Merit Energy’s Tax Break Arguments Seem to Sway Wyoming Justices

Wyoming Supreme Court justices appeared to agree that Merit Energy Co. was entitled to a $3 million sales tax exemption on electricity it bought from PacifiCorp to move oil from wellheads to a point of sale.

The Wyoming Department of Revenue asked the court to overturn an administrative ruling granting PacifiCorp a sales tax refund on Merit’s behalf for electricity Merit purchased from 2020-2023. The parties dispute whether Merit’s operations qualify for a Wyoming sales tax exemption for companies “engaged in the transportation business.”

Justice John G. Fenn pressed the department on how much transporting a company must do to ...