On February 21, 2026, Wyoming lawmakers unveiled a series of new tax proposals designed to generate additional revenue for the state. The new legislation, which includes both increases in existing taxes and the introduction of new taxes, comes in response to growing budget deficits and a need for increased funding for essential state services.One of the key proposals put forward by lawmakers is a sales tax increase from 4% to 5%. This hike is expected to generate an estimated $50 million in additional revenue annually. Proponents of the measure argue that the increase is necessary to help offset the state's budget shortfall and maintain critical infrastructure and programs.In addition to the sales tax increase, lawmakers are also considering implementing a new tax on digital services. This tax would apply to online purchases, streaming services, and other digital goods and services. Supporters of the measure argue that it is a necessary adaptation to the changing landscape of commerce and will help level the playing field for brick-and-mortar businesses.Another significant proposal in the new tax legislation is a tax on sugary drinks. Lawmakers hope that this tax will not only generate revenue but also help combat rising rates of obesity and related health issues in the state. However, opponents of the measure argue that it unfairly targets low-income individuals who may rely on sugary drinks as a more affordable option.Overall, the new tax legislation has sparked spirited debate among lawmakers and residents alike. While some argue that the tax increases are necessary to address Wyoming's budget woes and ensure the long-term financial health of the state, others believe that the measures will place an undue burden on taxpayers, particularly those already struggling to make ends meet.As the legislation makes its way through the state's legislative process, it remains to be seen how Wyoming residents will ultimately be affected by the proposed tax changes. One thing is clear, however: the debate over taxation and state revenue will continue to be a significant issue in Wyoming for the foreseeable future.