A key benefit of doing business in Wyoming is not having to pay corporate or personal income taxes. Besides allowing business owners to enjoy higher earnings, the lack of an individual income tax contributes to a lower cost of labor in the state.
CAEDA, the local economic development group, can provide a state by state tax comparison based on your company’s existing or projected financials.
Wyoming has consistantly ranked #1 for business-friendly taxation on Tax Foundation’s State Business Tax Climate Index!
- No corporate state income tax
- No personal state income tax
- No inventory tax
- Sales and use tax base rate of 4% with 2% county optional tax
- Sales and use tax exemption on equipment used directly and predominantly in the manufacturing process, for manufactures in the 31-33 NAICS Classifications.
Looking for small business tax incentives? Wyoming does not have tax incentives because Wyoming already has very low taxes. According to the Wyoming Taxpayers Association, Wyoming’s personal tax burden is the second lowest in the nation. Wyoming’s major yearly personal taxes are about 4 percent of income, while the regional average ranges from 7 percent to 9 percent. The national average varies from 8 percent to 10 percent, depending on income level.
Who pays taxes in Wyoming?
Wyoming’s largest source of revenue is mineral extraction with the second being the tourism industry. This means citizens and businesses have one of the lowest tax burdens in the country.
In 2002, Mining and Extraction contributed $4.49 billion to Wyoming Gross State Product or 26.74% of all private industry in Wyoming. Mineral Production is taxed as property tax, although it is in fact a severance tax based on market value of the natural resource being severed. Wyoming taxes minerals at 100% of value, unlike “other” property taxes, which are taxed at rates between 9.5 and 11.5%. In the end, because of higher valuations than other lands and higher tax rates, mineral production ends up paying 94.4% of all “property taxes” paid to the State of Wyoming.
In 2003, Tourism contributed $87.6 million to state and local tax receipts, with money coming from state and local sales tax, local sales, lodging tax and gasoline.
Wyoming’s property taxes are low compared to most other states. The state assesses agricultural, residential and commercial at 9.5% of fair market value; industrial at 11.5% of fair market value; and minerals at 100% of fair market value. The mill levy in Natrona County varies from 67.89 to 72.89. To calculate residential and commercial taxes, use the following equation: (Fair Market Value x 9.5%) x Local Mill Levy Rate / 1000 = Property Tax
For example, a manufacturing facility with a fair market value of $10,000,000 for land, equipment and building would pay:
10,000,000 X .115 X 70 mills / 1,000 = $80,500 in property tax.
For-profit corporations, limited liability corporations, limited partnerships and registered limited liability partnerships do pay an annual license tax/franchise fee to the Wyoming Secretary of State. This fee is based on a company’s assets located and employed in Wyoming. Non-profit corporations pay a flat fee of $25.
Workmen’s Compensation and Unemployment Tax
The Wyoming taxable wage base for Unemployment Insurance is $23,000. The tax rate can be found at the Department of Workforce Services.
Workers Compensation is calculated for 2012 with a quarterly wage rate of $10,601.49. The tax rate can be found at the Department of Workforce Services.
Some sales taxes are exempted by the State Legislature. The most commonly used exemptions are focused on manufacturers and data centers.
A manufacturer does not have to pay sales tax on equipment used in the manufacturing process or on electricity used in the manufacturing process. A data center has a wide variety of exemptions based on the size of the facility.
Business Ready Community Grant & Loan ProgramThis program provides financing for publicly owned infrastructure that serves the needs of businesses and promotes economic development within Wyoming communities. Cities, towns, counties, joint powers boards and both Tribes are eligible to apply for funding. Public infrastructure that is eligible for funding includes water; sewer; streets and roads; airports; rights of way; telecommunications; land; spec buildings; amenities within a business park, industrial park, industrial site or business district; landscaping, recreation and educational facilities; and other physical projects in support of primary economic and educational development.
For more information, please visit the Wyoming Business Council website.
The State Treasurer can directly purchase up to $100M per project in revenue bonds from a variety of projects. This allows for direct negotiation with the State Treasurer on terms and interest rates. The bond avoids private issuance costs and delays and has the potential to be more flexible than other type of bond financing.
Industrial Development Revenue Bonds
Cities and counties may issue tax-exempt industrial development revenue bonds to provide financing for manufacturing and energy generation businesses. These bonds are issued within the State’s IRS allocation of tax-exempt bond financing. The maximum project is $600,000 and the business must provide a bank “letter of credit” to guarantee payment of the bonds. Interested businesses must apply for an allocation within the State’s volume cap. The Wyoming Business Council will coordinate this process.
Workforce Training Grants
The Workforce Development Training Fund (WDTF) was created by the 1997 Wyoming Legislature and assists new and existing industries in the state with the training needs of newly hired or current employees.
The training grants are available for up to $4,000 per new trainee. The WDTF application form is available via the WDTF website.