2025
STATE OF WYOMING
25LSO-05611HB0300
HOUSE BILL NO. HB0300
Electrical generation tax.
Sponsored by: Representative(s) Wylie, Byron, Davis,
Harshman, Jarvis, Larsen, L, Larson, JT,
Locke and Nicholas and Senator(s) Case
A BILL
for
1 AN ACT relating to taxation and revenue; imposing an excise
2 tax on the production of electricity; providing credits for
3 other taxes paid; providing for administration and
4 rulemaking authority; providing penalties; providing for
5 distribution of the tax; creating an account; providing an
6 exemption for sales tax on electricity sales; making
7 conforming amendments; and providing for effective dates.
8
9
10
11W.S. 39-24-101 through 39-24-111 are
12 created to read:
13
14 CHAPTER 24
15 TAX ON ELECTRICAL GENERATION 2025STATE OF WYOMING25LSO-05612HB0300
1
2
3
4 There are no specific applicable provisions for definitions
5 for this chapter.
6
7
8
9 The department of revenue shall enforce this chapter. The
10 department shall promulgate rules necessary for the
11 implementation and enforcement of this chapter.
12
13
14
15 There is levied an excise tax upon the privilege of
16 producing and selling electricity in this state. The tax
17 shall be imposed upon the sale of any electricity produced
18 in Wyoming on or after January 1, 2026, and shall be paid
19 by the person producing the electricity. The tax shall be
20 imposed on the annual gross energy earnings from energy
21 produced in Wyoming.
22
23 2025STATE OF WYOMING25LSO-05613HB0300
1
2 The tax rate shall be three and one-half percent (3.5%) of
3 the annual gross energy earnings from energy produced in
4 this state.
5
6
7
8 (a) No tax shall be imposed upon electricity that is
9 produced from any generating facility owned or operated by
10 the federal government or the state of Wyoming.
11
12 (b) No tax shall be imposed upon electricity that is
13 produced for the personal consumption of the producer,
14 including any excess production of electricity that does
15 not exceed five hundred (500) kilowatt hours in any
16 twenty-four (24) hour period.
17
18
19
20 There are no specific applicable provisions for licenses
21 and permits for this chapter.
22
23 2025STATE OF WYOMING25LSO-05614HB0300
1
2 (a) Returns and reports. Any person producing
3 electricity for sale within this state that is subject to
4 the tax imposed by this chapter shall report:
5
6 (i) The annual gross energy earnings from energy
7 produced in Wyoming on or before February 1 of the year
8 immediately following the year in which the electricity was
9 produced;
10
11 (ii) Sales of electricity in Wyoming that are or
12 could be subject to sales or use tax under W.S. 39-15-103
13 or 39-16-103, regardless of any exemption that may apply to
14 sales of electricity. Sales of electricity shall be
15 reported by jurisdiction as required by rule of the
16 department.
17
18 (b) Payment. Any person owing a tax under this
19 chapter shall pay the tax one (1) time each year on or
20 before February 1 of the year immediately following the
21 year in which the electricity was produced. The tax shall
22 be collected by the department of revenue.
23 2025STATE OF WYOMING25LSO-05615HB03001 (c) Timelines. There are no specific applicable
2 provisions for timelines for this chapter.
3
4
5
6 (a) Audits. There are no specific applicable
7 provisions for audits for this chapter.
8
9 (b) Interest. Interest at an annual rate equal to
10 the average prime interest as determined by the state
11 treasurer during the preceding fiscal year, plus four
12 percent (4%), shall be added to all delinquent taxes under
13 this chapter. To determine the average prime interest rate,
14 the state treasurer shall average the prime interest rate
15 for at least seventy-five percent (75%) of the thirty (30)
16 largest banks in the United States. The interest rate on
17 delinquent taxes shall be adjusted on January 1 of each
18 year following the year in which the taxes first became
19 delinquent. In no instance shall the delinquent interest
20 rate be less than twelve percent (12%) nor greater than
21 eighteen percent (18%).
22
23 (c) Penalties. The following shall apply: 2025STATE OF WYOMING25LSO-05616HB03001
2 (i) If any person fails to make or file a return
3 and remit the tax as required by W.S. 39-24-107, the
4 department shall impose a penalty of five percent (5%) of
5 the taxes due for each thirty (30) day period, or a
6 fraction thereof, elapsing between the due date of the
7 return and the date filed, unless the person for good cause
8 obtains from the department an extension of time for filing
9 before the due date for filing. In the event of an
10 extension, the person shall pay the interest due on
11 delinquent payments set forth in subsection (b) of this
12 section. In no event shall the total penalty imposed by
13 this paragraph exceed twenty-five percent (25%) of the tax
14 due. The department, for good cause, may waive a penalty
15 imposed for failure to file a return for any one (1)
16 calendar year, provided that:
17
18 (A) The return was filed within five (5)
19 business days following the due date, including a due date
20 determined by an approved extension period; and
21 2025STATE OF WYOMING25LSO-05617HB03001 (B) The taxpayer requests the waiver in
2 writing within fifteen (15) days after the return was
3 filed, setting forth the reasons for the late filing.
4
5 (ii) If any part of a tax deficiency is due to
6 the negligence or intentional disregard of this chapter or
7 department rules there shall be added a penalty of five
8 percent (5%) of the amount of the deficiency plus interest
9 as provided by subsection (b) of this section. The taxes,
10 penalty and interest shall be paid by the taxpayer within
11 ten (10) days after receipt of notice and demand by the
12 department;
13
14 (iii) Taxes, interest, penalties and costs shall
15 be collectible by the department by appropriate judicial
16 proceedings;
17
18 (iv) The department may credit or waive
19 penalties imposed by this subsection as part of a
20 settlement or for any other good cause.
21
22 (d) Liens. Any delinquent tax is a lien upon the
23 property of any person owing tax under this chapter from 2025STATE OF WYOMING25LSO-05618HB0300
1 and after the time the tax is due until the tax is paid.
2 The tax lien shall have preference over all liens except
3 any valid mortgage or other liens of record filed or
4 recorded before the date the tax became due.
5
6 (e) Tax sales. There are no specific applicable
7 provisions for tax sales for this chapter.
8
9
10
11 (a) Credits. The following shall apply:
12
13 (i) Each taxpayer is entitled to a credit
14 against tax liability under this chapter for all excise,
15 sales, use, severance and ad valorem taxes paid in the tax
16 year by the same taxpayer to any taxing authority in
17 Wyoming. If the taxpayer produces electricity in this state
18 used in the production process of any mineral that is taxed
19 under the provisions of chapter 14 of this title, the
20 person producing the electricity shall be entitled to a
21 credit equal to the amount of the severance tax paid on the
22 minerals consumed in the production of the electricity;
23 2025STATE OF WYOMING25LSO-05619HB03001 (ii) To qualify for a credit under this
2 subsection for severance taxes paid by another person, the
3 person producing the electricity shall provide
4 documentation that adequately demonstrates, as determined
5 by department rules, the amount of taxes paid on the
6 minerals that were consumed in the production of the
7 electricity. The taxpayer shall report the credit to the
8 department on the return filed under W.S. 39-24-107;
9
10 (iii) In no case shall any refund be due or
11 payable if the amount of any credit claimed under this
12 section exceeds the amount of tax due under this chapter.
13
14
15
16 There are no specific applicable provisions for a statute
17 of limitations for this chapter.
18
19
20
21 The electrical generation account is created. The proceeds
22 from the tax imposed by this chapter shall be deposited in
23 the account. All funds within the account shall be invested 2025STATE OF WYOMING25LSO-056110HB0300
1 by the state treasurer in accordance with law and all
2 investment earnings from the account shall be credited to
3 the account. It is the intent of the legislature that a
4 portion of the funds in the account be used to provide
5 payments to local governments for sales taxes that would
6 have been collected if sales of electricity reported under
7 W.S. 39-24-107(a)(ii) were subject to sales tax. Funds
8 within the account shall only be expended by legislative
9 appropriation.
10
11
12 39-15-103(a)(i)(E) and 39-15-105(a)(v) by creating a new
13 subparagraph (E) are amended to read:
14
15
16
17 (a) As used in this act unless otherwise specifically
18 provided:
19
20 (xviii) "This act" means W.S. 39-11-101 through
2139-24-111.
22
23 2025STATE OF WYOMING25LSO-056111HB0300
1
2 (a) Taxable event. The following shall apply:
3
4 (i) Except as provided by W.S. 39-15-105, there
5 is levied an excise tax upon:
6
7 (E) Except to the extent exempt under W.S.
8he sales price paid to public
9 utilities as defined in W.S. 37-1-101 through 37-3-114 and
10 to persons furnishing gas, electricity or heat for
11 domestic, industrial or commercial consumption;
12
13
14
15 (a) The following sales or leases are exempt from the
16 excise tax imposed by this article:
17
18 (v) For the purpose of exempting sales of
19 services and tangible personal property which are
20 alternatively taxed, the following are exempt:
21
22
23 2025STATE OF WYOMING25LSO-056112HB0300
1
2
3 rules necessary to implement this act not later than July
4 1, 2025.
5
6
7
8 (a) Except as provided in subsection (b) of this
9 section, this act is effective immediately upon completion
10 of all acts necessary for a bill to become law as provided
11 by Article 4, Section 8 of the Wyoming Constitution.
12
13 (b) Section 1 of this act is effective July 1, 2025.
14
15 (END)