FIFTY-SEVENTH WYOMING LEGISLATURE

APPROVED INTERIM COMMITTEE STUDIES

2004 INTERIM

JOINT REVENUE INTERIM COMMITTEE

Initial Budget Approved: $20,000

Topic #1:            Distribution formula review for de-earmarking.

(a)      Review the distribution formula for FMRs, severance taxes and fuel taxes required by W.S. 28-12-301 for de-earmarking purposes.

(b)      Statutory law requires the Revenue Committee to review the current distribution formula for de-earmarking purposes.  The study will also include a review of CREG estimates, sales/use tax distribution and optional procedures for specific purpose excise taxes.

(c)      Anticipated committee activity:  Four 2-day meetings needed to study this topic and all other topics; legislation may result.

Topic #2: Department of Revenue issues.

(a)      Study the issues raised for Committee consideration by the Department of Revenue.

(b)  The Committee will study issues raised by the Department of Revenue including the definition of intangibles; tobacco issues (including internet sales, contraband/counterfeit sale of tobacco products, equity fee assessment on cigarettes and the 6% tobacco stamp discount); mineral tax issues (including notice of valuation changes, finality of audit, oil/gas well services); and review of railroad car repair taxation issues.

(c)      Anticipated committee activity:  Included in first topic; legislation may result.

Topic #3:            Streamlined sales tax project.

(a)      Study the streamlined sales tax project and receive an update on the status of the project and related issues.

(b)  The Committee would like to receive an update on the streamlined sales tax project.  The topic will also include review of the vendor compensation model and the study of a blended sales/use tax rate for in-state vendors.

(c)      Anticipated committee activity:  Included in first study; legislation may result.

Topic #4:            Receipt of statutorily required reports.

(a)      Receive the statutorily required reports to be made to Revenue Committee.

(b)  The Committee will be receiving required reports including reports on property tax relief, manufacturing equipment sales tax exemption, tertiary production of oil and gas, as well as various annual reports on other mineral production.

(c)      Anticipated committee activity: Will be held in conjunction with another meeting; legislation may result.

Topic #5:            Mineral tax incentive econometric model.

(a)  Study the use and effectiveness of the mineral tax incentive econometric model.

(b)  The Management Council requested the Committee to study the effectiveness and the current use of the mineral tax incentive econometric model.

(c)      Anticipated committee activity: Will be held in conjunction with another meeting; legislation may result.

Topic #6:            Local Finance Options. (Topic Assigned by Management Council)

Originally requested by the Joint Corporations Committee, this topic was reassigned to the Joint Revenue Interim Committee by the Management Council.

Concerns have been expressed regarding local finance options and the possible need for statutory changes.  The Committee will examine the "demand side" of the equation, including the various options currently available and direct and indirect taxation.