Cecily Zamora
Wyoming has a sales tax on the sale of tangible goods and some services, which is levied on the seller and remitted to state tax authorities. The state also has a use tax, which is a lesser-known tax that ensures purchases made outside of Wyoming are not exempt from the state's sales tax. This includes items bought tax-free over the internet, while travelling, or transported into Wyoming from a state with a lower sales tax rate. The Wyoming use tax rate is 4%, the same as the regular sales tax rate. Digital products and digital codes delivered electronically are also subject to Wyoming sales tax. However, some states have not updated their tax laws to address the sales tax on digital products, and Wyoming's tax laws do not specifically address digital products.
| Characteristics | Values |
|---|---|
| Sales Tax | Levied on the sale of tangible goods and some services |
| Sales Tax Collection | Can be automated |
| Goods Exempt from Sales Tax | Groceries purchased with food stamps, prescription medications, and most medical supplies |
| Customers Exempt from Sales Tax | Government agencies, some nonprofit organizations, and merchants purchasing goods for resale |
| Use Tax | Paid for items bought tax-free over the internet, while traveling, or transported into Wyoming from a state with a lower sales tax rate |
| Use Tax Rate | 4% |
| Digital Products | Subject to Wyoming sales tax when transferred to the purchaser for permanent use |
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What You'll Learn
Sales tax on digital products
Wyoming levies a sales tax on the sale of tangible goods and certain services. This includes digital products and digital codes delivered electronically, such as software, music, videos, reading materials, and ringtones. These digital products are subject to sales tax when transferred to the purchaser for permanent use.
The Wyoming sales tax rate is 4%, including local taxes, which can be as high as 6%. This means that a $100 purchase of a taxable digital product would incur a $4 state sales tax, plus up to $6 in local taxes, for a total cost of $110.
Some goods and customers are exempt from paying sales tax in Wyoming. For example, groceries purchased with food stamps, prescription medications, and most medical supplies are exempt from sales tax. Additionally, government agencies, some nonprofit organizations, and merchants purchasing goods for resale are exempt from paying sales tax.
Wyoming also has a use tax, which applies to items bought tax-free over the internet, while travelling, or transported into Wyoming from a state with a lower sales tax rate. This use tax is also 4%, the same as the regular sales tax rate, and ensures that purchases made outside of Wyoming are not exempt from the state's sales tax. For example, if a Wyoming resident purchases a digital product online from a seller in a state with a 3% sales tax rate, they would owe a 1% use tax to Wyoming.
Determining the taxability of digital goods can be challenging, as states define digital goods differently, and many states have yet to clearly define how sales tax applies to digital goods and services. In Wyoming, digital products are considered taxable when sold to an end user with permanent use rights, but other states may have different criteria or may not tax digital products at all because they are not tangible.
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Sales tax on tangible goods
Wyoming levies a 4% sales tax on the sale of tangible goods and certain services within the state. Local municipalities can add up to an additional 2% to the base rate, resulting in a maximum combined rate of 6%. The use tax rate is also 4%, imposed on items purchased outside of Wyoming but used within the state. This includes items bought tax-free over the internet, while travelling, or transported into Wyoming from a state with a lower sales tax rate.
Businesses selling taxable goods or services act as agents of the state by collecting tax from purchasers and passing it on to the Wyoming Department of Revenue (DOR). Sellers are responsible for managing the taxes they collect to remain in compliance with state and local laws. Failure to do so can lead to penalties and interest charges.
There are several exemptions to the sales tax in Wyoming, including:
- Groceries
- Prescription medications
- Agricultural products
- Medical devices
- Machinery and equipment used for manufacturing or fabrication
- Sales to the federal government
- Wholesale purchases
- Manufacturing equipment and machinery
- Raw materials or ingredients
- Occasional sales by businesses with an occasional sale license
- Nonprofit organizations, such as charities or religious institutions
The frequency of filing sales tax returns in Wyoming depends on the total sales volume for the previous year. Businesses with sales over $50,000 in the previous year will likely file monthly, while those with sales between $4,000 and $50,000 may be able to file quarterly. Businesses with sales under $4,000 annually can file annually.
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$32.45
Use tax on online purchases
Wyoming has a 4% sales tax on the purchase of goods and services in the state. This tax is collected at the point of sale and remitted to the state. In addition to the state sales tax, there may be local sales taxes and special district taxes, which can bring the combined sales tax rate in Wyoming up to 6%, depending on the location of the sale.
The Wyoming Use Tax is a tax that complements the regular Wyoming sales tax. It is levied on items bought tax-free over the internet, while travelling, or transported into Wyoming from a state with a lower sales tax rate. The use tax rate is the same as the regular sales tax rate, at 4%. This means that if you make a purchase online or outside of Wyoming for which you paid less than Wyoming's 4% in sales tax, you are responsible for paying a use tax on those purchases equal to 4% of the total purchase price. Including local taxes, the Wyoming use tax can be as high as 6%.
Some goods are exempt from sales tax under Wyoming law, including groceries purchased with food stamps, prescription medications, and most medical supplies. Additionally, some customers are exempt from paying sales tax, such as government agencies, certain nonprofit organizations, and merchants purchasing goods for resale. Sellers are required to collect a valid exemption or resale certificate from buyers to validate each exempt transaction.
Wyoming does not have any sales tax holidays as of December 2019.
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Sales tax exemptions
Wyoming levies a sales tax on the sale of tangible goods and certain services. However, some goods and customers are exempt from paying sales tax under Wyoming law.
Goods Exempt from Sales Tax
Groceries purchased with food stamps, prescription medications, and most medical supplies are exempt from sales tax in Wyoming.
Customer Exemptions
Some customers are exempt from paying sales tax, including government agencies, certain nonprofit organizations, and merchants purchasing goods for resale. Sellers are required to collect a valid exemption or resale certificate from exempt buyers to validate each tax-exempt transaction.
Use Tax
Wyoming also imposes a use tax, which is levied on items bought tax-free over the internet, while travelling, or transported into Wyoming from a state with a lower sales tax rate. The use tax rate is the same as the regular sales tax rate of 4%. This tax is self-assessed, and individuals are responsible for paying it if they made purchases online or outside of Wyoming for which they paid less than the state's 4% sales tax.
It is recommended that businesses review the laws and rules put forth by the Wyoming Department of Revenue to stay up-to-date on sales tax exemptions and requirements.
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Sales tax compliance
Wyoming levies a sales tax on the sale of tangible goods and certain services. The tax is collected by the seller and remitted to the state, with the seller acting as a de facto collector. The Wyoming sales tax rate in 2023 is 4-6%, comprising a base rate of 4% and a mandatory local rate of up to 2%. The Wyoming Use Tax is a complement to the regular sales tax, ensuring that purchases made outside of Wyoming are not exempt. This tax applies to items bought tax-free over the internet, while travelling, or transported into Wyoming from a state with a lower sales tax rate.
To ensure sales tax compliance, businesses must register with the state tax authority, collect the correct amount of sales tax per sale, file returns, and remit the tax to the state. This can be automated to make the process easier. Avalara AvaTax, for example, integrates with existing business systems to deliver sales and use tax calculations in real time.
There are certain exemptions to the sales tax in Wyoming. These include groceries purchased with food stamps, prescription medications, and most medical supplies. Additionally, some customers are exempt, such as government agencies, certain nonprofit organizations, and merchants purchasing goods for resale. It is important for businesses to stay updated on the laws and rules regarding taxable and exempt goods, as well as exempt customers, to ensure compliance.
Wyoming is also a member of the Streamlined Sales and Use Tax Agreement (SSUTA), which means wholesalers need to register for a seller's permit for wholesale sales. Temporary sellers, such as those at craft fairs or pop-up shops, must also register if they meet the sales tax nexus thresholds. Remote sellers without a physical presence in Wyoming may be required to collect and remit sales tax if they exceed annual economic sales thresholds of $100,000 or 200 transactions.
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Frequently asked questions
Wyoming has a use tax law, which applies to items bought tax-free over the internet, bought while travelling, or transported into Wyoming from a state with a lower sales tax rate. The use tax rate is 4%, the same as the regular Wyoming sales tax rate.
The Wyoming use tax is a tax that complements the regular Wyoming sales tax to ensure that purchases made outside of Wyoming are not exempt from the Wyoming sales tax.
Wyoming's internet tax law applies to digital products and digital codes delivered electronically, including but not limited to software, music, video, reading materials, and ringtones.
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