During the last legislative session, Governor Mead signed a bill into law that will compensate in-state vendors for collecting sales and use taxes from customers on behalf of Wyoming.  The compensation is a tax credit for "expenses incurred by a vendor or direct payer for the accounting and reporting of taxes."  The credit is granted as follows:

  • 1.95% of the amount of tax due for the first $6,250 of taxes due;
  •  1% of the amount of tax due for tax due of $6,250 or more;
  •  Total credit cannot exceed $500 per month per vendor (even if the vendor has multiple businesses)

The intent of this legislation was to bring more equity for Wyoming businesses who collect taxes for the state, build economic possibilities for future business, increase compliance and allow existing business to grow and expand.

The vendor tax credit legislation is effective January 1, 2012.  WTA actively supported the passing of this legislation in the 2011 session.  The idea was first presented by Senator Enzi to the Wyoming Legislature during his tenure in state government.  

What does this mean for state vendors?  Now, vendors must pay their sales and use taxes by the fifteenth of each month.  For example, a vendor must postmark their January 2012 return and payment by the 15th of February 2012.  To be eligible for the credit, the vendor must be in good standing, which means "all returns currently due must be filed and paid in full and the account may not have any outstanding balances, " according to the Wyoming Department of Revenue.  This applies to all vendors who qualify for the direct pay program as well.

The credit will be reported on Forms 41 and 42, which can be found on the Department of Revenue website.  A new line, titled "Vendor Compensation Credit," has been added to both of these forms.  

The Department of Revenue's "Taxing Issues" December Newsletter was almost entirely devoted to information on the vendor discount.  Vendors with questions about new reporting and filing procedures or general questions about this new tax credit should contact the Wyoming Department of Revenue Excise Tax Division at (307) 777-5220.