2002

State of Wyoming

02LSO-0141.W1

WORKING DRAFT

HOUSE BILL NO.

Real estate transfer tax.

Sponsored by: Joint Revenue Interim Committee

A BILL

for

AN ACT relating to taxation and revenue; imposing a real estate transfer tax as specified; providing for distribution; delegating rulemaking authority; imposing penalties; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1. W.S. 39-22-101 through 39-22-111 are created to read:

CHAPTER 22

REAL ESTATE TRANSFER TAX

39-22-101. Definitions.

(a) As used in this chapter:

(i) "Real property" means as defined by W.S. 39-11-101(a)(xv) and includes easements on real property.

39-22-102. Administration.

The department of revenue shall enforce the provisions of this chapter. The department shall promulgate rules and regulations necessary for the implementation and enforcement of this chapter.

39-22-103. Imposition.

There is imposed a transfer tax upon the sale of real property. On any sale of real property, a transfer tax shall be imposed upon the total amount of the real property sale.

39-22-104. Taxation rate.

(a) The tax rate shall be as follows:

(i) Two hundred thousand dollars ($200,000.00) or less - one-quarter percent (1/4%);

(ii) More than two hundred thousand dollars ($200,000.00) but less than or equal to four hundred thousand dollars ($400,000.00) - one-half percent (1/2%) of the amount of the sale which exceeds two hundred thousand dollars ($200,000.00) in addition to the tax imposed by paragraph (i) of this subsection;

(iii) More than four hundred thousand dollars ($400,000.00) but less than or equal to eight hundred thousand dollars ($800,000.00) - one percent (1%) of the amount of the sale which exceeds four hundred thousand dollars ($400,000.00) in addition to the taxes imposed by paragraphs (i) and (ii) of this subsection;

(iv) More than eight hundred thousand dollars ($800,000.00) - one and one-half percent (1 1/2%) of the amount of the sale which exceeds eight hundred thousand dollars ($800,000.00) in addition to the taxes imposed by paragraphs (i) through (iii) of this subsection.

39-22-105. Exemptions.

(a) The tax shall not be imposed upon any of the following:

(i) Any transfer from an instrument that confirms, corrects, modifies or supplements a previously recorded instrument without added consideration;

(ii) Any transfer of title without consideration from one (1) joint tenant or tenant in common to one (1) or more remaining joint tenants or tenants in common;

(iii) Any transfer of title to property without consideration when held in the name of one (1) spouse to both spouses as joint tenants or tenants in common, or as community property;

(iv) Any transfer of title between spouses, including any gift between spouses;

(v) Any transfer of title between spouses to effect a property settlement agreement or between former spouses in compliance with a decree of divorce;

(vi) Any transfer of title without consideration to or from a trust;

(vii) Any transfer or other conveyance of real property to or from a corporation or other business entity by one (1) or more persons if the transfer or conveyance does not alter the percentage of ownership interest in the real property of any person;

(viii) Any transfer or other conveyance of real property if the owner of the property is related, within the first degree of consanguinity of blood or marriage, to the person to whom it is conveyed;

(ix) Any transfer or other conveyance of real property to make effective any plan of reorganization or adjustment under which a mere change in identity, form or place of organization is effected, such as a transfer between a corporation and its parent corporation or a subsidiary corporation;

(x) Any transfer of real property due to the sale of the property for delinquent taxes or assessments or a sale or transfer pursuant to foreclosure;

(xi) Any transfer of real property by a county certificate of purchase or a sheriff's deed;

(xii) Any transfer of a residential real property sale to a first time home buyer meeting the definition and income levels of the Wyoming community development authority in the administration of the mortgage revenue bond program;

(xiii) That portion of the value of any transfer of agricultural land, as defined by W.S. 39-13-101(a)(iii), up to one and one-half (1 1/2) times the agricultural value of the land as determined by the county assessor for the previous calendar year;

(xiv) Any exchange of real property up to the lesser value of the properties being exchanged;

(xv) Any transfer of real property exempted from taxation under W.S. 39-11-105(a)(i) through (viii), and any property protected from taxation under the Wyoming constitution;

(xvi) Any transfer of property pursuant to a contract executed prior to July 1, 2002;

(xvii) Any transfer of real property interests in minerals;

(xviii) Any transfer of real property used for industrial purposes as defined by W.S. 39-11-101(a)(xiv)(B);

(xix) Any other transfer or other conveyance which the department of revenue exempts upon a finding that the transfer does not represent a true conveyance of property.

39-22-106. Licensing; permits.

There are no specific applicable provisions for licenses and permits for this chapter.

39-22-107. Compliance; collection procedures.

(a) Returns and reports. Taxes imposed by this chapter are due and payable at the office of the county treasurer of the county in which the real property is located on the date of recordation of the deed or other instrument making the sale a matter of public record. The tax shall only be collected on the price paid for real property. The county clerk shall not record a document transferring legal or equitable title to real property until all taxes due under this chapter have been paid to the county treasurer. The buyer and seller shall sign before a notary on a form prescribed by the department of revenue, a statement eliciting the information necessary for the assessment of the tax. The statement is not a public record and shall be held confidential by the county clerk, county assessor, county treasurer, county board of equalization, state board of equalization and by the department of revenue.

(b) It is a misdemeanor for a person to willfully falsify or publicly disclose, except as specifically authorized by law, any information on the statement required by subsection (a) of this section. Upon conviction, the offender is subject to a fine of not more than seven hundred fifty dollars ($750.00), imprisonment for not more than six (6) months, or both.

(c) Payment. Payment of the tax may be negotiated between the purchaser and seller of the real property, and shall be collected from the party recording the deed or other instrument making the sale a matter of public record by the county treasurer in the form prescribed by the department of revenue.

(d) Timelines. There are no specific applicable provisions for timelines for this chapter.

(e) If the property being transferred is located in more than one (1) county and the value has not been determined by the buyer and seller as to each county, the value shall be established by applying the ratio of the assessed valuation in each county to the assessed valuation of all property being transferred.

39-22-108. Enforcement.

(a) Audits. There are no specific applicable provisions for audits for this chapter.

(b) Interest. There are no specific applicable provisions for interest for this chapter.

(d) Liens. There are no specific applicable provisions for liens for this chapter.

(e) Tax sales. There are no specific applicable provisions for tax sales for this chapter.

39-22-109. Taxpayer remedies.

There are no specific applicable provisions for taxpayer remedies for this chapter.

39-22-110. Statute of limitations.

There are no specific applicable provisions for a statute of limitations for this chapter.

39-22-111. Distribution.

(a) Taxes collected by the county treasurer shall be distributed as follows:

(i) Fifty percent (50%) shall be transferred to the county treasurer who shall distribute the amount within the county as follows:

(A) To the county, in the proportion that the population of the county situated outside the corporate limits of its cities and towns bears to the total population of the county including its cities and towns;

(B) To each city and town within the county, in the proportion the population of the city or town bears to the population of the county.

(ii) Fifty percent (50%) shall be transferred to the state treasurer for deposit into the state capital construction account created by W.S. 21-15-111(a)(i).

Section 2. This act is effective July 1, 2002.

(END)