Wyoming Economy

According to the 2005 U.S. Bureau of Economic Analysis report, Wyoming’s gross state product was $27.4 billion. Wyoming’s unemployment rate for 2006 was approximately 3.3%, which is lower than the national average of 4.6%. Components of Wyoming's economy differ significantly from those of other states. The mineral extraction industry and the travel and tourism sector are the main drivers behind Wyoming’s economy. The Federal government owns 50% of its landmass, while 6% is controlled by the state. Total taxable values of mining production in Wyoming for 2001 was over $6.7 billion. The tourism industry accounts for over $2 billion in revenue for the state.

In 2002, over six million people visited Wyoming’s national parks and monuments. The key tourist attractions in Wyoming include Grand Teton National Park, Yellowstone National Park, Devil’s Tower National Monument, and Fossil Butte National Monument. Each year Yellowstone National Park receives three million visitors.

Historically, agriculture has been an important component of Wyoming’s economic identity. Its overall importance to the performance of Wyoming’s economy has waned. However, it is still an essential part of Wyoming’s culture and lifestyle. The main agricultural commodities produced in Wyoming include livestock (beef), hay, sugar beets, grain (wheat and barley), and wool. Over 91% of land in Wyoming is classified as rural.

Wyoming’s mineral commodities include coal, natural gas, coal bed methane, crude oil, uranium, and trona. Wyoming ranks highest in mining employment in the U.S. In fiscal year 2002, Wyoming collected over $48 million in sales taxes from the mining industry.

• Coal: Wyoming produced 395.5 million short tons (358.8 tonnes) of coal in 2004. The state is the number one producer of coal in the U.S. Wyoming possesses a reserve of 68.7 billion tons (62.3 billion tonnes) of coal.
• Natural Gas: In 2004, natural gas production was 1,929 billion cubic feet (54.6 billion m3). Wyoming ranks 5th nationwide for natural gas production. The major markets for natural gas include industrial, commercial, and domestic heating.
• Coal Bed Methane (CBM): The boom for CBM began in the mid-1990s. CBM is characterized as methane gas that is extracted from Wyoming’s coal bed seams. It is another means of natural gas production. There has been substantial CBM production the Powder River Basin. In 2002, the CBM production yield was 327.5 billion cubic feet (9.3 billion m3).
• Crude Oil: Production of Wyoming crude oil in 2004 was 51.7 million barrels. The state is ranked 7th among producers of oil in the U.S. Petroleum is most often used as a motor fuel, but it is also utilized in the manufacture of plastics, paints, and synthetic rubber.
• Trona: Wyoming possesses the largest known reserve of trona in the world. Trona is used for manufacturing glass, paper, soaps, baking soda, water softeners, and pharmaceuticals. In 2002 Wyoming produced 17.3 million short tons (15.7 million tonnes) of trona.

Unlike most other states, Wyoming does not levy an individual or corporate income tax. In addition, Wyoming does not assess any tax on retirement income earned and received from another state. Wyoming has a state sales tax of 4%. Counties have the option of collecting an additional 1% tax for general revenue and a 2% tax for specific purposes, if approved by voters. There also is a county lodging tax that varies from 2% to 5%. The state collects a use tax of 5% on items purchased elsewhere and brought into Wyoming. All property tax is based on the assessed value of the property and Wyoming's Department of Revenue's Ad Valorem Tax Division supports, trains, and guides local government agencies in the uniform assessment, valuation and taxation of locally assessed property. "Assessed value" means taxable value; "taxable value" means a percent of the fair market value of property in a particular class. Statutes limit property tax increases. For county revenue, the property tax rate cannot exceed 12 mills (or 1.2%) of assessed value. For cities and towns, the rate is limited to 8 mills (0.8%). With very few exceptions, state law limits the property tax rate for all governmental purposes.

Personal property held for personal use is tax-exempt. Inventory if held for resale, pollution control equipment, cash, accounts receivable, stocks and bonds are also exempt. Other exemptions include property used for religious, educational, charitable, fraternal, benevolent and government purposes and improvements for handicapped access. Minerals are exempt from property tax but companies must pay a gross products tax and a severance tax when produced. Underground mining equipment is tax exempt.

Wyoming does not collect inheritance taxes. Because of the phase-out of the federal estate tax credit, Wyoming's estate tax is not imposed on estates of persons who died in 2005. There is limited estate tax related to federal estate tax collection.