Wyoming’s manufacturing industry will see continued tax savings that help promote economic diversity with the extension of the manufacturing machinery sales and use tax exemption. Signed into law by Governor Matt Mead on March 9, the law extends the sales tax exemption, originally scheduled to expire on December 31, 2017, to December 31, 2027.
Given Wyoming’s economic forecast, there is pressure to supplement the revenue stream by increasing taxes and cutting spending. At the same time, there is an urgent need to diversify the economy beyond its historic reliance on oil and gas. Under the exemption, purchases of capital equipment used in the manufacturing processes are not subjected to sales and use taxes – that generates considerable savings to fund upgrades, expansions, or facilitate the startup of new operations. Over the last 13 years, the exemption has helped Wyoming manufacturing to become one of the top five industry contributors to Wyoming’s GDP, along with mining, oil and gas, and tourism. The exemption also allows Wyoming manufacturers to remain competitive with companies in other states, of which 42 have no sales tax at all or a similar exemption.
The Alliance of Wyoming Manufacturers (AWM) effectively championed the bill, aligning industry leaders and resources together, and sharing a positive voice for change in the state’s manufacturing industry. Working together on legislative changes, like the sales tax exemption, manufacturers can ensure the future of an industry that is critical to Wyoming’s economy, providing good paying jobs and attracting significant private sector investment.
Holland & Hart’s Wyoming Director of Government Affairs Bob Jensen is a respected leader in the Wyoming business community and was instrumental in founding the AWM. If you are interested in learning more about AWM’s mission and goals please visit their website or contact: AWM at Info@wyomanufacturing.com.