This month, we take you to the western mountain region of our country. Wyoming’s natural beauty and mountain ranges offer a sense of adventure, and perhaps a sense of rugged courage that surrounds you with the Western spirit. Popularly known as “The Equality State” and “The Cowboy State”, Wyoming is the least populous state and the 10th largest state by area in the country. The state is also the 2nd most sparsely populated after Alaska. It was named after a Native American word “mscheweamiing” meaning “at the big flats” or “Large Plains.”

Business Climate

Wyoming’s economy has some unique differences when compared to that of other US states. The state’s mining, tourism and agriculture industries serve as an important economic and cultural aspect of the economy. The majority of the residents in Wyoming still make their living from farming and ranching, which makes agriculture an important source of income for the locals. Some important agricultural commodities include livestock, hay, barley, wheat, sugar beets and wool.

Wyoming has been recognized as the top coal-producing state with the largest coal resources in the country. Extracting minerals like coal, oil, gas, crude oil and trona is one of the major economic drivers in the state. The state provides about 40% of the nation’s coal through the top producing mines located in the Powder River Basin. The extracted coal is considered clean and contributes to the betterment of the environment.

One of the vital engines of the state’s economy is tourism. The state is home to beautiful scenery and the country’s first national monument, Devils Tower, along with 25 historic landmarks and national parks, known worldwide. Small businesses like car rental, taxi services, hotels, restaurants greatly benefit from tourism.

Tax Climate

Wyoming is one of the states that does not levy either a personal income tax nor a corporate income or gross receipts tax. The state also does not have an inheritance tax. However, there is a county lodging tax that varies from 2% to 5%. Wyoming also generates revenue from property tax assessed.

Sales Tax Structure

The state sales tax rate is 4%, which ranks 40th in the nation. In addition to this state rate, local taxes may also be charged, which can bring the total to 6%.

Wyoming has enacted an economic nexus law which requires sellers to register, collect, and remit sales tax. This legislation began on February 1, 2019 and applies to any remote seller, if in the current or immediately preceding calendar year, it has either 200 separate transactions or $100,000 in gross sales in the state.

With the enforcement of marketplace facilitator law on July 1, 2019, a remote facilitator is now required to collect and remit Wyoming tax on all marketplace sales if it has $100,000 in gross sales in the state or 200 individual transactions for delivery into the state during the current or preceding calendar year.

Wyoming is moderate in its approach to the taxation of technology products for sales tax purposes. Digital products are taxable in Wyoming. The state imposes sales and use tax on the sale, lease, use, storage or consumption of specified digital products only if the purchaser has permanent use of the products. These “specified digital products” include digital audio-visual, digital audio works and digital books. However, the state has not addressed any tax treatment for smartphones apps. Prewritten computer software that is electronically downloaded is taxable and custom computer software that is electronically downloaded is nontaxable. Lastly, all cloud computing is nontaxable. How products are produced, sold and delivered is critical to determining their tax status.

Many states have annual sales tax holidays, during which certain items the state wants to promote the purchase of (like school supplies, emergency preparedness supplies, or energy efficient appliances) can be purchased sales tax free. Wyoming, however, does not currently have any scheduled sales tax holidays.

Life during the COVID-19 Pandemic

As things are changing fast during the COVID-19 outbreak, Wyoming is working towards bringing better resources to businesses and helping them to navigate this challenging time.

Effective April 13, 2020, The Department of Revenue will be waiving penalties and interest for severance taxes that are filed late through the month of June. Sales and use tax filings will be handled on a case by case basis. Severance taxes are imposed on the extraction of non-renewable natural resources (i.e., crude oil, natural gas, coal) that are intended for consumption in other states. The Small Business Administration (SBA) is also working to ensure that every qualified small business in the state of Wyoming is covered with the Paycheck Protection Program (PPP) to bear the loss of business due to COVID-19 Pandemic.

Random Facts

-Wyoming became the first state in the country to grant women the right to vote in 1869.
-Wyoming was also the first state to have a county public library.
-Bison are the official state mammal of Wyoming.
-Wyoming is considered as a very sparely populated state after Alaska. There is an average of 5 people for every square mile.
-Since the mid-1800s, Wyoming has been an important destination for fossil hunters. Dinosaur bones were so plentiful in one area of southeast Wyoming that in the late 19th century, an enterprising local used bone fragments to construct a cabin (it still stands today).
-In 1872, Yellowstone was designated as the first National Park in the country. It is also the first in the world.
-Devils Tower was designated as the first National Monument in 1906.
-In Cheyenne, people are not allowed to take showers on Wednesdays.
-Bigfoot has been allegedly sighted several times in Wyoming in the Wind River Mountains and Yellowstone.
-In Wyoming, it is illegal to wear a hat that blocks people’s view in a public theatre or any amusement place.

Have a question on multistate tax structures? Contact Monika Miles.