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LSO briefs revenue committee on Wyoming tax structure, FY24 collections and 2025 law changes
Summary
Legislative Service Office analysts summarized Wyoming’s tax code structure, FY2024 collections by tax type, assessment rates, distributions, and recent 2025 legislation that changes coal severance rates and distributions of vehicle sales taxes and reserve accounts.
The Legislative Service Office presented an overview of Wyoming’s taxation structure, FY2024 collections by source and recent 2025 session laws that alter severance and sales tax distributions.
Josh Anderson of the LSO told the committee that "most of the tax provisions in statute are in title 39" and explained the typical chapter layout (definitions, administration, imposition, rates, exemptions, compliance and distribution). He noted exceptions and highlighted constitutional constraints in Article 15, including the statewide 4-mill limit the state does not currently impose and the uniformity provisions affected by Amendment A passed in 2024.
Dalton Quilty, associate fiscal analyst, walked the committee through FY2024 collections and tax rates. He summarized the state's major revenue sources: property tax collected about $2,057,000,000 in FY2024 (with mining comprising roughly half of those collections), sales tax collections were about $1,199,000,000 in FY2024 and use tax $123,700,000; severance taxes totaled $748,300,000; fuel taxes collected about $169,300,000; excise taxes on select items totaled $39,600,000; and the wind generation tax produced about $4,400,000 in FY2024. Quilty also explained assessment rates cited in the constitution and practice: mining 100%, industrial 11.5%, and other property 9.5%.
The LSO reviewed recent 2025 session laws the committee should note: 2025 Session Laws, Chapter 31 (former House Bill 75) reduced the surface coal severance rate from 6.5% to 6% effective July 1, 2025; Chapter 92 (former House Bill 33) directs motor vehicle and trailer sales and use tax receipts beginning in FY2026 to the Highway Fund (estimated about $69,200,000 in FY2026); and Chapter 63 (former Senate File 168) repealed the budget reserve account, changing how severance distributions above statutory caps will flow to the general fund beginning in FY2027.
Anderson and Quilty described severance tax distribution formulas: 1.5% constitutionally directed to the Permanent Wyoming Mineral Trust Fund (with a statutory 1% also providing amounts to the leaking underground storage tank program and splits to the permanent land fund and common school account), and additional statutory caps and percentages allocating money among the general fund, water accounts, highways, counties and local capital construction funds. They showed updated flow charts to reflect the 2025 law changes.
Committeemembers asked for follow-up details the LSO agreed to supply, including historical prevalence of a 4-mill state levy, the location and magnitude of gaming and other specialized taxes, the acreage and receipts tied to the Common School Land Account, and a three-year series showing sales tax growth adjusted for inflation.
The LSO material and the presentation were offered as a resource packet and flagged for deeper analysis if the committee pursues policy changes affecting assessment classes, exemptions or distributions.
