What is the 5th Penny Tax?
Sublette County is one of only two counties in the State of Wyoming that still has a 4% Sales & Use Tax. This tax would increase the 4% Sale & Use Tax to 5%.
This is an optional 1% local sales tax that counties can add to the 4% State sales tax. This additional tax does require voter approval and funding specific local projects like roads, schools, or infrastructure.
Currently, only about 31% of Sales & Use tax is returned to the local entities. The other 69% remains with the state. This additional optional 1% tax returns nearly entirely (99%) to our local entities (towns or county). Summarizing this, if you purchase something that is subject to Sales or Use Tax, in a county with a 4% sales tax, the state gets most, with the localities getting only a small share. If you purchase something in a county with a 5% sales tax, the State still gets the majority of the 4%, however, the locality keeps nearly the entire additional 1%.
Advantages of 5th Penny Sales Tax
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Community-Driven Funding : Residents vote on specific projects (roads, libraries, emergency services), ensuring funds go to prioritized needs, notes this article.
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Supports Essential Services : Provides revenue for vital functions like law enforcement, fire protection, 911 dispatch, and airport operations.
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Infrastructure & Capital Projects : Funds road maintenance, new equipment (fire trucks, snow plows), and improvements to parks and community complexes.
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Economic Development : Helps create jobs, supports local businesses, and fosters vibrant downtowns and community growth.
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No New Debt : Funds improvements immediately without taking on long-term debt, unlike bonds, says this article.
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Broad Tax Base : Collected from everyone who shops in the county, including tourists, not just residents, spreading the cost, notes this article.
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"Sunset" Clause : The tax can be temporary (for a set time or until a dollar amount is reached), ending once goals are met, providing control, say these articles and this article.
Eligibility for Impact Funding
Based on information regarding Wyoming state law and local reports, if Sublette County does not adopt the 1% optional general-purpose sales and use tax (known as the "5th Penny"), it may not be eligible for state impact-assistance funding related to large industrial developments.
Impact funding in Wyoming refers to various programs supporting communities facing economic shifts from energy development (like oil/gas), federal land impacts (schools), or general community development, ranging from state grants for local infrastructure (like Wyoming Business Council's Large Project Loans) to nonprofit initiatives. Key areas include assistance for schools with federal property students (Impact Aid), local government aid from energy projects, and community-focused investments for nonprofits and youth.
Impact Funding Requirement: Wyoming's Industrial Siting Act (W.S. 35-12-101 et seq.) links state impact-assistance funding for large industrial projects to the adoption of a 1% local-option tax. Without the 5th Penny in place, Sublette County and its municipalities risk losing an estimated $7.5 million in state impact-assistance funds for projects such as the Blue Spruce project, in addition to losing roughly $3.5 million in direct local revenue.
Legislative Basis: State legislation (HB0047, 2022) dictates that no impact assistance payment shall be made for any period in which the county is not imposing at least a 1% tax as authorized.
The Sublette County Commissioners are evaluating whether to place this 1% tax on a special election ballot for May 5, 2026.
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