Committee extends manufacturing sales and use tax exemption 10 years; amendment for shorter sunset fails

CHEYENNE — The House Revenue Committee on [date not specified] voted to advance House Bill 11, a committee-sponsored measure that extends the sunset on Wyoming's manufacturing sales and use tax exemption by 10 years and adds conforming language to update the use-tax provisions that were omitted from changes enacted last year.

The bill’s sponsor in interim proceedings was the Joint Minerals, Business and Economic Development Interim Committee, and Brett Fanning, excise tax administrator at the Wyoming Department of Revenue, described the measure to the committee. "This bill...extends the sunset date for this manufacturing exemption," Fanning said, and it also contains a repealer described as "conforming language from House Bill 197 from last year." He told the committee the underlying exemption itself is unchanged and that the bill mainly extends the statutory sunset and corrects use-tax language left out of last year's update.

The bill matters because the exemption applies to a broad set of manufacturers across the state and has budget implications for state and local revenues. Fanning told lawmakers the Department of Revenue historically tried to measure the fiscal cost but had low survey response rates from manufacturers. He said the 2023 survey produced an estimated $4.3 million in annual tax foregone from respondents, while previous years' estimates have ranged as high as $18 million, but cautioned the department lacked complete data.

Industry representatives told the committee the exemption is a standard economic development tool. Rex Lewis, president of Puma Steel in Cheyenne, said the exemption is offered in most states and helps Wyoming compete for large fabrication projects. "If there's 42 states out there that offer this exemption, don't make Wyoming a rare bird that doesn't provide this exemption," Lewis said. Representatives of the trona industry and the Wyoming Mining Association described large ongoing and proposed expansion projects—some in the hundreds of millions to billions of dollars—that they said depend on stable, predictable tax treatment to plan capital investments.

Committee members asked about how the exemption is distributed geographically and how much revenue local governments forfeit. Fanning said manufacturers are located throughout Wyoming but that tax foregone tends to be concentrated in a few counties tied to larger mineral-related plants. He confirmed the exemption is already in place and that the bill extends the existing sunset rather than creating a new exemption.

Representative Seibar moved an amendment to change the sunset extension from 10 years to five years; the amendment was seconded and put to a voice vote. The motion to amend failed. The committee then voted by roll call to advance the bill. Representative Brown voted no; Representatives Campbell, Lean, Lucas, Riggins, Storer, Steibar, Wharf and Chairman Locke voted aye. The vote tally reported was 8 ayes and 1 no.

Action recorded by the committee shows the motion to move the bill was made and seconded; the amendment to shorten the sunset was defeated and the bill advanced afterward.

The committee's vote will send the bill to the next stage of the legislative process. The Department of Revenue and several industry groups told the committee they would continue to provide data and support as the bill moves forward.

Ending: The committee discussion highlighted a familiar split: state officials and industry speakers urging longer-term certainty for capital planning, while some members sought more frequent legislative review of exemptions. The bill now advances from the Revenue Committee with the 10‑year sunset extension intact.