WEDA SUMMER CONFERENCE

1. WEDA SUMMER CONFERENCE • Legislative Overview • Manufacturing Exemption • Wyoming Business Council • Joint Revenue Committee • Contested Seats • Action Items

2. Legislative Overview • General Session • 40 days for non budget items • WEDA items • WBC – BRC funding • Manufacturing Exemption • Election cycle • State elected officials • ½ of Senate and Representatives

3. Manufacturing Exemption • Passed in 2004 • 34 other states have sales tax exemption for manufacturers • From 2004 (see state and natl data) • Exemption allows for recruitment, expansion and survival of existing manufacturers. • Increased property and excise tax and employment • Dept. of Revenue study shows in FY 2009 industry was able to reinvest 7.4M in wages, benefits and equipment

4. Manufacturing Exemption Legislative Concerns • State leaving money on the table • Refineries, Trona Industry • 10 top companies use 80% of exemption • General dislike of exemptions • No real data on exemption spurring growth and other taxes collected • “Forklift Exemption”

5. Manufacturing Exemption • National Manufacturing Employment Jan. 2004 to July 2010 went from 14,171,000 to 11,744,000 or down 17%. From Jan 2004 to Dec. 2008 (prior to recession), it decreased 8.9%. • Wyoming Manufacturing Employment Jan. 2004 to May 2010 went from 9,400 to 9,500 or increased slightly.

6. Property Tax Impact • Used Lathe, welder, plasma cutter, CNC, and Forklift each valued at $100,000. State would lose $15,000 of sales tax. • The formula for calculating tax amount is FMV x level of assessment = assessed value x mill levy = tax amount. • 249,918 x .095 = 23,742 x .071 = $1,685.70. Average life of 12 years. 12 x 1,685.7 = $20,228

7. Refinery Expenses

8. Taxes paid 2004-2009

9. Capital Expenditures

10. Wyoming Business Council • No real threat at this point • Gubernatorial candidates mostly seem to support • Same general grumblings from same people • WEDA flyer will again show support for WBC

11. Joint Revenue Committee • Senate • John Schiffer R S22 Chairman • Cale Case R S25 • Grant Larson R S17 • Marty Martin D S12 • Drew Perkins R S29

12. Joint Revenue Committee Representatives • Rodney "Pete" Anderson R H10 Chairman Amy Edmonds R H12 • Ken Esquibel D H41 • W. Patrick Goggles D H33 • Michael Madden R H40 • David Miller R H55 • Owen Petersen R H19 • Mark Semlek R H01 • Sue Wallis R H52

13. Joint Revenue • Existing Revenue Committee will draft bill for Manufacturing Exemption. • Meets December 16 and 17, 2010 • Joint Minerals meets Sept. 20 -21 in Jackson

14. Contested Seats • Best time to contact Legislators – NOW before session. • Best way to contact Legislators – in person now and email during session. • All Legislator Contact information at: http://legisweb.state.wy.us/

15. Action Items • CONTACT YOUR LEGISLATOR • Contact the Joint Revenue Legislators prior to December • Good time to visit with legislators in general while campaigning • Keep everyone else informed thru WEDA • Low budget for lobbyist • Make legislative suggestions

16. ACTION ITEMS • Prior to session, the best lobbyist we have is ourselves. • During session and committees, contact Lynn Birleffi at 307-421-1831 or lynn@wlra.org • Work with WAM and WACO • Coordinate with like cause groups: Chamber Execs, Wyoming Manufacturing Association, Manufacturing Works, etc.

17. ACTION ITEMS • Get to know Gubernatorial candidates and make relationship