Date

Location

1.   

September 16, 1997

Casper, Wyoming

2.   

October 22, 1997

Riverton, WY

3.   

November 19-20, 1997

Casper, WY

4.   

January 19-20, 1998

Cheyenne, WY

5.   

March 18-19, 1998

Casper, WY

6.   

April 23, 1998

Casper, WY

7.   

May 27-28, 1998

Gillette, WY

8.   

June 19-20, 1998

Jackson, WY

9.   

July 29-30, 1998

Rock Springs, WY

10.          

August 21-22, 1998

Saratoga, WY

11.          

September 23-24, 1998

Powell and Cody, WY

12.          

October 29-30, 1998

Riverton, WY

13.          

November 18-19, 1998

Casper, WY

14.          

December 15, 1998

Cheyenne, WY

15.          

January 9, 1999

Cheyenne, WY

16.          

February 27, 1999

Cheyenne, WY

17.          

March 29, 1999

Casper, WY

18.          

April 22-23, 1999

Casper, WY

19.          

May 27, 1999

Riverton, WY

20.          

June 23, 1999

Cheyenne,  WY

State of Wyoming

      Tax Reform 2000 Committee

            Statement of Revenues and Expenditures

        July 1,1997 to June 30, 1999

Revenues

State Appropriation

 $  200,000.00

Total Revenues

 $   200,000.00

Expenditures

Current Operating:

   Salaries and Benefits

 $    58,590.52

   Travel Reimbursement

       19,341.52

   Office Expenses

         9,611.61

   Research Expenses

         4,526.98

   Publication Expenses

       20,176.00

Total Expeditures

 $   112,246.63

Excess Revenues over Expenditures

 $     87,753.37

* The Tax Reform 2000 Committee will sunset on December 31, 1999.

(i) Is the tax option accountable to taxpayers

(ii) Does the tax option contribute to a balanced variety of revenue sources that will provide income to the state in a reliable manner

(iii) Does the tax option treat individuals and businesses equitably, imposing similar tax burdens on people and businesses in similar circumstances and minimizing regressivity

(iv)Is the tax framed to enhance economic development efforts.  Will the tax attract and not deter businesses seeking to move into the state or desiring to stay in Wyoming.

(v) Is the tax option composed of elements that support the ability of local governments to raise revenue to meet their  needs.

(vi) Would the tax option be easy to understand and administer, and therefore easy for the taxpayer to comply with as well as for the administrator to implement.

(vii) Is the tax option responsive to interstate and international competition and to changes in business.

(viii) Would the tax option minimize its involvement in spending and land use decisions.

Increase Cigarette, Alcohol and Motor Fuel Taxes

Current laws may favor certain industries

Fairly stable, increase in cigarette taxes may cause a decrease in tax collections depending on rate in surrounding states.

Regressive for lower income individuals.

Cigarette and liquor dealers have testified there would be loss in sales with tax increases.

Increases in taxes for cigarettes and fuel would benefit local governments due to distribution formulas.  Increase in alcohol taxes would benefit the state.

Yes, administrative rules are in force

Cigarette dealers maintain increase in tax may cause state to become less competitive with border states.

Yes, unless tax increases are earmarked for certain causes. i.e. cigarettes – health issues.  Any increase in fuel taxes must be used for transportation

Exclusions and Exceptions in the Sales and Use Tax Statutes

Though tax provisions are not hidden they do benefit certain industries, they are not explicit, and may be confusing.

A sales tax helps balance a revenue system and is reliable source of income.

The current sales tax law is regressive. Broadening the tax to include additional services could help negate this regressivity.

Broadening the tax could cause loss of business for some industries.

If current distribution formulas for state sales tax and the local option taxes remain in effect, broadening the sales tax would benefit local governments.

Broadening the tax to include certain exemptions and exclusions could make the tax less confusing to administer.

Broadening the tax to include certain exclusions and exemptions could mitigate the effects of loss of tax income due to Internet and catalog sales.

The state sales and tax laws does. The optional 1% capital facilities tax requires spending on capital facilities, only

Real Estate Transfer Tax

Depending on the revenue generated the costs to administer could outweigh benefits of the tax.

The tax would contribute to a more balanced system. Revenues may fluctuate with the real estate market.

Tax would need to be structured to assure equitable treatment. 

Little effect.

It would depend on the provisions of the tax.

Tax could be collected in county clerk offices where filings are made.

The majority of states have some form of RE transfer tax.

It would depend on how funds are allocated and the definitions used.

Individual and Corporate Income Tax

An income tax would receive public input but it does not have to be put to a vote of state residents. Cost versus benefits would depend on tax rate.

The tax would contribute towards a more balanced  tax structure.  The tax would be more reliable than mineral taxes.

The constitutional provision would minimize regressivity and make the tax more progressive.  A corporate tax would capture tax income from businesses with a low tax burden.

The tax may provide more stability to the state’s tax system so that businesses could anticipate their tax liability. Some people maintain it would be a deterrent to economic development.

The tax could effect the passage of local optional taxes.

Administrative costs would depend on how complex the tax is structured.  It would require a new state administrative department.

Many states with an income tax have a more balanced and equitable tax system.  As businesses become more multi-state, WY may capture tax revenues on income made in WY

It would depend on how revenue is allocated.

(i) Is the tax option accountable to taxpayers

(ii) Does the tax option contribute to a balanced variety of revenue sources that will provide income to the state in a reliable manner

(iii) Does the tax option treat individuals and businesses equitably, imposing similar tax burdens on people and businesses in similar circumstances and minimizing regressivity

(iv) Is the tax framed to enhance economic development efforts.  Will the tax attract and not deter businesses seeking to move into the state or desiring to stay in Wyoming.

(v) Is the tax option composed of elements that support the ability of local governments to raise revenue to meet their  needs.

(vi) Would the tax option be easy to understand and administer, and therefore easy for the taxpayer to comply with as well as for the administrator to implement.

(vii) Is the tax option responsive to interstate and international competition and to changes in business.

(viii) Would the tax option minimize its involvement in spending and land use decisions.

Increase the State Sales Tax

Same problems with current tax law would remain.

Would provide additional reliable income for the overall tax system.

Tax would remain regressive for lower income individuals.

The tax could effect retail sales of counties bordering other states.

An increase may affect the ability of local governments to pass optional sales taxes.

Administration and tax law in force. 

The tax could effect retail sales of counties bordering other states.

It depends on how the additional tax would be distributed.

Statewide Lodging Tax

Accountability would not be a problem.

The tax would contribute to a balanced tax system and would be a reliable tax source.

The tax  collection burden would be on one business of the tourism industry and all businesses would benefit.

The tax could make lodging quite expensive in certain areas of the state if other optional taxes are imposed.

A statewide lodging tax could impair the passage of optional lodging taxes.

The administration structure is currently in force.

The tax could make Wyoming’s lodging rates more expensive than those of bordering states.

The tax would more than likely be earmarked for state’s tourism industry.

Increase State Mill Levies

Same problems with current property tax would exist.

Revenue would not be reliable, minerals would pay bulk of increase.

Minerals would pay bulk of tax increase.

The mineral industry would not fully support  economic development efforts.

The tax could affect the passage of local optional taxes.

Administrative structure  is currently in force.

Many states are amending their tax structures to reduce reliance on the property tax

It depends on how additional income is distributed. 

Increase assessment % for property classes other than minerals.

Same problems with current property tax would exist.

It would not effect minerals.  It would bring more tax revenue from other classes and additional revenue would be more reliable.

Would continue the burden for low and fixed income individuals in areas of the state with high market values.

Economic development  in industries other than minerals with large capital investments may be hindered.

It could affect the passage of local optional taxes.

Administrative structure currently in force.

Many states are amending tax structure to reduce reliance on property tax.

It depends on how income is distributed.  May increase the number of property owners seeking the agriculture class.

Increase Mineral Severance Tax

If used to meet current spending needs would not meet one of the intended purposes of a severance tax to plan for the future when minerals are depleted or not valuable.

It would enhance the current reliance on minerals for a tax base and the income would not be as reliable as other tax sources.

The burden is on the minerals industry and would continue to enhance the current situation.

The mineral industry would not fully support economic development.

If current distribution formulas are used for the additional tax, it would mean additional revenues for local governments.

Administrative structure currently in force.

Wyoming could be less competitive with other mineral states. Severance taxes on some minerals do not tract with the price fluctuations of the mineral.

Depends on how income would be distributed.  May deter future mineral development.

(i) Is the tax option accountable to taxpayers

(ii) Does the tax option contribute to a balanced variety of revenue sources that will provide income to the state in a reliable manner

(iii) Does the tax option treat individuals and businesses equitably, imposing similar tax burdens on people and businesses in similar circumstances and minimizing regressivity

(iv) Is the tax framed to enhance economic development efforts.  Will the tax attract and not deter businesses seeking to move into the state or desiring to stay in Wyoming.

(v) Is the tax option composed of elements that support the ability of local governments to raise revenue to meet their  needs.

(vi) Would the tax option be easy to understand and administer, and therefore easy for the taxpayer to comply with as well as for the administrator to implement.

(vii) Is the tax option responsive to interstate and international competition and to changes in business.

(viii) Would the tax option minimize its involvement in spending and land use decisions.

Electrical Generation Tax

The tax would be a hidden tax.

The tax would add balance to the system and would be reliable.

The tax could be regressive for lower income individuals and singles out a specific industry.

The tax could affect the competitiveness of the electrical generation industry in Wyoming.

No

The tax could be collected by the Department of Revenue Excise Division, and since it is based on kilowatt hours of electricity should be easy to administer.

The tax could affect the competitiveness of the electrical generation industry in Wyoming.

It would be depend how the income would be distributed

Gross Receipts Tax

The tax could be considered a hidden tax.

The tax is broad based including many businesses not currently taxed. Tax is as reliable as a sales tax.

Some businesses may not be able to pass the tax on to others. The tax is paid whether profits are made.

The fact that it is not based on profits could deter development of new small businesses.

It would depend on how formulas and options in the tax law.

Administrative costs depend on the structure. Current sales tax administration could be used.

Internet and catalog sales would continue to be a problem.

It depends on how income would be distributed

Corporate Franchise Tax based on income. (Texas model)

The costs to implement and administer could exceed the benefits achieved depending on the rate.

It could bring more variety to the overall tax system and would be more reliable than mineral taxes.

All corporations and indemnity companies would pay.  Whether the tax is considered an income tax and the constitutional provision apply is a question.

Businesses could have more certainty as to what to expect from the tax system. Some people maintain it would be a deterrent to economic development.

Current franchise tax goes to State general fund.  Benefits for local government would depend on distribution formula of additional revenues.

The Secretary of State office currently collects and enforces tax.  Additional personnel for collection and enforcement would be required.

As businesses become more multi-state, WY may capture tax revenues on income made in WY.

It depends on how additional income is allocated.

Employment Head Tax

The benefits would justify the costs to administer.

It would bring more variety to the overall tax system and the revenues should be fairly stable.

The tax would be regressive for lower income individuals since it is a flat rate per employee.

It could deter employment development since employers match employee contributions.

It would depend on the distribution formulas of tax revenues

The tax could be administered by the Department of Employment in conjunction with the quarterly unemployment report.

Only one state has a statewide head tax (Nevada).  It is paid by the employer. Some municipalities assess the tax paid by both employer and employee.

It would depend on the allocation provisions of the tax

(i) Is the tax option accountable to taxpayers

(ii) Does the tax option contribute to a balanced variety of revenue sources that will provide income to the state in a reliable manner

(iii) Does the tax option treat individuals and businesses equitably, imposing similar tax burdens on people and businesses in similar circumstances and minimizing regressivity

(iv)Is the tax framed to enhance economic development efforts.  Will the tax attract and not deter businesses seeking to move into the state or desiring to stay in Wyoming.

(v) Is the tax option composed of elements that support the ability of local governments to raise revenue to meet their  needs.

(vi) Would the tax option be easy to understand and administer, and therefore easy for the taxpayer to comply with as well as for the administrator to implement.

(vii) Is the tax option responsive to interstate and international competition and to changes in business.

(viii) Would the tax option minimize its involvement in spending and land use decisions.

Business Profits Tax (i.e. New Hampshire)

Tax revenue based upon New Hampshire model, (7% rate) should exceed costs to administer.

It would bring more variety to the overall tax system. It would be more reliable than mineral taxes. Tax applies to all business organizations.

All businesses would pay.  NH does not have an individual income tax.  Tax is based upon profits so it would not be a burden for new businesses.  Constitutional provision probably would apply.

Businesses could have more certainty as to what to expect from the tax system. Some people maintain it would be a deterrent to economic development.

It would depend on the distribution formulas of tax revenues.

It would require a new department of state government.  Administrative costs would depend on the complexity of the tax law.

As businesses become more multi-state, WY would capture tax revenues on income made in WY.

It depends on how additional income is allocated.

Intangible Tax on Ownership of Financial Assets (i.e. Florida)

Based on the Florida model, costs to administer may not justify the benefits.

It would bring more variety to the overall tax system and would be more reliable than mineral taxes.

The burden of  the tax would be on business and higher income individuals with financial holdings in stocks, mutual & money market funds, bonds, loans and accounts receivables

Tax could be a detriment to investment and saving.

It would depend on the distribution formulas of the tax revenues.

It would require a new department of state government.  Administrative costs would depend on the complexity of the tax law.

No, very few states impose this type of tax.

It depends on how additional income is allocated

Michigan Single Business Tax (SBT)

The costs to administer may not justify the benefits.

It would bring more variety to the overall tax system and tax flows in Michigan have been more stable than the previous state income tax.

The SBT is neutral as to business structure. It is not based on a business’s ability to pay and is to be paid whether profits are made or not.

The fact that it is not based on profits could deter development of new small businesses.

It would depend on the distribution formulas of tax revenues

It would require a new department of state government.  The SBT tax is difficult to file and administer.  It has generated costly lawsuits.

As businesses becomes more multi-state, WY would capture tax revenues on income made in WY

It would depend on the allocation provisions of the tax.

(i) Is the tax option accountable to taxpayers

(ii) Does the tax option contribute to a balanced variety of revenue sources that will provide income to the state in a reliable manner

(iii) Does the tax option treat individuals and businesses equitably, imposing similar tax burdens on people and businesses in similar circumstances and minimizing regressivity

(iv)Is the tax framed to enhance economic development efforts.  Will the tax attract and not deter businesses seeking to move into the state or desiring to stay in Wyoming.

(v) Is the tax option composed of elements that support the ability of local governments to raise revenue to meet their  needs.

(vi) Would the tax option be easy to understand and administer, and therefore easy for the taxpayer to comply with as well as for the administrator to implement.

(vii) Is the tax option responsive to interstate and international competition and to changes in business.

(viii) Would the tax option minimize its involvement in spending and land use decisions.

Increase Deposits to the Mineral Trust Fund

It would justify the severance tax as one to plan for depletion or economic obsolescence of the mineral wealth.

Since income earnings from the fund would increase, it would add balance and stability to state revenue sources.

NA

By providing a stable source of income, new and existing businesses could expand in WY with a better understanding of their tax liabilities.

The state constitution requires the income from the fund to be deposited to the State General Fund.

NA

NA

NA.

Maximize Income in earned on the PWMTF

It would assure WY is receiving the best return for its investment and risk tolerance.

Since income earnings from the fund would increase, it would add balance and stability to state revenue sources

NA

By providing a stable source of income, new and existing businesses could expand in WY with a better understanding of their tax liabilities.

The state constitution requires the income from the fund to be deposited to the State General Fund. 

NA

NA

NA

New Revenue Source: Storage of nuclear fuel rods

Must determine whether the costs (both tangible and intangible) justify the benefits.

It may provide a source for additional permanent trust funds. Current funds earned should be permanently invested because of the temporary nature of the project.

It would be similar to a tax on minerals. It is a unique benefits package, with no adverse tax impact on people or businesses.

It would generate  substantial employment and economic benefits.  The project’s benign nature will have little, if any, negative impact on other businesses.

The benefits package can be structured to fully reimburse local governments for any impact and may provide additional income.

Only one taxpayer involved.  That taxpayer is well qualified to comply with all requirements of the statute and benefits package.

The project would provide an answer to a national need.

With close regulation by the Nuclear Regulatory Commission and the DEQ, the project will have very little impact on surrounding land use.

Examination of State and Local Government Spending

The study may inform citizens how tax dollars in Wyoming are spent.

NA

NA

NA

NA

NA

NA

Results of study could redirect or repeal past spending decisions.

(i) Is the tax option accountable to taxpayers

(ii) Does the tax option contribute to a balanced variety of revenue sources that will provide income to the state in a reliable manner

(iii) Does the tax option treat individuals and businesses equitably, imposing similar tax burdens on people and businesses in similar circumstances and minimizing regressivity

(iv) Is the tax framed to enhance economic development efforts.  Will the tax attract and not deter businesses seeking to move into the state or desiring to stay in Wyoming.

(v) Is the tax option composed of elements that support the ability of local governments to raise revenue to meet their  needs.

(vi) Would the tax option be easy to understand and administer, and therefore easy for the taxpayer to comply with as well as for the administrator to implement.

(vii) Is the tax option responsive to interstate and international competition and to changes in business.

(viii) Would the tax option minimize its involvement in spending and land use decisions.

New Revenue Source: State Lottery

The costs to administer may not justify the benefits received.

Stability would depend on lottery pools of surrounding states and would fluctuate.  Revenue raised would not add balance to current revenue system.

Lower and middle income individuals may be the primary supporters of a state lottery.

There would be little effect because a lottery in WY would not be competitive with other states.  Participation in power ball could enhance purchases by tourists and local residents who now purchase out-of –state.

It would depend on how lottery proceeds are distributed.

Depending on the structure of a lottery, it may require a new department of state government.

It may prevent some state residents from purchasing lottery tickets from other states especially power ball tickets.

It would depend on whether funds would be earmarked for special projects as it is in some states.

New Revenue source: Excise Tax on each train mile and each public grade crossing. (i.e. Nebraska)

Whether the benefits from the tax would justify the costs would depend on the rate.

It would probably not add to the balance or stability of Wyoming’s tax system but would free some tax monies going to the Department of Transportation.

Tax would not be broad based but would be assessed against one industry, though some believe that industry does not pay its fair share.

Little effect either way.

Local governments could benefit if funds are used toward rail crossing facilities in their localities.

The Department of Transportation could administer the tax with a few additional employees.

NA

In Nebraska, the tax is earmarked to railroad crossings and is administered by the Department of Roads.

Institute a maximum number of mills for each taxing district to control property tax increases and special district formation.

NA

It could standardize the number of mills assessed in each taxing district, but would not control the tax value of each mill.

It may prevent the formation of special districts in areas with high mineral tax bases.

Local residents may not be able to exercise their voting option to establish special taxing districts. 

It may be difficult for County Commissioners to enforce and Assessors to administer when there are many districts with overlapping boundaries.

NA

Spending and land use decisions could be affected.

(i) Is the tax option accountable to taxpayers

(ii) Does the tax option contribute to a balanced variety of revenue sources that will provide income to the state in a reliable manner

(iii) Does the tax option treat individuals and businesses equitably, imposing similar tax burdens on people and businesses in similar circumstances and minimizing regressivity

(iv)Is the tax framed to enhance economic development efforts.  Will the tax attract and not deter businesses seeking to move into the state or desiring to stay in Wyoming.

(v) Is the tax option composed of elements that support the ability of local governments to raise revenue to meet their  needs.

(vi) Would the tax option be easy to understand and administer, and therefore easy for the taxpayer to comply with as well as for the administrator to implement.

(vii) Is the tax option responsive to interstate and international competition and to changes in business.

(viii) Would the tax option minimize its involvement in spending and land use decisions.

Local option property tax relief programs for individuals on low or fixed incomes

It could affect the stability of local property taxes.  It could not be applied to taxes assessed for school purposes.

It may mitigate the burden of rising property taxes on low and fixed incomes.  The option may only be adopted by local governments who could afford it unless state funding is provided.

NA

The local option would probably only be adopted by cities, counties and special districts that could afford to grant relief unless state funding is provided.

It would require a Constitutional amendment.  It would mean additional administrative costs for local governments adopting the option.

NA

The loss of income may affect the spending decisions of local governments.

Minerals assets belong to the state and total tax income from them should be distributed equally  throughout the state

It would provide more balanced income for local governments throughout Wyoming.

NA

Some local governments would have more tax revenue to spend on economic development, others would have less.

It would benefit local governments without mineral wealth and would hurt local governments with mineral wealth.

It would depend on how the mineral taxes are assessed and the formulas for distribution.

NA

Spending decisions for local governments could be affected.

The present system of mineral tax distribution be continued.  A portion of the mineral severance tax is distributed equally throughout the state and the property tax on minerals remain where collected.

Local governments lack balance in governmental funding.

NA

NA

Counties with mineral wealth are more capable of raising tax revenues for governmental services.

Tax distribution and administration system is in place. 

NA

It may affect spending decisions locally.

(i) Is the tax option accountable to taxpayers

(ii) Does the tax option contribute to a balanced variety of revenue sources that will provide income to the state in a reliable manner

(iii) Does the tax option treat individuals and businesses equitably, imposing similar tax burdens on people and businesses in similar circumstances and minimizing regressivity

(iv)Is the tax framed to enhance economic development efforts.  Will the tax attract and not deter businesses seeking to move into the state or desiring to stay in Wyoming.

(v) Is the tax option composed of elements that support the ability of local governments to raise revenue to meet their  needs.

(vi) Would the tax option be easy to understand and administer, and therefore easy for the taxpayer to comply with as well as for the administrator to implement.

(vii) Is the tax option responsive to interstate and international competition and to changes in business.

(viii) Would the tax option minimize its involvement in spending and land use decisions.

One Mineral tax, one reporting form, one collection point

There could be administrative cost savings.

NA

NA

NA

It would depend on the distribution formulas.

1) The tax law may be easier to administer and to comply with.

2) Current check and balance system will be lost.

3) It would require a constitutional amendment

4) It may generate less contention between DOR and county governments.

NA

NA

One Mineral tax reporting form, one collection point

There could be administrative cost savings.

NA

NA

NA

It would depend on distribution formulas

1) The tax law may be easier to administer and to comply with.

2) Current check and balance system will be lost.

3) It would require a constitutional amendment

4) It may generate less contention between DOR and county governments.

NA

NA

Property Tax exemptions examined for applicability and ease of administration

NA

It may provide a more equitable tax system depending on changes that are made.

NA

If certain exemptions are deleted, there could be more revenues for local governments.

The tax laws would be easier to administer if certain exemptions are repealed or amended.

NA

NA

(i) Is the tax option accountable to taxpayers

(ii) Does the tax option contribute to a balanced variety of revenue sources that will provide income to the state in a reliable manner

(iii) Does the tax option treat individuals and businesses equitably, imposing similar tax burdens on people and businesses in similar circumstances and minimizing regressivity

(iv)Is the tax framed to enhance economic development efforts.  Will the tax attract and not deter businesses seeking to move into the state or desiring to stay in Wyoming.

(v) Is the tax option composed of elements that support the ability of local governments to raise revenue to meet their  needs.

(vi) Would the tax option be easy to understand and administer, and therefore easy for the taxpayer to comply with as well as for the administrator to implement.

(vii) Is the tax option responsive to interstate and international competition and to changes in business.

(viii) Would the tax option minimize its involvement in spending and land use decisions.

One government given authority to select mineral tax appraisal method and a review of current mineral appraisal methods take place for simplicity

Taxes could be distributed on a more timely basis and not held until appeal is satisfied.

NA

NA

Would depend which entity is given authority to make selection.

There would be less contention between counties and the DOR

NA

NA

Consistency in assessment values between counties for similar properties with comparable market and production values

Taxpayers may believe that more consistency exists in the property tax system throughout the state.

NA

Individuals and businesses  may be treated more equitably.

NA

NA

It may be difficult to implement without more state control that has its own ramifications.

NA

NA

REVENUE SOURCES

REVENUE SOURCES

State Government

Counties

July 1, 1997 - June 30, 1998

July 1, 1997 - June 30, 1998

Taxes

 $     647,066,501.00

Tax

 $  167,505,488.00

Federal Funds

        473,783,794.00

State

         1,316,278.00

Interest

363,223,222.00

Federal

       10,368,773.00

Other Sources

373,019,424.00

Interest

         5,628,272.00

Other

       33,361,430.00

Total

 $  1,857,092,941.00

Total

 $  218,180,241.00

TABLE 1A

TABLE 1B

Source:  State of Wyoming Comprehensive Annual Report for

Source:  County Finance Report, 1993 through 1998

               Fiscal Year Ended June 30, 1998

Prepared by Karen Musgrave,CPA,Local Government Program

Coordinator Public Funds Division, Wyoming Department of Audit

REVENUE SOURCES

REVENUE SOURCES

Cities/Town

Special Districts

July 1, 1997 - June 30, 1998

July 1, 1997 - June 30, 1998

Tax Revenues

 $     147,457,760.00

Tax Revenues

 $    26,194,556.44

State

           8,616,478.00

Other Revenues

     208,488,914.96

Federal Revenues

         44,491,263.00

Interest

         16,885,582.00

Other Sources of Revenue

        181,320,328.00

Total

 $  234,683,471.40

Total

 $     398,771,411.00

TABLE 1C

TABLE 1D

Source:  County Finance Report, 1993 through 1998

Source:  Special District 1998 Revenue and Expenditures

Prepared by Karen Musgrave,CPA,Local Government Program

Public Funds Division, Wyoming Department of Audit

Coordinator Public Funds Division, Wyoming Department of Audit

REVENUE SOURCES

REVENUE SOURCES

School Districts

Higher Education

July 1, 1997 - June 30, 1998

July 1, 1997 - June 30, 1998

Local Tax Revenues

 $     386,684,886.00

Tax Revenues

 $    15,758,987.00

State Revenues

73,783,786.00

State Revenues

     135,682,642.00

Federal Funds

138,560,136.00

Federal Funds

       30,421,711.00

Interest

74,459,271.00

Interest

         2,612,878.00

Other Revenues

         45,678,454.00

Other Sources of Revenue

     145,355,574.50

Total

 $     719,166,533.00

Total

 $  329,831,792.50

TABLE 1E

TABLE 1F

Source:  Statistical Report Series No.3, 1997-98 Wyoming Public

Source:  State of Wyoming Comprehensive Annual Report for

               Schools Fund Accounting and Reporting

               Fiscal Year ended June 30, 1998

              University of Wyoming Financial Report, 

              Fiscal Year ended June 30, 1998

              Wyoming Community College System

              Total Current Funds Report

REVENUE SOURCES

All Governments

July 1, 1997- June 30, 1998

Tax

 $         1,390,668,178.44

Federal

697,625,677.00

State

219,399,184.00

Interest

462,809,225.00

Other

               987,224,125.46

Total

 $         3,757,726,389.90

TABLE 1G

Name

Representing

Topic

September 16, 1997

Governor Jim Geringer

State of Wyoming

Tasks of the Committee

Michael Walden Newman, Executive Director

Wyoming Taxpayers Association

Tax Reform 2000 History and Experiences of Other States

Scott Mackey

National Conference of State Legislatures

Revenue Balancing

Steve Furtney and David Black

Division of Economic Analysis`

Current State Revenue Sources

October 22, 1997

Johnnie Burton, Director

Wyoming Department of Revenue

Wyoming Tax Summary

January 19-20, 1998

Joe Evans, Executive Director

Wyoming County Commissioners Association

Revenue Sources and Needs of County Governments

Michael G. Stull, Acting Director

Wyoming Association of Municipalities

Revenue Sources and Needs of Municipal Government in Wyoming

Bobbie Franks, Executive Director

Wyoming Conservation Districts

Revenue Sources and Needs of Special Districts-Conservation District

Grant Stumbough, Natural Resources

Wyoming Department of Agriculture

Revenue Sources and Needs of Special Districts – Weed and Pest Districts

Michael Boyd, CEO and Pat O’Brien, VP of Finance

Ivinson Memorial Hospital, Laramie, WY

Revenue Sources and Needs of Special Districts – Hospital Districts

Vernon H. Lovejoy, Research and Planning Officer

Wyoming Community College Commission

Revenue Sources and Needs of Special Districts – Community College Districts

Brenda Arnold, County Assessor

Laramie County

Local Property Tax Assessments

Robert Cox, Business Services Dean

Laramie County Community College

Revenue Sources and Needs of Special Districts – Community College Districts

Gary Carver, Chief Engineer

Wyoming Department of Transportation

Wyoming Department of Transportation Revenue Uses and Needs

March 18-19, 1998

Bill Joplin and John Sundahl

Burlington Northern Railroad

Tax Burden: Railroads

John Sundahl

United State Tobacco

Possible Consequences of Increasing the Tobacco Tax

Marion Loomis and Larry Wolfe

Wyoming Mining Association

Tax Burden: Mining Industry

Francis Harris and Frank Dickson

AARP

Tax Burden:  Retired Persons

Charlene Murdock

Campbell County Chamber of Commerce

Tax Burden:  Mining Industry

Larry J. Bourret

Scott Zimmerman

Wyoming Farm Bureau

Rocky Mountain Farmers Union

Tax Burden: Agriculture

Bob Tarantola, Jim Murray, Bob Lockhart

PacifiCorp

Tax Burden: Utilities

Lynn Birleffi

Marlyn Black

Wyoming Restaurant Merchant Association & Wyoming Lodging and Restaurant Association

Wyoming Travel Industry

Tax Burden: Retail Merchants and Travel Industry

William J. Thomson

Wyoming Tobacco Institute

Possible Consequences of Increasing the Tobacco Tax

Dave Johnson, Executive Director

Wyoming Bankers Association

Tax Burden: Banking Industry

Tom Jones

Wyoming Wholesalers & Coin Operators

National Federation of Business

Tax Burden:  Small Business

Rick Robitaille

Petroleum Association of Wyoming

Tax Burden: Oil and Gas Industry

Chris Chambers

Chevron USA

Natural Gas Taxation

Chuck Townsend

Townsend Oil Company

Small Producer Consequences

Phillip Ellis

Wyoming Stockgrowers Association

Tax Burden: Agriculture

Lora L. Coomes, Executive Director

Dick Hammer, President

Wyoming Auto Dealers Association

Tax Burden: Auto Dealers

George Bartholomew

Don Boehm

Missouri Basin Power Project

Basin Electric Power Coop

Tax Burden: Utilities

April 23, 1998

John A. Lichty, CPA

Wyoming Society of CPA’s

Impact of Federal Tax Reform on Wyoming’s State and Local Tax System and on Businesses and Individuals

Susan Bigelow, Director

Campbell County Economic Development Corporation

Report on a Survey Taken of Economic Development Directors in Wyoming

Michael Walden-Newman Executive Director

Wenlin Liu, Senior Economist

Wyoming Taxpayers Association

Division of Economic Analysis

Sales Tax Exemptions Quantification

May 27-28, 1998

Chales Peterson, President

Chempily Management Company

How Wyoming Lose Tax Money to the Colorado Tax System

Kent Goates, Vice President of Finance and Control

Kennecott Energy

The State of the Powder River Basin Coal Industry and The Utah Tax Reform Process

Steve Sommers, Budget and Fiscal Manager

State of Wyoming

Legislative Services Office

CREG Revenue Forecast Update

Shelby Gerking, Professor of Economics

University of Wyoming

The Relative Burden Imposed by the Tax System

June 19-20, 1998

Dave McCracken, Administrator

Ad Valorem Division, Department of Revenue

Review of Agricultural Land Valuation Methodology

Dan Cook III, Chairman

Texas Select Committee on Tax Equity

The Texas Tax Reform process

Joe Evans, Executive Director

Ann Stephenson, County Commissioner

Wyoming County Commissioners Association

Teton County

WAM/WCCA Sub Committee Report – Local Government Revenue Needs

Pete Jourgensen, Trustee

University of Wyoming Board of Trustees

University of Wyoming Budget

July 29-30, 1998

Todd S. Pitkin

Pitkin and Associates

Quantification of Sales Tax Exemptions

Joyce Stewart, Administrator

Excise Tax Division,

Wyoming Department of Revenue

Electronic Commerce

Wind River Reservation Business Council

Wind River Reservation Business Council

Tax Issues on the Wind River Reservation

Dave Rauzi, President

Wyoming County Assessors Association

County Assessor’s Comparison of Replacement Cost Less Depreciation versus Market Value on Selected Properties

Suzanne Olmstead, Assessor

Teton County

Teton County Assessment Issues

August 21-22, 1998

Randy Bolles, Administrator

Mineral Division, Wyoming Department of Revenue

Mineral Tax Administrative Issues

Henry Hewitt

Wyoming Realtor’s Assn.

Real Estate Transfer Tax Discussion

Tom Satterfield, County Commissioner

George Parks, Executive Director

Fremont County

Wyoming Association of Municipalities

Update from the WAM/WCCA Committee on Local Government Revenue Needs

Wade Waldrip, Attorney

Carbon County

Ad Valorem Taxation from a County Perspective

Joyce Stewart, Administrator

Excise Division, Wyoming Department of Revenue

The Examination of Written Sales Tax Exemptions for Possible Deletion and the Possibility of Applying the Sales Tax to Certain Services Currently not Taxed

Philip L. Dubois, President

University of Wyoming

Future Revenue Needs of the University of Wyoming

September 23-24, 1998

Bob Gose, Co-Chair and Interim CEO

Wyoming Business Council

Business Council Update

Terry Swenson, President

Jim Browning, President

Heart Mountain Farm Supply

Powell Equipment, Inc.

A Perspective of Doing Business in Northern Wyoming

Lyle French and Regan Smith

Park County Farm Bureau

Consequences of Taxes on Agriculture

Bob and Carol McDougall

Phoenix Production Company

Independent Oil Producer’s Taxation Concerns

Jim Vanaman, Finance and Administrative Manager

Marathon Oil Company

Marathon’s Contribution to Park County and Proposed Tax Alternatives

Dick Wallis and Eric Nelson

Horse Track/Video Gaming

A Proposal for Gaming

October 29-30, 1998

Tom Satterfield, County Commissioner

George Parks, Executive            Director

Joe Evans, Executive Director

Fremont County Commissioners

Wyoming Association of Municipalities

Wyoming Association of County Commissioners

Revenue Needs for Local Governments

Robert Anderson

Organizer/Promoter

Owl Creek Energy Project

Dan Sullivan

Self

An Alternative Tax for Education

November 18-19, 1998

Dan Noble, Administrator

Wyoming Department Of Revenue, Administrative Services Division

The Costs to Administer a State Income Tax

Cynthia Lummis, Treasurer Elect

Michael Walden-Newman, Executive Director

Johnie Burton, Director

State of Wyoming, Treasurer Elect

Wyoming Taxpayers Assoc.

Wyoming Department of Revenue

Legislative Intent of the Tax Reform Legislation

March 29, 1999

Dan Noble, Administrator

Wyoming Department of Revenue, Administrative Services Division

Estimation of Possible Revenues from a State Individual Income Tax

Speaker

Representing

Topic of Concern

Chesie Lee

American Cancer Society

Legislation being delayed on a cigarette tax increase.

Speaker

Representing

Topic of Concern

Woody Giles

Common Ground USA

Escalating property taxes and possible solutions.

Bob Tanner

State Representative, Natrona County

Trimming tax exemptions and decreasing government spending.

Dr. John Roussalis

Wyoming Dental Association

Sales and use tax on non-capitalized materials and equipment.

Glenda Stark

Self

Trimming tax exemptions and decreasing government spending.

Speaker

Representing

Topic of Concern

Kent Goates

Kennecott Energy

Impact of Federal tax and royalty policy on mineral business in Wyoming.

Dr. Jim Hough

Wyoming Dental Association

Sales and use tax on non-capitalized materials and equipment.

Bob Tanner

State Representative, Natrona County

Tax exemptions and the impact of special districts in Wyoming.

Sarah Gorin

Equality State Policy Center

Suggested changes in the committee’s adopted report outline.

Speaker

Representing

Topic of Concern

Les Desavedo

Campbell County Commissioner

Campbell County’s opposition to county property tax distribution equalization.  He informed the committee that a sub-committee of the Wyoming County Commissioner’s Association has been formed to work with the Tax Reform 2000 Committee.

John Kennedy

Wyoming Independent Oil Producers

The non-competitiveness of the independent oil industry in Wyoming

Allen Weekly

Self

The need for Wyoming to adjust its tax structure in order to meet the challenges of the future.

Bill Hayes

Self

The suggestion of a security transactions tax.

Dan Sullivan

Consultant

The need to look at tax exemptions and rates to amend the Wyoming tax structure.

Speaker

Representing

Topic of Concern

Ed Patterson

Wy Prop

The inequities that exist with regard to the uniformity of ad valorem neighborhood appraisals in Wyoming.

Marcia Wright

Campbell County Librarian

A request for the committee to consider the needs of libraries when making their tax reform suggestions.

Marion Loomis

Wyoming Mining Association

Presented the distribution of the coal severance tax of 10.5% when it was assessed from 1978-1986.

Speaker

Representing

Topic of Concern

Sandy Shuptrine

Teton County Commissioners

She asked the committee to be constructive, to look at other states’ revenue sources and stressed that all state residents should contribute their fair share.

Lynn Birleffi

Wyoming Restaurant Association

She explained how Wyoming liquor taxes are assessed in relationship to other states where the state is not a liquor wholesaler.

Marshall Gingrey

Self

He asked about the purpose and process of the committee.  He encouraged that constituents be kept well informed.

Ann Stephenson

Teton County Commissioners

She discussed the tax income to Teton County and its uses.  She encouraged the committee to consider a Real Estate Transfer Tax.

Jeff Heilbrun

Teton Pines

He discussed tourism spending and the fact that double-digit tax rates will deter tourism spending.  He discussed his concerns with a statewide lodging tax.

Nels Smith

Wyoming Stock Growers Association

He pointed out that agricultural property taxes based upon production decreases the pressure on agriculture to convert to other uses.  He told the committee, as a draftee of the State Constitution income tax amendment, that the intention was to have property and sales taxes deducted from the actual income tax due rather than a deduction from taxable income.

Larry Wolfe

Holland and Hart

He discussed the methods available for the appraisal of industrial properties.

Ed Patterson

Wy Prop

He believes property taxes are already high and that a real estate transfer tax would add insult to injury.  He would like the committee to consider WY Prop’s proposals to lessen property tax burdens.

Speaker

Representing

Topic of Concern

Crosby Allen

Fremont County Commissioner

He mentioned that the rest of Fremont County is seeing an increase in property values similar to what had occurred in Dubois.  He said the retired and individuals on fixed incomes are being affected.  He would like to see a cap through legislation on ten (10) percent per year be instituted on the increase in property values or a system where property taxes would not increase until the property is sold.  He believes agricultural land should be classified by use not size.

Speaker

Representing

Topic of Concern

Robb Slaughter

Sweetwater County Treasurer

Concern that the local optional sales taxes would not pass if the state tax was increased.

Colleen Peterson

Director of Finance, City of Rock Springs

Concern over questionnaires from the state legislature asking for cash reserve information and whether large reserves would prevent an entity from receiving grant funding.

Valerie Thomas

Self

Urged the committee to consider repealing tax exemptions rather than increasing the sales tax because of its regressivity.

David Okano

Wyoming Dental Association

Encourage committee not to suggest taxing professional services.  The tax would be passed on to patients and would affect lower income people.

Sarah Gorin

Equality State Policy Center

Believes the mineral industry could be taxed more than they presently are.

Dave Johnson

Wyoming Bankers Association

The Bankers Association would rather see commercial property taxes increased rather than have a sales tax applied to banking services.

Tom Jones

Wyoming Library Association

Encouraged a better funding mechanism for Wyoming libraries that would provide equal services throughout the state.

Tom Jones

Self

Encouraged that taxes collected by local governments be more equally distributed throughout the state.  Suggested a system similar to that used for school funding.

Karen Henry

Wyoming Farm Bureau

Asked the committee about the status of the nuclear rod storage project.  Peck told her that a full blown economic study is being done on the project.

Speaker

Representing

Topic of Concern

Chris Boswell

House District 39

Encouraged the committee not to take the easy way out and suggest a sales tax increase, but to look at the revenue problem in greater detail and be creative as the legislative intended.  Encouraged the committee to look at the sales tax exemptions.

Jack Steinbrech

House District 48

Proposed a tax on the transfer of stocks and bonds.  Asked the committee not to consider and income tax.

Tom Bunning

Red Horse Oil Co.

Concerned about the two cent off road diesel fuel tax to which is also assessed the state sales tax.

Larry Bourret

Wyoming Farm Bureau Federation

Clarified for the committee that the agricultural industry pays $31.6 million in sales taxes.  Suggested some possible solutions for the agricultural land valuation problems.

Lynn Birleffi

Wyoming Retail Merchants Assn. And Wyoming Lodging and Restaurant Assn.

Encouraged the committee to survey county assessors about the problems they incur with defining charitable institutions.

Speaker

Representing

Topic of Concern

Steve Thomas

Greater Yellowstone Coalition

Encouraged the committee to suggest a real estate transfer tax to help mitigate that costs of subdivision development.  Suggested that agriculture be exempt.

Sarah Gorin

Equality State Policy Center

Encouraged the committee to study the effectiveness of oil and gas incentives to see if revenues are being lost on production that would have taken place without the incentives.

Geroge Parks and Jerry Wall

Wyoming Association of Municipalities

Encouraged the committee to follow the activities of the U.S. Senate on the Internet legislation.  The current bill before the Senate would establish a commission to study the effects of catalog and internet sales on commerce and to look into the question of nexus.  Hines instructed Archibald to write a letter of support to the Wyoming delegation advocating the commissions’ formation and informing them of the Tax Reform 2000 committee’s position.

David Perry

Publisher – Rawlins Daily Times

Expressed his concern that as an individual he does not pay enough taxes in Wyoming.  Encouraged the committee to study railroad taxation possibilities.

Speaker

Representing

Topic of Concern

Ed Patterson

Wy Prop

Believes a real estate transfer tax would be less regressive than on increase in the property tax mill levies.  Stated that agriculture should not be exempt from a real estate transfer tax because it would help make up for the tax breaks agriculture currently has.

Art Zeiger

Carbon County Commissioner

Thanked the committee for holding their meeting in Saratoga.

Richard Hodges

Self

Suggested that if the committee must recommend increasing taxes that they suggest taxes that will hit everybody.  Believes that expenditures could also be controlled before increasing taxes.

Speaker

Representing

Topic of Concern

Duane Edmonds

Self

Encouraged the committee to suggest a real estate transfer tax and to eliminate current sales tax exemptions.

Wayne Chesnut

American Legion

Encouraged the committee to recommend gambling as a source of revenue and a real estate transfer tax.

Brad Haskell

Haskell Furniture and Northern Wyoming Tax and Revenue Committee

Would like to see stricter enforcement of the State’s use tax prior to any increase in the state’s sale/use tax.  Suggested stronger monitoring of the state’s borders and installation of signs that would explain the use tax law to individuals crossing into Wyoming.

Dan Sullivan

Government Relations

Suggested an interstate compact between Wyoming and its bordering states to enforce the use tax laws.

Chesie Lee

Americans Discuss Social Security and the American Cancer Society

Encouraged participation in the Americans Discuss Social Security effort by The Pew Charitable Trusts and presented information on additional taxes that could be raised from an increase in the cigarette tax.

Lynn Birleffi

Wyoming Retail Merchants Assn. And Wyoming Restaurant and Lodging Assn.

Presented three proposals for research studies: impacts of an increase in the sales tax, leakage and gambling/lottos.  Informed the committee of a publicity campaign on the use tax by the Retail Merchants, discouraged the elimination of the sales tax on groceries and asked that committee not to suggest an increase in a tax just because Wyoming’s tax is lower than others states.

Jim Hilberry

Self

Expressed his concerns about the status of agriculture.  Cautioned against tax increases and suggested considering expenditures decreases especially in education.

Speaker

Representing

Topic of Concern

Duane Edmonds

Self

Encouraged the committee to suggest a real estate transfer tax and to eliminate current sales tax exemptions.

Lisa Burgess

Wyoming Department of Revenue

Informed the committee the Ad Valorem Division is working on a resolution of the valuation problems with oil field equipment.

Rich Robitaille

Petroleum Association of Wyoming

Stated the Association is also working on a solution for the valuation of oil field equipment.

Joe Reed

Self

Suggested it may be time for Wyoming to adopt an income tax.  He would not support a gross receipts tax that requires tax payment whether a profit is made or not.

Paul Hoffman

Cody Chamber of Commerce

Presented the results of a study in Park County that listed the reasons people go to Montana to shop.  Montana’s lack of a sales tax was the last reason of seven.  Price was listed first.

Pat Childers

House District 50

Wyoming may seriously have to consider an income tax if it is to survive.

Speaker

Representing

Topic of Concern

Marion Loomis

Wyoming Mining Association

Commended the committee on a tremendous effort and asked that the committee consider recommending a tax system as if we were a new state starting from day one.

Ann Stephenson

Teton County Commissioners

Presented a letter from the Teton County Commissioners that suggested the committee not look at property taxes or the sales tax for additional revenues but should consider a real estate transfer tax

Walter Halderman

Wy Prop

Presented a proposal that advocated basing property taxes on cost value with an inflationary adjustment rather than market value.

Ed Lee

Lander

Did not want the committee to consider an income tax because of the decreased purchasing power of Wyoming wages.  Suggested that property taxes be based upon a four-year average of market values rather than each year’s current market value.  This would take a constitutional change

Speaker

Representing

Topic of Concern

Rick Tempest

House District 37

Explained his bill to eliminate sales tax exemptions.

Glenda Stark

Self

Advocated cutting government expenses before taxes are raised.

Carolyn Paseneaux

House District 38

Advocated cutting government expenses before taxes are raised.

Joe Meyer

Wyoming Secretary of State-Elect