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2023 GENERAL SESSION WEEK 1

Fiscal and tax topics of interest

WEEKLY RECAP

The sixty-seventh legislature convened on Tuesday, January 10th for the 40-day General Session and elected new leadership.

House of Representatives

Speaker - Representative Albert Sommers

Majority Floor Leader - Representative Chip Neiman

Speaker Pro Tempore - Representative Clark Stith

Majority Whip - Representative Cyrus Western

Minority Floor Leader - Representative Mike Yin

Minority Whip - Representative Karlee Provenza

Minority Caucus Chairman - Representative Trey Sherwood

Senate

President - Senator Ogden Driskill

Majority Floor Leader - Senator Larry Hicks

Vice President - Senator Dave Kinskey

Minority Floor Leader - Senator Chris Rothfuss

Minority Whip - Senator Mike Gierau

On Wednesday, January 11, Governor Mark Gordon welcomed both bodies to the session with his 2023 State of the State. His focus on Wyoming's people, natural resources, budget, economy and children was the center of the message and is carried through his FY 2023 - 2024 Supplemental Budget. The Governor's 2023 State of the State can be found here.

This week the FY 2023 - 2024 Supplemental Budget went through mark up in Appropriations and will hopefully be heard on both floors sometime next week. On Monday, January 16, the Senate will already be considering a third reading consent list and second readings on the floor schedule. Bills we are watching on second reading include SF 0063 Tax administration revisions and SF 0042 Taxation of cigars.

Revenue generating bills start in the House, but there are none to report at this time. The House lagged as they are taking the time to walk through process (as almost half the House consists of freshmen). House committee bills will start making their way to the floor schedule next week, but are few in numbers as many committees are taking the time to provide education and background information before and during committee meetings.

As of today, there are only 139 House bills and 124 Senate files found on the LSO website for the 2023 General Session Bills. Additional consideration for tax reform including property tax relief, removal of personal property tax and sales tax revisions (which includes the removal of all sales tax exemptions) will be front in center for debate over the next few weeks. Bills will have until January 26 to be introduced before they start to meet deadlines, find the full session schedule here.

Governor Mark Gordon addresses both chambers with his State of the State on Wednesday, January 11.

CONSENSUS REVENUE ESTIMATING GROUP - JANUARY 2023 REVISION

In the last 365 days, things have drastically changed as the state of Wyoming is looking at a surplus of almost $2 billion according to the January Consensus Revenue Estimating Group (CREG) forecast.

The CREG released the January 2023 Wyoming State Government Revenue Forecast for Fiscal Year (FY) 2023 - 2028 on Thursday, January 12, 2023. Co-Chair Don Richards reported this revised forecast was limited to FY 2023 through FY 2024 but included four major revisions to the October Report: 1) modified natural gas prices with an increase for calendar year 2022 of $00.40 to $7.40/Mcf and a decrease of $00.15 to $5.75/Mcf for calendar year 2023; 2) a decrease of $99.9 million investment income to the Permanent Wyoming Mineral Trust Fund (PWMTF); 3) a decrease of investment income of $67.8 million to the Common School Permanent Land Fund (CSPLF); and 4) an increase to the state royalties by $15 million because of known receipts. Per the report, “all other revenue streams and assumptions remain unchanged”. All major changes can be found on page 7 of the Fiscal Profile. Find the full report here. Note the CREG does not include capital gains in the forecast.

COMMITTEE UPDATES

With a large freshman class (27 new Representatives and five new Senators), many committees are taking the time before and after committee hearings to provide additional education. Below is a recap of the few bills we monitored this week with fiscal impacts:

House Revenue Committee - The House Revenue Committee met on Thursday, January 12.

· HB 0065 988 suicide prevention. AN ACT relating to suicide prevention; establishing the 988 system for suicide prevention and mental health crises; providing requirements for the 988 system; establishing duties of the department of health; providing rulemaking authority; providing for an advisory board; establishing the 988 trust fund and a related reserve account; providing for allocation of funds within and between the accounts; specifying immunity for telecommunications providers; specifying confidentiality of information; providing for implementation of the act; providing appropriations; and providing for an effective date. This unfunded federal mandate establishes a trust fund for the operations of the 988 suicide prevention phone line. PASSED as amended.

Senate Revenue Committee - The Senate Revenue Committee met on Thursday, January 12.

· SF 0063 Tax administration revisions. AN ACT relating to taxation and revenue; clarifying the administration of certain taxes by the department of revenue; providing that the department of revenue may credit or waive interest related to mine product taxes; providing that any assessment or levy of sales and use taxes resulting from an audit or review shall be issued within a specified time of the audit or review; and providing for an effective date. The committee amended to apply only to severance tax. PASSED as amended.

· SF 0042 Taxation of cigars. AN ACT relating to tobacco taxes; specifying a maximum tax on cigars; providing that the tax on a premium cigar is due following the sale of the cigar; providing a definition; and providing for an effective date. Moves the taxation to a unit basis and caps the tax from $00.30 on ALL cigars. PASSED as amended.

House Corporations, Elections & Political Subdivisions - The House Corporations Committee met Friday, January 13th.

· HB 0003 State assessment of independent power producers. AN ACT relating to ad valorem taxation; clarifying that the state is responsible for the valuation and assessment of independent power producer property; requiring the release of information to the county assessor; providing for confidentiality of the valuation and assessment of independent power producer property; requiring an agreement for disclosure; and providing for an effective date. WTA testified in SUPPORT of this bill as it provides equitable assessment amongst similarity situated taxpayers. The bill was amended with an effective date of January 1, 2024. PASSED as amended.

WTA will keep you informed as things will change rapidly in the future. Stay tuned to the weekly ACTION ALERTS for the most up to date action taken by the Sixty-Seventh Legislature. Find all new positions by WTA after each Legislative Policy meeting via https://wyotax.org/advocacy/. If you would like more information on the items discussed, please contact ashley@wyotax.org.

AROUND THE CAPITOL

L-R Jonathan Downing, Ashley Harpstreith, Mike Moser and Chris Brown have first day smiles.

The new Speaker of the House, Representative Albert Sommers addresses the House.

L-R Newly elected Senate President Ogden Driskill with WTA Executive Director Ashley Harpstreith.

WTA Executive Director testifies in House Corporations for support of HB 0003 State assessment of independent power producers.

2023 GENERAL SESSION

Schedule & Resources

Here are links to materials and resources to keep you informed and prepared for the 2023 General Session.

SESSION SCHEDULE

SPECIAL EVENTS

2023 GENERAL SESSION BILLS

COMMITEE SPONSORED BILLS

Click here or images below to review state budget information, requests and the Governor's letters for the 2022 Budget Session.

WTA LEGISLATIVE POLICY

The Wyoming Taxpayers Association takes formal positions on key taxation and spending policies before the Wyoming Legislature and Executive Branch. In order to have a consistent and transparent process, WTA has established guidelines for the Legislative Policy Process. Final recommendations are presented to the WTA Board of Directors who makes final decision. Members are welcome to submit policy positions through a Cornerstones Analysis, Exemption Justification Analysis, or Fee Position Analysis to WTA Executive Director Ashley Harpstreith. Please contact her at ashley@wyotax.org or 307-635-8761 if you have additional questions.

SUPPORT

HB 0003 State assessment of independent power producers.

OPPOSE

HB 0058 Cigarette tax.

SF 0070 Back to school tax holiday.

WTA positions and legislative action are updated following each WTA Legislative Policy Meeting. View WTA's weekly Legislative Tracker here.

JOIN US!

The WTA Legislative Policy Meeting is held every Monday in person at the WTA office during the 2023 General Session. We send out to membership the WTA Legislative Tracker on the Friday before and any position requests as we receive them.

DATE: Every Monday during session (January 9 - March 6)

TIME: 2:00 pm - 3:00 pm

LOCATION: 200 East 8th Avenue, 2nd Floor Conference Room, Cheyenne, WY

Monday, January 16, REGISTER HERE

Monday, January 23, REGISTER HERE

Monday, January 30, REGISTER HERE