Conference committee agrees to 15-year sunset for manufacturing sales-and-use exemption in HB11

A joint conference committee on taxation voted to amend House Bill 11 to set a 15-year sunset for a manufacturing sales-and-use tax exemption.

The committee, meeting as a joint conference group, agreed to amend the engrossed bill to change the sunset provision to December 31, 2042, a modification moved by the committee chair and seconded by Senator McKeown. The motion was approved by voice vote after members debated whether to remove the sunset entirely or retain a time-limited extension.

The bill, described to the committee as amendments to manufacturing sales-and-use exemptions, was presented with two differing positions: the House vote removed the sunset date entirely, while the Senate amendment had set a 10-year sunset. "The house position was that the sunset date was completely removed," the committee chair said in opening remarks. Representative JT Larson (House District 17), who said he carried the House amendment, told the committee the targeted statute is 39-15-105 and that other exemptions listed in that section do not have sunsets. "None of those exemptions that are listed under that specific, part of statute in the exemptions, have a sunset date. It's specifically this one that we've targeted," Representative Larson said.

Industry witnesses urged retention of a long sunset or elimination of the sunset to provide certainty for investment. Jody Levin, testifying "on behalf of the Trona industry," said the sector had requested early review because "these can be very difficult to pass" and that "anything less than 10 years is not very helpful to the industry." Travis Detai of the Mining Association said the group preferred eliminating the sunset but supported the bill's passage: "We really like the house's position of eliminating the sunset and we would be certainly appreciative of that. But again, the goal is to get this bill through because the exemption is very important to our industries." Randy McKay, president of the Wyoming Business Alliance, told the committee the change provides certainty to manufacturers deciding on equipment investments.

Senators described the Senate floor debate as strongly favoring a 10-year sunset and said they expected resistance to eliminating the sunset entirely. Senator McEwen and Senator Wright both recounted that the Senate had fought to retain a sunset and that the Department of Revenue had told the committee this exemption appeared to be "an anomaly" among sales-and-use exemptions because it had a sunset. Committee members explored compromises; the chair proposed 15 years as a middle ground that he and others said they could sell to their chambers. "If the good chairman from the Senate thinks he can sell it at 15 years, then that's assurances for industry out here," Representative Davis said in support.

Procedurally, the amendment to change the two lines in the engrossed text setting the sunset date was moved by the committee chair and seconded by Senator McKeown. The co-chair called for ayes and, after a voice vote, declared the amendment approved. The committee then adjourned.

The action does not by itself resolve differences between the full House and Senate; the committee's amendment will be part of the conference report and may require additional consideration if either chamber rejects the change.

Votes at a glance: The committee moved and approved an amendment to set the sunset date to December 31, 2042 (15 years) by voice vote; no roll-call tally was recorded in the transcript.