§ 39-16-303 — Imposition

Wyoming § 39-16-303

• Jurisdiction: Wyoming
• Title 39: Taxation and Revenue
• Ch. 16: USE TAX
• Art. 3: CONTRACTORS

Text

(a) Taxable event. There are no specific applicable
provisions for taxable event for this article.
(b) Taxpayer. The following shall apply:
(i) Any contractor who furnishes tangible personal
property under contract or in the development of real property
is the consumer or user of the tangible personal property within
the meaning of the use tax laws of Wyoming;
(ii) Any subcontractor who contracts with a general
or prime contractor is liable for sales taxes as a general or
prime contractor. The general or prime contractor shall withhold
three percent (3%), plus the increased rate under W.S.
39-15-104(b) if the tax under that section is in effect, of the
payments due a nonresident subcontractor arising out of the
contract entered into between both contractors. The contractor
shall withhold the payments until the subcontractor furnishes
him with a certificate issued by the department showing all
sales taxes accruing by reason of the contract between them have
been paid. The department may demand the withholdings at any
time to satisfy the sales tax liability of the subcontractor and
any balance shall be released by the department to him. If a
contractor fails to withhold payments or refuses to remit them
upon demand by the department he is liable for any sales taxes
due the state by the nonresident subcontractor. This paragraph
shall not apply to any subcontractor hired to provide labor only
to alter, construct, improve or repair real property;
(iii) To secure payment of use taxes by nonresident
prime contractors, each nonresident contractor shall file with
the department of revenue a surety bond or legal security equal
to three percent (3%), plus the increased rate under W.S.
39-16-104(b) if the tax under that section is in effect, of the
payments due under the contract or an amount determined by the
department. The bond shall be conditioned upon the payment of
all use taxes which become due and payable to this state under
the contract or in the real property development. This bond
requirement does not apply for a nonresident contractor who has
furnished a surety bond as provided by W.S. 39-16-306(b)(v);
(iv) Any nonresident prime contractor and any
resident prime contractor who hires a nonresident subcontractor
shall register any project with the department of revenue not
more than fifteen (15) days following the start of a project
pursuant to a contract. The nonresident prime contractor shall
provide a properly executed bond as required by paragraph (iii)
of this subsection, or a cash deposit of not less than four
percent (4%) of the total payments due under the contract. The
cash deposit shall be refunded to the contractor upon the
department's receipt of a properly executed surety bond or upon
satisfactory completion of the project. Failure to register with
the department within the time period required by this paragraph
shall result in a penalty assessment of one percent (1%) of the
total payments due under the contract.