Sundance Reauthorizing 'Fifth Penny' Sales Tax

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Alongside other municipalities in Crook County, Wyoming, the city of Sundance is in the process of reauthorizing the local 1% excise tax, known as the 'fifth penny', to continue for another two-year period. The city council gave a second reading to the ordinance that each county entity must approve for the tax to remain in place.

Why it matters

The 'fifth penny' tax, which is in addition to the state's 4% sales tax, provides significant revenue to Crook County and its towns, with the majority of the proceeds staying local rather than going to the state. Reauthorizing this tax is an important part of the county's budget and funding for local services and projects.

The details

The 1% excise tax is imposed on retail sales, admissions, services, and the storage and use of tangible personal property in Crook County. It does not apply to certain exempted items like groceries and prescription drugs. While only about a third of the state's 4% sales tax revenue returns to the county, the 'fifth penny' tax allows Crook County and its municipalities to retain the vast majority of those local tax proceeds.

• On Tuesday, the Sundance city council gave a second reading to the ordinance.
• The 'fifth penny' tax must be reauthorized by the majority of Crook County municipalities and the county itself at least 90 days before the election where the tax would otherwise need to appear on the ballot, which occurs every two years.

What’s next

The Sundance city council must give a third and final reading to the ordinance reauthorizing the 'fifth penny' tax before it can be officially approved.