticle unless the person selling the property has received from the purchasera signed certificate stating the property was purchased for resale and showinghis name and address. Specified digital products are only subject to the taximposed by this article as specified in paragraph (i) of this subsection;

 

(iii) Computer hardware, including the basic set of operatinginstructions called system software which is necessary to the basic operationof the computer hardware and hardware media used to transfer computer softwareprograms are subject to the provisions of paragraphs (i) and (ii) of this subsection.

 

(b) Basis of tax. The following shall apply:

 

(i) Specified digital products sold and tangible personalproperty sold by any person for delivery in this state is deemed sold forstorage, use or consumption herein and is subject to the tax imposed by thisarticle unless the person selling the property has received from the purchasera signed certificate stating the property was purchased for resale and showinghis name and address. Specified digital products are only subject to the taximposed by this article as specified in paragraph (a)(i) of this section;

 

(ii) For purposes of W.S. 39-16-107(b)(ii), the sales price ofmotor vehicles, house trailers, trailer coaches, trailers or semitrailers asdefined by W.S. 31-1-101 shall be declared by the purchaser upon a copy of theoriginal invoice from the vendor or upon an affidavit furnished by thedepartment if not purchased from a vendor and the tax collected shall be basedupon the declaration or invoice;

 

(iii) Except for those vehicles specified under W.S.39-16-107(b)(iv), the use tax imposed by this article upon a motor vehicle,house trailer, trailer coach, trailer or semitrailer purchased outside thestate of Wyoming as a gift shall be collected from the donee prior to the firstregistration based upon the fair market value of the gift at the time of thegift;

 

(iv) The tax imposed by this article upon the sale of atransportable home shall be collected upon the first sale of the transportablehome. The tax shall be collected on seventy percent (70%) of the sales priceof the transportable home. No tax shall be collected upon any subsequent saleof the home.

 

(c) Taxpayer. The following shall apply:

 

(i) Except as otherwise provided, there is levied and shall bepaid by the purchaser an excise tax at the same rate applied under W.S.39-15-104 upon sales in Wyoming. The vendor shall collect the tax and give thepurchaser a receipt therefor displaying the tax paid separately;

 

(ii) Persons storing, using or consuming tangible personalproperty or specified digital products are liable for the tax imposed by thisarticle. Specified digital products are only subject to the tax imposed by thisarticle as specified in paragraph (a)(i) of this section. The liability is notextinguished until the tax has been paid to the state but a receipt given tothe person by a registered vendor in accordance with paragraph (i) of thissubsection is sufficient to relieve the purchaser from further liability;

 

(iii) For purposes of W.S. 39-16-107(b)(ii), the sales price ofmotor vehicles, house trailers, trailer coaches, trailers or semitrailers asdefined by W.S. 31-1-101 shall be declared by the purchaser upon a copy of theoriginal invoice from the vendor or upon an affidavit furnished by thedepartment if not purchased from a vendor and the tax collected shall be basedupon the declaration or invoice;

 

(iv) Except for those vehicles specified under W.S. 39-16-107(b)(iv), the use tax imposed by this article upon a motor vehicle, housetrailer, trailer coach, trailer or semitrailer purchased outside the state ofWyoming as a gift shall be collected from the donee prior to the firstregistration based upon the fair market value of the gift at the time of thegift;

 

(v) Every vendor shall collect the tax imposed by this articleand is liable for the entire amount of taxes imposed;

 

(vi) Every person storing, using or consuming tangible personalproperty or specified digital products purchased from a vendor who does notmaintain a place of business in this state is liable for the tax imposed bythis article. Specified digital products are only subject to the tax imposedby this article as specified in paragraph (a)(i) of this section;

 

(vii) If any vendor discontinues his business or sells his stockof goods he shall make a final return and payment within thirty (30) daysthereafter. His successor in business shall withhold from the purchase price anamount equal to any taxes, penalty or interest due until the time the formerowner produces a receipt from the department showing that all amounts due havebeen paid or a certificate that no taxes are due. If the successor fails towithhold from the purchase price the amount due he is liable for same;

 

(viii) Any tax due under this article constitutes a debt to thestate from the persons who are parties to the transaction and is a lien fromthe date due on all the property of those persons. The tax lien shall havepreference over all liens except any valid mortgage or other liens of recordfiled or recorded prior to the date the tax became due. When the tax iscollected by a retailer or his agent, the tax lien has the same status as salestax liens under W.S. 39-15-108(d)(i).

 

39-16-104. Taxation rate.

 

(a) Except as otherwise provided, there is levied and shall bepaid by the purchaser an excise tax at the same rate applied under W.S. 39-15-104upon sales in Wyoming.

 

(b) Effective July 1, 1993, in addition to the use tax undersubsection (a) of this section, there is imposed an additional use tax of onepercent (1%) which shall be administered as if the use tax rates undersubsection (a) of this section were increased from three percent (3%) to fourpercent (4%). The revenue from these increases shall be distributed in thesame manner as other use tax revenue under that subsection.

 

(c) Repealed by Laws 2000, Ch. 26, 1.

 

(d) Repealed By Laws 2007, Ch. 140, 2.

 

(e) The tax rate imposed upon a transaction subject to thischapter shall be sourced as follows:

 

(i) The retail purchase, excluding lease or rental, of aproduct shall be sourced as follows:

 

(A) When the product is received by the purchaser at a businesslocation of the seller, the purchase shall be sourced to that businesslocation;

 

(B) When the product is not received by the purchaser at abusiness location of the seller, the purchase shall be sourced to the locationwhere receipt by the purchaser, or the purchaser's agent designated as such bythe purchaser, occurs, including the location indicated by instruction fordelivery to the purchaser or donee, known to the seller;

 

(C) When subparagraphs (A) and (B) of this paragraph do notapply, the purchase shall be sourced to the location indicated by an addressfor the purchaser that is available from the business records of the sellerthat are maintained in the ordinary course of the seller's business when use ofthis address does not constitute bad faith;

 

(D) When subparagraphs (A) through (C) of this paragraph do notapply, the purchase shall be sourced to the location indicated by an addressfor the purchaser obtained during the consummation of the purchase, includingthe address of a purchaser's payment instrument, if no other address isavailable, when use of this address does not constitute bad faith;

 

(E) When none of the previous rules of subparagraphs (A)through (D) of this paragraph apply, including the circumstance in which theseller is without sufficient information to apply any of the previous rules,then the location shall be determined by the address from which tangiblepersonal property was shipped, from which the digital good or the computersoftware delivered electronically was first available for transmission by theseller, or from which the service was provided, disregarding for these purposesany location that merely provided the digital transfer of the productpurchased;

 

(F) For the purposes of this paragraph the terms"receive" and "receipt" mean taking possession of tangiblepersonal property, making first use of services or taking possession or makingfirst use of digital goods, whichever comes first. The terms"receive" and "receipt" do not include possession by ashipping company on behalf of the purchaser.

 

(ii) The lease or rental of tangible personal property, otherthan property identified in paragraph (iii) or (iv) of this subsection, shallbe sourced as follows:

 

(A) For a lease or rental that requires recurring periodicpayments, the first periodic payment shall be sourced the same as a retailpurchase in accordance with the provisions of paragraph (i) of thissubsection. Periodic payments made subsequently to the first payment shall besourced to the primary property location for each period covered by thepayment. The primary property location shall be as indicated by an address forthe property provided by the lessee that is available to the lessor from itsrecords maintained in the ordinary course of business, when use of this addressdoes not constitute bad faith. The property location shall not be altered byintermittent use at different locations, such as use of the business property thataccompanies employees on business trips and service calls;

 

(B) For a lease or rental that does not require recurringperiodic payments, the payment shall be sourced the same as a retail purchasein accordance with the provisions of paragraph (i) of this subsection;

 

(C) This paragraph shall not affect the imposition orcomputation of sales or use tax on leases or rentals based on a lump sum oraccelerated basis, or on the acquisition of property for lease.

 

(iii) The lease or rental of a motor vehicle, trailer,semi-trailer or aircraft that does not qualify as transportation equipment, asdefined in paragraph (iv) of this subsection shall be sourced as follows:

 

(A) For a lease or rental that requires recurring periodicpayment, each periodic payment shall be sourced to the primary propertylocation. The primary property location shall be as indicated by an addressfor the property provided by the lessee that is available to the lessor fromits records maintained in the ordinary course of business, when use of thisaddress does not constitute bad faith. This location shall not be altered byintermittent use at different locations;

 

(B) For a lease or rental that does not require recurringperiodic payments, the payment shall be sourced the same as a retail purchasein accordance with the provisions of paragraph (i) of this subsection;

 

(C) This paragraph shall not affect the imposition orcomputation of sales or use tax on a lease or rental based on a lump sum oraccelerated basis, or on the acquisition of property for lease.

 

(iv) The retail purchase, including lease or rental oftransportation equipment shall be sourced the same as a retail purchase inaccordance with the provisions of paragraph (i) of this subsection. As used inthis paragraph, "transportation equipment" means any of thefollowing:

 

(A) Locomotives and railcars that are utilized for the carriageof persons or property in interstate commerce;

 

(B) Trucks and truck-tractors with a gross vehicle weightrating (GVWR) of greater than ten thousand (10,000) pounds, trailers,semi-trailers or passenger buses that are:

 

(I) Registered through the international registration plan; and

 

(II) Operated under authority of a carrier authorized andcertified by the United States department of transportation or another federalor a foreign authority to engage in the carriage of personnel or property ininterstate or foreign commerce.

 

(C) Aircraft that are operated by an air carrier authorized andcertified by the United States department of transportation or another federalauthority or a foreign authority to engage in the carriage of persons orproperty in interstate or foreign commerce;

 

(D) Containers designed for use on and component parts attachedor secured on the items set forth in subparagraphs (A) through (C) of thisparagraph.

 

(v) Except for the defined telecommunication services inparagraph (vii) of this subsection, the purchase of telecommunication servicesold on a call-by-call basis shall be sourced to:

 

(A) Each level of taxing jurisdiction where the call originatesand terminates in that jurisdiction; or

 

(B) Each level of taxing jurisdiction where the call eitheroriginates or terminates and in which the service address is also located.

 

(vi) Except for the defined telecommunication services inparagraph (vii) of this subsection, a purchase of telecommunication servicesold on a basis other than a call-by-call basis and any ancillary serviceincidental to the sale, shall be sourced to the customer's place of primaryuse;

 

(vii) The purchase of the following telecommunication servicesshall be sourced to each level of taxing jurisdiction as follows:

 

(A) A purchase of mobile telecommunications services other thanair-to-ground radio telephone service and prepaid calling service, shall besourced to the customer's place of primary use as required by the MobileTelecommunications Sourcing Act, P.L. 106-252;

 

(B) A purchase of post-paid calling service shall be sourced tothe origination point of the telecommunications signal as first identified byeither:

 

(I) The seller's telecommunications system; or

 

(II) Information received by the seller from its serviceprovider, where the system used to transport such signals is not that of theseller.

 

(C) A purchase of prepaid calling service and prepaid wirelesscalling service shall be sourced in accordance with paragraph (i) of thissubsection. Provided however, in the case of a purchase of a prepaid wirelesscalling service, the rule provided in subparagraph (i)(E) of this subsectionshall include as an option the location associated with the mobile telephonenumber;

 

(D) A purchase of a private communication service shall besourced as follows:

 

(I) Service for a separate charge related to a customer channeltermination point shall be sourced to each level of jurisdiction in which thecustomer channel termination point is located;

 

(II) Service where all customer termination points are locatedentirely within one (1) jurisdiction or levels of jurisdiction shall be sourcedin the jurisdiction in which the customer channel termination points arelocated;

 

(III) Service for segments of a channel between two (2) customerchannel termination points located in different jurisdictions and which segmentsof a channel are separately charged shall be sourced fifty percent (50%) ineach level of jurisdiction in which the customer channel termination points arelocated;

 

(IV) Service for segments of a channel located in more than one(1) jurisdiction or levels of jurisdiction and which segments are notseparately billed shall be sourced in each jurisdiction based on the percentagedetermined by dividing the number of customer channel termination points in thejurisdiction by the total number of customer channel termination points.

 

(E) The definitions in W.S. 39-15-104(f)(xi)(E) shall apply toparagraphs (v) through (viii) of this subsection.

 

(f) Any vendor or certified service provider relying on anincorrect rate, boundary or jurisdictional information provided by thedepartment in its tax rate database required under the streamlined sales anduse tax agreement shall not be held liable for any under collection of taxcaused by the department's error.

 

39-16-105. Exemptions.

 

(a) The following purchases or leases are exempt from theexcise tax imposed by this article:

 

(i) For the purpose of exempting sales of services and tangiblepersonal property which are protected by the United States constitution and theWyoming constitution, the following are exempt:

 

(A) Purchases which the state of Wyoming is prohibited fromtaxing under the laws or constitutions of the United States or Wyoming.

 

(ii) For the purpose of exempting sales of services and tangiblepersonal property protected by federal law, the following are exempt:

 

(A) Railroad rolling stock including locomotives purchased byinterstate railroads, aircraft purchased by interstate air carriers which areholders of valid United States civil aeronautics board permits or authorities,and trucks, truck-tractors, trailers, semitrailers and passenger buses inexcess of ten thousand (10,000) pounds gross vehicle weight which are purchasedby common or contract interstate carriers or which are operating in interstatecommerce under exemption clauses in federal law if they are to be used ininterstate commerce;

 

(B) Purchases by Wyoming joint apprenticeship and trainingprograms approved by the department of labor.

 

(iii) For the purpose of exempting sales of services and tangiblepersonal property consumed in production, the following are exempt:

 

(A) Purchases of tangible personal property by a person engagedin the business of manufacturing, processing or compounding when the tangiblepersonal property purchased becomes an ingredient or component of the tangiblepersonal property manufactured, processed or compounded for sale or use andpurchases of containers, labels or shipping cases used for the tangiblepersonal property so manufactured, processed or compounded. This subparagraphshall apply to chemicals and catalysts used directly in manufacturing,processing or compounding which are consumed or destroyed during that process;

 

(B) Purchases of livestock, feeds for use in feeding livestockor poultry for marketing purposes and seeds, roots, bulbs, small plants andfertilizer planted or applied to land, the products of which are to be sold.This exemption applies to, but is not limited to, sales of seeds, roots, bulbs,small plants and fertilizer planted or applied to land subject to a state orfederal crop set aside program;

 

(C) Sales of fuel for use as boiler fuel in the production ofelectricity.

 

(iv) For the purpose of exempting sales of services and tangiblepersonal property sold to government, charitable and nonprofit organizations,irrigation districts and weed and pest control districts, the following areexempt:

 

(A) Purchases made by the state of Wyoming or its politicalsubdivisions;

 

(B) Purchases made by religious or charitable organizations inthe conduct of their regular religious or charitable functions;

 

(C) Purchases by a joint powers board organized under theWyoming Joint Powers Act;

 

(D) Labor or service charges, including transportation andtravel, for the repair, alteration or improvement of real property or tangiblepersonal property owned by, or incorporated in projects under contract to thestate of Wyoming or any of its political subdivisions, including an irrigationdistrict created under W.S. 41-7-201 through 41-7-210, and a weed and pestcontrol district created under W.S. 11-5-101 et seq.;

 

(E) Sales to an irrigation district created under W.S. 41-7-201through 41-7-210;

 

(F) Sales to a weed and pest control district created underW.S. 11-5-101 et seq.

 

(v) For the purpose of exempting sales of services and tangiblepersonal property which are alternatively taxed, the following are exempt:

 

(A) Purchases which are taxable under the provisions of theSelective Sales Tax Act of 1937, and purchases for which a sales tax has beenpreviously paid;

 

(B) Motor vehicle fuel which is subject to taxation under W.S.39-17-101 through 39-17-111 or 39-17-201 through 39-17-211. The exemptionprovided by this subparagraph shall not apply to gasoline or gasohol taxedunder W.S. 39-17-104(a)(iii) or to diesel fuel taxed under W.S.39-17-204(a)(ii).

 

(vi) For the purpose of exempting sales of services and tangiblepersonal property and services which are essential human goods and services,the following are exempt:

 

(A) Purchases of the following tangible personal property soldunder a prescription: drugs for human relief excluding"over-the-counter-drugs", insulin for human relief and any syringe,needle or other device necessary for the administration thereof, oxygen formedical use, blood plasma, prosthetic devices, hearing aids, eyeglasses,contact lenses, mobility enhancing equipment, durable medical equipment and anyassistive device. As used in this subparagraph, "assistive device"means any item, piece of equipment or product system, as defined by departmentrule, which is used to increase, maintain or improve the functionalcapabilities of an individual with a permanent disability, excluding anymedical device, surgical device or organ implanted or transplanted into orattached directly to an individual.

 

(B) Tangible personal property sold by any person for deliveryin this state is deemed sold for storage, use or consumption herein and issubject to the tax imposed by this article unless the person selling theproperty has received from the purchaser a signed certificate stating theproperty was purchased for resale and showing his name and address;

 

(C) Purchases of all noncapitalized equipment and disposablesupplies which are used in the direct medical or dental care of a patient. Theexemption in this subparagraph shall not include capitalized equipment oroffice supplies used in the normal course of business;

 

(D) Sales of water delivered by pipeline or truck;

 

(E) Purchases of food for domestic home consumption.

 

(vii) For the purpose of exempting sales of services providedprimarily to businesses, exemptions shall be as specified by the legislatureand as follows:

 

(A) A person regularly engaged in the business of making loansor a supervised financial institution, as defined in W.S. 40-14-140(a)(xix),that forecloses a lien or repossesses a motor vehicle on which it has filed alien shall not be liable for payment of sales or use tax, penalties or interestdue under W.S. 39-16-108(b) and (c) for that vehicle;

 

(B) The purchase of farm implements. For purposes of thissubparagraph, "farm implements" means any tractor or other machinerydesigned or adapted and used exclusively for agricultural operations andspecifically excludes any vehicle titled under chapter 2 of title 31,snowmobiles, lawn tractors, all-terrain vehicles and repair or replacementparts.

 

(viii) For the purpose of exempting sales of services and tangiblepersonal property as an economic incentive, the following are exempt:

 

(A) Sales of carbon dioxide and other gases used in tertiaryproduction;

 

(B) The purchase of aircraft repair, remodeling or maintenanceservices at a federal aviation administration certified repair stationincluding, but not limited to, repair or replacement materials or parts;

 

(C) Sales of equipment used to generate electricity fromrenewable resources. As used in this subparagraph, "renewableresources" includes wind generation, solar, biomass, landfill gas, hydro,hydrogen and geothermal energy. The exemption provided by this subparagraphshall be limited to the acquisition of equipment used in a project to make itoperational up to the point of interconnection with an existing transmissiongrid including wind turbines, generating equipment, control and monitoringsystems, power lines, substation equipment, lighting, fencing, pipes and otherequipment for locating power lines and poles. The exemption shall not apply totools and other equipment used in construction of a new facility, contractedservices required for construction and routine maintenance activities andequipment utilized or acquired after the project is operational. Thissubparagraph is applicable as follows:

 

(I) On and after January 1, 2010, the exemption shall apply tosales of equipment for projects where either the project developer is thelandowner for the project prior to January 1, 2010, or where the projectdeveloper has, prior to January 1, 2010, entered into a written contract with alandowner that describes the project with specificity, including a descriptionof equipment to be purchased and placed on the landowner's land and has madepayment to the landowner under terms of the contract. To be eligible for theexemption, the project developer shall have received all required permits andapprovals from all governmental agencies for the development and constructionof the project. Evidence of compliance with this subparagraph shall besubmitted to the department with the request for an exemption. Equipmenteligible for the exemption shall be purchased and delivered within the state ofWyoming on or before December 31, 2011 for storage, use or consumption by thedeveloper to qualify for the exemption. The exemption provided under thissubdivision of this subparagraph is repealed effective December 31, 2011;

 

(II) On and after January 1, 2010, the exemption shall apply tosales of equipment used to generate electricity from renewable resources with atotal net rating capacity of not more than twenty-five (25) kilowatts, or wherethe entire renewable energy system is to be for off-grid use. The exemptionprovided under this subdivision of this subparagraph is repealed effective June30, 2012.

 

(D) Until December 31, 2011, the purchase or lease of machineryto be used in this state directly and predominantly in manufacturing tangiblepersonal property, if the sale or lease:

 

(I) Is to a manufacturer classified by the department under theNAICS code manufacturing sector 31 - 33; and

 

(II) Does not include noncapitalized machinery except machineryexpensed in accordance with section 179 of the Internal Revenue Code.

 

(III) Repealed By Laws 2010, Ch. 33, 2.

 

(E) The purchase or lease of any aircraft used in a federalaviation administration air carrier operation including the purchase of all:

 

(I) Tangible personal property permanently affixed or attachedas a component part of the aircraft, including, but not limited to, repair orreplacement materials or parts;

 

(II) Aircraft repair, remodeling and maintenance servicesperformed on the aircraft, its engine or its component materials or parts.

 

(F) Purchases of tangible personal property or servicesperformed for the repair, assembly, alteration or improvement of railroadrolling stock. This subparagraph is repealed effective July 1, 2015;

 

(G) The purchase of equipment used to construct a new coal gasificationor coal liquefaction facility. The exemption provided by this subparagraphshall be limited to the acquisition of equipment used in a project to make itoperational. The exemption shall not apply to tools and other equipment usedin construction of a new facility, contracted services required forconstruction and routine maintenance activities nor to equipment utilized oracquired after the facility is operational;

 

(H) The sales price paid for the purchase or rental ofqualifying computer equipment including computers, servers, monitors,keyboards, storage devices and other peripherals, racking systems, cabling andtrays that are necessary for the operation of a data processing services centerwhen the aggregate purchase of the qualifying computer equipment exceeds twomillion dollars ($2,000,000.00) in any calendar year. For the purpose ofclaiming this exemption, the purchaser shall demonstrate to the department thathe:

 

(I) Has a physical location in this state where the qualifyingcomputer equipment purchased shall be maintained and operated until thequalifying computer equipment is scheduled for replacement or until it hasreached the end of its serviceable life;

 

(II) Shall make an initial total capital asset investment in aphysical location in this state of not less than five million dollars($5,000,000.00) or has made a capital investment in a physical location in thisstate of not less than five million dollars ($5,000,000.00) in the five (5)years immediately preceding the effective date of this subparagraph;

 

(III) Has retained adequate documentation to demonstrate that thetotal purchase of qualifying computer equipment exceeds the annual threshold oftwo million dollars ($2,000,000.00);

 

(IV) Has received annual certification from the Wyoming businesscouncil that the purchaser has created or will create a number of jobs inWyoming that is appropriate to the size and stage of development of the dataprocessing services center as determined by the Wyoming business council;

 

(V) Will accrue the excise tax on purchase of otherwisequalifying computer equipment where the annual threshold of two million dollars($2,000,000.00) was not met. The tax shall be remitted to the department notlater than the end of January immediately following the end of the calendaryear where the threshold was not met to avoid the assessment of penalty andinterest on any amount of tax due;

 

(VI) Shall keep adequate written records and documentation inaccordance with department rule and regulation to show compliance with therequirements of this subparagraph. If the purchaser does not meet all therequirements of this subparagraph, any tax owed shall be remitted to thedepartment not later than the end of January immediately following the end ofthe calendar year in which the requirements were not met.

 

(ix) W.S. 39-15-108(b)(ii) and 39-15-107(b)(iv) apply to usetaxes under this article;

 

(x) For the purpose of avoiding application of the use tax morethan once on the same article of tangible property for the same taxpayer:

 

(A) The trade-in value of tangible personal property shall beexcluded from the sales price of new tangible personal property when trade-inand purchase occur in one (1) transaction; and

 

purchase. Thepurchaser shall declare under penalty of perjury on a form prescribed by thedepartment that he is not a resident of Wyoming.

 

(b) The Wyoming business council and the department of revenueshall jointly report to the joint revenue interim committee on or beforeDecember 1 of each year that the exemption provided by subparagraph(a)(viii)(D), (G) or (H) of this section is in effect. The report shallevaluate the cumulative effects of each exemption that is in effect frominitiation of the exemption and shall include:

 

(i) A history of employment in terms of numbers of employees,full-time and part-time employees and rates of turnover;

 

(ii) A history of wages and benefits disaggregated by gender foreach job category; and

 

(iii) A comprehensive history of taxes paid to the state ofWyoming.

 

39-16-106. Licenses; permits.

 

(a) Every vendor shall register with the department of revenue,giving the name and address of all agents operating in the state and thelocation of all places of business together with other information as requiredby the department. Effective July 1, 1997, a license fee of sixty dollars($60.00) shall be required from each new vendor, except for any remote vendorwho has no requirement to register in this state, or who is using one (1) ofthe technology models pursuant to the streamlined sales and use tax agreement.Failure of a vendor to timely file any return may result in forfeiture of thelicense granted under this section. The department shall charge sixty dollars($60.00) for reinstatement of any forfeited license. Any out-of-state vendornot otherwise subject to this article may voluntarily register with thedepartment and if registered, shall collect and remit the state use tax imposedby W.S. 39-16-104.

 

(b) Notwithstanding subsection (a) of this section, andpursuant to department rules and regulations, a vendor who purchases wholesalegoods for use in manufacturing, processing or compounding as provided by W.S.39-16-105(a)(viii), and who does not engage in any retail sale of those goods,shall not be required to obtain a use tax registration.

 

39-16-107. Compliance; collection procedures.

 

(a) Returns, reports and preservation of records. Thefollowing shall apply:

 

(i) Every vendor shall collect the tax imposed by this articleand is liable for the entire amount of taxes imposed. The taxes are due andpayable on the last day of the month following the month in which they werecollected or as required by the department and each vendor shall on or beforethe last day of each month file a return showing the total sales of tangiblepersonal property subject to the tax imposed by this article sold during thepreceding month and remit all taxes due to the department. The returns shallcontain such information required by the department. Any vendor shall reportwhether the vendor sells cigarettes, cigars, snuff or other tobacco products inthis state to the department in the form and manner required by the department.The department may reject any report required under this paragraph of anyvendor who does not comply with the tobacco sales reporting requirements. Ifthe total tax to be remitted by a vendor is less than one hundred fifty dollars($150.00) a quarterly or annual return as authorized by the department, andremittance in lieu of the monthly return may be made on or before the last dayof the month following the end of the quarter or year for which the tax iscollected. Returns shall be signed by the vendor or his agent;

 

(ii) Every person storing, using or consuming tangible personalproperty purchased from a vendor who does not maintain a place of business inthis state is liable for the tax imposed by this article and shall on or beforethe last day of each month file a return showing the total sales price oftangible personal property purchased subject to the tax imposed by this articleduring the preceding month and remit all taxes due to the department. If thetotal tax to be remitted by the person during any month is less than onehundred fifty dollars ($150.00), a quarterly or annual return as authorized bythe department, and remittance in lieu of the monthly return may be made on orbefore the last day of the month following the end of the quarter or year forwhich the tax is collected. The return shall contain such information asrequested by the department. Returns shall be signed by the person liable forthe tax or his agent;

 

(iii) The department may allow for extensions for filing returns,but no extension may be for more than ninety (90) days;

 

(iv) If the department believes any return and the taxes paidare incorrect it shall recompute the return and the tax based upon the bestinformation available;

 

(v) Taxes collected under paragraphs (b)(ii) and (iii) of thissection shall be remitted in full by the county treasurer to the departmentmonthly or as required by the department together with reports as required bythe department;

 

(vi) Any out-of-state vendor not otherwise subject to thisarticle may voluntarily register with the department and if registered, shallcollect and remit the state use tax imposed by W.S. 39-16-104(a).

 

(b) Payment. The following shall apply:

 

(i) Except as otherwise provided, there is levied and shall bepaid by the purchaser an excise tax at the same rate applied under W.S. 39-15-104 upon sales in Wyoming. The vendor shall collect the tax and give thepurchaser a receipt therefor displaying the tax paid separately;

 

(ii) Except as provided by paragraph (iv) of this subsection, novendor shall collect the taxes imposed by this article upon the sale of motorvehicles, house trailers, trailer coaches, trailers or semitrailers as definedby W.S. 31-1-101. The taxes imposed shall be collected by the county treasurerprior to the first registration in Wyoming and not upon subsequent registrationby the same owner. The county treasurer shall collect and remit to thedepartment the tax in effect in the county of the owner's principal residence.The tax shall not be collected if previously registered by the same nonresidentowner in another state. The county treasurer may also collect the tax due


State Codes and Statutes

State Codes and Statutes

Statutes > Wyoming > Title39 > Chapter13

CHAPTER 16 - USE TAX

 

ARTICLE 1 - STATE USE TAX

 

39-16-101. Definitions.

 

(a) As used in this article:

 

(i) "Quarterly return" means a tax return for each offour (4) periods of three (3) consecutive months in a calendar year beginningwith January, April, July or October;

 

(ii) "Retail sale" means the sale of tangible personalproperty to a person for storage, use or consumption and not for subsequentresale;

 

(iii) "Sale" means the transfer of possession oftangible personal property from a vendor for a consideration for storage, useor other consumption in Wyoming excluding the exchange or transfer of tangiblepersonal property upon which the seller has directly or indirectly paid salesor use tax incidental to:

 

(A) A division of partnership assets among the partnersaccording to their interests in the partnership. As used in this subparagraph,"partnership" includes a limited partnership;

 

(B) The formation of a corporation by the owners of a businessand the transfer of their business assets to the corporation in exchange forall the corporation's outstanding stock, except qualifying shares, inproportion to assets contributed;

 

(C) The transfer of assets of shareholders in the formation ordissolution of professional corporations;

 

(D) The dissolution and the pro rata distribution of thecorporation's assets to its stockholders;

 

(E) The transfer of assets from a parent corporation to asubsidiary corporation which is owned at least eighty percent (80%) by theparent corporation, which transfer is solely in exchange for stock orsecurities of the subsidiary corporation;

 

(F) The transfer of assets from a subsidiary corporation whichis owned at least eighty percent (80%) by the parent corporation to a parentcorporation or to another subsidiary which is owned at least eighty percent(80%) by the parent corporation, which transfer is solely in exchange for stockor securities of the parent corporation or the subsidiary which received theassets;

 

(G) A transfer of a partnership interest;

 

(H) The formation of a partnership by the transfer of assets tothe partnership or transfers to a partnership in exchange for proportionateinterests in the partnership;

 

(J) The repossession of personal property by a chattel mortgageholder or foreclosure by a lienholder;

 

(K) The transfer of assets between parent and closely heldsubsidiary corporations, or between subsidiary corporations closely held by thesame parent corporation, or between affiliated companies, partnerships andcorporations which are owned in similar percentages by the same persons."Closely held subsidiary corporation" means a corporation in whichthe parent corporation owns stock possessing at least eighty percent (80%) ofthe total combined voting power of all classes of stock entitled to vote andowns at least eighty percent (80%) of the total number of shares of all otherclasses of stock;

 

(M) The sale of a business entity when sold to a purchaser ofall or not less than eighty percent (80%) of the value of all of the assetswhich are located in this state of the business entity when the purchasercontinues to use the tangible personal property in the operation of an ongoingbusiness entity in this state. As used in this subparagraph, "businessentity" means and includes an individual, partnership, corporation,corporate division, joint stock company or any other association or entity,public or private, or separate business unit thereof.

 

(iv) "Sales price" means the consideration paid by thepurchaser of tangible personal property excluding the actual trade-in valueallowed on tangible personal property and manufacturer rebates for motorvehicles exchanged at the time of the transaction;

 

(v) "Storage" means the keeping or retention in thisstate of tangible personal property purchased from a vendor for any purposeexcept for sale in the course of business or subsequent use outside the state;

 

(vi) "Tangible personal property" means all personalproperty that can be seen, weighed, measured, felt or touched, or that is inany other manner perceptible to the senses. "Tangible personalproperty" includes electricity, water, gas, steam and prewritten computersoftware and includes any controlled substance as defined by W.S.35-7-1002(a)(iv) which is not sold pursuant to a written prescription of orthrough a licensed practitioner as defined by W.S. 35-7-1002(a)(xx);

 

(vii) "Taxpayer" means the purchaser of tangiblepersonal property, admissions or services which are subject to taxation underthis article;

 

(viii) "This article" means W.S. 39-16-101 through 39-16-111;

 

(ix) "Use" means the exercise of any right or powerover tangible personal property incident to ownership or by any transactionwhere possession is given by lease or contract;

 

(x) "Vendor" means any person engaged in the businessof selling at retail or wholesale tangible personal property, having ormaintaining within this state, directly or by any subsidiary, an office,distribution house, sales house, warehouse or other place of business, or anyagents operating or soliciting sales or advertising within this state under theauthority of the vendor or its subsidiary, regardless of whether the place ofbusiness or agent is located in the state permanently or temporarily or whetherthe vendor or subsidiary is qualified to do business within this state. Agentsacting under the authority of the vendor include but are not limited totruckers, peddlers, canvassers, salespersons, representatives, employees,supervisors, distributors, delivery persons or any other persons performingservices in this state. "Vendor" also includes every person whoengages in regular or systematic solicitation by three (3) or more separatetransmittances of an advertisement or advertisements in any twelve (12) monthperiod in a consumer market in this state by the distribution of catalogs,periodicals, advertising flyers, or other advertising, or by means of print,radio, television or other electronic media, by mail, telegraph, telephone,computer data base, cable, optic, microwave, satellite or other communicationsystem for the purpose of effecting retail sales of tangible personal property;

 

(xi) "Tertiary production" means the crude oilrecovered from a petroleum reservoir by means of a tertiary enhanced recoveryproject to which one (1) or more tertiary enhanced recovery techniques meetingthe certification requirements of the Wyoming oil and gas conservationcommission or the United States government are being applied;

 

(xii) "Purchase price" means "sales price" asdefined under W.S. 39-15-101;

 

(xiii) "Directly and predominantly in manufacturing"means an item manufactured from inventoried raw or prepared material beginningat the point at which raw or prepared material is moved from plant inventory ona contiguous plant site and ending at a point at which manufacturing hasaltered the raw or prepared material to its completed form, includingpackaging, if required. Machinery used during the manufacturing process to movematerial from one direct production step to another in a continuous flow andmachinery used in testing during the manufacturing process shall be deemed tobe used directly and predominantly in manufacturing;

 

(xiv) "Machinery" means all tangible personal propertyeligible for a use tax exemption pursuant to W.S. 39-16-105(a)(viii)(D), usedto produce an article of tangible personal property. The term includes both thebasic unit and any adjunct or attachment necessary for the basic unit toaccomplish its intended function, the materials for the construction or repairof machinery, and machine tools;

 

(xv) "Manufacturing" means the operation of producinga new product, article, substance or commodity different from and having adistinctive nature, character or use from the raw or prepared material;

 

(xvi) "NAICS" means the Northern American IndustryClassification System manual of 2002 that organizes establishments intoindustries on the basis of the activity in which they are primarily engaged;

 

(xvii) Telecommunications definitions:

 

(A) "800 service" means a telecommunications servicethat allows a caller to dial a toll-free number without incurring a charge forthe call. The service is typically marketed under the name "800","855", "866", "877" and "888" toll-freecalling, and any subsequent numbers designated by the Federal CommunicationsCommission;

 

(B) "900 service" means an inbound tolltelecommunications service purchased by a subscriber that allows thesubscriber's customers to call in to the subscriber's prerecorded announcementor live service. 900 service shall not include the charge for collectionservices provided by the seller of the telecommunications services to thesubscriber or service or product sold by the subscriber to the subscriber'scustomer. The service is typically marketed under the name "900"service, and any subsequent numbers designated by the Federal CommunicationsCommission;

 

(C) "Ancillary services" means services that areassociated with or incidental to the provision of telecommunications services,including but not limited to detailed telecommunications billing, directoryassistance, vertical service and voice mail services;

 

(D) "Coin-operated telephone service" means atelecommunications service paid for by inserting money into a telephoneaccepting direct deposits of money to operate;

 

(E) "Conference bridging service" means an ancillaryservice that links two (2) or more participants of an audio or videoconference call and may include the provision of a telephone number. Conference bridging service shall not include the telecommunications servicesused to reach the conference bridge;

 

(F) "Detailed telecommunications billing service"means an ancillary service of separately stating information pertaining toindividual calls on a customer's billing statement;

 

(G) "Directory assistance" means an ancillary serviceof providing telephone number information or address information;

 

(H) "Fixed wireless service" means atelecommunications service that provides radio communication between fixedpoints;

 

(J) "International" means a telecommunicationsservice that originates or terminates in the United States and terminates ororiginates outside the United States, respectively. United States includes theDistrict of Columbia or a United States territory or possession;

 

(K) "Interstate" means a telecommunications servicethat originates in one (1) state of the United States or a United Statesterritory or possession and terminates in a different state of the UnitedStates or a United States territory or possession;

 

(M) "Intrastate" means a telecommunications servicethat originates in one (1) state of the United States or a United Statesterritory or possession and terminates in the same state of the United Statesor a United States territory or possession;

 

(N) "Mobile wireless service" means atelecommunications service that is transmitted, conveyed or routed regardlessof the technology used, whereby the origination or termination points of thetransmission, conveyance or routing are not fixed, including, by way of exampleonly, telecommunications services that are provided by a commercial mobileradio service provider;

 

(O) "Paging service" means a telecommunicationsservice that provides transmission of coded radio signals for the purpose ofactivating specific pagers which transmissions may include messages or sounds;

 

(P) "Pay telephone service" means atelecommunications service provided through any pay telephone;

 

(Q) "Prepaid calling service" means the right toaccess exclusively telecommunications services, which requires advance paymentand which enables the origination of calls using an access number orauthorization code, whether manually or electronically dialed, and that is soldin predetermined units or dollars of which the number declines with use in aknown amount;

 

(R) "Prepaid wireless calling service" means atelecommunications service that provides the right to utilize mobile wirelessservice as well as other nontelecommunications services including the downloadof digital products delivered electronically, content and ancillary services,which require advance payment that is sold in predetermined units of dollars ofwhich the number declines with use in a known amount;

 

(S) "Private communications service" means atelecommunications service that entitles the customer to exclusive or priorityuse of a communications channel or group of channels between or amongtermination points, regardless of the manner in which the channel or channelsare connected, and includes switching capacity, extension lines, stations andany other associated services that are provided in connection with the use ofthe channel or channels;

 

(T) "Residential telecommunications service" means atelecommunications service or ancillary services provided to an individual forpersonal use at a residential address, including an individual dwelling unitsuch as an apartment. In the case of institutions where individuals reside suchas schools or nursing homes, telecommunications service is consideredresidential if it is provided to and paid for by an individual resident ratherthan the institution;

 

(U) "Telecommunications service" means the electronictransmission, conveyance or routing of voice, data, audio, video, or any otherinformation or signals to a point, or between or among points. The termtelecommunications service includes such transmission, conveyance, or routingin which computer processing applications are used to act on the form, code orprotocol of the content for purposes of transmission, conveyance or routingwithout regard to whether such service is referred to as voice over Internetprotocol services or is classified by the Federal Communications Commission asenhanced or value added. Telecommunications service shall not include:

 

(I) Data processing and information services that allow data tobe generated, acquired, stored, processed, or retrieved and delivered by anelectronic transmission to a purchaser where the purchaser's primary purposefor the underlying transaction is the processed data or information;

 

(II) Installation or maintenance of wiring or equipment on acustomer's premises;

 

(III) Tangible personal property;

 

(IV) Advertising, including but not limited to directoryadvertising;

 

(V) Billing and collection services provided to third parties;

 

(VI) Internet access service;

 

(VII) Radio and television audio and video programming services,regardless of the medium, including the furnishing of transmission, conveyanceand routing of the services by the programming service provider. Radio andtelevision audio and video programming services shall include but not belimited to cable service as defined in 47 U.S.C. 522(6) and audio and videoprogramming services delivered by commercial mobile radio service providers, asdefined in 47 C.F.R. 20.3;

 

(VIII) Ancillary services; or

 

(IX) Digital products delivered electronically, including butnot limited to software, music, video, reading materials or ring tones.

 

(W) "Value-added nonvoice data service" means aservice that otherwise meets the definition of telecommunications services inwhich computer processing applications are used to act on the form, content,code or protocol of the information or data primarily for a purpose other thantransmission, conveyance or routing;

 

(Y) "Vertical service" means an ancillary servicethat is offered in connection with one (1) or more telecommunications services,which offers advanced calling features that allow customers to identify callersand to manage multiple calls and call connections, including conferencebridging services;

 

(Z) "Voice mail service" means an ancillary servicethat enables the customer to store, send or receive recorded messages. Voicemail service does not include any vertical services that the customer may berequired to have in order to utilize the voice mail service.

 

(xviii) "Food" means food for domestic home consumptionas defined by department rule and regulation.

 

(b) Definitions under W.S. 39-15-101 shall apply to thisarticle unless otherwise specified.

 

39-16-102. Administration; confidentiality.

 

(a) This article is known and may be cited as the "Use TaxAct of 1937".

 

(b) The administration of this article is vested in thedepartment of revenue.

 

(c) No state employee or other person who by virtue of hisemployment has knowledge of the business affairs of any person filing orrequired to file any tax returns under this article shall make known theircontents in any manner or permit any person to have access to any returns orinformation contained therein except as provided by law. The department mayalso allow the following:

 

(i) The delivery to the taxpayer or his legal representativesupon written request of a copy of any return or report in connection with histax;

 

(ii) The publication of statistics so classified to prevent theidentification of particular returns or reports;

 

(iii) The inspection by the attorney general of the state of thereport or return of any person who brings an action against the state, oragainst whom an action is contemplated or has been instituted;

 

(iv) The introduction into evidence of any report or return orinformation therefrom in any administrative or court proceeding to which theperson making the report or return is a party;

 

(v) The furnishing of any information to the United Statesgovernment and its territories, the District of Columbia, any state allowingsimilar privileges to the department or to the multistate tax commission forrelay to tax officials of cooperating states. Information furnished shall beonly for tax purposes;

 

(vi) The inspection of tax returns and records by the office ofthe director of the state department of audit;

 

(vii) The sharing of information with local government entitiesand other state agencies, provided a written request is made to the departmentand the governmental entity or agency demonstrates sufficient reason to obtainthe information for official business purposes.

 

(d) The state preempts the field of imposing tax upon sales andstorage, use and consumption of tangible personal property as provided by thisarticle. No county, city, town or other political subdivision may impose, levyor collect taxes upon sales or storage, use or consumption of tangible personalproperty except as provided in this section.

 

(e) Revenue collected pursuant to this section shall beadministered in accordance with W.S. 39-16-202(c) and distributed in accordancewith W.S. 39-16-211.

 

39-16-103. Imposition.

 

(a) Taxable event. The following shall apply:

 

(i) Persons storing, using or consuming tangible personalproperty or specified digital products, except as otherwise provided in thisparagraph, are liable for the tax imposed by this article. Specified digitalproducts are only subject to the tax imposed by this article if the purchaserhas permanent use of the specified digital product. A vendor who purchasesspecified digital products for further commercial broadcast, rebroadcast,transmission, retransmission, licensing, relicensing, distribution,redistribution or exhibition in whole or in part to another person shall beconsidered a wholesaler and not subject to the tax imposed by this article.Those services provided by a trade association as part of a member benefit arenot subject to the tax imposed by this subparagraph. The liability is notextinguished until the tax has been paid to the state but a receipt given tothe person by a registered vendor in accordance with paragraph (c)(i) of thissection is sufficient to relieve the purchaser from further liability;

 

(ii) Specified digital products sold and tangible personalproperty sold by any person for delivery in this state is deemed sold forstorage, use or consumption herein and is subject to the tax imposed by thisarticle unless the person selling the property has received from the purchasera signed certificate stating the property was purchased for resale and showinghis name and address. Specified digital products are only subject to the taximposed by this article as specified in paragraph (i) of this subsection;

 

(iii) Computer hardware, including the basic set of operatinginstructions called system software which is necessary to the basic operationof the computer hardware and hardware media used to transfer computer softwareprograms are subject to the provisions of paragraphs (i) and (ii) of this subsection.

 

(b) Basis of tax. The following shall apply:

 

(i) Specified digital products sold and tangible personalproperty sold by any person for delivery in this state is deemed sold forstorage, use or consumption herein and is subject to the tax imposed by thisarticle unless the person selling the property has received from the purchasera signed certificate stating the property was purchased for resale and showinghis name and address. Specified digital products are only subject to the taximposed by this article as specified in paragraph (a)(i) of this section;

 

(ii) For purposes of W.S. 39-16-107(b)(ii), the sales price ofmotor vehicles, house trailers, trailer coaches, trailers or semitrailers asdefined by W.S. 31-1-101 shall be declared by the purchaser upon a copy of theoriginal invoice from the vendor or upon an affidavit furnished by thedepartment if not purchased from a vendor and the tax collected shall be basedupon the declaration or invoice;

 

(iii) Except for those vehicles specified under W.S.39-16-107(b)(iv), the use tax imposed by this article upon a motor vehicle,house trailer, trailer coach, trailer or semitrailer purchased outside thestate of Wyoming as a gift shall be collected from the donee prior to the firstregistration based upon the fair market value of the gift at the time of thegift;

 

(iv) The tax imposed by this article upon the sale of atransportable home shall be collected upon the first sale of the transportablehome. The tax shall be collected on seventy percent (70%) of the sales priceof the transportable home. No tax shall be collected upon any subsequent saleof the home.

 

(c) Taxpayer. The following shall apply:

 

(i) Except as otherwise provided, there is levied and shall bepaid by the purchaser an excise tax at the same rate applied under W.S.39-15-104 upon sales in Wyoming. The vendor shall collect the tax and give thepurchaser a receipt therefor displaying the tax paid separately;

 

(ii) Persons storing, using or consuming tangible personalproperty or specified digital products are liable for the tax imposed by thisarticle. Specified digital products are only subject to the tax imposed by thisarticle as specified in paragraph (a)(i) of this section. The liability is notextinguished until the tax has been paid to the state but a receipt given tothe person by a registered vendor in accordance with paragraph (i) of thissubsection is sufficient to relieve the purchaser from further liability;

 

(iii) For purposes of W.S. 39-16-107(b)(ii), the sales price ofmotor vehicles, house trailers, trailer coaches, trailers or semitrailers asdefined by W.S. 31-1-101 shall be declared by the purchaser upon a copy of theoriginal invoice from the vendor or upon an affidavit furnished by thedepartment if not purchased from a vendor and the tax collected shall be basedupon the declaration or invoice;

 

(iv) Except for those vehicles specified under W.S. 39-16-107(b)(iv), the use tax imposed by this article upon a motor vehicle, housetrailer, trailer coach, trailer or semitrailer purchased outside the state ofWyoming as a gift shall be collected from the donee prior to the firstregistration based upon the fair market value of the gift at the time of thegift;

 

(v) Every vendor shall collect the tax imposed by this articleand is liable for the entire amount of taxes imposed;

 

(vi) Every person storing, using or consuming tangible personalproperty or specified digital products purchased from a vendor who does notmaintain a place of business in this state is liable for the tax imposed bythis article. Specified digital products are only subject to the tax imposedby this article as specified in paragraph (a)(i) of this section;

 

(vii) If any vendor discontinues his business or sells his stockof goods he shall make a final return and payment within thirty (30) daysthereafter. His successor in business shall withhold from the purchase price anamount equal to any taxes, penalty or interest due until the time the formerowner produces a receipt from the department showing that all amounts due havebeen paid or a certificate that no taxes are due. If the successor fails towithhold from the purchase price the amount due he is liable for same;

 

(viii) Any tax due under this article constitutes a debt to thestate from the persons who are parties to the transaction and is a lien fromthe date due on all the property of those persons. The tax lien shall havepreference over all liens except any valid mortgage or other liens of recordfiled or recorded prior to the date the tax became due. When the tax iscollected by a retailer or his agent, the tax lien has the same status as salestax liens under W.S. 39-15-108(d)(i).

 

39-16-104. Taxation rate.

 

(a) Except as otherwise provided, there is levied and shall bepaid by the purchaser an excise tax at the same rate applied under W.S. 39-15-104upon sales in Wyoming.

 

(b) Effective July 1, 1993, in addition to the use tax undersubsection (a) of this section, there is imposed an additional use tax of onepercent (1%) which shall be administered as if the use tax rates undersubsection (a) of this section were increased from three percent (3%) to fourpercent (4%). The revenue from these increases shall be distributed in thesame manner as other use tax revenue under that subsection.

 

(c) Repealed by Laws 2000, Ch. 26, 1.

 

(d) Repealed By Laws 2007, Ch. 140, 2.

 

(e) The tax rate imposed upon a transaction subject to thischapter shall be sourced as follows:

 

(i) The retail purchase, excluding lease or rental, of aproduct shall be sourced as follows:

 

(A) When the product is received by the purchaser at a businesslocation of the seller, the purchase shall be sourced to that businesslocation;

 

(B) When the product is not received by the purchaser at abusiness location of the seller, the purchase shall be sourced to the locationwhere receipt by the purchaser, or the purchaser's agent designated as such bythe purchaser, occurs, including the location indicated by instruction fordelivery to the purchaser or donee, known to the seller;

 

(C) When subparagraphs (A) and (B) of this paragraph do notapply, the purchase shall be sourced to the location indicated by an addressfor the purchaser that is available from the business records of the sellerthat are maintained in the ordinary course of the seller's business when use ofthis address does not constitute bad faith;

 

(D) When subparagraphs (A) through (C) of this paragraph do notapply, the purchase shall be sourced to the location indicated by an addressfor the purchaser obtained during the consummation of the purchase, includingthe address of a purchaser's payment instrument, if no other address isavailable, when use of this address does not constitute bad faith;

 

(E) When none of the previous rules of subparagraphs (A)through (D) of this paragraph apply, including the circumstance in which theseller is without sufficient information to apply any of the previous rules,then the location shall be determined by the address from which tangiblepersonal property was shipped, from which the digital good or the computersoftware delivered electronically was first available for transmission by theseller, or from which the service was provided, disregarding for these purposesany location that merely provided the digital transfer of the productpurchased;

 

(F) For the purposes of this paragraph the terms"receive" and "receipt" mean taking possession of tangiblepersonal property, making first use of services or taking possession or makingfirst use of digital goods, whichever comes first. The terms"receive" and "receipt" do not include possession by ashipping company on behalf of the purchaser.

 

(ii) The lease or rental of tangible personal property, otherthan property identified in paragraph (iii) or (iv) of this subsection, shallbe sourced as follows:

 

(A) For a lease or rental that requires recurring periodicpayments, the first periodic payment shall be sourced the same as a retailpurchase in accordance with the provisions of paragraph (i) of thissubsection. Periodic payments made subsequently to the first payment shall besourced to the primary property location for each period covered by thepayment. The primary property location shall be as indicated by an address forthe property provided by the lessee that is available to the lessor from itsrecords maintained in the ordinary course of business, when use of this addressdoes not constitute bad faith. The property location shall not be altered byintermittent use at different locations, such as use of the business property thataccompanies employees on business trips and service calls;

 

(B) For a lease or rental that does not require recurringperiodic payments, the payment shall be sourced the same as a retail purchasein accordance with the provisions of paragraph (i) of this subsection;

 

(C) This paragraph shall not affect the imposition orcomputation of sales or use tax on leases or rentals based on a lump sum oraccelerated basis, or on the acquisition of property for lease.

 

(iii) The lease or rental of a motor vehicle, trailer,semi-trailer or aircraft that does not qualify as transportation equipment, asdefined in paragraph (iv) of this subsection shall be sourced as follows:

 

(A) For a lease or rental that requires recurring periodicpayment, each periodic payment shall be sourced to the primary propertylocation. The primary property location shall be as indicated by an addressfor the property provided by the lessee that is available to the lessor fromits records maintained in the ordinary course of business, when use of thisaddress does not constitute bad faith. This location shall not be altered byintermittent use at different locations;

 

(B) For a lease or rental that does not require recurringperiodic payments, the payment shall be sourced the same as a retail purchasein accordance with the provisions of paragraph (i) of this subsection;

 

(C) This paragraph shall not affect the imposition orcomputation of sales or use tax on a lease or rental based on a lump sum oraccelerated basis, or on the acquisition of property for lease.

 

(iv) The retail purchase, including lease or rental oftransportation equipment shall be sourced the same as a retail purchase inaccordance with the provisions of paragraph (i) of this subsection. As used inthis paragraph, "transportation equipment" means any of thefollowing:

 

(A) Locomotives and railcars that are utilized for the carriageof persons or property in interstate commerce;

 

(B) Trucks and truck-tractors with a gross vehicle weightrating (GVWR) of greater than ten thousand (10,000) pounds, trailers,semi-trailers or passenger buses that are:

 

(I) Registered through the international registration plan; and

 

(II) Operated under authority of a carrier authorized andcertified by the United States department of transportation or another federalor a foreign authority to engage in the carriage of personnel or property ininterstate or foreign commerce.

 

(C) Aircraft that are operated by an air carrier authorized andcertified by the United States department of transportation or another federalauthority or a foreign authority to engage in the carriage of persons orproperty in interstate or foreign commerce;

 

(D) Containers designed for use on and component parts attachedor secured on the items set forth in subparagraphs (A) through (C) of thisparagraph.

 

(v) Except for the defined telecommunication services inparagraph (vii) of this subsection, the purchase of telecommunication servicesold on a call-by-call basis shall be sourced to:

 

(A) Each level of taxing jurisdiction where the call originatesand terminates in that jurisdiction; or

 

(B) Each level of taxing jurisdiction where the call eitheroriginates or terminates and in which the service address is also located.

 

(vi) Except for the defined telecommunication services inparagraph (vii) of this subsection, a purchase of telecommunication servicesold on a basis other than a call-by-call basis and any ancillary serviceincidental to the sale, shall be sourced to the customer's place of primaryuse;

 

(vii) The purchase of the following telecommunication servicesshall be sourced to each level of taxing jurisdiction as follows:

 

(A) A purchase of mobile telecommunications services other thanair-to-ground radio telephone service and prepaid calling service, shall besourced to the customer's place of primary use as required by the MobileTelecommunications Sourcing Act, P.L. 106-252;

 

(B) A purchase of post-paid calling service shall be sourced tothe origination point of the telecommunications signal as first identified byeither:

 

(I) The seller's telecommunications system; or

 

(II) Information received by the seller from its serviceprovider, where the system used to transport such signals is not that of theseller.

 

(C) A purchase of prepaid calling service and prepaid wirelesscalling service shall be sourced in accordance with paragraph (i) of thissubsection. Provided however, in the case of a purchase of a prepaid wirelesscalling service, the rule provided in subparagraph (i)(E) of this subsectionshall include as an option the location associated with the mobile telephonenumber;

 

(D) A purchase of a private communication service shall besourced as follows:

 

(I) Service for a separate charge related to a customer channeltermination point shall be sourced to each level of jurisdiction in which thecustomer channel termination point is located;

 

(II) Service where all customer termination points are locatedentirely within one (1) jurisdiction or levels of jurisdiction shall be sourcedin the jurisdiction in which the customer channel termination points arelocated;

 

(III) Service for segments of a channel between two (2) customerchannel termination points located in different jurisdictions and which segmentsof a channel are separately charged shall be sourced fifty percent (50%) ineach level of jurisdiction in which the customer channel termination points arelocated;

 

(IV) Service for segments of a channel located in more than one(1) jurisdiction or levels of jurisdiction and which segments are notseparately billed shall be sourced in each jurisdiction based on the percentagedetermined by dividing the number of customer channel termination points in thejurisdiction by the total number of customer channel termination points.

 

(E) The definitions in W.S. 39-15-104(f)(xi)(E) shall apply toparagraphs (v) through (viii) of this subsection.

 

(f) Any vendor or certified service provider relying on anincorrect rate, boundary or jurisdictional information provided by thedepartment in its tax rate database required under the streamlined sales anduse tax agreement shall not be held liable for any under collection of taxcaused by the department's error.

 

39-16-105. Exemptions.

 

(a) The following purchases or leases are exempt from theexcise tax imposed by this article:

 

(i) For the purpose of exempting sales of services and tangiblepersonal property which are protected by the United States constitution and theWyoming constitution, the following are exempt:

 

(A) Purchases which the state of Wyoming is prohibited fromtaxing under the laws or constitutions of the United States or Wyoming.

 

(ii) For the purpose of exempting sales of services and tangiblepersonal property protected by federal law, the following are exempt:

 

(A) Railroad rolling stock including locomotives purchased byinterstate railroads, aircraft purchased by interstate air carriers which areholders of valid United States civil aeronautics board permits or authorities,and trucks, truck-tractors, trailers, semitrailers and passenger buses inexcess of ten thousand (10,000) pounds gross vehicle weight which are purchasedby common or contract interstate carriers or which are operating in interstatecommerce under exemption clauses in federal law if they are to be used ininterstate commerce;

 

(B) Purchases by Wyoming joint apprenticeship and trainingprograms approved by the department of labor.

 

(iii) For the purpose of exempting sales of services and tangiblepersonal property consumed in production, the following are exempt:

 

(A) Purchases of tangible personal property by a person engagedin the business of manufacturing, processing or compounding when the tangiblepersonal property purchased becomes an ingredient or component of the tangiblepersonal property manufactured, processed or compounded for sale or use andpurchases of containers, labels or shipping cases used for the tangiblepersonal property so manufactured, processed or compounded. This subparagraphshall apply to chemicals and catalysts used directly in manufacturing,processing or compounding which are consumed or destroyed during that process;

 

(B) Purchases of livestock, feeds for use in feeding livestockor poultry for marketing purposes and seeds, roots, bulbs, small plants andfertilizer planted or applied to land, the products of which are to be sold.This exemption applies to, but is not limited to, sales of seeds, roots, bulbs,small plants and fertilizer planted or applied to land subject to a state orfederal crop set aside program;

 

(C) Sales of fuel for use as boiler fuel in the production ofelectricity.

 

(iv) For the purpose of exempting sales of services and tangiblepersonal property sold to government, charitable and nonprofit organizations,irrigation districts and weed and pest control districts, the following areexempt:

 

(A) Purchases made by the state of Wyoming or its politicalsubdivisions;

 

(B) Purchases made by religious or charitable organizations inthe conduct of their regular religious or charitable functions;

 

(C) Purchases by a joint powers board organized under theWyoming Joint Powers Act;

 

(D) Labor or service charges, including transportation andtravel, for the repair, alteration or improvement of real property or tangiblepersonal property owned by, or incorporated in projects under contract to thestate of Wyoming or any of its political subdivisions, including an irrigationdistrict created under W.S. 41-7-201 through 41-7-210, and a weed and pestcontrol district created under W.S. 11-5-101 et seq.;

 

(E) Sales to an irrigation district created under W.S. 41-7-201through 41-7-210;

 

(F) Sales to a weed and pest control district created underW.S. 11-5-101 et seq.

 

(v) For the purpose of exempting sales of services and tangiblepersonal property which are alternatively taxed, the following are exempt:

 

(A) Purchases which are taxable under the provisions of theSelective Sales Tax Act of 1937, and purchases for which a sales tax has beenpreviously paid;

 

(B) Motor vehicle fuel which is subject to taxation under W.S.39-17-101 through 39-17-111 or 39-17-201 through 39-17-211. The exemptionprovided by this subparagraph shall not apply to gasoline or gasohol taxedunder W.S. 39-17-104(a)(iii) or to diesel fuel taxed under W.S.39-17-204(a)(ii).

 

(vi) For the purpose of exempting sales of services and tangiblepersonal property and services which are essential human goods and services,the following are exempt:

 

(A) Purchases of the following tangible personal property soldunder a prescription: drugs for human relief excluding"over-the-counter-drugs", insulin for human relief and any syringe,needle or other device necessary for the administration thereof, oxygen formedical use, blood plasma, prosthetic devices, hearing aids, eyeglasses,contact lenses, mobility enhancing equipment, durable medical equipment and anyassistive device. As used in this subparagraph, "assistive device"means any item, piece of equipment or product system, as defined by departmentrule, which is used to increase, maintain or improve the functionalcapabilities of an individual with a permanent disability, excluding anymedical device, surgical device or organ implanted or transplanted into orattached directly to an individual.

 

(B) Tangible personal property sold by any person for deliveryin this state is deemed sold for storage, use or consumption herein and issubject to the tax imposed by this article unless the person selling theproperty has received from the purchaser a signed certificate stating theproperty was purchased for resale and showing his name and address;

 

(C) Purchases of all noncapitalized equipment and disposablesupplies which are used in the direct medical or dental care of a patient. Theexemption in this subparagraph shall not include capitalized equipment oroffice supplies used in the normal course of business;

 

(D) Sales of water delivered by pipeline or truck;

 

(E) Purchases of food for domestic home consumption.

 

(vii) For the purpose of exempting sales of services providedprimarily to businesses, exemptions shall be as specified by the legislatureand as follows:

 

(A) A person regularly engaged in the business of making loansor a supervised financial institution, as defined in W.S. 40-14-140(a)(xix),that forecloses a lien or repossesses a motor vehicle on which it has filed alien shall not be liable for payment of sales or use tax, penalties or interestdue under W.S. 39-16-108(b) and (c) for that vehicle;

 

(B) The purchase of farm implements. For purposes of thissubparagraph, "farm implements" means any tractor or other machinerydesigned or adapted and used exclusively for agricultural operations andspecifically excludes any vehicle titled under chapter 2 of title 31,snowmobiles, lawn tractors, all-terrain vehicles and repair or replacementparts.

 

(viii) For the purpose of exempting sales of services and tangiblepersonal property as an economic incentive, the following are exempt:

 

(A) Sales of carbon dioxide and other gases used in tertiaryproduction;

 

(B) The purchase of aircraft repair, remodeling or maintenanceservices at a federal aviation administration certified repair stationincluding, but not limited to, repair or replacement materials or parts;

 

(C) Sales of equipment used to generate electricity fromrenewable resources. As used in this subparagraph, "renewableresources" includes wind generation, solar, biomass, landfill gas, hydro,hydrogen and geothermal energy. The exemption provided by this subparagraphshall be limited to the acquisition of equipment used in a project to make itoperational up to the point of interconnection with an existing transmissiongrid including wind turbines, generating equipment, control and monitoringsystems, power lines, substation equipment, lighting, fencing, pipes and otherequipment for locating power lines and poles. The exemption shall not apply totools and other equipment used in construction of a new facility, contractedservices required for construction and routine maintenance activities andequipment utilized or acquired after the project is operational. Thissubparagraph is applicable as follows:

 

(I) On and after January 1, 2010, the exemption shall apply tosales of equipment for projects where either the project developer is thelandowner for the project prior to January 1, 2010, or where the projectdeveloper has, prior to January 1, 2010, entered into a written contract with alandowner that describes the project with specificity, including a descriptionof equipment to be purchased and placed on the landowner's land and has madepayment to the landowner under terms of the contract. To be eligible for theexemption, the project developer shall have received all required permits andapprovals from all governmental agencies for the development and constructionof the project. Evidence of compliance with this subparagraph shall besubmitted to the department with the request for an exemption. Equipmenteligible for the exemption shall be purchased and delivered within the state ofWyoming on or before December 31, 2011 for storage, use or consumption by thedeveloper to qualify for the exemption. The exemption provided under thissubdivision of this subparagraph is repealed effective December 31, 2011;

 

(II) On and after January 1, 2010, the exemption shall apply tosales of equipment used to generate electricity from renewable resources with atotal net rating capacity of not more than twenty-five (25) kilowatts, or wherethe entire renewable energy system is to be for off-grid use. The exemptionprovided under this subdivision of this subparagraph is repealed effective June30, 2012.

 

(D) Until December 31, 2011, the purchase or lease of machineryto be used in this state directly and predominantly in manufacturing tangiblepersonal property, if the sale or lease:

 

(I) Is to a manufacturer classified by the department under theNAICS code manufacturing sector 31 - 33; and

 

(II) Does not include noncapitalized machinery except machineryexpensed in accordance with section 179 of the Internal Revenue Code.

 

(III) Repealed By Laws 2010, Ch. 33, 2.

 

(E) The purchase or lease of any aircraft used in a federalaviation administration air carrier operation including the purchase of all:

 

(I) Tangible personal property permanently affixed or attachedas a component part of the aircraft, including, but not limited to, repair orreplacement materials or parts;

 

(II) Aircraft repair, remodeling and maintenance servicesperformed on the aircraft, its engine or its component materials or parts.

 

(F) Purchases of tangible personal property or servicesperformed for the repair, assembly, alteration or improvement of railroadrolling stock. This subparagraph is repealed effective July 1, 2015;

 

(G) The purchase of equipment used to construct a new coal gasificationor coal liquefaction facility. The exemption provided by this subparagraphshall be limited to the acquisition of equipment used in a project to make itoperational. The exemption shall not apply to tools and other equipment usedin construction of a new facility, contracted services required forconstruction and routine maintenance activities nor to equipment utilized oracquired after the facility is operational;

 

(H) The sales price paid for the purchase or rental ofqualifying computer equipment including computers, servers, monitors,keyboards, storage devices and other peripherals, racking systems, cabling andtrays that are necessary for the operation of a data processing services centerwhen the aggregate purchase of the qualifying computer equipment exceeds twomillion dollars ($2,000,000.00) in any calendar year. For the purpose ofclaiming this exemption, the purchaser shall demonstrate to the department thathe:

 

(I) Has a physical location in this state where the qualifyingcomputer equipment purchased shall be maintained and operated until thequalifying computer equipment is scheduled for replacement or until it hasreached the end of its serviceable life;

 

(II) Shall make an initial total capital asset investment in aphysical location in this state of not less than five million dollars($5,000,000.00) or has made a capital investment in a physical location in thisstate of not less than five million dollars ($5,000,000.00) in the five (5)years immediately preceding the effective date of this subparagraph;

 

(III) Has retained adequate documentation to demonstrate that thetotal purchase of qualifying computer equipment exceeds the annual threshold oftwo million dollars ($2,000,000.00);

 

(IV) Has received annual certification from the Wyoming businesscouncil that the purchaser has created or will create a number of jobs inWyoming that is appropriate to the size and stage of development of the dataprocessing services center as determined by the Wyoming business council;

 

(V) Will accrue the excise tax on purchase of otherwisequalifying computer equipment where the annual threshold of two million dollars($2,000,000.00) was not met. The tax shall be remitted to the department notlater than the end of January immediately following the end of the calendaryear where the threshold was not met to avoid the assessment of penalty andinterest on any amount of tax due;

 

(VI) Shall keep adequate written records and documentation inaccordance with department rule and regulation to show compliance with therequirements of this subparagraph. If the purchaser does not meet all therequirements of this subparagraph, any tax owed shall be remitted to thedepartment not later than the end of January immediately following the end ofthe calendar year in which the requirements were not met.

 

(ix) W.S. 39-15-108(b)(ii) and 39-15-107(b)(iv) apply to usetaxes under this article;

 

(x) For the purpose of avoiding application of the use tax morethan once on the same article of tangible property for the same taxpayer:

 

(A) The trade-in value of tangible personal property shall beexcluded from the sales price of new tangible personal property when trade-inand purchase occur in one (1) transaction; and

 

purchase. Thepurchaser shall declare under penalty of perjury on a form prescribed by thedepartment that he is not a resident of Wyoming.

 

(b) The Wyoming business council and the department of revenueshall jointly report to the joint revenue interim committee on or beforeDecember 1 of each year that the exemption provided by subparagraph(a)(viii)(D), (G) or (H) of this section is in effect. The report shallevaluate the cumulative effects of each exemption that is in effect frominitiation of the exemption and shall include:

 

(i) A history of employment in terms of numbers of employees,full-time and part-time employees and rates of turnover;

 

(ii) A history of wages and benefits disaggregated by gender foreach job category; and

 

(iii) A comprehensive history of taxes paid to the state ofWyoming.

 

39-16-106. Licenses; permits.

 

(a) Every vendor shall register with the department of revenue,giving the name and address of all agents operating in the state and thelocation of all places of business together with other information as requiredby the department. Effective July 1, 1997, a license fee of sixty dollars($60.00) shall be required from each new vendor, except for any remote vendorwho has no requirement to register in this state, or who is using one (1) ofthe technology models pursuant to the streamlined sales and use tax agreement.Failure of a vendor to timely file any return may result in forfeiture of thelicense granted under this section. The department shall charge sixty dollars($60.00) for reinstatement of any forfeited license. Any out-of-state vendornot otherwise subject to this article may voluntarily register with thedepartment and if registered, shall collect and remit the state use tax imposedby W.S. 39-16-104.

 

(b) Notwithstanding subsection (a) of this section, andpursuant to department rules and regulations, a vendor who purchases wholesalegoods for use in manufacturing, processing or compounding as provided by W.S.39-16-105(a)(viii), and who does not engage in any retail sale of those goods,shall not be required to obtain a use tax registration.

 

39-16-107. Compliance; collection procedures.

 

(a) Returns, reports and preservation of records. Thefollowing shall apply:

 

(i) Every vendor shall collect the tax imposed by this articleand is liable for the entire amount of taxes imposed. The taxes are due andpayable on the last day of the month following the month in which they werecollected or as required by the department and each vendor shall on or beforethe last day of each month file a return showing the total sales of tangiblepersonal property subject to the tax imposed by this article sold during thepreceding month and remit all taxes due to the department. The returns shallcontain such information required by the department. Any vendor shall reportwhether the vendor sells cigarettes, cigars, snuff or other tobacco products inthis state to the department in the form and manner required by the department.The department may reject any report required under this paragraph of anyvendor who does not comply with the tobacco sales reporting requirements. Ifthe total tax to be remitted by a vendor is less than one hundred fifty dollars($150.00) a quarterly or annual return as authorized by the department, andremittance in lieu of the monthly return may be made on or before the last dayof the month following the end of the quarter or year for which the tax iscollected. Returns shall be signed by the vendor or his agent;

 

(ii) Every person storing, using or consuming tangible personalproperty purchased from a vendor who does not maintain a place of business inthis state is liable for the tax imposed by this article and shall on or beforethe last day of each month file a return showing the total sales price oftangible personal property purchased subject to the tax imposed by this articleduring the preceding month and remit all taxes due to the department. If thetotal tax to be remitted by the person during any month is less than onehundred fifty dollars ($150.00), a quarterly or annual return as authorized bythe department, and remittance in lieu of the monthly return may be made on orbefore the last day of the month following the end of the quarter or year forwhich the tax is collected. The return shall contain such information asrequested by the department. Returns shall be signed by the person liable forthe tax or his agent;

 

(iii) The department may allow for extensions for filing returns,but no extension may be for more than ninety (90) days;

 

(iv) If the department believes any return and the taxes paidare incorrect it shall recompute the return and the tax based upon the bestinformation available;

 

(v) Taxes collected under paragraphs (b)(ii) and (iii) of thissection shall be remitted in full by the county treasurer to the departmentmonthly or as required by the department together with reports as required bythe department;

 

(vi) Any out-of-state vendor not otherwise subject to thisarticle may voluntarily register with the department and if registered, shallcollect and remit the state use tax imposed by W.S. 39-16-104(a).

 

(b) Payment. The following shall apply:

 

(i) Except as otherwise provided, there is levied and shall bepaid by the purchaser an excise tax at the same rate applied under W.S. 39-15-104 upon sales in Wyoming. The vendor shall collect the tax and give thepurchaser a receipt therefor displaying the tax paid separately;

 

(ii) Except as provided by paragraph (iv) of this subsection, novendor shall collect the taxes imposed by this article upon the sale of motorvehicles, house trailers, trailer coaches, trailers or semitrailers as definedby W.S. 31-1-101. The taxes imposed shall be collected by the county treasurerprior to the first registration in Wyoming and not upon subsequent registrationby the same owner. The county treasurer shall collect and remit to thedepartment the tax in effect in the county of the owner's principal residence.The tax shall not be collected if previously registered by the same nonresidentowner in another state. The county treasurer may also collect the tax due

Categories