Although there is a growing trend among states to extend sales tax to numerous services, the Department of Revenue (DOR) reminds that Wyoming “currently has no statutory provisions to impose sales or use taxes on professional services….” The department issued a bulletin explaining the tax-exempt status of these services back in December, and it re-issued the bulletin at the start of July.
Professional services not subject to sales and use tax in Wyoming include, but are not limited to:
- Technical writers
- Tax Preparers
- Teachers, Trainers and Instructors (materials may be subject to sales tax)
- Services that involve the “creation of concepts”
* Both consultants and inspectors are advised to verify with the Department of Revenue if the entirety of their services are tax exempt.
Certain professional services, however, are subject to sales tax in Wyoming. These include:
- “The sales of or repairs, alterations or improvements to tangible personal property….” (W.S. 39-15-103(a)(i)(J)).
- “The sales price paid for all services … to real or tangible personal property within an oil gas well site…. ” (W.S. 39-15-103(a)(i)(K)).
The fact that the DOR re-issued the bulletin regarding the taxation of services may stem from the fact that more and more states are broadening sales tax to include services. Indeed, a “legislative report by the State of Wyoming Tax Reform 2000 Committee recommended broadening “the state’s sales and use tax to include more services than currently taxed” back in 1999. To date, the state has resisted that temptation.
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