The large business tax is back up for discussion.
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On July 8 and 9, the Joint Revenue Committee
met in Cheyenne. Other committee
meetings were scheduled in Cheyenne at this
time as well, in order to facilitate attendance
at the dedication of the newly restored capitol
building, which took place on July 10. This
was the fun part! The reopening of the Capitol
Building was inspiring. I didn’t get my old
desk back; they put the only Independent in
the corner – at least I am not in the hall!
On Monday, July 8, the revenue discussion
focused on wind energy and wind tax. A very
good report was given to us by experts in the
field in which they explain the competitive
nature of financing and taxing wind energy.
New Mexico is leading the way by having
a creative, community-based funding model
that allows them time to develop projects
and the ability to charge less for their product.
South of Rawlins, a wind project is being
developed with solid infrastructure with sensitivity
to wildlife. The Revenue Committee
is looking into a way to competitively market
and generate revenue for our quality wind.
Because of rapidly-changing carbon-based
markets, upon which 75 percent of Wyoming’s
revenue has been earned, the committee
has been looking at funding models
from other states, which are similar to Wyoming
– rural in nature, sparsely population,
agriculturally based – such as South Dakota.
The committee would like to investigate how
these states bring in revenue in order to develop
ideas that would work in Wyoming as
well.
On Tuesday, July 9, we got an extensive
report from the Wyoming Department of
Transportation that an increase of 3 cents a
gallon fuel tax would only provide enough
funds to maintain our current highways without
any new construction. The majority of
this tax income would be paid by out-of-state
drivers (52 percent) and the average Wyoming
driver would contribute less than $40
a year. For every dollar NOT spent on timely
maintenance of our highways, it will cost the
state four- to eight-times the cost in complete
reconstruction later. The importance to our
economy of reasonably maintained highways
made it surprising to me that this 3-cent tax
barely passed committee.
Jerry Obermueller, Representative from
Casper and a successful and experienced
CPA, presented information on what was formally
HB 220, which failed in the Senate last
session. This bill is a corporate tax for large
corporations. Wyoming customers already
pay because companies have built this cost
into their nationwide prices in other states.
This tax is already coming out of Wyoming
customers’ wallets, but instead of being
returned to Wyoming, it is simply being returned
to the corporation – the vast majority
of which exist outside of our state. This bill
was revised since last session, and it was decided
to continue on with this version until
the next revenue meeting. This bill has the
promise of adding substantial revenue to our
budget and to support future needs, including
education.
The harsh reality of Wyoming’s economy
was exemplified by two coal mines declaring
bankruptcy the day before we met. This decline
is coming faster than predicted and is
based entirely upon world and national capital
markets. Quite simply, the world is turning
away from coal and embracing other energy
sources and Wyoming must face this reality
and develop diversified revenue streams for
our future income needs. This isn’t just about
turning away from coal; it is about developing
businesses to take coal’s place for the men
and women who have depended upon coal for
their livelihood.
The next Joint Revenue meeting is scheduled
for Sept. 18-19 in Pinedale, and Labor,
Health and Social Services meets the following
week in Evanston.