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Wyoming Internet Sales Tax Bill Passes State Senate

Wyoming Legislature 2017
Seneca Riggins, Townsquare Media

A bill that would demand the collection of sales taxes on internet purchases made in Wyoming from out-of-state companies has now been approved by both houses of the Wyoming Legislature.

House Bill 19 was approved by the state Senate on Wednesday by a margin of 26-3. It had previously passed the state house by a vote of 44-16. The bill now goes back to the house for a concurrence vote.

But even if the bill is signed into law by Governor Matt Mead, it’s not clear whether the state will ever be able to collect the tax.

That’s because of a 1992 U.S. Supreme court ruling in a North Dakota case that bans the collection of internet sales taxes on companies that don’t have a physical presence within the state trying to collect the tax.

But South Dakota recently passed a law mandating the collection of internet sales taxes that is expected to test the 1992 court decision.

Many supporters of such laws believe the high court might reverse the 1992 decision if the issue comes up again.

The Wyoming tax collection would be expected to generate about $28 million in revenues for state and local government in the state if it ever becomes law.

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