Wyoming Tax Problems and Solutions

If you sell taxable goods or services in Wyoming, you must collect sales tax and remit it to the state. Wyoming levies sales tax on most services and all goods except for certain essentials such as groceries, prescription medication, and medical supplies. Remote sellers must collect sales tax if they have more than $100,000 in sales to Wyoming residents.

Businesses may also have to deal with mineral tax, wind generation tax, and other excise taxes. If you have questions or need guidance with Wyoming tax issues, use TaxCure to find a qualified tax pro based in Wyoming today.

Business Taxes in Wyoming

Businesses in Wyoming may need to register and file returns for the following taxes:

• Sales/use tax
• Lodging tax
• Mineral tax 
• Wind generation tax

If you have employees, you also need to file reports and pay worker's compensation and unemployment insurance.

Wyoming Sales Tax

The state sales tax in Wyoming is 4%. However, local governments can add up to 2% to this rate. The average sales tax rate throughout the state is 5.44%. 

As of 2024, here is the sales tax rate in the biggest cities in Wyoming:

• Cheyenne - 6%
• Laramie - 6%
• Caspet - 5%
• Gillette -5%

Although businesses collect both state and local sales tax, they only file one sales tax return which they send to the Wyoming Department of Revenue (DOR). Then, the DOR distributes the funds as applicable. 

Calculating Sales Tax

Generally, you must calculate sales tax on each individual sale based on the location of the sale. For example, if you are selling a taxable good for $100 in Cheyenne, you must assess 6% sales tax. Thus, you collect $106 from your customer, and ultimately, you send the $6 to the state. 

However, if you are dealing with sales where receipts are generally not provided to the consumer such as vending machines, cover charges, admissions tickets, or commissions, you can pay the tax based on your gross reciepts. 

In this case, you work backward from the total gross receipts to calculate the sales tax calculated. For example, if you collect $1,000 and the effective sales tax rate is 6%, you have $943.40 in sales and $56.60 in sales tax.

Sales Tax Registration

Before selling taxable goods or services in the state, you must register for a sales/use tax license. You can apply online or print and mail the application. 

When you apply, you must note the expected date of your first sale and your estimated monthly sales volume. The application also asks about the types of goods or services you plan to sell and a variety of yes-no questions about liquor, lodging, propane, delivery, and your number of locations. 

To apply online, go to the Wyoming Internet Filing System (WIFS). If applying through the mail, send your application to:

Wyoming Department of Revenue
122 West 25th Street, Suite E301 
Herschler Building East 
Cheyenne WY 82002-0110

The DOR has a separate application for sellers who need a temporary sales tax permit--for example, people who want to sell taxable goods at a craft show or boutique market. Additionally, if you spend more than $5 million per year on taxable purchases, you can apply for a direct pay permit. This permit allows you to pay sales tax directly to the Wyoming DOR rather than to the seller. 

Filing Sales Tax Returns

The DOR will tell you the filing frequency when they approve your sales tax application. Depending on your volume of sales, you may need to file monthly, quarterly, or annually. 

If you're a monthly or quarterly filer, you should file Return 41. Annual filers should complete Return 42. If you have a temporary sales tax permit, file Return 43. 

All of these returns request your gross sales and services, deductions, and net taxable sales. If you file on paper, you will need to work through the calculations, but if you file on the DOR's website, it will calculate the taxes for you based on your location and sales info.

Due Dates for Sales Tax Returns

Monthly sales tax returns are due on the last day of the month following the month of sales or the next business day if the last day of the month falls on a weekend or holiday. Quarterly reports are due January 31, April 31, July 31, and October 31 for the previous quarters. Annual returns are due January 31st. 

If you file by the 15th, you can receive a vendor credit for remitting the tax early. The credit is based on your volume of sales, and you only get one credit per business entity even if you have multiple locations. The maximum credit is up to $500 per month.

Tax Audits in Wyoming

The Wyoming DOR has the right to audit any return filed by a taxpayer in the state. You may face audits on sales tax returns, mineral tax returns, wind generation tax returns, and any other returns required by the state. 

When the state contacts you about an audit, you are required to provide all of the records related to your tax return. If you have inadequate records, the DOR will estimate your taxes due based on the information available to them. 

Audits generally address the reporting period and the three prior years. However, if you intentionally failed to remit sales taxes that you have collected or if there is evidence of gross negligence, the audit may have a longer look-back period. Once the audit has been completed, the DOR must assess penalties and interest within one year.

Consequences of Unpaid Taxes

If you don't pay taxes in Wyoming, the DOR will add penalties and interest to your account. They can also issue tax liens and seize your assets.

• Late payment penalties - The DOR will asses a $10 penalty if you file your return late as long as you file within 30 days after receiving notice from the Department. The penalty is $25 if you don't file within 30 days of receiving the notice. 
• Negligence and evasion penalties - If you pay late due to negligence or intentional disregard of the rules, you will incur a penalty of 10% of the deficient tax. For example, if you file your sales tax return late and owe $4,000, the penalty will be $400. However, if you didn't pay tax with an intent to evade, the penalty is 25%.
• Interest - If you pay your taxes late, the DOR will apply interest at the average prime rate during the preceding fiscal year plus four percent, up to 18%
• Tax liens - If you don't pay your state taxes, the DOR can issue a tax lien against you. The tax lien will be registered with the county clerk of the county where you live or operate your business. It will not supersede any existing liens, but it will take priority over any liens established afterward. 
• Asset seizure - The Department can seize your assets once a lien has been established.
• Public notice - If your sales tax payment is over 150 days late and you have not set up payments, the DOR can publish your business name, address, and the amount owed, but first the DOR must send you a 30-day notice with First Class Mail. 

To avoid these consequences, be aware of your Wyoming tax obligations and consult with an experienced tax pro based in this state if you're unsure. If you cannot pay the tax, reach out to the Department proactively to discuss resolution options. 

Resolution Options

If you're having tax problems in Wyoming, you should be aware of the following resolution options. The right choice depends on the specific problem you're facing.

Penalty Relief

If you incur a penalty due to incorrect written advice from the state, the DOR will waive the penalty and interest. You may also be able to get penalty waivers if you prove that you had reasonable cause for paying or filing late.

Installment Agreement

The DOR reviews requests for monthly payment plans on a case-by-case basis. The Department generally approves installment agreements when payment in lump sum is likely to "cause severe inconvenience to the taxpayer".

Settlements

If the tax owed is under dispute, the state may be willing to accept a settlement. Wyoming statute also allows the state to waive interest and penalties as part of a settlement or for any good cause.

Appeals

Taxpayers have the right to appeal most WY DOR decisions. For example, if you don't agree with the results of an audit, you have the right to appeal. There are only a few actions that taxpayers cannot appeal. For example, if the DOR rejects your direct pay sales/use tax application, you cannot appeal.

Wyoming’s Sales Tax Voluntary Disclosure Program

If you have not been filing sales tax returns, you may want to look into the state's Voluntary Disclosure Program. When you apply, you will share your sales for the last three years. If the DOR accepts your disclosure, you will have 60 days to pay the last three years of sales tax that you should have collected. 

The Department will also add interest to your account. Taxpayers who collected sales tax but didn't remit it will also incur a 10% penalty.

FAQs About Taxes in Wyoming

Do businesses pay taxes in Wyoming?

There is no corporate income tax in Wyoming. However, most goods and services are subject to sales tax, and businesses that sell taxable goods and services must register for a sales tax account. Additionally, employers must register with the Division of Workers’ Compensation and Unemployment Insurance. 

Do individuals pay taxes in Wyoming?

There is no individual income tax in Wyoming. Individuals must pay sales tax when they buy taxable goods or services. 

If an individual buys a taxable item out of Wyoming, they should file Return 44 (Use Tax Return for Consumers & Non-Licensed Businesses) if they pay no sales tax or a rate lower than the sales tax rate in their part of Wyoming. For example, if you buy something in Montana, you should file this form and pay the applicable use tax to the Wyoming DOR.

Which goods are exempt from sales tax in Wyoming?

Wyoming sales tax does not apply to groceries, prescription medication, and most medical supplies.

Which services are subject to sales tax in Wyoming?

In Wyoming, taxable services include intrastate telecommunication services, public utilities, repair or improvement of personal property, intrastate transportation of passengers, lodging, and event and entertainment admission tickets. 

Non-taxable services include labor or service to real property, labor to humans or animals, and professional services such as accountants, doctors, lawyers, and consultants.

What is nexus in Wyoming?

If your business has nexus in Wyoming, you must register for a sales tax account and collect sales tax from your customers. You have nexus if you are physically present in the state or if you have more than $100,000 in sales to Wyoming residents.

Do remote sellers have to collect sales tax if they have more than 200 sales in Wyoming?

No, as of July 2024, remote sellers no longer need to worry about the 200-sale threshold. In the past, the state required remote or online sellers to collect sales tax if they had more than 200 sales or over $100,000 in sales to residents of the state. As of 2024, only the $100,000 threshold applies.

Does Wyoming participate in the streamlined sales tax program?

Yes, Wyoming is a full member of the Streamlined Sales Tax Governing Board. If you are a remote seller who needs to collect and remit sales tax in multiple states, you may qualify to register and file through the Streamlined Sales and Use Tax Project (SSTP).

Get Help With Wyoming Tax Problems

If you're dealing with Wyoming taxes, you need a professional who understands the unique tax code in this state. Don't turn to the big firms that lack experience and often cannot solve state tax problems. Instead, use TaxCure to find tax professionals in Wyoming.