Wyoming Internet Sales Tax Bill Wins Final Approval

The Wyoming House of Representatives has signed off on a final version of an internet sales tax bill.

The House concurred with changes made in the bill in the Wyoming Senate.The bill will now go to Governor Matt Mead. With his approval, the bill could become law on July 1.

However, there are still legal questions surrounding the proposal. The U.S. Supreme Court in a 1992 case ruled states cannot collect sales taxes from businesses that don't have a physical presence in the state. That ruling has never formally been reversed.

But in December the high court declined to hear an appeal of a Colorado internet sales tax law, letting the law stand.

Meanwhile, South Dakota, which has also passed an internet sales tax law, is currently facing court challenges on that legislation.

The final version of the Wyoming law does prohibit the state from collecting the tax if a declaratory judgment against the tax is filed until the court case is resolved. If the tax does become law in Wyoming it is expected to collect about $28 million annually.