Wyoming Sales & Use Tax Guide: Rates, Nexus & Compliance

Sales and Use Tax Basics in Wyoming

Sales Tax

The sales tax in Wyoming is imposed on the sales price or gross rental for every retail sale, lease, or contract transferring possession of tangible personal property, as well as certain taxable services. Under Wyoming law, the taxable person is a vendor, defined as any person engaged in the business of selling, at retail or wholesale, tangible personal property, admissions, or services that are subject to taxation. 

Use Tax

In Wyoming, the use tax is a complementary tax to the sales tax, and applies to untaxed items shipped into Wyoming or purchased from a vendor not licensed with Wyoming. In contrast to sales tax, which is collected and remitted by the seller or vendor, the use tax is paid by the buyer directly to the Department of Revenue.

Wyoming Sales and Use Tax Rates

Wyoming has a statewide sales and use tax of 4%. In addition to the statewide rate, most of the local jurisdictions impose the 1% General Purpose County Option tax. Additionally, some counties also impose a 1% specific tax rate. Notably, counties such as Teton and Grand Targhee impose a 2% Resort District tax rate, and Casper County is the only one that imposes a 1% Municipal County Option tax rate.

Tax-Exempt Transactions

The Wyoming sales and use tax legislation provides a detailed list of tax-exempt transactions, which ultimately can be grouped into three categories: entity-based exemptions, use-based exemptions, and product-based exemptions.

Examples of non-taxable or exempt transactions include sales and rentals of real property, sales to the federal government or its instrumentalities, interstate transportation of freight or passengers, sales to the State of Wyoming or its political subdivisions, sales to religious or charitable organizations, and sales of food for domestic home consumption.

Nexus Rules in Wyoming

To become liable for sales and use tax purposes, taxable persons, either individuals or businesses, must establish a nexus in Wyoming. As noted by the Wyoming Department of Revenue, registering a business entity in the state does not automatically require a Wyoming sales tax license.

Physical Nexus

Physical nexus in Wyoming is established when a business has a tangible presence or operational connection there. This includes selling goods at retail or wholesale, maintaining or using an office, warehouse, sales house, or any other business location in the state, or having agents who operate, solicit sales, or advertise on the business’s behalf within the state. Notably, agents encompass a wide range of roles, including employees, salespeople, distributors, delivery personnel, and anyone performing services under the vendor’s authority.

Economic Nexus

Remote sellers without a physical presence in Wyoming may also be required to register for, collect, and remit sales and use tax if they establish an economic nexus. Wyoming first introduced the economic nexus in 2019, setting it at USD 100,000 or 200 or more separate transactions. 

However, in 2024, the 200-transaction threshold was removed, leaving only USD 100,000 in gross revenue from the sale of tangible personal property, admissions, or services delivered into the state as relevant for establishing the nexus.

Marketplace Nexus

In 2019, Wyoming also introduced marketplace nexus rules, requiring marketplace facilitators without a physical nexus to collect and remit sales and use tax on all sales they make on their own behalf and on behalf of all marketplace sellers to customers in Wyoming. The marketplace nexus threshold is the same as the economic nexus threshold, USD 100,000 in gross sales.

Taxable Goods and Services in Wyoming

Generally, all retail sales, which include sale, lease, or rental for any purpose other than for resale, sublease, or subrent, are subject to sales and use tax. As a result, sales of tangible personal property and defined services are taxable. Notably, the term tangible personal property includes electricity, water, gas, steam, and prewritten computer software. Also, sales of intrastate telecommunications services, and services performed for the repair, alteration, or improvement of tangible personal property are taxable.

Bundled Transactions and the True Object Test

As in many other US states, a bundled transaction is defined as the sale of two or more distinct and identifiable products, excluding real property and services to real property, for a single non-itemized price. Items such as packaging, free products included with a required purchase, or items already included in the sales price do not count as distinct products.

In general, when a bundled transaction includes at least one taxable product, the entire bundle is presumed taxable unless a specific exception applies. Sales where tangible personal property is essential to a service and the main purpose is the service, sales of one service that is essential to another, where the second service is the main purpose, are not treated as bundled.

Bundled transactions that include both taxable and nontaxable items may also be excluded from full taxation if the taxable portion is de minimis. Thus, if the taxable products represent 10% or less of the bundle's total sales or purchase price, under a consistent pricing method, the transaction is non-taxable. Similarly, in certain cases involving exempt tangible personal property, such as food, drugs, or medical items, if the taxable items account for 50% or less of the total value, the transaction is not taxable.

E-Commerce Framework

Remote sellers that exceed the economic nexus threshold must comply with the sales and use tax rules and requirements. The economic nexus is set at USD 100,000 in gross revenue for the calendar or previous year. This means that remote sellers must calculate all gross sales of tangible personal property, gross sales of both taxable and non-taxable services, gross sales of admissions, taxable, exempt, and wholesale sales, and exempt sales towards the threshold. The only sales excluded from the economic nexus threshold are sales made through a registered marketplace facilitator.

Marketplace Rules

In cases where the remote sellers offer and sell goods and services directly to consumers, e.g., through their own website or online store, and through a marketplace facilitator, only direct-to-consumer sales are considered for economic nexus, provided the facilitator is registered for sales tax purposes. 

Note that when a marketplace facilitator fails to collect or remit sales tax because it relied on incorrect or insufficient information provided by a marketplace seller, the facilitator may be relieved from liability for that failure. However, this relief is limited to 5% of the total sales tax due on sales made or facilitated in Wyoming by the marketplace facilitator. In cases where the facilitator is granted relief, responsibility for any uncollected, unpaid, or unremitted tax shifts to the marketplace seller or, if applicable, the purchaser.

Also, the liability relief does not apply when the marketplace seller is affiliated with the marketplace facilitator, meaning one entity owns more than 5% of the other, or when both entities are controlled by a common entity that owns more than 5% of each.

Digital Goods and Services

According to Wyoming law, the sales price of specified digital products sold at retail is generally subject to sales tax, including charges for access to those products. The specified digital products are electronically transferred items that fall into clearly defined categories, including digital audiovisual works, digital audio works, and digital books. Nonetheless, the buyer must receive permanent use of the specified digital product. Consequently, access provided solely through streaming or subscription services that do not grant permanent use is not taxable. Also, Software-as-a-Service (SaaS) is non-taxable.

Digital Marketplace

A marketplace in Wyoming is any platform, system, or method that allows a marketplace seller to offer for sale, or sell, taxable tangible personal property, admissions, or services, regardless of whether the seller has a physical presence there. 

To be treated as a marketplace facilitator for tax purposes, the marketplace operator must enable these sales by listing or offering taxable goods or services on behalf of a marketplace seller and by collecting payment from the buyer, either directly or indirectly through agreements with third parties. Additionally, the facilitator must remit the payment to the seller, regardless of whether the facilitator receives compensation for providing these services.

Digital Platform Operator

Individuals or businesses that operate a marketplace and provide all required services must register for sales tax and, once they exceed the marketplace nexus threshold, collect and remit the taxes due. The marketplace facilitator is liable for sales tax on all its own sales transactions, and on those it facilitates on behalf of marketplace sellers. 

Even when the marketplace seller is registered and collects and remits Wyoming sales tax, the facilitator is responsible for collecting and remitting sales tax on marketplace sales. The Department of Revenue typically audits only marketplace facilitators for sales made by marketplace sellers through the marketplace, unless a relief applies.

Filing and Payment Requirements in Wyoming

The typical filing periods are monthly, quarterly, and annually. However, the Department of Revenue assigns a filing frequency to taxable persons based on their anticipated taxable sales. Therefore, taxable persons with a monthly tax liability of USD 150 or more must file a monthly return. If the monthly tax due is between USD 50 and 150, quarterly returns are due. Finally, if the monthly tax due is below USD 50, annual returns are permitted.

Penalties for Non-Compliance with Sales and Use Tax Requirements

When the amount of sales tax paid is less than the amount owed, the vendor or any other person liable for the tax must pay the unpaid balance, along with interest at a daily rate of 0.02945% or an annual rate of 10.75%. The outstanding amount becomes due within 10 days of the Tax Department issuing a notice and demand. The interest rate is recalculated annually on January 1 and capped at 18%.

In addition to interest, when a tax deficiency results from negligence or intentional disregard of rules and regulations, but without intent to defraud, a penalty equal to 10% of the deficiency is imposed. However, if the deficiency is due to fraud with the intent to evade the tax, the penalty increases to 25% of the unpaid amount.