WTA new logo
2020 LEGISLATIVE BUDGET SESSION
Tax legislation of interest from session

LEGISLATIVE RECAP
WTA followed 47 bills - monitored 35, opposed 7 and supported 5 throughout the five week session. Our final tracker can be found here.  
  • HB 0063 Fuel tax. Support. Failed.
  • HB 0064 National corporate tax recapture. Oppose. Failed.
  • HB 0071 Wyoming public safety communications system funding. Oppose. Failed.
  • HB 0134 Wyoming tourism account funding. Support. Passed . 
  • HB 0159 Monthly payments of ad valorem tax on mineral production. Oppose . Passed.
  • HB 0147 Wyoming income tax act. Oppose. Failed .
  • HB 0171 Wyoming gaming commission. Support. Passed.
  • HB 0179  Electricity taxation - generation . Oppose. Failed.
  • HB 0186  K-12 and local government structural deficit repair act.  Oppose. Failed.
  • HB 0225  Gaming governance . Support. Failed.
  • HB 0234 Gaming regulation. Support. Failed.
  • HJ0004 Legislative sessions. Oppose. Failed.
ITEMS TO NOTE
HB 159 Monthly payment of ad valorem tax on mineral production was extremely controversial.  The House had modified the original version as presented from the interim Select Committee on Coal and Mineral Bankruptcies. The final bill  transformed out of Senate Revenue with amendment "J"  which was completely different than anything previously discussed. WTA testified in opposition in Senate Revenue urging the committee to slow down, kick the complicated topic to interim, and allow time for WTA membership and industry feedback. The final bill with "J" stretches monthly payments, stripped incentives from previous versions,  provides a softer transition with a review following the 2026 tax year. An additional amendment from Senate allows the company/operator the ability to negotiate with the County for a customized payment plan. Click here for the spreadsheet on the final monthly payment schedule. The fun now begins with County and company adjusting accounting to meet the new payment schedule. WTA will closely follow discussion throughout implementation.  

HB 0171 Wyoming gaming commission passed after numerous amendments with elements from HB 225 Gaming governance and HB 234 Gaming regulation and late night testimony from both Committees. The final version of the bill creates gaming regulation, licensure, and taxation. WTA testified in support in both committees and will continue to monitor gaming taxation discussion in the interim. 

HB 0134 Wyoming tourism account funding passed after many years of working together with industry on a statewide lodging tax. This legislation will impose a 3% statewide lodging tax, 2% local lodging tax and the opportunity for an additional 2% local lodging tax. The 2% local option will allow locals to put the tax on ballot. The 3% will fund the Wyoming Office of Tourism thus freeing up approximately $24M to the General Fund.

BILLS THAT FAILED
HB 0063 Fuel tax snuck in with not much conversation from the interim. This funding would have been an attempt to adjust funding to catch up with inflation. Funding would have been designated for roads in WYDOT's budget. While there was support from numerous associations and industry, including WTA, the legislative appetite was not there. A potential topic for continued discussion in Joint Revenue this interim and one WTA will closely monitor.
 
HB 0179 Electricity taxation - generation proposed taxation on the solar industry. WTA testified in opposition after it failed the Cornerstones of Taxation as the proposed legislation was not e quita ble or balanced.  If passed, the  tax would have disadvantaged one taxpayer over another and was not uniform with similarly situated taxpayers in power generation, thus not equitable. It was not balanced as it would have influenced  decisions regarding potential investment and it would have concentrated a financial burden on a few and ultimately distorted economic behavior. Per testimony of industry, other states have incentives to recruit solar and are watching what Wyoming is doing.  WTA will continue to advocate sound tax policy as the foothold for economic development. 
 
INTERIM TOPICS
The topics discussed in the final Joint Revenue Committee meeting during session can be found  here. The Joint Revenue Committee will prioritize the topics and sent to the Management Council for final approval. Hints to thoughts of interim topics were discussed on PBS's Capitol Outlook by the Chairmen of the Joint Revenue Committee. You can view the episode  here, the revenue discussion starts about minute 24 although the entire episode gave a great overview of the session.
 
FINAL THOUGHTS
WTA applauds the transparency of the Governor's budget and website wyomingsense.gov. We also think the Governor and 65th Legislature were very forthright with the discussion on the potential land purchase. As noted above, there were several tax initiatives that passed, we supported these sound tax policy bills.
 
On the other side, we were disappointed in the lack of a pro-business approach to policy proposals. Throughout the  session many opportunities for transparency and substantive debate were missed and in some cases flat out ignored. One example were the deceiving titles of bills. SF 0096 Cold showers for Grandma, had no regards for Grandpa in the regulation of shower temperatures in care facilities. HB 0105 Metal mustache freedom act, would have removed the requirement to display front license plates on motor vehicles - truly a very important policy issue in these budget times - or not.  HB 0186 K-12 local government structural deficit repair act which included a not-so-transparent additional one cent sales tax. All of these billed failed. Not sure if it was the title or the fact there were almost 400 bills ever so important non-budget bills to review for a Budget Session. That note ties into our final thought on Legislative Sessions. HJ0004 Legislative sessions WTA was prepared to testify against the proposal in the Senate Education Committee, but it luckily never had a hearing. Click here to see our combined thoughts from WTA board members, former legislators and engaged industry members about the failed attempt to stretch legislative budget sessions further from the intent of robust debate of the state's budget. 
 
Moving forward - the session has left many wondering what the revenue picture will look like in the future? The  WTA Board of Directors will meet in June to think strategically about the role your association will play in crafting a sound fiscal  future for the state.  With plummeting oil and gas prices, continued uncertainty for coal, the COVID-19 pandemic harming our tourism industry, and falling agriculture prices, our top three industries are struggling. Last year there was much discussion on cuts to spending, but in the end Education received a $46 million increase.  WTA strategic di scussions will include new policies around a  Cornerstones of Spending  and a  Statement on Fees . We plan to update the  Cornerstones of Taxation  and continue to refine how Wyoming addresses fiscal policies utilizing economic analysis and data to support sound tax policy. This interim we will be updating our publications and research to help leaders with information for decision making.
 
Finally, WTA would like to thank our valued members who participated in the new process of position submission. This new consistent and transparent process utilizes the WTA Analysis of Cornerstones of Taxation and gave a fair analysis of each piece of proposed legislation.  We will continue to refine this process and use it for positions in the interim. Please contact ashley@wyotax.org if you have any questions. 
 
To view all the weekly updates from the 2020 Budget Session and policy forms go to  www.wyotax.org. Click the  Advocacy  tab, then select the 
Legislative Activity drop down. 
AROUND THE CAPITOL
WTA Chairman Bobby Rolston talking Census 2020.

WTA Executive Director Ashley Harpstreith testified in front of Revenue Senate against HB 159.

WTA Board Members Mike Moser and Chris Brown watching HB 171 in the House.
Joint Conference Committee for SF 138.
Executive Director Ashley Harpstreith addresses a breakfast crowd at Toast & Taxes.

Senator Enzi addresses the House. 
It is hard not take in the beauty of the newly renovated Capitol.

Entrance to the Wyoming State Capitol.

One of the many productive WTA Policy Committee Meetings during session.


BUDGET BIENNIUM FY 2020 - 2022
Post session - Where did we land?

FINAL BUDGET
The final allowance for spending was based on the January CREG (Consensus Revenue Estimating Group).  The CREG released on January 10, 2020 presented a forecast with a $77M shortfall  from previous projections due to a decline of $72M from natural gas and $5M reduction in state royalty revenues. 
An updated fiscal profile will be available following the April CREG. There is no doubt the April CREG will calculate a much different forecast with plummeting oil and gas prices combined with COVID-19 pandemic. Even with the financial crisis coupled with the pandemic, this budget will take effect July 1, 2020. With our reserves in place, the State of Wyoming will be ok to wait to adjust in the next legislative session in January 2021. It will be interesting to see if the state thinks otherwise and calls a special session. As more information is released next month, we will analyze and keep you informed.

Biennium Budget Outcomes
General Fund e xpenditures down 8%,  $2,976,527,718. 
Education and School Capital Construction $2,116,619,945.
 
Non-Permanent Reserves Account Balances 
Legislative Stabilization and Reserve Account (LSRA): $1,384,067,374.
Budget Reserve Account: $113,185,500.
Strategic Investments and Projects Account (SIPA): $165,951,707.
School Foundation Program (SFP): $100,000,000.
School Capital Construction Account (SCCA): $1,100,000.
PWMTF Spending Policy Reserve Account: $26,037,579.
Common School Permanent Land Fund Spending Policy Reserve Account:
$134,748,889.
Water Development Accounts I, II, III: $49,003,551.

WYOMING SENSE
In a press release sent out from his office November 22, 2019, the Office of the Governor notes legislative changes to the Governor's budget proposal will be reflected after 2020 Budget Session on the Wyoming Sense website. Go to www.wyomingsense.gov to learn more.  


With the revenue forecast from January 2020 CREG, the above chart highlights  a flat budget for the next biennium. Please note numbers before fiscal year 2020 are actual revenues, including capital gains, but does not include capital gains for fiscal year 2020 because CREG does not forecast it. 
MEMBER CORNER
 
ANNOUNCEMENT  FROM CHARTER  COMMUNICATIONS
Charter Communications is seeking SR. MANAGER, GOVERNMENT AFFAIRS in Cheyenne, WY. Click  here for more information. 

TAX TIDBITS
WASHINGTON - The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020.

Taxpayers can also defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax.

Taxpayers do not need to file any additional forms or call the IRS to qualify for this automatic federal tax filing and payment relief. Individual taxpayers who need additional time to file beyond the July 15 deadline, can request a filing extension by filing Form 4868 through their tax professional, tax software or using the Free File link on IRS.gov. Businesses who need additional time must file Form 7004. Click here for full release.

To submit information about your industry, things happening in the tax world or topics you would like more information on - email ashley@wyotax.org. 
WELCOME NEW MEMBERS!

Energy Capital Economic Development
Range Companies
Representative Sandy Newsome
MEMBER COMMUNICATION

Effective communication comes in various forms! Find us on several platforms for up-to-date information and events:
  • Follow us on our newly updated Twitter account @wyotax. 
  • Follow us on Facebook @wyomingtaxpayersassociation.
  • Join WTA Members ONLY  Facebook page, click here to request membership or send your email you use for your Facebook page to ashley@wyotax.org or wyotax@wyotax.org to join in Member Only Event reminders and up-to-date information you need to know!
  • Visit our website online at www.wyotax.org.
  • WTA will keep you updated for the 2020 Budget Session via Weekly Legislative Report or Action Alerts.
If you just think you are missing something or need more information, contact us the old fashioned way via email or phone. *Due to the COVID-19 pandemic, we are working remotely, but can still be reached at the same contacts below. 

Ashley Harpstreith                                 Dani Wiblemo
Executive Director                                 Office Manager
ashley@wyotax.org                               dani@wyotax.org        
(307) 575-4459 (cell)                               (307) 635-8761 (office)          
TALKING TAX - IN THE MEDIA & NEWS 

PBS CAPITOL OUTLOOK - Reviews final thoughts on 2020 Budget Session.  Guests include Governor Mark Gordon; Senate President Drew Perkins and House Speaker Steve Harshman; Revenue Chairs Sen. Cale Case and Rep. Dan Zwonitzer; JAC Chair Sen. Eli Bebout and Education Chair Sen. Hank Coe; and Sen. Affie Ellis.   View episode here.


LEGISLATURE APPROVES BILL FOR MONTHLY MINERAL TAX PAYMENT - G ILLETTE - Mineral producers in Wyoming will have to pay their ad valorem taxes owed to counties on the same schedule as their state severance taxes if Gov. Mark Gordon signs a bill that cleared its final hurdle in the Legislature on Wednesday. View full article.

LEGISLATURE GIVES FINAL APPROVAL TO CREATE GAMING COMMISSION -  CHEYENNE - As an increasing number of unregulated gaming machines creeps into the state, a bill creating a statewide gaming commission to regulate the industry won final approval from the Senate on Tuesday. View full article.

GAMING REGULATION IN WYOMING IS ALMOST CERTAINLY COMING. WHAT IT WILL LOOK LIKE IS UNCLEAR - At the Capitol, everybody seems to want it. The Wyoming Taxpayers Association has come out in support of regulated gaming, stating it presents a revenue opportunity for the state that is equitable and fair. The Wyoming County Commissioners Association, industry, even the Northern Arapaho Tribe has come out in support of a gaming commission, albeit with the caveat they all have a seat at the table. View full article.

WYOMING LEGISLATURE PASSES LODGING TAX - CHEYENNE - After three years of effort, the Wyoming Legislature has advanced a statewide lodging tax to the governor's desk. View full article.
WYOMING ECONOMIC ANALYSIS 
& OTHER RESOURCES

Wyoming Insight -  The Wyoming Insight serves as an energy index and business indicators report for the State.  Highlights from this month's issue include: (1) Opal Natural Gas and West Texas Intermediate Oil Prices Decline in February, (2) Retail Trade Leads All Sectors in Sales and Use Tax Collections, (3) Single Family Permits Off to Strong Start in 2020.   View February 2020 here.

ESTIMATES OF JULY 1, 2019 COUNTY POPULATION - Wyoming's total resident population grew slightly to 578,759 in July 2019, according to estimates released by the U.S. Census Bureau.  The annual increase from July 2018 was 1,158 persons, or 0.2 percent.  This growth was after three consecutive years of decline.  View full report here.

Wyoming Sales, Use, and Lodging Tax Revenue Report - The 2019 edition of the Wyoming Sales, Use and Lodging Tax Revenue Report is a compendium of detailed excise tax information. This publication contains sales and use tax collection information by the North American Industry Classification System (NAICS) for Wyoming and counties. In addition, sales tax collections for the retail sector, which are itemized by sub-sector component, and for the accommodation and food services sector are provided. Also included in this report are yearly lodging tax collections by local entity.  View full report here.

Wyoming MACRO Report - The MACRO Report is a quarterly publication comprised of charts focusing on employment, energy, state revenues, and other indicators providing an overview of Wyoming's economy. View full report here.

Wyoming Economic Indicators -  Within the WEI is the Wyoming Business-Cycle Index (WBCI), a coincident economic indicator that is designed to provide a current assessment of the state's economy.  View full report here. 

Wyoming Sense -  Governor Mark Gordon believes all Wyomingites should have a clear understanding of how taxpayer dollars are spent. With easy access to our state's budget, citizens can better understand the challenges and opportunities that lie ahead for the Great State of Wyoming. View the Governor's new website here.
CALENDAR OF EVENTS - SAVE THE DATE!

WTA EVENTS
  • WTA BOARD MEETING & STRATEGIC RETREAT - Saratoga, WY - Sunday, May 31 - Tuesday, June 2. Details to come.
  • WTA ANNUAL MEETING - Little America, Cheyenne, WY - Wednesday, November 4 - Thursday, November 5. Details to come.
INTERIM COMMITTEE MEETINGS
  • JOINT REVENUE COMMITTEE
    • May 26 & 27 Lander
    • August 24 & 25 Green River
    • November 19 & 20 Cheyenne
All Legislative Committee Meetings can be found  here .

FOLLOW US!
SIMPLY CLICK HERE