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

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

3. Manufacturing Exemption Passed in 2004 Passed in 2004 34 other states have sales tax exemption for manufacturers 34 other states have sales tax exemption for manufacturers From 2004 (see state and natl data) From 2004 (see state and natl data) Exemption allows for recruitment, expansion and survival of existing manufacturers. Exemption allows for recruitment, expansion and survival of existing manufacturers. Increased property and excise tax and employment 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 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 State leaving money on the table Refineries, Trona Industry Refineries, Trona Industry 10 top companies use 80% of exemption 10 top companies use 80% of exemption General dislike of exemptions General dislike of exemptions No real data on exemption spurring growth and other taxes collected No real data on exemption spurring growth and other taxes collected “Forklift Exemption” “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%. 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. 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. 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. 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 = $20,228 249,918 x.095 = 23,742 x.071 = $1,685.70. Average life of 12 years. 12 x 1,685.7 = $20,228

7. Refinery Expenses 200420052006200720082009Total Refinery (excl tax and depr) expense Salaries and Benefits $ 25,326,264 $ 25,326,264 $ 26,175,496 $ 26,175,496 $ 30,478,035 $ 30,478,035 $ 34,017,690 $ 34,017,690 $ 33,250,750 $ 33,250,750 $ 37,797,303 $ 37,797,303 $ 187,045,537 $ 187,045,537 Energy and Utilities 17,506,083 17,506,083 19,846,249 19,846,249 19,877,516 19,877,516 17,576,526 17,576,526 20,302,992 20,302,992 19,408,354 19,408,354 114,517,720 114,517,720 Other expense (excl tax and depr) 29,536,171 29,536,171 32,095,704 32,095,704 50,429,021 50,429,021 56,099,632 56,099,632 60,803,802 60,803,802 62,418,462 62,418,462 291,382,793 291,382,793 Refinery (excl tax and depr) expense $ 72,368,519 $ 72,368,519 $ 78,117,449 $ 78,117,449 $ 100,784,572 $ 100,784,572 $ 107,693,847 $ 107,693,847 $ 114,357,543 $ 114,357,543 $ 119,624,120 $ 119,624,120 $ 592,946,050 $ 592,946,050

8. Taxes paid 2004-2009 Property Tax $ 556,238 $ 556,238 $ 656,288 $ 656,288 $ 795,291 $ 795,291 1,118,537 1,118,537 $ 1,808,068 $ 1,808,068 2,011,725 2,011,725 $ 6,946,147 $ 6,946,147 Use Tax Paid 243,243 243,243 151,263 151,263 283,138 283,138 430,616 430,616 485,389 485,389 353,155 353,155 1,946,803 1,946,803 Fuel Tax Paid 13,228,290 13,228,290 15,425,303 15,425,303 12,427,105 12,427,105 12,293,630 12,293,630 14,077,614 14,077,614 18,082,600 18,082,600 85,534,541 85,534,541 Sales Tax Paid 30,733 30,733 39,557 39,557 96,355 96,355 91,682 91,682 996,602 996,602 2,673,518 2,673,518 3,928,446 3,928,446 Total Wyoming Taxes $ 14,058,504 $ 14,058,504 $ 16,272,411 $ 16,272,411 $ 13,601,889 $ 13,601,889 13,934,464 13,934,464 $ 17,367,672 $ 17,367,672 $ 23,120,998 $ 23,120,998 $ 98,355,937 $ 98,355,937

9. Capital Expenditures Frontier Refining Inc Capital Expenditures 200420052006200720082009Total CapitalImprovements $ 6,243,278 $ 6,243,278 $ 23,395,637 $ 23,395,637 $ 64,568,594 $ 64,568,594 $ 128,444,196 $ 128,444,196 $ 77,065,654 $ 77,065,654 $ 48,534,186 $ 48,534,186 $ 348,251,545 $ 348,251,545

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

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

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

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

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

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

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

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