Services To Be Subject to Wyoming Use Tax, July 2014
- Mar 13, 2014 | Gail Cole
The storage, use or consumption of tangible personal property and specified digital products has long been subject to use tax in Wyoming. Under a new law, the first use of a taxable service will also be subject to Wyoming use tax, effective July 1, 2014.
Wyo. Stat. § 39-16-103 as amended by House Bill 145 makes the first use of a taxable service subject to Wyoming use tax. Beginning July, services “to repair, alter or improve tangible personal property sold” will be subject to tax “where first use of the service occurs in this state.” This change will help Wyoming be in compliance with the Streamlined Sales and Use Tax Agreement (it has been a member of SST since 2008).
Specified digital products
As specified digital products are also subject to sales and use tax under the statute, now seems a good time to review what makes a digital product “specified.” The statute reads:
“Specified digital are only subject to the tax imposed by this article if the purchaser has permanent use of the specified digital product.”
In other words, digital products purchased for “for further commercial broadcast, rebroadcast, transmission, retransmission, licensing, relicensing, distribution, redistribution or exhibition in whole or in part to another person” are not subject to Wyoming sales or use tax. Under the statute, “a receipt given to the person by a registered vendor in accordance with paragraph (c)(i) of this section is sufficient to relieve the purchaser from further liability.”
The definition of “specified digital products” is not provided in this statute.