011-2 Wyo. Code R. §§ 2-7 - Non-Taxable and Exempt Sales Transactions
(a) General.
Non-taxable transactions, including sales made for resale, shall be shown
separately from taxable charges on sales invoices. The entire invoice amount
shall be subject to the sales/use tax if the nontaxable or exempt charges are
not separately shown and distinguishable from taxable charges.
(b) Certificates of Exemption.
(i) Vendors shall obtain completed exemption
certificates for all sales transactions, other than those qualifying under
Section 6 of these rules, where sales tax is not collected from the purchaser
at the time of sale. Purchasers shall file a single exemption certificate with
each selling vendor for exempt purchases made. The certificates shall be in a
format as prescribed by the Streamlined Sales and Use Tax Agreement and shall
be retained in the seller's records. The seller shall obtain identifying
information of the purchaser and the reason for claiming a tax exemption at the
time of the purchase. A purchaser is not required to provide a signature to
claim an exemption from tax unless the paper exemption certificate is used. The
seller shall use the standard format for claiming an exemption electronically
when that format is adopted by the Streamlined Sales Tax Project Governing
Board.
(ii) Vendors shall be
relieved of the tax otherwise due if the seller obtains a fully completed
exemption certificate or captures the relevant data elements listed in
Subsection (i) above within ninety (90) days of the date of the sale.
(iii) Should the vendor not obtain an
exemption certificate or the required relevant information, the vendor shall be
allowed 120 days subsequent to a request for substantiation:
(A) To obtain a fully completed exemption
certificate from the purchaser taken in good faith which means that the vendor
obtains a certificate that claims an exemption that was statutorily available
on the date of the transaction in the jurisdiction where the transaction is
sourced, could be applicable to the item being purchased, and is reasonable for
the purchaser's type of business; or
(B) To obtain other information establishing
that the transaction was not subject to the tax.
(c) Religious and Charitable
Organizations. Organizations operated for religious or charitable purposes
shall be exempt from sales and use tax on their purchases. Organizations
verifying its Internal Revenue Code Section 501(c)(3) status with the
Department shall be issued an exemption approval letter on this documentation
alone. All other organizations may furnish the documents set forth in the
following Subsection. The organizations may apply to the Department in writing
for exemption approval and registration.
(i)
The Department shall consider the following documentation to determine whether
the organization is engaged in charitable or religious activities:
(A) Articles of incorporation;
(B) Organizational charter or
constitution;
(C) Mission
statement;
(D) Budget;
(E) Income and expense statements;
and
(F) Evidence of federal tax
exempt status.
(ii) To
be considered organized and operated for charitable or religious activities, an
organization shall establish that:
(A) The
organization is organized and operated for a purpose designed to benefit an
indefinite number of persons in an educational, moral, physical, or social
manner; and
(B) The organization's
assets are completely and permanently pledged to that same charitable or
religious purpose; and
(C) No part
of the net earnings of the organization shall be distributed to the
organization's members, trustees, officers, or other similarly situated persons
as salary or profit earned from organizational activities; and
(D) The organization is a non-profit
organization, and has expended at least sixty five percent (65%) of its annual
income for the prior three (3) years on programs, other organizations,
foundations, or similar groups and/or activities directly related to its
charitable purposes.
(iii) Organizations shall notify the
Department if the conditions allowing exempt status change.
(A) Organizations which have existed for less
than three (3) years and which have insufficient history to comply with section
9(c)(ii)(D), as determined by the Department, may be issued exemption approval
for one (1) year.
(iv)
Purchases made by religious or charitable organizations in or for their regular
religious or charitable functions and activities shall be exempt from the sales
and use tax. Purchases made by members or employees of religious or charitable
organizations shall be subject to the sales or use tax if not paid directly by
the organization.
(v) For the
purpose of this chapter, construction contractors shall be considered
self-employed and not employees of religious or charitable organizations.
Contractors shall be subject to the sales and use tax on all equipment,
materials, fixtures, and supplies purchased by the contractor to perform under
the contract.
(d)
Employees of Exempt Agencies. Sales to employees of exempt agencies or
organizations shall be taxable, even when the employee is reimbursed by the
exempt employer. Payment by the employee shall establish that the employee is
acting in his own behalf.
(e)
Interstate Commerce. Purchasers and lessees of vehicles used in interstate
commerce shall hold valid U.S. Department of Transportation (USDOT) permit or
authority as follows to qualify for exemption:
(i) Common or contract for hire interstate
carriers shall document their USDOT number, motor carrier's permit, and
insurance requirements to qualify for the interstate commerce exemption in
W.S.
39-15-105(a)(ii)(B).
(ii) Private carriers not subject to federal
regulation shall be subject to the sales or use tax on the purchase or lease of
vehicles.
(f)
Containers. Containers and packing, when sold to persons who resell the
containers together with their contents, shall be exempt from the sales and use
tax. Reusable shipping materials are not exempt and taxable to the
business.
(g) Disposable and
single-use items purchased by restaurants, drive-ins, lunch counters, motels,
hotels, and similar retailers for their customer's consumption shall be exempt
from the sales and use tax. The purchase is considered a wholesale for resale
purchase and ultimately taxed when incorporated into the sales price to the
customer. All purchases of reusable products used or directly consumed by
vendors shall be subject to sales and use tax at the time of
purchase.
(h) Manufacturing,
Processing, Agriculture Fuel and Power Purchases. Exempt purchases of power or
fuel shall be separately accounted for by separate metering, storage, or
engineered calculation as required by the Department. Any nontaxable items
shall be distinguishable from taxable purchases of the same.
(i) School Fundraising Activities. School
fundraising activities for public schools shall be sales tax exempt. The
fundraising activities shall be recognized by the school district receiving the
funds as an appropriate activity. Sales made by private vendors on school
grounds, not associated with fundraising activity for the school, are
considered taxable sales.
Notes
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