W.S. § 39-15-602 — 39-15-602

Local government distributions of state sales
and use taxes; supplemental funding formula; revenue challenged
formula.
(a) An amount equal to eight percent (8%) of all sales
taxes imposed under W.S. 39-15-104(a) and (b) and use taxes
imposed under W.S. 39-16-104(a) and (b) that are collected and
accrued for the immediately preceding fiscal year, as determined
by the department of revenue, shall be transferred from the
general fund to the office of state lands and investments for
distribution to cities, towns and counties to be allocated as
follows and as further provided in this section:
(i) Two-thirds (2/3) of eighty-nine percent (89%) of
the total amount for direct distribution to cities and towns
provided that five percent (5%) of the amount available under
this paragraph shall only be distributed for direct
distributions to cities and towns using the revenue challenged
formula as provided in paragraph (b)(ii) of this section;
(ii) One-third (1/3) of eighty-nine percent (89%) of
the total amount for direct distribution to counties;
(iii) Five and one-half percent (5.5%) of the total
amount for direct distribution to cities and towns provided that
five percent (5%) of the amount available under this paragraph
shall only be distributed for direct distributions to cities and
towns using the revenue challenged formula as provided in
paragraph (b)(ii) of this section;
(iv) Five and one-half percent (5.5%) of the total
amount for direct distribution to counties.
(b) Funds distributed in paragraphs (a)(i) and (iii) of
this section shall be distributed to cities and towns each
fiscal year. Distributions shall be made in equal amounts on
October 15 and March 15 of each fiscal year as calculated from
revenues collected and accrued in the immediately preceding
fiscal year prior to the October 15 distribution, subject to the
following:
(i) Except as provided in paragraph (ii) of this
subsection, from these distributions each municipality with a
population of thirty-five (35) or less shall first receive
fifteen thousand dollars ($15,000.00) and each municipality with
a population over thirty-five (35) shall first receive thirty-
five thousand dollars ($35,000.00). From the remainder, each
municipality shall receive amounts in accordance with a
municipal supplemental funding formula as provided in this
paragraph. The municipal supplemental funding formula shall be
calculated by the office of state lands and investments as
follows:
(A) Calculate the per capita sales and use tax
revenues available to each municipality using the sales and use
tax distributions to the county where each municipality is
located attributable to the most recently completed fiscal year,
including distributions to each municipality within that county
under W.S. 39-15-111 and 39-16-111 but excluding the
distribution exclusively to counties under W.S. 39-15-
111(b)(iii) made from an amount equivalent to one percent (1%)
of the tax collected under W.S. 39-15-104 and excluding the
distribution exclusively to counties under W.S. 39-16-
111(b)(iii) made from an amount equivalent to one percent (1%)
of the tax collected under W.S. 39-16-104;
(B) Calculate the inverse by dividing one (1) by
the per capita sales and use tax numbers determined under
subparagraph (A) of this paragraph for each municipality;
(C) Calculate the normalized per capita sales
and use tax number for each municipality by dividing the number
determined under subparagraph (B) of this paragraph for the
municipality by the total of all inverse per capita sales and
use tax numbers calculated under subparagraph (B) of this
paragraph;
(D) Multiply the normalized per capita sales and
use tax number for each municipality by seventy-five percent
(75%);
(E) Calculate the per capita assessed value for
the prior tax year corresponding to the most recently completed
calendar year for each municipality by dividing the total
assessed valuation within the municipality by the population of
the municipality;
(F) Calculate the inverse by dividing one (1) by
the per capita assessed value determined under subparagraph (E)
of this paragraph for each municipality;
(G) Calculate the normalized per capita assessed
value number for each municipality by dividing the number
determined under subparagraph (F) of this paragraph for the
municipality by the total of all inverse per capita assessed
value numbers calculated under subparagraph (F) of this
paragraph;
(H) Multiply the normalized per capita assessed
value number for each municipality by twenty-five percent (25%);
(J) Multiply the sum of subparagraphs (D) and
(H) of this paragraph for each municipality by the population of
the municipality;
(K) Calculate the normalized index for each
municipality by dividing the number determined under
subparagraph (J) of this paragraph for the municipality by the
sum of all numbers calculated under subparagraph (J) of this
paragraph;
(M) Determine the amount to distribute to each
municipality by multiplying the normalized index number
determined under subparagraph (K) of this paragraph by the
amount remaining available for distribution under this
paragraph.
(ii) From the funds distributed in paragraphs (a)(i)
and (iii) of this section, each city or town shall receive
amounts in accordance with a city and town revenue challenged
formula as provided in this paragraph. The revenue challenged
formula shall be calculated by the office of state lands and
investments as follows:
(A) Calculate the lowest quartile amount
received by cities and towns on a per capita basis using amounts
received under this section plus amounts distributed to each
city and town using the sales and use tax distributions to the
county where each municipality is located attributable to the
most recently completed fiscal year under this paragraph,
including distributions to each municipality within that county
under W.S. 39-15-111 and 39-16-111 but excluding the
distribution exclusively to counties under W.S. 39-15-
111(b)(iii) made from an amount equivalent to one percent (1%)
of the tax collected under W.S. 39-15-104 and excluding the
distribution exclusively to counties under W.S. 39-16-
111(b)(iii) made from an amount equivalent to one percent (1%)
of the tax collected under W.S. 39-16-104;
(B) Determine each city or town that received a
per capita amount that is less than the lowest quartile amount
determined under subparagraph (A) of this paragraph;
(C) For each city or town that received a per
capita amount that is less than the lowest quartile amount as
provided in subparagraph (B) of this paragraph, determine the
amount that would be necessary to increase the per capita amount
distributed to that city or town to the lowest quartile amount
determined under subparagraph (A) of this paragraph;
(D) Determine the amount to distribute to each
city or town that received an amount that is less than the
lowest quartile amount determined under subparagraph (A) of this
paragraph by distributing the amount available under this
paragraph on a pro rata basis, up to the lowest quartile amount,
based on the amounts determined under subparagraph (C) of this
paragraph.
(c) Funds distributed in paragraphs (a)(ii) and (iv) of
this section are to be distributed to counties each fiscal year.
Distributions shall be made in equal amounts on October 15 and
March 15 of each fiscal year as calculated from revenues
collected and accrued for the immediately preceding fiscal year
prior to the October 15 distribution. From these distributions
each county shall receive the following:
(i) Each county with an assessed value for the tax
year prior to the most recently completed calendar year of less
than three hundred thousand dollars ($300,000.00) per mill shall
first receive an amount equal to three (3) times the difference
between three hundred thousand dollars ($300,000.00) and the
actual value of one (1) mill within the county. From the
remainder, each county shall receive amounts in accordance with
a county supplemental funding formula as provided in this
paragraph. The county supplemental funding formula shall be
calculated by the office of state lands and investments as
follows:
(A) Calculate the per capita sales and use tax
revenues available to each county using the sales and use tax
distributions to each county attributable to the most recently
completed fiscal year, excluding distributions to each
municipality within that county under W.S. 39-15-111 and 39-16-
111;
(B) Calculate the inverse by dividing one (1) by
the per capita sales and use tax number determined under
subparagraph (A) of this paragraph for each county;
(C) Calculate the normalized per capita sales
and use tax number for each county by dividing the number
determined under subparagraph (B) of this paragraph for the
county by the total of all inverse per capita sales and use tax
numbers calculated under subparagraph (B) of this paragraph;
(D) Multiply the normalized per capita sales and
use tax number determined under subparagraph (C) of this
paragraph for each county by twenty-four percent (24%);
(E) Calculate the per capita assessed value for
each county by dividing the total assessed valuation within the
county for the tax year prior to the most recently completed
calendar year by the population of the county;
(F) Calculate the inverse by dividing one (1) by
the per capita assessed value determined under subparagraph (E)
of this paragraph for each county;
(G) Calculate the normalized per capita assessed
value number for each county by dividing the number determined
under subparagraph (F) of this paragraph for the county by the
total of all inverse per capita assessed value numbers
calculated under subparagraph (F) of this paragraph;
(H) Multiply the normalized per capita assessed
value number determined under subparagraph (G) of this paragraph
for each county by seventy-six percent (76%);
(J) Calculate a cost of government index for
each county, which shall be determined by multiplying six
hundred twenty-eight (628) by the population of the county and
then adding nine million nine hundred thousand (9,900,000) to
the result;
(K) Calculate the normalized cost of government
index number for each county by dividing the number determined
under subparagraph (J) of this paragraph for the county by the
total of all cost of government index numbers calculated under
subparagraph (J) of this paragraph;
(M) Multiply the sum of subparagraphs (D) and
(H) of this paragraph by the normalized cost of government index
number determined in subparagraph (K) of this paragraph for each
county;
(N) Calculate the normalized index for each
county by dividing the number determined under subparagraph (M)
of this paragraph for the county by the total of all numbers
calculated under subparagraph (M) of this paragraph;
(O) Determine the amount to distribute to each
county by multiplying the normalized index number determined
under subparagraph (N) of this paragraph by the amount remaining
available for distribution under this paragraph.