§ 39-16-306 — Licenses; permits; bonding

Wyoming § 39-16-306

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

Text

(a) Licenses and permits. There are no specific applicable
provisions for licenses and permits for this article.
(b) Bonding. The following shall apply:
(i) 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 paragraph (v) of this
subsection;
(ii) Any person a party to or performing work on a
contract under this section may be enjoined from commencing or
continuing any work until an approved bond has been filed with
the department. Such an action shall be brought in the name of
the state by the attorney general or by a district attorney. The
state is not required to post security in seeking a restraining
order or preliminary injunction under this section;
(iii) In lieu of filing the bond or security required
under paragraph (i) of this subsection, a nonresident contractor
may file and maintain with the department a surety bond or legal
security in the amount of one million dollars ($1,000,000.00).
The bond shall be conditioned upon the payment of all use taxes
which become due and payable to this state under any of the
contractor's contracts or in any of the contractor's real
property developments in this state. A nonresident contractor
electing to file a bond or security under this subsection shall
maintain it until he is no longer required to file any bond or
security under this article or until a bond or security is filed
under paragraph (i) of this subsection;
(iv) If a nonresident subcontractor contracts with a
general or prime contractor and posts with the department a
surety bond deemed sufficient by the department conditioned upon
payment when due of all use taxes in the performance of the
contract, the withholding provisions of W.S. 39-16-303(b)(ii) do
not apply;
(v) Whenever a nonresident general or prime
contractor or nonresident subcontractor furnishes a surety bond
for the faithful performance of his contract or subcontract
there is imposed an additional obligation upon the surety
company to the state of Wyoming and the department as its agent
that the nonresident contractor shall pay all use taxes which
become due in the performance of the contract. In the case of a
nonresident general or prime contractor this additional
obligation includes liability to pay the department all use
taxes which have not been paid to a licensed vendor or the
department by the nonresident contractor. The nonresident
general or prime contractor or his surety company is authorized
to recover from the nonresident subcontractor the amount of use
taxes accruing with respect to purchases made by the nonresident
subcontractor which were paid to the department by the
nonresident contractor or the surety company, or an amount equal
to the use taxes so paid by the nonresident contractor may be
withheld from payments made under the contract. The liability of
the surety company under this section is limited 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 contract price;
(vi) Six (6) months after the completion of the
contract and the acceptance of the work and services performed,
the additional obligation upon the surety company ceases unless
written notice of unpaid use taxes is given the surety company
by the department.