Revenue Committee hears mixed views, tables proposed electricity‑generation tax after split testimony
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Summary
Legislative Service Office presented a draft electricity‑generation tax (LSO 189) that would tax in‑state electricity generation while providing credits for taxes already paid; the committee heard fiscal estimates and broad stakeholder comment and voted to table the draft for interim study.
The Legislative Service Office briefed the Revenue Committee on a draft electricity‑generation tax (26LSO189) that would impose a tax on the privilege of producing electricity in Wyoming, paired with credits for excise, severance, sales and ad valorem taxes paid in the year of production and an exemption from sales tax on electricity sales.
Matt Sackett (LSO fiscal analyst) outlined LSO's modeling based on Energy Information Administration (EIA) data and said a narrow net revenue could result after credits and distribution changes; he recommended updated data if the committee wanted revised estimates. "Based on final 2023 EIA data...the overall electric generation account was about $19,000,000," he said in describing one scenario but noted the net fiscal result depends on the rate, credit language and whether sales tax exemptions are granted.
Stakeholders were sharply divided. The Wyoming Taxpayers Association and the Wyoming Industrial Energy Consumers opposed the draft, warning of complexity, administrative burdens and potential cost shifts to Wyoming businesses and households. Hank Hoverson (Wyoming Taxpayers Association) said the proposal “does not meet cornerstones of taxation” and flagged definitional and administrative gaps. Industry groups and developers cautioned that a new generation tax could reduce the state's competitiveness for generation projects and transmission investment.
Supporters framed the concept as a way to capture tax revenues from exported generation while offsetting what Wyoming producers already pay. Sen. Case described ways to calibrate sales and generation rates so Wyoming consumers are not burdened while shifting revenue from out‑of‑state electricity buyers back to the state.
After extensive testimony, a motion to table the draft to interim study carried on a roll call, and the committee directed LSO to return with refined, industry‑segmented fiscal estimates, alternative rate scenarios and clarifications on reporting and credit documentation before any further action.
Because of the complexity and competing stakeholder positions, the committee agreed the subject requires more technical work before it considers formal legislation.
