HB220 IS NOT THE RIGHT DIRECTION FOR WYOMING!

HB0220 – National Retail Fairness Act

Purpose:Impose a new 7% corporate tax on a select group of businesses. 

Latest Action:  Thu Feb 7^th. Amended bill introduced in Senate; referred to Sen. Corporations Cmte (S07).   see https://www.wyoleg.gov/2019/Engross/HB0220.pdf

Scheduled hearings:Thu Feb 14, at 4:00 pm, or on adjournment.  Committee hearing (Rm TBA)

Background:

HB0220 proposes a 7% sales tax on the income of corporate retail, food services and accommodation vendors with 100 or more shareholders. This is slightly below the national average rate of 7.12%. This tax would be assessed on companies with more than 100 shareholders (C-Corp status) in the retail, accommodations, and food services industries.  Arguments made in favor of the bills include an assumption that taxes on income generated in Wyoming is being collected in other states.  This may not be accurate.  Another assertion is that Wyomingites will never see that tax when they pay for the goods and services provided by those being taxed.  Again, that may not be accurate.  Details of administration of this tax have not been made public.  It has been estimated that this will bring in $45 million, however, that may not account for those businesses who are already looking at the overall cost of business in Wyoming and resist coming here, or worse, leaving the state, bringing the hoped-for tax revenue down significantly.  This bill has also been seen as the ‘camel with its nose under the tent’ for wide-spread income tax, as the bill, if passed offers a readily amendable statute to expand income taxing to other businesses and individuals.

The bill has 21 cosponsors in both the House and Senate. 

Status of related bills:

While a number of taxation bills were proposed this session, none appear to have the same intent as this one, to date.