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Eastern Laramine County Solid Waste Disposal District v. State Board of Equalization8/1/2000
Upon Writ of Review Original Proceeding
Appellant Eastern Laramie County Solid Waste Disposal District (District) seeks review of an order issued by Appellee State Board of Equalization (Board) upholding a decision of Appellee Department of Revenue (Department), which determined that the District was not exempt from taxes on sales of services and tangible personal property sold to the District because it was not a "political subdivision" as contemplated by the governing statute. We will reverse, holding that the governing statute unambiguously contemplates that the District is a part of "government" and is a "political subdivision" for purposes of that statute.
ISSUES
The District poses these issues:
I. Are the State Board of Equalization's and the State Department of Revenue's decisions, concluding that Appellant is not exempt from sales tax pursuant to W.S. § 39-15-105(a(iv), arbitrary, capricious, or not in accordance with law?
II. Does the public policy against taxing governmental entities support Petitioner's [District's] position?
III. Does the State Board of Equalization's and the State Department of Revenue's interpretations of W.S. § 39-15-105(a)(iv) violate the constitutional guarantees of equal protection?
In response, the Board and the Department offer these issues:
1. Does the political subdivision exemption from the sales and use tax exempt subdivisions that are not political such as solid waste disposal districts?
2. Does the Wyoming Constitution prohibit taxing solid waste disposal districts given that the law permits such districts to charge fees their services?
3. Does constitutional law require that solid waste disposal districts be accorded the same treatment under the tax statutes as weed and pest control districts given that solid waste disposal districts address different concerns than weed and pest control districts?
FACTS
On June 10, 1997, the District contacted the Department to confirm the tax exempt status it had enjoyed for at least the preceding seven years. By letter dated October 15, 1997, the Department informed the District that it was not an exempt entity under Wyoming sales/use tax law, applying the following reasoning:
According to Wyoming law, in order to be considered a political subdivision an entity must have the following characteristics:
(1) A geographic area smaller than the state of Wyoming;
(2) A governmental function with a local purpose;
(3) Officers elected by the district's inhabitants; and,
(4) Provisions for assessment of taxes to finance purposes. Witzenberger v. Wyoming Community Development Authority, 575 P.2d 1100, 1113 (Wyo. 1978).
According to Wyoming law, the governing board of solid waste disposal district consists of residents of the district appointed by the county commissioners. W.S. 18-11-102. As such, it is the Department's opinion that your organization does not meet criterion number (3) described above. Consequently, Eastern Laramie County Solid Waste Disposal District is not a political subdivision for purposes of sales/use tax.
By notice filed on November 13, 1997, the District appealed the Department's decision to the Board. For purposes of brevity, although the Board's order is lengthy, we will merely note that the Board affirmed the Department's determination that the District was not exempt on the same basis as that quoted above from the Department's letter to the District. The District then filed a petition for review pursuant to W.R.A.P. 12.09 in the district court, an
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