Panel weighs codifying 8% sales-tax direct distribution to local governments

A state interim appropriations committee on Monday heard testimony on proposals to alter how Wyoming’s statewide sales-and-use tax is split between the general fund and local governments, including a proposal to codify roughly 8% of collections as an ongoing direct distribution to cities and counties.

The change discussed would move about $77 million a year from the general fund into a direct-distribution mechanism now approved by the Legislature every two years, proponents said. Committee members and agency staff said no bill was drafted or adopted at the meeting; the session was for testimony and fact-finding only.

Committee members said the item matters because the direct distribution affects local governments’ ability to plan and deliver basic services. "Local governments through the direct distribution receive 146,250,000.00 per biennium or more specifically, 73,125,000.000 per year," said Don Richards, Legislative Service Office budget fiscal administrator, describing current annual flows to local governments.

Why it matters

Proponents from the Wyoming Association of Municipalities and the Wyoming County Commissioners Association told the committee the proposal would give local governments more predictable revenue. Ashley Harpstreet, executive director of the Wyoming Association of Municipalities, said, "Wyoming municipalities are very dependent on sales and use tax revenues." Jeremiah Reiman, representing the Wyoming County Commissioners Association, told…