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Sales Tax Obligations of Sellers in Wyoming

April 13, 2006

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Wyoming imposes various requirements on sellers doing business in the state. We recommend that you go through the items below to help you with the most frequently asked questions concerning sellers and sales and use tax issues.

Procedure for accepting resale certificates. In Wyoming you must obtain from the purchaser a certificate of purchase for resale on all sales on which you claim on your sales tax return that the sales are sales for resale. The certificate of resale must be retained for your records. Sample resale certificates are available from the Wyoming Department of Revenue. Resale certificates normally include the following information:

• your name
• the purchaser's name and address
• the purchaser's nature of business
• the reason for the exempt purchase (processing or resale)
• a general description of the purchase
• the purchaser's state sales tax or ID registration
• the purchaser's signature

Procedure for accepting blanket certificates. As a seller you may accept a blanket certificate if your customer repeatedly purchases the same type of property or service for processing or resale. However, blanket certificates may not be used to purchase property or service not covered by a blanket certificate. In Wyoming the resale certificates don't have an expiration period so it is up to you and the purchaser to agree on the period of validity. If you have not accepted a blanket certificate in good faith, liability for the tax does not shift from you to the purchaser.

Sales and use tax liability for out-of-state mail order and catalogue retailers. Wyoming has no statute that specifically taxes out-of-state mail order and catalogue sellers. You will be responsible for paying this tax only if you have physical presence within Wyoming. To determine if you have physical presence, ask yourself the following:

• Do I have retail facilities, a warehouse, or any office space in Wyoming? Maintaining retail or warehouse facilities will give you physical presence. Also, having an office for employees, even for business activities unrelated to mail order sales, will give you physical presence.
• Do my employees or I enter Wyoming for purposes of taking and transmitting orders from Wyoming? If your employee or independent contractor goes into Wyoming to take or transmit orders, your business may have physical presence in Wyoming. However, contracting with a common carrier to deliver mail order goods does not constitute physical presence.
• Do my delivery vehicles frequently enter Wyoming for purposes of delivering property? Frequent deliveries in Wyoming by your trucks will give you physical presence in Wyoming.

Sales tax "bracket system." The bracket system may be followed by sellers in computing the sales tax. The 4 percent tax is computed on each dollar and/or fraction of a dollar according to the following table:

Absorbing the tax — using a "no sales tax" advertising strategy to drum up business. In Wyoming, it is against the law to refund or offer to refund all or any part of the amount collected, or to absorb the amount of sales tax required to be added to the sales price and collected from the purchaser. As a seller, it is also against the law for you to advertise directly or indirectly that you will absorb the sales tax that is required to be added to the sales price.

Claiming refund for excess tax payments. A taxpayer's application for a refund or credit of overpaid sales or use taxes must be made within three years from the date of overpayment.

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