Wyoming has a revenue problem. That’s something we can all agree on.
The continued reliance on the mineral extraction has put several state services at risk as legislators scramble to find ways to cut costs without increased taxation or other “revenue enhancers” that would bring more funding into the state coffers. We’re certain their efforts won’t be enough, even if they go as far as cutting $100 million from education spending and bait the state’s school districts into a lawsuit in the process.
A reader sent us a rough outline creating what he calls a “third rail” for state revenue enhancement, focusing on alcohol tax increases. Alcohol tax is something that would bring additional funds to the state and are out of line with similar taxes in other states. Wyoming is dead last in taxes charged on beer, having been unchanged from the 2 cents per gallon originally levied in 1935. Aside from alcohol taxes, the state sales tax is lower than most states at 4% on the dollar (counties can pass their own sales taxes, such as the additional 1% levied in Sweetwater County, or the “sixth penny” special purpose taxes previously passed by voters).
The problem is, no singular tax will be great enough to pull the state out of fiscal pit it’s in. There is no single solution to fix this problem. The only real way for the state to recover is if the Wyoming Legislature decides to rework and update the state’s taxes to reduce its reliance on minerals industries. Diversification is key and would go a long way in ensuring Wyoming doesn’t see the large swing in fortunes we’ve seen in the last 20 years.
The state’s mining industry has paid the bills for decades and that’s a luxury we can’t afford anymore. With this in mind, why not initiate a property tax on the people who buy into the cowboy lifestyle through large mega ranches? We should definitely consider raising the state’s sales tax to 5% and spend that additional percent on K-12 education. Thinking more locally, discussions for a new sixth penny special purpose tax should resume because without it, Green River and other communities will not be able to maintain their existing infrastructure.
Our leaders will be unable to make the cuts needed to balance the state’s budget and attempts to do so will cause more pain as both jobs and services will be severed. When that happens, the impacts of those decisions will be felt for generations to come. Wyoming needs leadership with a keen eye towards a better future and a serious plan to make it happen.
The solutions are out there, but it’s going to take everyone working together for the state to recover and thrive without the minerals industry.
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