Sales & Use Tax Exemptions in Wyoming 

Estimate of the Fiscal Impact of  

Sales/Use Tax Exemptions in Wyoming 

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Table of Contents 

Introduction ..................................................................................................................................... 4 

Overview ..................................................................................................................................... 4 

Fiscal Overview .......................................................................................................................... 4 

Origin of Sales and Use Tax in Wyoming .................................................................................. 4 

Exemptions ................................................................................................................................. 5 

The Challenge ............................................................................................................................. 6 

The Difficulty.............................................................................................................................. 7 

Evaluation of Non-taxed or Exempt Goods and Services in Wyoming ..................................... 7 

Use Based Exemptions ............................................................................................................... 8 

Drilling Rigs............................................................................................................................ 8 

Interstate Transportation ......................................................................................................... 9 

Product Based Exemptions ......................................................................................................... 9 

Farm Implements .................................................................................................................... 9 

Food for Domestic Home Consumption ............................................................................... 10 

Transportable Homes ............................................................................................................ 10 

Gasoline, Gasohol & Diesel .................................................................................................. 10 

Newspapers ........................................................................................................................... 11 

Water Delivered by Pipeline ................................................................................................. 11 

Product / Use Based Exemptions .............................................................................................. 12 

Restaurant Employee Meals ................................................................................................. 12 

Tangible Personal Property Used in the Direct Medical Care of a Patient ........................... 12 

Renewable Resources: Wind Generation Equipment ........................................................... 13 

Professional Services Leading Up to Well Site .................................................................... 13 

Purchases by a Religious or Charitable Organization ........................................................... 14 

Aircraft Services ................................................................................................................... 14 

Railroad Rolling Stock .......................................................................................................... 15 

Vehicles Used in Interstate Commerce ................................................................................. 15 

Manufacturing Machinery .................................................................................................... 15 

Non-enumerated Goods and Services ....................................................................................... 16 

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Personal Health Services....................................................................................................... 16 

Other Non Enumerated Professional Services ...................................................................... 17 

User Fees ............................................................................................................................... 17 

Summary of All Analyzed Exemptions and Exceptions ........................................................... 18 

Exemptions Not Analyzed – Indeterminable ............................................................................ 19 

Exemptions Not Analyzed – Government / Inputs ................................................................... 19 

Conclusion .................................................................................................................................... 20 

Wyoming’s Economic Survey ................................................................................................. 20 

Adjustment Factors ....................................................................................................................... 22 

Wyoming Cost of Living – Cumulative Inflation ..................................................................... 22 

Population ................................................................................................................................. 22 

Wyoming Sales/Use Tax Distributions by Fiscal Year ............................................................ 22 

FTA Services Survey .................................................................................................................... 23 

 

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Introduction 

Overview 

As the economic outlook grows bleaker, and even Wyoming starts to flirt with negative growth, it is the responsibility of the government to look at how it can continue to provide the services its citizens expect. Education, roads, police, fire, hospitals, water, sewers, and personnel can only be cut so far before the state’s citizens start protesting the lack of services. Once spending has been trimmed as far as it can go, it is time to look at the other option: increase the monies available.

Fiscal Overview 

Wyoming does not have an income tax, and it is doubtful that it ever will. To fund state, county and city-level services, Wyoming has relied on three primary tax types: property or ad valorem taxes; mineral or severance taxes, and excise or consumption taxes.

The largest budget impact for Wyoming has been the decrease in natural gas prices. Each $1 change in the price of natural gas means a $270 million change in the state’s coffers. 1 Natural gas futures were $7.11 per thousand cubic feet (mcf) in March 2007, $9.36 per mcf in March 2008 (a record year for oil and gas prices), and dropped to $3.94 per mcf in March 2009.2

This drastic drop in forecast natural gas prices was noted in late 2008, and prompted warnings as the 2009 Legislature went into session. Proposed bills were examined from the viewpoint of whether Wyoming could afford the bill going forward. As the session went on, prices continued to drop, prompting the governor to ask agencies to prepare revised budgets for the next fiscal year. Prices dropped even more, and the governor imposed a hiring freeze. These measures may not be sufficient to maintain a balanced budget.

Origin of Sales and Use Tax in Wyoming 

Many states first codified excise tax laws in the 1930’s. Two states, Hawaii and New Mexico, included services in their tax base while the other states limited their taxation to physical goods for the sake of simplicity. Exemptions to the imposition statutes were codified at the same time, and were intended to prevent layers of taxation as raw goods were converted into finished products.

Wyoming faced a fiscal crisis in the early 1930’s. A 1933 report to the governor recommended imposing a personal income tax and a business tax. The report recommended against imposing a

1 Wyoming Tribune Eagle, “Wyo.'s wallet loses $650M,” January 10, 2009 2 http://www.gasearch.com

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sales tax, except on luxury items such as cigarettes and other tobacco products. In 1935, Governor Miller suggested to the legislature that the $400,000 per year needed by the state would be best raised by implementing a sales tax, as an income tax wouldn’t raise sufficient funds3.

The Wyoming Emergency Sales Tax Act of 1935 imposed a two percent (2%) sales tax on the retail sale of tangible personal property, meals and cover charges, and admission and amusement charges. The act exempted inputs such as ingredients, components, power, fuel, animals, seeds and fertilizer. The act also exempted sales made to organizations such as federal governments, local governments and religious and charitable organizations.

Use tax was introduced in 1937. Use tax is a complement to the sales tax, and is intended to place in-state retailers on the same footing as out-of-state retailers by imposing an equivalent tax on goods brought into Wyoming for storage, use or consumption. Wyoming use tax does not apply if the purchaser has documentation showing that an equal or greater tax was paid to the out-of-state retailer.

Exemptions  

As the years went by, the Wyoming Legislature added more imposition statutes to clarify the intent of the original statutes. The Legislature also added more exemptions; there are currently 49 exemptions set forth in Wyoming statute. As the statutes were challenged, the courts construed exemptions narrowly and in favor of taxation. The exemptions grew in both breadth and scope, with examples given in the language of the statute itself.

Historically, the Legislature and the Department of Revenue have favored a minimalist approach in sales/use tax reporting requirements. Imagine exempt canned food, purchased by an exempt church, and shipped to an out-of-state location where Wyoming tax law doesn’t apply – how could a vendor categorize that exempt sale?

Vendors are allowed to report all of their exempt sales as one number, regardless if the items or services were exempt based on the product, its use or nature of the purchasing entity. Vendors with sophisticated computer systems can report that they made an exempt sale, but can‘t differentiate whether it was exempt because it was food for domestic home consumption, if it was purchased by an exempt organization, if it was purchased for resale or if it was shipped to an out-of-state location.

3 Wyoming State Tribune, “Governor Miller’s Message to the Twenty-Third Wyoming Legislative Group,” January 9, 1935

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The Challenge 

If the current fiscal situation does not improve, Wyoming is faced with few options: we can impose a personal or business income tax; we can impose sales tax on currently un-taxed services and products, or we can repeal existing exemptions.

A personal or business income tax will not be supported by the voters or by the legislature. Wyoming has rebuffed this option for over 75 years, and will continue to do so.

The Tax Foundation annually measures the “tax-friendliness” to business of each state’s tax systems. Wyoming has been named #1 for the most business-friendly taxation policies each year since 2003.4 Characteristics of business friendly states include simple tax systems with no or few corporate and individual taxes; sales tax rates that exempt many business-to-business transactions; low state tax collections; and institutional restraints on the level of taxation or spending.

Wyoming currently has 13 imposition statutes and 49 exemption statutes, which don’t cover the variety of services and goods available to consumers. There are several professional services which are “non-enumerated,” or not addressed specifically in statute. These services are not currently subject to sales tax in Wyoming. The Federation of Tax Administrators publishes a report which examines how states tax 168 different services. As of July 2007, Wyoming imposes sales tax on 58 of the 168 identified services.5

Wyoming could impose a tax on these non-enumerated services such as medical provider fees, accountants, lawyers, and personal services such as hair dressers or masseuses, veterinary and pet grooming services.

In addition, Wyoming’s imposition statutes could be altered to encompass non-enumerated user fees, or pay-to-play fees. Admission and amusement fees, or fees paid to gain entrance or admission, are generally subject to sales tax. Examples:

Taxable Admission Fees Untaxed User Fees Entrance fee to attend a rodeo Registration fee paid by a rodeo contestant Movie or play tickets Golf course or green fees Cover charge at a bar or dance hall Ski lift tickets Concert or symphony tickets Gym memberships Entrance fees to carnivals, fairs, gun shows, coin shows, craft shows, etc.

Lane fee at bowling alley; skating fee at roller rink; pool table fee

Sports event tickets – football, basketball, Booth rental at a craft show or similar venue 4 http://www.taxfoundation.org/files/bp58.pdf, http://www.businessfacilities.com/images/bfjul06p23a.jpg 5 http://www.taxadmin.org/fta/pub/services/services.html

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wrestling, etc. Entrance fees to museums, aquariums, zoos and similar venues

Coin-operated electronic devices – car washes, video games, laundry mats

Carnival tickets, either an all-day pass or single use tickets

Hunting and fishing licenses

The third option available to Wyoming is to repeal or limit the sales/use tax exemptions on the books. Some exemptions may have been enacted to foster a once-struggling industry which is now flourishing. Some exemptions may have had unintended consequences. Some states have recently introduced bills to add a sunset date to every exemption on their books, forcing the legislature to examine each exemption for validity.

The Difficulty 

Determining the fiscal impact of non-enumerated or exempt goods and services is a complicated process because nobody submits detailed statistics on these sales. Any analysis will be based on assumptions and incomplete data. However, the attempt must be made to reveal the entire fiscal picture in Wyoming.

The Economic Census published by the U.S. Census Bureau offers a starting point, especially as the data can be geographically limited to a state. The census is published every five years, and it takes almost two years for the data to be disaggregated to the state level. Thus, the 2007 Economic Census will be published over the course of 2009. For most industry sectors, only the 2002 data is available. Other data sources are available, and usually have a different publication date, so norming the data to a common point is difficult. To adjust 2002 data and 2004 data to a common point, do you use inflation, population growth, sales tax growth or some other factor?

Evaluation of Non‐taxed or Exempt Goods and Services in Wyoming 

How does one calculate the fiscal impact of exemptions or untaxed goods and services, when Wyoming only asks for three numbers on a sales/use tax return: Total Sales, Total Deductions, and Total Taxable Sales? We must rely on third party data, and acknowledge that the numbers will not be precise. Reasonable assumptions must be stated and the data must be replicable.

Many of these evaluated goods and services will be based on 2002 U.S. Economic Census Data for Wyoming businesses. This data is categorized using the North American Industrial Classification System (NAICS) to group businesses into related industries. It is a self reporting system, relying on the businesses to declare their primary industry. A location that is a combination package store, restaurant, and bar can report data under only one NAICS code.

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Other data will have a different compilation date, and some method must be used to standardize the data to a 2008 trend line. Three adjustment factors will be used:

1. The Wyoming Cost of Living Index – This is a measure of inflation. As the cost of living increases, so does the sales price of goods and services.

2. Population – More people leads to more consumption, and the attendant exemptions. 3. Sales/Use Tax Distributions – Taxes are collected and distributed in different months. Sales

made in December are reported in January, and distributed to the local governments in February. Despite the time lag, yearly distributions can help track people’s spending habits.

As people buy more products and services, businesses purchase more inputs to create the goods and services that consumers demand. Businesses also avail themselves of the exemptions. None of the three adjustment factors will be wholly accurate, but an average of the three will smooth out the outliers in the data.

Some exemptions will not be examined in this report; exemptions driven by federal or state governments, and inputs into a finished product or service. Federal law preempts state law, and Wyoming will not be able to repeal those exemptions. Some exemptions are clearly for inputs into a finished good, and are intended to prevent taxes from being assessed each time a good changes hands, shifting the point of taxation to the point of sale by the final customer.

Finally, a sales/use tax rate of 5.30% will be used, as Wyoming has a four-percent state rate with countywide option taxes of up to another two-percent. The Department has historically used 5.30% as a statewide average sales/use tax when preparing fiscal notes for the Legislature and other interested parties.

Use Based Exemptions 

These exemptions are dependent upon how the product or service is used. Examples: vehicles used in interstate commerce; power or fuel used in manufacturing, processing or agriculture.

Drilling Rigs 

Data Source: 2002 Economic Survey Time Frame: 2002 Assumptions: - Exemption for transportation, loading, unloading, assembly and

disassembly of a drilling rig - Data is for NAICS 213111 – Oil and Gas Rigs

Estimated Sales, 2002 $ 427,106,000Estimated Sales/Use Tax Loss, 2002 $ 22,636,618Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Cost of Living $ 30,468,887Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Population Change $ 24,261,927Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Sales/Use Tax Distributions $ 36,372,517

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Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Average of 2008 Adjustment Factors

$ 30,367,777

 

Interstate Transportation 

Data Source: U.S Economic Survey Time Frame: 2002 Assumptions: - Long-distance does not necessarily qualify as interstate and the numbers

are probably overstated Scheduled air transportation, 2002 $ 29,764,000 General freight trucking, long distance, 2002 $ 115,580,000 Used household goods and office products moving, long-distance, 2002 $ 14,211,000 Specialized freight trucking, long distance, 2002 $ 106,933,000 Pipeline transportation (oil, natural gas), 2002 $ 213,870,000Estimated Sales Sum, 2002 $ 480,358,000Estimated Sales/Use Tax Loss, $ 25,458,974Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Cost of Living $ 34,267,779Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Population Change $ 27,286,928Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Sales/Use Tax Distributions $ 40,907,479Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Average of 2008 Adjustment Factors

$ 34,154,162

Product Based Exemptions 

These exemptions are based on the product, and are exempt regardless of what entity purchases the product, or how the product will be used. Examples: Water delivered by pipeline or truck; food for domestic home consumption.

Farm Implements 

Data Source: USDA Census of Agricultural Industry Time Frame: 2007 Assumptions: - Sales based on 20-year replacement cycle

- Value of farm machinery reported divided by 20 Estimated Sales, 2007 $ 53,881,750 Estimated Sales/Use Tax Loss, 2007 $ 2,855,733 Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Cost of Living $ 3,081,336 Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Population Change $ 2,907,136 Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Sales/Use Tax Distributions $ 3,043,355 Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Average of 2008 Adjustment Factors

$ 3,010,609

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Food for Domestic Home Consumption 

Data Source: WY Dept of Revenue Fiscal Note Time Frame: 2006 Assumptions: - Estimates are based on FY 2005 sales and use tax reported by grocers,

convenience stores, department stores and other general merchandise stores. - The amount of food sold by grocers was assumed to be 75% of all sales

while the other categories were estimated at 25%. - The revenue decreases (and revenue increase) were projected from FY 2005

actual totals using January 2006 CREG sales and use tax projections - Calendar Year 2008 calculated by using average of FY 2008 and FY 2009

Estimated Sales, 2008 $ 950,754,717

Estimated Sales/Use Tax Loss, 2008 $ 50,390,000Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Cost of Living $ 50,390,000Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Population Change $ 50,390,000Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Sales/Use Tax Distributions $ 50,390,000Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Average of 2008 Adjustment Factors

$ 50,390,000

Transportable Homes 

Data Source: WY DOR records for NAICS 45393 Time Frame: FY 2008 Assumptions: - If business has more than one NAICS, assume 50% of sales are related to

the other code - Note that transportable homes are alternatively taxed – 70% of the first

sale is subject to sales/use tax. - Calculation is in regards to untaxed 30%

Estimated Sales, 2008 $ 91,072,088Estimated Sales/Use Tax Loss, 30% of Sales $ 2,068,637Estimated Sales/Use Tax Loss $ 2,068,637

 

Gasoline, Gasohol & Diesel 

Data Source: U.S. Energy Information Association Time Frame: 2008 Assumptions: - Total Wyoming Retail Deliveries by Refiners

- These fuels are currently alternatively taxed. Gasoline and diesel are currently taxed at $0.14 per gallon, regardless of the sales price of the fuel.

- Average price of Wyoming gasoline in 2007 was $2.89 per gallon and in 2008 was $3.31 per gallon

- Average price of Wyoming diesel in 2007 was $3.00 per gallon and in 2008 was $3.80 per gallon

- 2008 was a record setting year for gasoline and diesel prices

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- In 2008, 18,177,000 gallons of gasoline and 129,283,000 gallons of diesel were sold to Wyoming retailers for a total of 147,464,000 gallons. An extra one-cent per gallon fuel tax would have yielded another $1.47M in fuel taxes.

- Note that a 14-cent per gallon tax is the equivalent to a 5.3% sales tax if the per gallon price is $2.64. If prices fall below $2.64 per gallon, the state makes more money off the flat fuel tax. If it rises above $2.64 per gallon, the state would get more revenues from the imposition of a sales/use tax.

- This example, in an effort to analyze the tax impact of a sales tax in place of a fuel tax, will use 2007 prices, and only examine the incremental cost of a sales tax (i.e. 2007 gallon price - $2.64 breakeven point * 5.30%)

Estimated Incremental Sales $ 51,086,130Estimated Sales/Use Tax Loss, flat fuel tax vs. sales tax $ 2,707,565

Newspapers 

Data Source: Wyoming Press Association; newspapers’ websites Time Frame: 2005 – 2008 (circulation based on 2005 data; subscription rates on late

2008 prices) Assumptions: - Assume 50% of papers are sold via subscription; 25% via mail delivery

and 25% as single issues as rates differ - Used average yearly rates for home delivery and mail order for average

subscription rate of newspapers - Assume single issues were $4.00 on a weekly basis – 50 cents an issue for

five weekdays, and Sundays at $1.50 per issue - Will not adjust paper circulation using 2008 adjustment factors, as

newspaper circulation has been dwindling nationwide Estimated Sales $ 58,545,253 Estimated Sales/Use Tax Loss $ 3,102,898

Water Delivered by Pipeline  

Data Source: Wyoming Water Development Commission 2007 Water System Survey Time Frame: 2007 Assumptions: - Does not count agricultural, manufacturing or industrial uses

- Average Monthly Water Bill - $26.44 - Number of Wyoming Households - 205,000 (US Census Bureau)

Estimated Sales, 2007 $ 65,042,400Estimated Sales/Use Tax Loss, 2007 $ 3,447,247Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Cost of Living $ 3,719,580Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Population Change $ 3,509,297Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Sales/Use Tax Distributions $ 3,673,731Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Average of 2008 $ 3,634,203

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Adjustment Factors

Product / Use Based Exemptions 

Some products are exempt only when purchased for a specific use by a specific subcategory of user. Both the product and the use must be met for the good or service to be exempt from Wyoming sales/use tax. Examples: Bandages purchased by a doctor’s office for patient care (vs. bandages purchased by a consumer at a pharmacy); machinery used to manufacture goods (must be used directly and predominately in manufacturing, and must be purchased by a recognized manufacturer). Restaurant Employee Meals Data Source: 2002 Economic Census Time Frame: 2002 Assumptions: - The 2002 Economic Census counted 16,745 restaurant employees

- Each employee gets five free or discounted meals per week - Each meal is $4, or the employee pays for anything over $4

Estimated Cost of Meals, 2002 $ 17,414,800 Estimated Sales/Use Tax Loss, 2002 $ 922,984Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Cost of Living $ 1,242,336Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Population Change $ 989,254Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Sales/Use Tax Distributions

$ 1,483,051

Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Average of 2008 Adjustment Factors

$ 1,238,214

Tangible Personal Property Used in the Direct Medical Care of a Patient Data Source: US Dept of Health & Human Services, Center for Medicine & Medicaid

Services Time Frame: 2004 Assumptions: - Sales figures are rounded to the nearest million

- Assume Dugs and Other Medical nondurables are purchased by a medical facility for treating the patient, as non-prescription drugs and medical sundries purchased by the end user are taxable in Wyoming

Drugs & Other Medical Nondurables (prescription and non-prescription drugs; medical sundries)

$ 302,000,000

Durable Medical Products (contacts, glasses, hearing aids, wheelchairs, medical equipment rentals)

$ 47,000,000

Estimated Sales, 2004 $ 349,000,000Estimated Sales/Use Tax Loss, 2004 $ 18,497,000

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Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Cost of Living $ 23,065,759Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Population Change $ 19,595,721Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Sales/Use Tax Distributions

$ 28,846,071

Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Average of 2008 Adjustment Factors

$ 23,835,850

 

Renewable Resources: Wind Generation Equipment 

Data Source: American Wind Energy Association (AWEA), National Renewable Energy Laboratories (NREL), Windustry & Great Plains Windustry Project (WGPWP)

Time Frame: 2002-2007 Assumptions: - Note that project must tie into existing transmission grid. While the

exemption extends the equipment purchases to wind, solar, biomass, landfill gas, hydro, hydrogen and geothermal energy equipment acquisition, no interest has been displayed in resources other than wind

- NREL’s 2002 study: cost of a land-based turbine $935,000 per MW, 26.2% of that cost related to installation. In 2007, WGPWP indicated costs of $1.75M per MW

- AWEA lists past and planned wind projects in Wyoming; 246 MW in operation; 237 MW under construction as of 03/31/09

- Exemption effective July 1, 2003 - Base figures on averages using 6 years; equipment costs 78.3% of costs

per MW Estimated Sales, 2008 $ 96,347,954 Estimated Sales/Use Tax Loss, 2008 $ 5,106,442 Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Cost of Living $ 5,106,442Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Population Change $ 5,106,442Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Sales/Use Tax Distributions

$ 5,106,442

Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Average of 2008 Adjustment Factors

$ 5,106,442

Professional Services Leading Up to Well Site 

Data Source: 2002 Economic Survey Time Frame: 2002 Assumptions: - Economic Survey does not distinguish between services that occur before

or after the establishment of the well site. - Data may be overstated and include data that is taxable

Estimated Sales, 2002 $ 4,358,726,000Estimated Sales/Use Tax Loss, 2002 $ 231,012,478

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Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Cost of Living $ 310,942,795Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Population Change $ 249,031,451Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Sales/Use Tax Distributions

$ 371,190,850

Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Average of 2008 Adjustment Factors

$ 310,389,366

Purchases by a Religious or Charitable Organization 

Data Source: IRS Statement of Income for 501c(3) organizations Time Frame: 2006 Assumptions: - Estimated purchases as a percentage of revenue

- Not all entities reported revenue - Assumed exempt purchases were 10% of reported revenue - Wyoming allows some entities a tax exemption even if not recognized as a

501(c) non-profit Estimated Sales, 2006 $ 152,815,643Estimated Sales/Use Tax Loss, $ 8,099,229Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Cost of Living $ 9,152,129Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Population Change $ 8,416,719Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Sales/Use Tax Distributions $9,645,372Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Average of 2008 Adjustment Factors

$ 9,071,407

Aircraft Services  

Data Source: U.S. Economic Census Time Frame: 2002 Assumptions: - Wyoming has two overlapping exemptions – one for repair services and

parts used at a certified repair station, and an exemption for the sales and lease of all aircraft used in an FAA commercial operation, including repair services and parts.

- The data available is only for NAICS 4881, which covers operation, servicing, repairing (except factory conversion and overhaul of aircraft), maintaining and storing aircraft, and ferrying aircraft.

- This data includes taxable repair services to personal airplanes - This data does not address aircraft repair parts and materials, nor does it

address the exempt sale or lease of aircraft – that data is indeterminable. Estimated Sales, 2002 $ 16,748,000 Estimated Sales/Use Tax Loss, 2002 $ 887,644 Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Cost of Living $ 1,194,769Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Population Change $ 951,377Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Sales/Use Tax Distributions $ 1,426,266Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Average of 2008 $ 1,190,804

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Adjustment Factors

Railroad Rolling Stock 

Data Source: U.S. Economic Census Time Frame: 2002 Assumptions: - The Wyoming exemption includes both the materials and the labor to

repair railroad rolling stock - The census data addresses servicing, routine repairing (except factory

conversion, overhaul or rebuilding of rolling stock), and maintaining rail cars; loading and unloading rail cars; and operating independent terminals.

Estimated Sales, 2002 $ 13,953,000Estimated Sales/Use Tax Loss, $ 739,509Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Cost of Living $ 995,379Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Population Change $ 792,606Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Sales/Use Tax Distributions $ 1,118,243Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Average of 2008 Adjustment Factors

$ 968,743

Vehicles Used in Interstate Commerce 

Data Source: Federal Motor Carrier Safety Association – list of Wyoming registered vehicles with US DOT and MC numbers

Time Frame: 2009 Assumptions: - Wyoming exempts sales and leases of vehicles used in interstate

commerce - US DOT’s website lists 3,500+ businesses with registered interstate

commerce vehicles - As of May 14, 2009 there are 16,086 vehicles listed as being used in

interstate commerce, with 190 of those belonging to political subdivisions of the State of Wyoming or a religious school (exempt for another reason)

- Sales price or monthly lease fee are unknown for tax loss estimate purposes

- Assume $750 per month lease payment or purchase price equivalent, regardless of lease or purchase contract term

Estimated Yearly Sales / Leases $ 143,064,000Estimated Sales/Use Tax Loss $ 7,582,392Estimated Sales/Use Tax Loss Per Year $ 7,582,392

 

Manufacturing Machinery 

Data Source: Annual surveys received by the Department of Revenue Time Frame: 2004 - 2008

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Assumptions: - Effective July 1, 2004 Wyoming passed an exemption for purchases of machinery used directly and predominately in manufacturing.

- The Legislature hoped the exemption would help expand and diversify the manufacturing sector in Wyoming, so revenues would be less affected by fluctuations in mineral prices.

- Manufacturers are required to fill out an annual survey describing the amount of exempt purchases as well as employment information.

- Survey response rates are low, with less than half of identified manufacturers responding. Some of the contacted businesses may not qualify as manufacturers as defined in the statute. Some businesses may have changed their business type since they obtained their initial sales/use tax license.

- The larger manufacturers are very diligent about reporting the exemption amounts.

- Reported exemptions vary year to year, as large manufacturers avail themselves of the exemption to upgrade their machinery. For instance, in 2007, one manufacturer had over $15 million in qualifying manufacturing machinery purchases.

- Consequentially, an average of past years’ data will be used. Time frame Amount of qualifying purchases FY 2005 $ 66,883,236 FY 2006 $ 148,383,743 FY 2007 $ 280,448,686 FY 2008 $ 114,013,460 Average $ 152,432,282

Estimated Sales (Services), average of four years’ data $ 152,432,282Estimated Sales/Use Tax Loss $ 8,078,911

Non‐enumerated Goods and Services 

Personal Health Services 

Data Source: US Dept of Health & Human Services, Center for Medicine & Medicaid Services

Time Frame: 2004 Assumptions: Reported figures were rounded to the nearest million, leading to very

round figures

Hospital care (room, board, doctor visits) $1,095,000,000 Physical and Clinical Services (doctor offices, services provided to hospital but billed separately) $ 670,000,000

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Other Professional Services (nurses, chiropractors, PT, podiatrists, etc) $ 117,000,000 Dental Services $ 134,000,000 Home Health Care $ 28,000,000 Nursing Home Care $ 150,000,000 Other Personal Health Care (work site, government site such as school or military) $120,000,000 Estimated Sales (Services), 2004 $ 2,314,000,000 Estimated Sales/Use Tax Loss, 2004 $ 122,642,000Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Cost of Living $ 152,934,570Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Population Change $ 129,926,930Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Sales/Use Tax Distributions $ 191,260,190Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Average of 2008 Adjustment Factors $ 158,025,890

Other Non Enumerated Professional Services 

Data Source: U.S. Economic Census Time Frame: 2002 Assumptions: - These are non-enumerated services, which means there is no statute that

specifically exempts these services, or imposes sales tax on these services Other Non Enumerated Services

Personal Care (barber, beauty shops, etc) $ 23,516,000 Death Care (funeral homes, cemeteries, etc) $ 17,846,000 Coin Operated Laundries $ 2,723,000 Pet Care Services $ 1,225,000 Veterinary Services $ 39,330,000 Towing Services $ 7,121,000

Estimated Sales, 2002 $ 91,761,000 Estimated Sales/Use Tax Loss, 2002 $ 4,863,333 Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Cost of Living $ 6,546,046 Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Population Change $ 5,212,520 Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Sales/Use Tax Distributions $ 7,814,403 Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Average of 2008 Adjustment Factors

$ 6,524,323

User Fees 

Data Source: U.S. Economic Census Time Frame: 2002 Assumptions: - These are non-enumerated fees, which means there is no statute that

specifically exempts these fees, or imposes sales tax on these fees Non Enumerated Fees

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Golf courses & country clubs $ 22,366,000Other fitness & recreational sports centers $ 12,112,000Bowling centers $ 8,573,000Coin-operated amusement devices (except slot machine operation) $ 2,987,000Marinas $ 2,847,000Amusement arcades $ 1,735,000Lottery, bingo, bookie, & other betting operations $1,836,000Other (skiing, ice skating, roller skating, miniature golf, amusement rides, etc.) $ 54,222,000

Estimated Sales, 2002 $ 106,678,000Estimated Sales/Use Tax Loss, 2002 $ 5,653,934Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Cost of Living $ 7,610,195Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Population Change $ 6,059,886Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Sales/Use Tax Distributions $ 9,084,741Estimated Sales/Use Tax Loss, 2008 Adj. Factor: Average of 2008 Adjustment Factors

$ 7,584,941

Summary of All Analyzed Exemptions and Exceptions 

Brief Description of (E)xemption or (N)on-enumerated Product or Service

2008 Adjusted Estimated Sales/Use Tax Loss

Aircraft Repair Services (E) 1,190,804Drilling Rigs (E) 30,367,777Farm Implements (E) 3,010,609Food for Domestic Home Consumption (E) 50,390,000Gas, gasohol, and diesel 2,707,565Interstate Transportation (E) 34,154,162Medical Supplies (E) 23,835,850Newspapers (E) 3,102,898Personal Health Services (N) 158,025,890Manufacturing Machinery (E) * 8,078,911Non Enumerated Professional Services (N) 6,524,323Purchases by Religious or Charitable Organizations (E) 9,071,407Railroad Rolling Stock Repair (E) 968,743Residential Water Delivered by Pipeline (E) 3,634,203Restaurant Employee Meals (E) 1,238,214Services Leading to Well Site (E) 310,389,366Transportable Homes (E) 2,068,637User Fees (N) 7,584,941Vehicles Used in Interstate Commerce (E) 7,582,392Wind Generation Equipment (E) 5,106,442Sum – “Cost” of WY sales/use tax exemptions and exceptions $ 669,033,134

* Manufacturing machinery exemption has a sunset date of December 31, 2010.

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Exemptions Not Analyzed – Indeterminable 

The fiscal impact of some exemptions is indeterminable because the exemption is too closely linked to another exemption or the data is not otherwise available:

Interstate transportation of freight or passengers Occasional sales made by religious and charitable organizations Intrastate transit of persons by government, charitable or nonprofit organizations Intrastate transportation of persons by hearse or ambulance Motor vehicles on which the lien holder forecloses the lien or repossesses the vehicle Employer paid or contracted intrastate transportation of employees to or from work Intrastate transportation of freight or property Gases used in tertiary production Lodging services provided by a guide or outfitter Service of transmitting one-way radio waves Sales of items as a fundraiser for K-12 public schools Sales of school annuals

Exemptions Not Analyzed – Government / Inputs 

Sales of services and tangible personal property protected by federal or state law: o Sales prohibited from taxation under U.S. or Wyoming Constitution [W.S. 39-15-

105(a)(i)(A)] o Sales to apprenticeship and training programs approved by the U.S. Department

of Labor [W.S. 39-15-105(a)(ii)(D)] o Sales of food purchased with food stamps [W.S. 39-15-105(a)(ii)(E)]

Sales of services and tangible personal property consumed in production o Ingredients, components, chemicals, catalysts and packaging materials that

become part of tangible personal property that is manufactured, processed or compounded into another product. [W.S. 39-15-105(a)(iii)(A)]

o Sales of livestock, feeds, seeds, roots, bulbs, small pants and fertilizers. [W.S. 39-15-105(a)(iii)(B)]

o Intrastate transportation of raw farm products [W.S. 39-15-105(a)(iii)(C)] o Sales of power and fuel sold to and consumed by those in the businesses of

manufacturing, processing or agriculture [W.S. 39-15-105(a)(iii)(D)] o Power or fuel consumed in generating motive power by a transportation business

[W.S. 39-15-105(a)(iii)(E)] o Wholesale for resale sales [W.S. 39-15-105(a)(iii)(F)] o Power or fuel consumed to create electricity [W.S. 39-15-105(a)(iii)(G)]

Sales of goods and services sold to government organizations o Sales to the State of Wyoming or its political subdivisions [W.S. 39-15-

105(a)(iv)(A)]

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o Sales to joint powers board [W.S. 39-15-105(a)(iv)(D)] o Admission and user fees to a county or municipally owned recreation facility

[W.S. 39-15-105(a)(iv)(E)] o Labor or service charges for repair, alteration or improvement of real or tangible

personal property under contract to the State of Wyoming and its political subdivisions [W.S. 39-15-105(a)(iv)(F)]

o Sales to Wyoming irrigation districts [W.S. 39-15-105(a)(iv)(G)] o Sales to Wyoming weed and pest control districts [W.S. 39-15-105(a)(iv)(H)]

Conclusion  $669 Million in annual uncollected sales and use taxes seems excessive for a state with only 515,000 residents. However, much of the spending in the state is made by businesses such as Rio Tinto, Solvay, Arch Coal and other global industries which have large operations in Wyoming. To put this into perspective, we must look at the value of all Wyoming sales, shipments and receipts.  Wyoming’s Economic  Survey  Data Source: U.S. Economic Survey Time Frame: 2002 Assumptions: - Sales figures are “…figures for total sales, shipments, receipts, revenue, or

business done by domestic establishments (excludes foreign subsidiaries) within the scope of the economic census…”

- “The 2002 Economic Census covers 1,070 of the 1,179 industries in NAICS 2002”

- “The Economic Census does not generally include governmental organizations, even when their primary activity would be classified in industries covered by the census. Because of these exclusions, Economic Census data for industries in many sectors might appear to be incomplete”

- List of Excluded Industries:

NAICS Brief Description 11 Agriculture, Forestry, Fishing and Hunting

481111 Scheduled Passenger Air Transportation (part) 482 Rail Transportation 491 Postal Service

5251 Insurance and Employee Benefit Funds 52591 Open-End Investment Funds 52592 Trusts, Estates, and Agency Accounts 52599 Other Financial Vehicles 6111 Elementary and Secondary Schools 6112 Junior Colleges 6113 Colleges, Universities, and Professional Schools 8131 Religious Organizations

81393 Labor Unions and Similar Labor Organizations

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81394 Political Organizations 814 Private Households 92 Public Administration

Wyoming’s Overall Fiscal Picture: Estimated Wyoming Sales Figures, 2002 $ 28,562,321,000 Estimated Sales/Use Tax if it was all taxed $ 1,513,803,013 Estimated Sales/Use Tax Revenues, 2008 Adj. Factor: Cost of Living $ 2,037,578,855Estimated Sales/Use Tax Revenues, 2008 Adj. Factor: Population Change

$ 1,622,494,069

Estimated Sales/Use Tax Revenues, 2008 Adj. Factor: Sales/Use Tax Distributions

$ 2,432,378,681

Estimated Sales/Use Tax Revenues, 2008 Adj. Factor: Average of 2008 Adjustment Factors

$ 2,030,817,202

Since consumption taxes were introduced in the 1930’s, states have moved from a goods-based economy towards a service-based economy, and the statutes have not adapted to the changes in the economy. In addition, many exemptions put in place to help struggling industries have never been reevaluated, even though those industries are now well established.

Reasons to impose tax on services:

- Those who consume services tend to be wealthier taxpayers. - Broadening the tax base would introduce more stability into Wyoming’s sales tax revenues. - Consumer services, technology, information services and intellectual property comprise a

larger share of the economy with each year.

Reasons to tax services with caution:

- It is increasingly difficult to distinguish between services provided to individuals and those provided to businesses.

- Services can be considered as inputs purchased by a business. Taxes can become an embedded cost to the ultimate consumer.

- Increased complexity in administration and compliance as services do not lend themselves to cost of goods sold, work in progress inventory and other common accounting procedures.

   

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Adjustment Factors 

Wyoming Cost of Living – Cumulative Inflation6   Beginning

Year US Consumer Price Index, 2nd Quarter

Wyoming Cost of Living Index,

2nd Quarter

Cumulative Wyoming Inflation Rate

Beginning Year through 2008 2002 2.1% 2.9% 1.346 2003 3.3% 4.9% 1.308 2004 2.5% 4.5% 1.247 2005 4.3% 5.6% 1.193 2006 2.7% 4.7% 1.130 2007 5.0% 7.9% 1.079

Population7 

Beginning

Year Population

Estimate as of July 1st

Population Change Beginning Year through 2008

2002 496,969 7.18% 2003 499,056 6.74% 2004 502,816 5.94% 2005 506,007 5.27% 2006 512,570 3.92% 2007 523,252 1.80% 2008 532,668 0.00%

Wyoming Sales/Use Tax Distributions by Fiscal Year8 

Fiscal Year ending June 30 of:

State Share Sales & Use Tax

Percent Change through FY 2008

2002 318,624,414 60.68%2003 300,481,179 70.38%2004 328,297,139 55.95%2005 356,144,081 43.75%2006 429,902,398 19.09%2007 480,382,703 6.57%2008 511,965,861 0.00%

6 http://eadiv.state.wy.us/wcli/Inflation.pdf 7 http://eadiv.state.wy.us/pop/st-08est.htm 8 Wyoming Dept of Revenue, Aggregate Distribution Reports, by Fiscal Year

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FTA Services Survey 

In the July, 2007 survey, the Federation of Tax Administrators (FTA) identified 168 services, of which Wyoming imposes tax on 589.

Number of Services

Service Categories

Number of Services Wyoming Taxes

5 Agricultural Services 0 4 Industrial and mining services 0 4 Construction 0

16 Utilities 10 9 Transportation 3 6 Storage 0 8 F.I.R.E. 0

20 Personal services 6 34 Business services 6 8 Computer services 2 5 Automotive services 4

15 Admissions and amusements 6 9 Professional services 0 4 Leases 4

19 Fabrication, repair and

installation 16 2 Miscellaneous 1

168 SUMS 58

9 http://www.taxadmin.org/fta/pub/services/services.html

Services WY NOTES

Basic Sales Tax Rate 4 * Note that each of Wyoming's 23 counties can impose additional option taxes of up to 3% and lodging taxes of up to 4%.

# of states which

tax this service

Agricultural Services

Soil prep., custom baling, other ag. services E

* For this category, the labor component of the service is not taxable. Purchases of tangible personal property by the party providing the service are taxable to the same 1

Veterinary services (both large and small animal) E 2 Horse boarding and training (not race horses) E 4 Pet grooming E 8 Landscaping services (including lawn care) E 6

Industrial and Mining Services Metal, non-metal and coal mining services E * See Mining Publication 2 Seismograph & Geophysical Services E 2

Oil Field Services T(4) & E

* Exempt in Pre-Production Casing Phase - W.S. 39-15-105(a)(viii)(B). Taxable in Production Casing Phase - W.S. 39-15-103(a)(i)(K). Refer to Oil & Gas Publication 4

Typesetting service; platemaking for the print trade E 7

Construction

Gross Income of Construction Contractors E * Contractor's labor in this category is not taxable. Purchases of materials, supplies, etc. by the contractor for real property improvement are taxable to the contractor. 3

Carpentry, painting, plumbing and similar trades. E 4 Construction service (grading, excavating, etc.) E 3 Water well drilling E 2

Transportation Services Income from intrastate transportation of persons 4 * W.S. 39-15-103(a)(i)(D) 5 Local transit (intra-city) buses 4 * W.S. 39-15-103(a)(i)(D) 2 Income from taxi operations 4 * W.S. 39-15-103(a)(i)(D) 3

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Intrastate courier service T(4) & E

* W.S. 39-15-103(a)(i)(D) for transportation of passengers; exempt for transportation of tangible personal property W.S. 39-15-105(a)(viii)(A)(II) 2

Interstate air courier (billed in-state) E * W.S. 39-15-105(a)(ii)(A) 1

Storage Automotive storage E 7 Food storage E 3 Fur storage E 4 Household goods storage E 3 Mini -storage E 3 Cold storage E 3 Marina Service (docking, storage, cleaning, repair) E * W.S. 39-15-103(a)(i)(J). Dock & storage is exempt 6 Marine towing service (incl. tugboats) E 4 Travel agent services E 2 Packing and crating E 4

Utility Service - Industrial Use Intrastate telephone & telegraph 4 * W.S. 39-15-103(a)(i)(C ) 12 Interstate telephone & telegraph E 9 Cellular telephone services 4 * W.S. 39-15-103(a)(i)(C ) for intrastate telecommunication services 12

Electricity 4 * W.S. 39-15-103(a)(i)(E). Manufacturing, processing and agricultural use exempt per W.S. 39-15-105(a)(iii)(D) 10

Water E * Exempt when delivered via pipeline or truck - W.S. 39-15-105(a)(vi)(D). 4

Natural gas 4 * W.S. 39-15-103(a)(i)(E). Manufacturing, processing and agricultural use exempt per W.S. 39-15-105(a)(iii)(D) 11

Other fuel (including heating oil) 4 * W.S. 39-15-103(a)(i)(E). Manufacturing, processing and agricultural use exempt per W.S. 39-15-105(a)(iii)(D) 12

Sewer and refuse, industrial E 4 - Residential Use Intrastate telephone & telegraph 4 * W.S. 39-15-103(a)(i)(C ) 12 Interstate telephone & telegraph E 9 Cellular telephone services 4 * W.S. 39-15-103(a)(i)(C ) for intrastate telecommunication services 12 Electricity 4 * W.S. 39-15-103(a)(i)(E) 5 Water E * Exempt when delivered via pipeline or truck - W.S. 39-15-105(a)(vi)(D). 3 Natural gas 4 * W.S. 39-15-103(a)(i)(E) 6 Other fuel (including heating oil) 4 * W.S. 39-15-103(a)(i)(E) 6

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Sewer and refuse, residential E 4

Finance, Insurance and Real Estate Service charges of banking institutions E 1 Insurance services E 4 Investment counseling E 2 Loan broker fees E 2 Property sales agents (real estate or personal) E 2 Real estate management fees (rental agents) E 2 Real estate title abstract services E 2 Tickertape reporting (financial reporting) E 4

Services Personal Services Barber shops and beauty parlors E 2 Carpet and upholstery cleaning E * Taxable if performed on tangible personal property per W.S. 39-15-103(a)(i)(J) 7 Dating services E 3 Debt counseling E 3 Diaper service 4 * W.S. 39-15-103(a)(i)(J); see also WY Dept of Rev Rules, Chap 2, Sec. 15(q). 9

Income from funeral services

T(4) & E

* Tangible personal property sold is taxable per W.S. 39-15-103(a)(i)(A). If funeral director charges a fee without separately listing tangible personal property, tax is computed on total invoice. WY Dept of Rev Rules, Chap 2, Sec. 15(l) 5

Fishing and hunting guide services E * See our Lodging Publication 6 Garment services (altering & repairing) 4 * W.S. 39-15-103(a)(i)(J) 8 Personal Services (continued) Gift and package wrapping service 4 * W.S. 39-15-103(a)(i)(J) 10 Health clubs, tanning parlors, reducing salons E 9 Laundry and dry cleaning services, coin-op E 2 Laundry and dry cleaning services, non-coin op 4 * W.S. 39-15-103(a)(i)(J); see also WY Dept of Rev Rules, Chap 2, Sec. 15(q). 9 Massage services E 3 900 Number services E * Intrastate telecommunication service taxable. 9 Personal instruction (dance, golf, tennis, etc.) E 3 Shoe repair 4 * W.S. 39-15-103(a)(i)(J) 8

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Swimming pool cleaning & maintenance E * E for in-ground pools. Taxable for above-ground or portable pools 5 Tax return preparation E 3 Tuxedo rental 4 * W.S. 39-15-103(a)(i)(B) 12 Water softening and conditioning E 5

Business Services Sales of advertising time or space: Billboards E 1 Radio & television, national advertising E 0 Radio & television, local advertising E 1 Newspaper E 1 Magazine E 1 Advertising agency fees (not ad placement) E 3 Armored car services E 4 Bail bond fees E 2 Check & debt collection E 5 Commercial art and graphic design. 4 * If tangible personal property is sold. 10 Commercial linen supply 4 * W.S. 39-15-103(a)(i)(J); see also WY Dept of Rev Rules, Chap 2, Sec. 15(r). 13 Credit information, credit bureaus E 6 Employment agencies E 4 Interior design and decorating E 3 Maintenance and janitorial services E 5 Lobbying and consulting E 3 Marketing E 3 Packing and crating E 3 Exterminating (includes termite services) E 6 Photocopying services 4 * W.S. 39-15-103(a)(i)(A) 14 Photo finishing 4 * W.S. 39-15-103(a)(i)(A) 12 Printing 4 * W.S. 39-15-103(a)(i)(A) 14 Private investigation (detective) services E 4 Business Services (continued) Process server fees E 3 Public relations, management consulting E 3 Secretarial and court reporting services E 4 Security services E 4 Sign construction and installation T(4) * Sale of sign taxable to purchaser [W.S. 39-15-103(a)(i)(A); WY Dept of Rev Rules, 9

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& E Chap 2, Sec. 12(e)], labor to install to tangible personal property taxable [W.S. 39-15-103(a)(i)(J)], labor to install to real property exempt [WY Dept of Rev Rules, Chap 2, Sec.12(d)]

Telemarketing services on contract E 3 Telephone answering service E 8 Temporary help agencies E 4 Test laboratories (excluding medical) E 4 Tire recapping and repairing 4 * W.S. 39-15-103(a)(i)(J) 8 Window cleaning E * Exempt if to real property, taxable if to tangible personal property 5

Computer: Software - package or canned program 4 * W.S. 39-15-103(a)(i)(A) 14 Software - modifications to canned program 4 * WY Dept of Rev Rules, Chap 2, Sec. 15(d) 11

Software - custom programs - material 4 * W.S. 39-15-103(a)(i)(A) Materials and supplies used to create program taxable to provider. 9

Software - custom programs - professional serv. E 6 Internet Service Providers-Dialup E 4 Internet Service Providers-DSL or other broadband E 5

Information services T(4) & E

* Non-custom reports/surveys/etc produced via the service subject to sales tax per W.S. 39-15-103(a)(i)(A) 5

Data processing services T(4) & E

* Non-custom reports/surveys/etc produced via the service subject to sales tax per W.S. 39-15-103(a)(i)(A) 3

Mainframe computer access and processing serv. E 5

Computer Online Services: Online Data processing services New E 2 Software - Downloaded New 4 * W.S. 39-15-103(a)(i)(A) 8 Books - Downloaded New 4 * W.S. 39-15-103(a)(i)(A) 5 Music - Downloaded New 4 * W.S. 39-15-103(a)(i)(A) 5 Movies/Digital Video - Downloaded New 4 * W.S. 39-15-103(a)(i)(A) 5 Other Electronic Goods - Downloaded New 4 * W.S. 39-15-103(a)(i)(A) 5

Automotive Services Automotive washing and waxing. 4 * W.S. 39-15-103(a)(i)(J) when done by a third party. Exempt if using a coin- 8

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operated car wash

Automotive road service and towing services 4 * Towing exempt 8 Auto service. except repairs, incl. painting & lube 4 * W.S. 39-15-103(a)(i)(J) 8 Parking lots & garages E 7 Automotive rustproofing & undercoating. 4 * W.S. 39-15-103(a)(i)(J) 8

Admissions & Amusements Pari-mutuel racing events. 4 * Taxable under separate admission tax statutes. 10

Amusement park admission & rides 4 * Admissions to county or municipal owned facilities are exempt under W.S. 39-15-105(a)(iv)(E) 11

Billiard parlors E 9 Bowling alleys E * Lane fee exempt; shoe rental taxable 10 Cable TV services E 10 Direct Satellite TV E 9

Circuses and fairs -- admission and games 4 * Admissions to county or municipal owned facilities are exempt under W.S. 39-15-105(a)(iv)(E) 11

Coin operated video games E 4 Admission to school and college sports events

T(4) & E

* Admissions to K-12 public school facilities are exempt under W.S. 39-15-105(a)(iv)(E); college events are taxable. 6

Membership fees in private clubs. E 9

Admission to cultural events 4 * Admissions to county or municipal owned facilities are exempt under W.S. 39-15-105(a)(iv)(E) 11

Pinball and other mechanical amusements E 5

Admission to professional sports events 4 * Admissions to county or municipal owned facilities are exempt under W.S. 39-15-105(a)(iv)(E) 11

Rental of films and tapes by theaters E * Taxable only if no admission is charged. 1 Rental of video tapes for home viewing 4 * W.S. 39-15-103(a)(i)(B) 14

Professional Services Accounting and bookkeeping E 2 Architects E 2 Attorneys E 2 Dentists E 1 Engineers E 2 Land surveying E 4

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Medical test laboratories E 1 Nursing services out-of-hospital E 1 Physicians E 1

Leases and Rentals Personal property, short term (generally) 4 * W.S. 39-15-103(a)(i)(B) 14 Personal property, long term (generally) 4 * W.S. 39-15-103(a)(i)(B) 14 Bulldozers, draglines and const. mach., short term 4 * W.S. 39-15-103(a)(i)(B) 14 Bulldozers, draglines and const. mach., long term 4 * W.S. 39-15-103(a)(i)(B) 14 Rental of hand tools to licensed contractors. 4 * W.S. 39-15-103(a)(i)(B) 14 Short term automobile rental 4 * W.S. 39-15-103(a)(i)(B) 14 Long term automobile lease 4 * W.S. 39-15-103(a)(i)(B) 10 Limousine service (with driver) 4 * See items 14-18 'Transportation Services' 7 Aircraft rental to individual pilots, short term 4 * W.S. 39-15-103(a)(i)(B) 11 Aircraft rental to individual pilots, long term 4 * W.S. 39-15-103(a)(i)(B) 11

Chartered flights (with pilot) 4 * Intrastate transportation of passengers is taxable (W.S. 39-15-103(a)(D), interstate exempt (W.S. 39-15-105(ii)(A). 4

Hotels, motels, lodging houses 4 * Some counties and cities impose an additional lodging tax of up to 4%. 16

Trailer parks - overnight 4 * Some counties and cities impose an additional lodging tax of up to 4%. 11

Fabrication, Installation and Repair Services Custom fabrication labor 4 * Labor to real property exempt, see Guide to Contractors 12

Repair material, generally 4 * Repair materials for qualifying aircraft, manufacturing machinery exempt. W.S. 39-15-101(a)(xix)-(xxii); W.S. 39-15-105(a)(viii)(J) & (O) 14

Repair labor, generally 4 * Labor to tangible personal property taxable under W.S. 39-15-103(a)(i)(J). Labor to real property exempt, see Guide to Contractors 9

Labor charges on repair of aircraft E

* Exempt if performed at an FAA certified repair facility under W.S. 39-15-105(a)(viii)(J) or if the aircraft is operated by a commercial operator per W.S. 39-15-105(a)(viii)(P). 5

Labor charges - repairs to interstate vessels 4 * W.S. 39-15-103(a)(i)(J) 5 Labor charges - repairs to intrastate vessels 4 * W.S. 39-15-103(a)(i)(J) 7 Labor - repairs to commercial fishing vessels 4 * W.S. 39-15-103(a)(i)(J) 7 Labor charges on repairs to railroad rolling E 2

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stock

Labor charges on repairs to motor vehicles 4 * W.S. 39-15-103(a)(i)(J) 8 Labor on radio/TV repairs; other electronic equip. 4 * W.S. 39-15-103(a)(i)(J) 9 Labor charges - repairs other tangible property 4 * W.S. 39-15-103(a)(i)(J) 9 Labor - repairs or remodeling of real property E * Contractor is deemed retail consumer of materials used. 4 Labor charges on repairs delivered under warranty 4

* Labor charges under extended warranty taxable; labor charges under standard warranty exempt. See Warranty Bulletin 2

Service contracts sold at the time of sale of TPP. 4

* Sale of service warranty subject to sales tax; labor performed under warranty exempt. See Warranty Bulletin 11

Installation charges by persons selling property 4

* Labor services performed on tangible personal property are taxable under W.S. 39-15-103(a)(i)(J). Labor services performed on real property are exempt. 9

Installation charges - other than seller of goods 4 * Labor services performed on tangible personal property are taxable under W.S. 39-15-103(a)(i)(J). Labor services performed on real property are exempt. 7

Custom processing (on customer's property) 4 * W.S. 39-15-103(a)(i)(J) 10 Custom meat slaughtering, cutting and wrapping 4 * W.S. 39-15-103(a)(i)(J) 5 Taxidermy 4 * W.S. 39-15-103(a)(i)(J) 10

Welding labor (fabrication and repair) 4 * Taxable when performed on tangible personal property under W.S. 39-15-103(a)(i)(J) 9

OTHER TAXED SERVICES Do you impose sales tax on other services not listed? Yes 4

4 * W.S. 39-15-103(a)(i)(K) 2