The Wyoming Department of Revenue issued sales and use tax guidelines for the construction industry. Included in the publication is Wyoming’s definition of a contractor, which includes any person who owns or leases real property for the purpose of development and in doing so alters or makes improvements to the property or contracts for the alteration or improvement of the property.
The guidelines also clarified registration requirements for projects utilizing out-of-state contractors. Any construction project that has been awarded to a non-resident general contractor, subcontractor, or lower-tier subcontractor must be registered on ETS Form #121, Construction Project and General Contractor Registration Form. Additionally, all non-resident subcontractors and lower-tier subcontractors, as well as any resident general contractor who awards a contract to a non-resident lower-tier subcontractor, must be registered on ETS Form #120, Non-Resident Subcontractor Information Report.
Non-resident general contractors must post a surety bond or cash deposit equal to 4% of the total contract value to cover any potential sales or use tax liability which may arise over the course of the project. Similarly, each contractor or subcontractor is required to retain 4% of the payments due to the subcontractors below them until the department issues written authorization to release the retainage. (Sales Tax Guidelines for the Construction Industry, Wyoming Department of Revenue, August 22, 2008).