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HB 90: STATE SALES TAX - 1998 Budget/Special Session Sponsor: Select Committee on School Finance During the 1997 special session, the Legislature extended the fourth cent of statewide sales tax until 2002 (HB 1002, described above). HB 90 was the 1998 version of the 1997 special session bill to raise the sales tax by a half-cent (HB 1003, described above). On the issue of the half-cent sales tax increase, arguments for and against were much the same as on the previous proposals for sales tax increases. But because a majority of the House Revenue Committee had voted to kill all other revenue options, there was considerable pressure to increase sales tax as the only revenue source left. The House adopted an amendment to HB 90 to impose a 15% sales tax on cigarettes and a 10% sales tax on other tobacco products. This came about because the House Revenue Committee killed a separate bill to increase tobacco taxes. Proponents of the tobacco tax amendment argued that Wyoming has one of the lowest tobacco taxes in the nation, and that studies have shown higher taxes discourage younger smokers from starting the habit. Opponents countered that a tobacco tax increase would hurt Wyoming businesses which sell tobacco products. They also said that two sales tax rates -- one for cigarettes and one for other products -- would create confusion among both retailers and consumers. HB 90 initially failed third reading (final passage) in the House, 30-29 (1 excused). The House then voted to reconsider its vote and passed HB 90, 33-27. Representatives changing their votes from no to yes were: Bruce Hinchey (R-H36, Casper), Tony Ross (R-H7, Cheyenne) and Marlene Simons (R-H1, Beulah). Rep. Louie Tomassi (R-H20, Big Piney) was excused for the first vote and voted no on the second vote. On voice votes, the Senate defeated an effort to delete the House amendment adding the sales tax on cigarettes and other tobacco products, but approved an amendment lowering the 15% sales tax on cigarettes to 4%, thereby making the sales tax on cigarettes the same as on all other items subject to sales tax. (Although there is currently an excise tax on cigarettes, they are exempt from sales tax.) The Senate's 15% to 4% amendment also deleted the 10% sales tax on all tobacco products other than cigarettes. (Sales of other tobacco products are currently subject to sales tax, but no other tax.) An effort to restore the House amendment failed, 14-16. The Senate then killed the bill altogether, 15-15, on second reading, and refused to reconsider, 13-17. There are two sets of votes listed below. The first set includes the House third reading (final passage) vote and the Senate second reading vote on HB 90. The second set is the Senate vote to restore the House amendment imposing a 15% sales tax on cigarettes and a 10% sales tax on other tobacco products.
SALES TAX A YES vote means the legislator supported adding a half-cent to the existing statewide sales tax, earmarked for education, and/or new sales taxes on tobacco. A NO vote means the legislator opposed adding a half-cent to the existing statewide sales tax, earmarked for education, and/or opposed new sales taxes on tobacco. (Note: Because these two issues were mixed in the same bill, a legislator may have supported one tax and not the other, but had to choose, e.g., opposed sales tax and supported tobacco tax, but voted no.)
TOBACCO TAX A YES vote means the senator favored restoring the House amendment imposing a 15% sales tax on cigarettes and a 10% sales tax on other tobacco products. A NO vote means the senator opposed restoring the House amendment.
www.equalitystate.org Copyright 1999, Equality State Policy Center | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||