New Vendors Compensation Credit Helps Business
A new law which allows businesses collecting sales tax to keep up to 1.95% of that tax each month took effect Jan. 1. Businesses, though, must file their Tax return by Feb. 15 and by the 15th of each subsequent month to qualify for the money.
The Wyoming Dept. of Revenue has sent information to all businesses collecting sales and use tax that includes detailed instructions.
“The small amount of money businesses can keep under the new law is a recognition they incur costs in collecting and remitting sales taxes,” said Lynn Birleffi, Executive Director of the Wyoming Lodging and Restaurant Association. The Dept. of Revenue keeps one percent by law for its administrative costs, she points out, and now businesses can do the same.
If your tax due for the month is under $6,250.00, you keep 1.95% of the amount. You can then keep 1% of the total above that amount, up to a maximum of $500.00 per month.
The credit will be reported on Forms 41 and 42, which can be found on the website. A new line, titled “Vendor Compensation Credit,” has been added to both of these forms.
The Wyoming Dept. of Revenue’s website has details, at http://revenue.state.wy.us or by calling 307-777-7961.
The following documents explain more: