SF0128 would exempt sales of electricity from Wyoming’s sales and use tax beginning July 1, 2025. The bill amends the state’s taxable event and exemption provisions to remove electricity sales from the category of utility sales subject to excise tax, while leaving the existing tax treatment for other utility-related sales, such as gas and heat, unchanged.
In practical terms, the measure would reduce the tax burden on residential, commercial, and industrial electricity customers by eliminating the sales tax applied to electricity purchases. Because the bill is framed as a repeal of sales tax on electricity rather than a broader tax overhaul, its effect is targeted to one utility service and would directly affect public utilities and other electricity sellers that currently collect and remit the tax.
Impact
The bill would amend Wyoming Statutes 39-15-103(a)(i)(E) and 39-15-105(a) to create a new sales tax exemption for electricity sales. This would remove electricity from the state’s taxable utility sales base, reducing state sales tax collections and changing the tax obligations of utilities and electricity vendors. Consumers of electricity would see a lower bill amount to the extent the tax is currently passed through, while the state would forgo associated revenue.
Sentiment
The available voting history suggests the bill had at least some support in the Senate Revenue Committee, where it received a 3-2 recommendation to do pass. That narrow vote indicates the proposal was viewed favorably by a majority of committee members, but not unanimously. No transcript excerpts are available, so the broader discussion is not documented here, but the committee result suggests the bill was generally supported while still drawing meaningful opposition.
Contention
The main point of contention is likely the revenue impact of removing sales tax from electricity, since the bill would reduce state tax collections and could shift the burden away from electricity consumers. Supporters appear to favor tax relief for households and businesses facing utility costs, while opponents likely object to the loss of revenue or to creating a special exemption for one category of utility service. The 3-2 committee vote reflects that divide.