Wyoming State Income Tax Proposed In Legislature
A bill that would levy a personal and corporate income tax of four percent on Wyoming residents and companies making over $200,000 a year has been proposed in the Wyoming Legislature.
House Bill 233, filed by Rep. Cathy Connolly (D-Laramie), is a separate proposal from House Bill 220, which would tax large companies doing business in the state. Connolly's measure instead would tax personal and corporate incomes and would take effect on July 1, 2019, if it becomes law. However, the first taxes would not actually be collected until 2021, on income earned in 2020.
The bill contains no exemptions from the tax for those making over $200,000 annually, after applicable tax credits, and provides for taxpayer audits by the Wyoming Department of Revenue.
The credits would include the following, according to the bill
"Each taxpayer is entitled to a credit against tax liability under this chapter for all sales, use and ad valorem taxes paid in the taxable year by the same taxpayer to any taxing authority in Wyoming.'"
The tax would be expected to raise a total of about $200 million annually between the corporate and personal income taxes, with each raising about $100 million. The revenues generated would go to the School Foundation Program, according to the bill.
Connolly, who is the Wyoming House Minority Floor Leader, said in a news conference prior to the legislative session that she thought it was time for a discussion of both a personal and corporate income tax in the Cowboy State.
Wyoming is currently one of seven states that do not have a state income tax. Connolly's bill was filed on Wednesday, Jan. 23.