Sales tax on services-repeal.25LSO-0462, 1.0
HB0126
FISCAL NOTE
FY 2026FY 2027FY 2028NON-ADMINISTRATIVE IMPACTAnticipated Revenue (decrease)GENERAL FUND($26,200,000)($27,000,000)($27,600,000)LOCAL SOURCES FUND($25,200,000)($25,900,000)($26,600,000)
Source of revenue (decrease):
This bill repeals the sales and use tax on services performed for the repair,
alteration or improvement of tangible personal property.
Assumptions:
The above estimates are based on the FY 2024 sales and use taxes collected on
services of $49,494,290, as reported in the Department of Revenue’s Total
Distribution by Major Business Class and by County Report (NAICS code 81). The FY
2024 total sales and use tax is increased by the projected growth rates in sales
and use taxes to the General Fund, reflected in Table 1 of the October 2024
Consensus Revenue Estimating Group (CREG) forecast.
The weighted average Wyoming sales tax rate is assumed to be 5.45 percent, based
on fiscal year 2024 sales and use tax collections. Approximately 51 percent of
the average sales tax rate goes to the General Fund, and the remaining 49 percent
goes to cities, towns, and counties.
This bill is effective July 1, 2025, impacting sales and use taxes collected
beginning in FY 2026.
Prepared by: Dean Temte, LSO Phone: 777-7881
(Information provided by Bret Fanning, Department of Revenue, 777-5220)