Wyoming Tax Relief: Sales Tax, Severance Tax & Appeals

Wyoming Tax Relief Overview

Wyoming Has No State Income Tax

Wyoming Constitution Article 15, Section 18 prohibits both personal income tax and corporate income tax. Wyoming also does not collect capital gains tax, gift tax, or estate tax. If you are dealing with income tax debt, it is almost certainly federal (IRS) — not Wyoming state.

Owing Wyoming state taxes is different from owing the IRS — and different from most other states. The Wyoming Department of Revenue (WY DOR) administers sales tax, use tax, mineral severance tax, and various excise taxes. There is no state income tax to owe.

Important: Wyoming does not have a formal Offer in Compromise (OIC) program. Under W.S. 39-11-103(a)(ii), the Department may only compromise disputed tax liabilities that are disputed in good faith. There is no general program to settle undisputed tax debt for less than the full amount. Your resolution options are generally limited to payment plans, penalty relief, paying in full, or filing an appeal if you dispute the assessment.

Depending on your situation, you may need one or more of the following: a payment plan to pay over time and keep you off the public delinquent list; an appeal if you disagree with a Department of Revenue decision; penalty relief if penalties make the balance impossible to pay; lien resolution or levy help if collection action has started; or filing help if you have unfiled Wyoming tax returns.

If your business owes Wyoming sales tax or you are in the mineral extraction industry facing severance tax liability, the stakes can be high. Sales tax is a trust fund tax, and mineral tax liens attach to all property, including future production.

‍

Wyoming Tax Relief Options at a Glance

Offer in Compromise: Not available in Wyoming as a formal program. W.S. 39-11-103(a)(ii) allows compromise only of disputed liabilities in good faith. Payment plans and penalty relief are the primary alternatives.

‍

What Wyoming Tax Notice Did You Receive?

Select your notice type for a quick explanation of what it means and your options.

‍

‍

What the Wyoming Department of Revenue Can Do to Collect

If you owe Wyoming state taxes and do not address the balance, the WY DOR has a range of collection tools. Not every case reaches the most serious actions, but the longer a balance goes unpaid, the more options the state may use.

‍

If you cannot pay your Wyoming state tax balance in full, a formal payment arrangement may be an option. Wyoming's payment arrangement system has an important benefit: taxpayers with a formal arrangement are NOT posted on the public delinquent taxpayer list.

Warning: Public Delinquent List. Taxpayers who are 150 days or more delinquent and have not entered into a formal payment arrangement will be posted on the monthly public delinquent taxpayer/vendor list after 30 days' written notice. Entering into a formal payment arrangement before this threshold keeps your name off the public list.

Key Conditions for Wyoming Payment Arrangements

Source: WY DOR Delinquent Taxpayer List. Approval is discretionary. No guarantee of approval.

‍

‍

Which Wyoming Tax Relief Option Fits Your Situation?

‍

Does Wyoming Have an Offer in Compromise Program?

No. Wyoming does not have a formal Offer in Compromise (OIC) program like the IRS. This is one of the most important differences between Wyoming state tax relief and federal tax relief.

Under W.S. 39-11-103(a)(ii), the Wyoming Department of Revenue may, for good cause, compromise and settle with a taxpayer for payment of disputed tax liabilities that are disputed in good faith and have not been settled in law. This is not a general OIC program — it applies only to liability that is legitimately in dispute.

If the Department and the taxpayer do not agree on tax liability, the Department shall assess and levy the full amount, and the taxpayer may appeal to the State Board of Equalization.

If you owe Wyoming state taxes, your resolution options are generally limited to: paying in full if you have the funds; a payment arrangement with WY DOR that keeps you off the public delinquent list; penalty relief if you have good cause under W.S. 39-15-108(c)(xv); or an appeal if you dispute the assessment and act within the strict 30-day deadline.

Do not assume federal OIC strategies apply to Wyoming state tax debt. Wyoming law does not provide for the settlement of undisputed tax liabilities for less than the full amount through an OIC-type program.

‍

Penalty relief is different from a payment plan. A payment plan lets you pay over time. Penalty relief asks Wyoming to reduce or remove penalties when allowed under state rules.

Sales and Use Tax Penalties

Under W.S. 39-15-108(c), Wyoming imposes penalties on sales/use tax deficiencies. If any part of the deficiency is due to negligence or intentional disregard of the rules — without intent to defraud — a 10% penalty applies under W.S. 39-15-108(c)(i). If any part of the deficiency is due to fraud or intent to evade the tax, a separate 25% penalty applies. A late filing penalty of 5% of the taxes due applies for each 30-day period (or fraction), up to a maximum of 25%.

Penalty Waiver for Good Cause

The 10% negligence penalty may be credited or waived by the Department "as part of a settlement or for any other good cause" under W.S. 39-15-108(c)(xv). Under Department Rules Chapter 2, Section 11(b):

"Penalties may be waived by the Department Director and Excise Division Administrator if the taxpayer can demonstrate that the Department's billing is in error or that other extenuating circumstances existed to cause delinquency. Late mailing shall not constitute just cause for a waiver. Requests for waiver shall be in writing and shall evidence the reason for waiver."

Severance Tax Penalty Relief

The Department may also credit or waive interest on severance tax as part of a settlement or for any other good cause under W.S. 39-14-208(c)(v).

How to Request Penalty Relief

Submit a written request to the Wyoming Department of Revenue; demonstrate that the Department's billing is in error, or provide evidence of extenuating circumstances; note that late mailing is not considered just cause; and understand that approval is discretionary — there is no guarantee of waiver.

Source: W.S. 39-15-108(c) | WY DOR Rules Ch. 2, Sec. 11(b) | W.S. 39-14-208(c)(v)

Penalty Relief vs. Payment Plan

A penalty waiver and a payment arrangement are separate processes. A payment arrangement does not automatically remove penalties. Penalty relief must be requested separately and approved based on good cause. Even if penalties are waived, the underlying tax and interest must still be paid.

‍

The Wyoming State Board of Equalization (SBOE) is Wyoming's "tax court" — a full-time constitutional board of three citizens appointed by the Governor that hears disputes between taxpayers and the Department of Revenue.

30-Day Deadline — STRICT AND NON-EXTENDABLE. Appeals from a Department of Revenue final decision must be filed with the SBOE within 30 days of the final administrative decision or the postmark date, whichever is later. The SBOE has NO power to extend this deadline. Any party that fails to meet the deadline loses the right to appeal. Do not wait.

How to File an Appeal

Appeals must be filed by personal delivery, mail to P.O. Box 448, Cheyenne, WY 82003, or fax to 307-777-6363. The appeal notice must include: a copy of the decision appealed from; a statement of facts and errors; the amount of tax assessment and tax in controversy; and the relief sought.

About the Wyoming State Board of Equalization

Type: Constitutional board of three citizens appointed by the Governor

Jurisdiction: Hears disputes between taxpayers and the WY DOR

Expedited Docket: Available when there are no disputed issues of material fact — parties argue through written briefs without presenting evidence

Authority: The SBOE may consider all relevant law, even aspects that the parties fail to raise

Further Appeal: Any party aggrieved by a final SBOE decision may appeal to the appropriate Wyoming District Court within 30 days, then to the Wyoming Supreme Court

Wyoming State Board of Equalization Contact

Physical Address: Hathaway Building Room 124, 2300 Capitol Ave, Cheyenne, WY 82002. Mailing: P.O. Box 448, Cheyenne, WY 82003. Phone: (307) 777-6989. Fax: 307-777-6363. Email: equalization@wyo.gov

Source: WY State Board of Equalization | SBOE FAQ. Contact details should be reconfirmed against the current SBOE website before publishing, since agency phone/fax numbers change more often than statutes.

‍

‍

A tax lien is a claim filed by the state against your property. Wyoming tax liens attach from the date the tax is due and can affect your ability to sell or refinance property, obtain credit, and operate your business.

Sales and Use Tax Liens

Under W.S. 39-15-108(d)(i), any tax due constitutes a debt to the state and is a lien from the date the tax is due on all real and personal property. The lien has priority from the date of filing over all subsequent liens, except valid mortgages or other liens of record filed prior to the date the tax became due. Notice is filed with the county clerk, and the Department shall cancel lien statements within 60 days after taxes due are paid or collected.

Mineral Severance Tax Liens — Extraordinary Reach

Mineral tax liens are especially powerful. Under W.S. 39-14-208(e), all severance taxes, fees, penalties, and interest are an automatic and continuing lien in favor of the state on all property in Wyoming (real, tangible, and intangible). This includes all after-acquired property rights and future production, is superior and paramount to all other liens except a bona fide creditor's lien properly perfected prior to the filing, and survives the death or incapacitation of any person or any other destruction or attempted destruction of any interest in property.

Source: W.S. 39-15-108(d)(i) | W.S. 39-14-208(e)

‍

If Wyoming taxes remain unpaid, the Department may take enforced collection action, including seizing and selling property.

Seizure and Sale

Under W.S. 39-15-108(e)(i), the tax due together with interest, penalties, and costs may be collected by appropriate judicial proceedings, or the department may seize and sell at public auction so much of the person's property as will pay all amounts due.

Severance Tax — Purchaser Withholding

When a taxpayer fails to pay severance taxes, the purchaser of the produced minerals shall withhold and remit the taxpayer's subsequently accruing taxes to the department after written notice under W.S. 39-14-208(a)(ii).

License Suspension

The Department may suspend a vendor's sales tax license until compliance is achieved.

Jeopardy Assessment

When the Department has reason to believe that the collection of any tax will be jeopardized by delay, it shall immediately levy a jeopardy assessment. The amount is due and payable immediately. If not paid within 10 days, a deficiency penalty and interest attach.

Source: W.S. 39-15-108(e)(i) | W.S. 39-14-208(a)(ii)

‍

Wage garnishment means Wyoming (through court proceedings) can take money directly from your paycheck to pay a tax debt. Wyoming follows state garnishment statutes.

How Much Can Wyoming Take?

Under W.S. 1-15-408, Wyoming wage garnishment (continuing garnishment) is capped at the lesser of 25% of disposable earnings or the amount exceeding 30 times the federal minimum hourly wage. A continuing garnishment is effective for 90 days.

Wage Garnishment at a Glance

If you have received a notice about garnishment, do not ignore it. Once garnishment starts, the money is taken before you receive your paycheck.

Note: the 90-day duration and the W.S. 1-15-502/511 cross-references should be independently confirmed against current statute text before this copy is published — they were not directly pulled during this pass.

Source: W.S. 1-15-408

‍

‍

If you have not filed Wyoming tax returns for one or more periods, that can block most resolution options. The Wyoming Department of Revenue may estimate your tax and issue assessments based on those estimates — and those estimates are prima facie correct under W.S. 39-15-108(c)(xii).

Unfiled returns block payment arrangement eligibility; the Department may issue substitute returns that may be higher than what you actually owe; penalty relief generally requires all returns to be filed; the 3-year statute of limitations on assessments may not start until a return is filed; and if a vendor fails to file, the Department shall make a return from the best information available, which is prima facie correct.

Filing accurate returns can sometimes reduce an incorrect balance. But do not rush or file bad returns — get them prepared correctly with the right documentation. Wyoming requires records to be preserved for 3 years.

Source: W.S. 39-15-108(c)(xii)

‍

Business tax debt in Wyoming can involve sales/use tax, mineral severance tax, and various excise taxes. Understanding which taxes apply to your business and the associated collection risks is critical.

Wyoming Sales Tax — Trust Fund Responsibility

Under W.S. 39-15-103(c)(i), every vendor shall collect the tax imposed and is liable for the entire amount of taxes imposed. If you collect sales tax from customers, you are responsible for remitting it to the state. Failure to do so can result in personal liability for the full amount.

Successor Liability Warning: Under W.S. 39-15-103(c)(iv), when a vendor sells their business, the successor must withhold from the purchase price enough money to pay taxes, penalties, and interest due. If the successor fails to withhold, both the original vendor and successor are liable.

Remote Seller Economic Nexus — $100,000 Threshold: Under W.S. 39-15-501(a)(viii), a remote seller with more than $100,000 in Wyoming sales in the current or prior calendar year must collect and remit Wyoming sales tax. The 200-transaction threshold was eliminated effective July 1, 2024. Marketplace facilitators must also collect and remit Wyoming sales tax on behalf of third-party sellers.

Mineral Severance Tax for Producers

If your business extracts natural resources in Wyoming, severance tax liability can be substantial. Key rates under Wyoming Statutes Title 39, Chapter 14:

• Crude oil: 6% of taxable value
• Natural gas: 6% of taxable value
• Coal (surface): 6.0%, reduced from 6.5% under 2025 Session Law Chapter 31 (House Bill 75), effective July 1, 2025; Coal (underground): 3.75%
• Trona: 4%
• Stripper wells: Reduced rate of 4% (wells producing less than 10 barrels/day if price over $20/bbl)

Total severance tax collections reached $748.3 million in FY2024, with crude oil, natural gas, coal, and trona each contributing meaningfully to that total. FY2025 figures should now be available from the WY DOR or Legislative Service Office and should replace these FY2024 numbers before this page is republished — independent confirmation of a verified FY2025 breakdown by mineral type was not obtained during this review pass, so the last confirmed figures were kept rather than estimated. Severance taxes fund the Wyoming Permanent Mineral Trust Fund — the state's largest sovereign wealth fund.

Mineral Tax Lien — Special Rules

Mineral tax liens under W.S. 39-14-208(e) are extraordinarily powerful — they are automatic, continuing, attach to all property, including after-acquired property and future production, and survive death, incapacitation, and attempted destruction of property interests.

Source: W.S. 39-15-103 | W.S. 39-14-203 et seq. | 2025 Wyo. Sess. Laws Ch. 31 (HB 75)

‍

‍

Wyoming Tax Relief Tools & Calculators

Use our Wyoming calculators to estimate penalties, interest, or garnishment risk. Then request a review if the numbers show the balance is growing or collection is already active.

‍

Wyoming Government Resources

These are the official Wyoming sources for tax information, payment arrangements, appeals, and rules. Always check the official source for the most current information.

• Wyoming Department of Revenue — Official tax agency portal
• WY DOR Excise Tax Division — Sales tax, use tax, lodging tax, and excise tax
• WY DOR Mineral Tax Division — Severance taxes on oil, gas, coal, trona, uranium
• Wyoming State Board of Equalization — Tax appeals body
• SBOE FAQ — Filing an Appeal — Appeal process, deadlines, and requirements
• WY DOR Delinquent Taxpayer List — Public delinquent list information
• WY DOR Excise Tax FAQs — Common questions about sales and use tax
• Wyoming Statutes Title 39 — Taxation and Revenue — Complete statutory framework
• Wyoming Statutory Tax Structure (June 2025) — Revenue sources, rates, and collections
• Wyoming Department of Audit — State audit functions

‍

Not Sure What to Do With Your Wyoming Tax Situation?

Select the card that matches your situation to jump to the relevant section.

‍

Frequently Asked Questions About Wyoming Tax Relief

Does Wyoming have an income tax?

No. Wyoming does not have a state personal income tax or corporate income tax. Article 15, Section 18 of the Wyoming Constitution prohibits both. Wyoming also does not collect capital gains, gift, or estate taxes. This is one of the most significant differences between Wyoming and most other states. If you have income tax debt, it is almost certainly federal (IRS) tax debt.

Does Wyoming have an Offer in Compromise program?

No. Wyoming does not have a formal Offer in Compromise (OIC) program comparable to the IRS. Under W.S. 39-11-103(a)(ii), the Wyoming Department of Revenue may, for good cause, compromise and settle disputed tax liabilities that are disputed in good faith and have not been settled in law. However, there is no general OIC program for taxpayers to settle undisputed tax debt for less than the full amount. Payment arrangements and penalty relief are the primary resolution options.

What is Wyoming's mineral severance tax?

Wyoming levies a severance tax on the value of the gross product extracted for the privilege of severing natural resources. Key rates are: crude oil at 6%, natural gas at 6%, coal at 6.0% for surface coal (reduced from 6.5% effective July 1, 2025), and 3.75% for underground coal, and trona at 4%. Total severance tax collections were $748.3 million in FY2024, making severance tax Wyoming's largest tax revenue source after property taxes. These taxes fund the Wyoming Permanent Mineral Trust Fund, the state's largest sovereign wealth fund.

How long do I have to appeal a Wyoming tax decision?

You have 30 days from the date of the Wyoming Department of Revenue's final administrative decision (or postmark date, whichever is later) to file an appeal with the Wyoming State Board of Equalization. This deadline is STRICT and NON-EXTENDABLE — the SBOE has no power to extend it. Missing this deadline means you lose your right to appeal. Appeals must include a copy of the decision, statement of facts and errors, the tax amount in controversy, and the relief sought.

Can I get a payment plan for Wyoming state taxes?

Yes. Wyoming allows taxpayers to enter into formal payment arrangements with the Department of Revenue. An important benefit: taxpayers with a formal payment arrangement are NOT posted on the public delinquent taxpayer list. Taxpayers who are 150 days or more delinquent and have not entered into a formal payment arrangement will be posted on the monthly public delinquent list after 30 days' written notice. To request a payoff amount or payment arrangement, contact the WY DOR at (307) 777-5200.

What taxes does Wyoming collect?

Wyoming has no personal or corporate income tax. The state's primary taxes are: sales and use tax (4% state rate plus local option up to 2%, combined 4-6%); mineral severance tax on oil (6%), natural gas (6%), coal (6.0% surface / 3.75% underground), trona (4%), and other minerals; property tax, assessed locally with state oversight; lodging tax (5% statewide plus county option up to 2%); and various excise taxes including nicotine products, prepaid wireless, wind generation, and nuclear generation taxes.

What is the statute of limitations for Wyoming tax assessments?

The statute of limitations for Wyoming sales and use tax assessments is 3 years from the date of delinquency. The Department of Revenue cannot assess tax more than 3 years after the date of delinquency unless fraud is involved. The statute of limitations for refund claims is also 3 years from the date of overpayment. Taxpayers must preserve records for 3 years per W.S. 39-15-110(c).

Can Wyoming waive tax penalties?

Yes. The Wyoming Department of Revenue may waive the 10% negligence penalty for good cause under W.S. 39-15-108(c)(xv) and Department Rules Chapter 2, Section 11(b). Penalties may be waived if the taxpayer demonstrates that the Department's billing is in error or that other extenuating circumstances caused the delinquency. Late mailing is not considered just cause. Requests for waiver must be in writing and shall evidence the reason for waiver. The Department may also waive interest on severance tax for good cause.

Can Wyoming file a tax lien or levy my property?

Yes. Wyoming taxes due constitute a debt to the state and create a lien on all real and personal property from the date the tax is due. The lien is filed with the county clerk and has priority over subsequent liens. For mineral taxes, the lien is automatic and continuing on all property in Wyoming, including after-acquired property and future production, and it survives death and incapacitation. The Department may also seize and sell property at public auction. For severance taxes, the purchaser of produced minerals must withhold and remit the taxpayer's accruing taxes after written notice.

Can Wyoming garnish wages for state tax debt?

Yes. Wyoming wage garnishment is capped at the lesser of 25% of disposable earnings or the amount exceeding 30 times the federal minimum hourly wage, per W.S. 1-15-408. A continuing garnishment is effective for 90 days. The Department may also seize and sell at public auction so much of a person's property as will pay all amounts due under W.S. 39-15-108(e)(i).

What if I have unfiled Wyoming tax returns?

Unfiled returns can block most resolution options. If a vendor fails to file a sales tax return, the Wyoming Department of Revenue shall make a return from the best information available, which is prima facie correct, and the tax due becomes a deficiency subject to penalties and interest. Filing accurate returns can sometimes reduce an incorrect balance. Do not rush or file bad returns — get them prepared correctly. Wyoming requires records to be preserved for 3 years.

What is Wyoming's sales tax rate?

Wyoming imposes a 4% state sales tax on the retail sale of tangible personal property and certain services. Counties may impose additional local option sales tax up to 2% (general purpose up to 1%, specific purpose up to 1%, and economic development up to 0.25%). Combined rates range from 4% to 6%. Food for domestic home consumption is exempt, but prepared food sold in restaurants is taxable. Vendors who timely file and pay receive a 1.95% discount on tax collected, capped at $500 per month. Remote sellers with more than $100,000 in Wyoming sales must collect and remit sales tax (the 200-transaction threshold was eliminated effective July 1, 2024).

What is Wyoming's public delinquent taxpayer list?

Wyoming publishes a monthly public delinquent taxpayer/vendor list. Taxpayers who are 150 days or more delinquent and have not entered into a formal payment arrangement will be posted on this list after receiving 30 days' written notice. Being on this list can affect your business reputation and credit. The good news: entering into a formal payment arrangement with the WY DOR before reaching the 150-day threshold keeps your name off the public list.

What interest rates apply to delinquent Wyoming taxes?

Different taxes carry different interest rates in Wyoming. Sales and use tax interest is set annually at the average prime rate plus 4%, adjusted each January, with a floor of 12% and a cap of 18%; a flat 1% per month rate applies only to sales made before July 1, 1994. Mineral severance tax (for minerals produced on or after January 1, 2015) bears interest at the average prime rate plus 4%, adjusted annually on January 1, with a minimum of 12% and a maximum of 18%. Property taxes bear interest at 18% per annum.

Sources Used

These are the official government sources used for this page. Always check the current official source for the most up-to-date information.

• Wyoming Department of Revenue — Official Portal: revenue.wyo.gov ↗
• Wyoming Department of Revenue — Excise Tax Division: excise-tax-div.wyo.gov ↗
• Wyoming Department of Revenue — Mineral Tax Division: mineral-tax-div.wyo.gov ↗
• Wyoming Department of Revenue — Delinquent Taxpayer List: excise-tax-div.wyo.gov/delinquent-taxpayer-list ↗
• Wyoming Department of Revenue — Excise Tax FAQs: excise-tax-div.wyo.gov/excise-tax-faqs ↗
• Wyoming State Board of Equalization — Official Website: taxappeals.state.wy.us ↗
• Wyoming State Board of Equalization — FAQ: taxappeals.state.wy.us/FAQ2.htm ↗
• Wyoming State Board of Equalization — Contact: Hathaway Building Room 124, 2300 Capitol Ave, Cheyenne WY 82002; P.O. Box 448, Cheyenne WY 82003; Phone (307) 777-6989; Fax 307-777-6363
• Wyoming Statutes Title 39 — Taxation and Revenue: wyoleg.gov/statutes/compress/title39.pdf ↗
• Wyoming Constitution Art. 15, Sec. 18 — Prohibition on Income Tax; and Art. 15, Sec. 9-10 — State Board of Equalization
• W.S. 39-11-103(a)(ii) — Compromise of disputed tax liabilities only
• W.S. 39-15-103(c) — Vendor liability and collection responsibility
• W.S. 39-15-108 — Penalties, interest, liens, and collection for sales tax
• W.S. 39-15-501(a)(viii) — Economic nexus ($100,000 threshold; 200-transaction test eliminated July 1, 2024)
• W.S. 39-14-203/303/403 — Severance tax rates for oil, gas, coal, and trona
• W.S. 39-14-208(e) — Mineral tax lien provisions (automatic, continuing, all property)
• W.S. 1-15-408 — Wage garnishment limits
• Wyoming Statutory Tax Structure presentation (June 2025): wyoleg.gov ↗
• Wyoming Department of Audit: audit.wyo.gov ↗

Disclaimer: This page provides general information about Wyoming state tax collection procedures and is not legal advice. Tax laws and agency procedures change. Wyoming has no state personal or corporate income tax under Wyoming Constitution Art. 15, Sec. 18. This page does not address federal (IRS) tax debt. Always consult the official Wyoming Department of Revenue website or a qualified tax professional for advice specific to your situation. No guarantee of any particular outcome is expressed or implied. Approval for payment arrangements, penalty relief, and other resolutions is discretionary.