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Wyoming seeks online sales tax


 Wyoming lawmakers work toward creating internet sales tax legislation.

Wyoming lawmakers have drafted a bill that would require certain out-of-state sellers to collect and remit Wyoming sales and use tax.

Under current law, only businesses with a physical presence in the state of Wyoming can be compelled to collect and remit sales and use tax on Wyoming transactions. The working draft, created by the Legislature’s Joint Revenue Interim Committee, would amend existing law to require out-of-state sellers without a physical presence in Wyoming to collect tax “as if the seller had a physical presence in this state” when one of the following conditions is met:

  • The seller’s gross revenue from the sale of tangible personal property, admissions or services delivered into Wyoming exceeds one hundred thousand dollars ($100,000), or
  • The seller sold tangible personal property, admissions or services delivered into Wyoming in two hundred (200) or more separate transactions

The committee seems to expect the law would be challenged if enacted. The draft contains several sections explaining what would happen should the Wyoming Department of Revenue, “or any other state entity,” be prohibited from enforcing the tax collection obligation. It also devotes a section to the treatment of sellers who voluntarily comply with the policy (read the working draft here).

Currently, consumers are required to remit use tax when sales tax isn’t collected on taxable items at the time of sale. However, use tax compliance is low and enforcement is challenging. Committee co-chair Senator Ray Peterson (R-Cowley) reminds that this would not be a new tax: “it’s the same tax we charge at our Main Street businesses.” It would, however, bring the state an additional $23 to $46 million annually.

The bill is expected to be sent to the full Legislature once it convenes in January, and Sen. Peterson anticipates it will be approved.

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Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.