39-14-201 are incorporated herein by reference to the extent

39-14-201 are incorporated herein by reference to the extent that they may apply.

(b) Administration; confidentiality: The department shall annually value and assess helium production at its fair market value for taxation in accordance with the applicable provisions of W.S. 39-13-102.

(c) Taxable event: There is levied an ad valorem tax on the value of the gross product produced, as provided in article 15, section 3 of the Wyoming constitution, on the helium produced in this state. The tax imposed by this subsection shall be in addition to all other taxes imposed by law.

(d) Basis of tax: Helium shall be valued for taxation as natural gas as provided in W.S. 39-14-203(b).

(e) Taxpayer: Any person producing helium; or, to the extent of his interest ownership, any person owning or producing an interest in the helium, by lease or other contract right, is liable for the payment of the ad valorem taxes together with any penalties and interest, provided however, that helium shall be subject to the ad valorem tax only once.

(f) Tax rate: Helium shall be subject to the ad valorem tax rate as provided in W.S. 39-13-104.

(g) Exemptions: The exemptions from taxation provided by W.S. 39-13-105 shall apply to helium.  (h) Compliance; collection procedures: The ad valorem tax related provisions of W.S. 39-13-107 shall apply to helium production.

(j) Enforcement: All ad valorem tax related provisions of W.S. 39-13-108 shall apply to helium production.

(k) Taxpayer remedies: All ad valorem tax related provisions of W.S. 39-13-109 shall apply to helium production.

(m) Distribution: Ad valorem tax revenues from helium production shall be distributed as provided by W.S. 39-13-111.

39-13-113. Monthly payment of ad valorem tax on gross product of mineral production.

(a) Commencing with mineral and mine production on January 1, 2020, this section shall govern the payment of all ad valorem taxes on the value of the gross product of minerals and mine products, hereafter referred to as the "ad valorem tax on mineral production". Any provisions of this title related to the ad valorem tax on mineral production that do not conform to the processes and procedures set forth in this section are superseded by this section to the extent the procedures conflict with this section.

(b) Except as provided in this section, all mineral and mine producers in the state shall report ad valorem mineral production to the department on or before the twenty-fifth day of the second month following the month of production and shall pay the ad valorem tax on mineral production for each county on a monthly basis as indicated on an invoice sent by the department. The department shall invoice each producer on or before the tenth day of the month following the report. Payments shall be due and payable to the department on or before the twenty-fifth day of the third month following the month of production. Payments under this subsection shall not be less than the amount calculated by the department by applying the mill levy rate established by the county in the immediately preceding year to the value of the gross product of minerals and mine products produced each month. Annually, on or before September 20, the county treasurer shall send a written statement to each taxpayer by mail at his last known address or, if offered by the county and upon request of the taxpayer, by electronic transmission, of any tax due or overpayment received after applying the amount the county has received from that taxpayer through monthly payments under this section by reconciling those payments with the applicable mill levy rate for that production year, itemized as to property description, assessed value and applicable mill levies. Failure to send notice, or to demand payment of taxes, does not invalidate any taxes due. The taxpayer shall reconcile the amount indicated on the notice as follows:

(i) If the statement provided by the county indicates additional taxes are due, the taxpayer shall pay the additional amount due not later than December 20 of that year;

(ii) If the statement by the county indicates that the monthly payments resulted in an overpayment of the taxes, the county treasurer shall refund taxes that were overpaid under this section by December 20 of that year. The taxpayer may elect to have the county treasurer retain any overpayment amount and apply that amount towards other ad valorem taxes due.

(c) Collection and distribution. Monthly and annual payments of the ad valorem tax on mineral production shall be collected by the department on behalf of each county. The department shall properly account for the payments received and distribute the payments monthly to the county treasurer. Upon distribution of funds to counties under this subsection the amount shall be proportionally distributed by the county treasurer to each taxing entity within the county as provided in W.S. 39-13-111.

(d) If a taxpayer's liability for severance tax as imposed under chapter 14 of this title is less than thirty thousand dollars ($30,000.00) for the preceding calendar year, the monthly payment requirements for the ad valorem tax on mineral production under this chapter are waived and the taxpayer shall report to the department on or before the twenty-fifth day of February of the year following the production year and shall pay the ad valorem tax on mineral production annually as indicated on an invoice sent by the department. The department shall invoice each producer on or before the tenth day of the month following the report. The payment shall be due and payable on March 25 of the year following the year of production. Annual payments shall be calculated by the department by applying the mill levy rate established by the county commissioners in the production year to the value of the gross product of minerals and mine products produced in the applicable year. Annual payments made under this subsection shall be paid to the department and deposited with the applicable county treasurer as provided in subsection (c) of this section and reconciled as provided in subsection (b) of this section.

(e) Failure to make payments at the time they are due and payable under this section shall subject the taxpayer to the enforcement provisions of W.S. 30-5-104(d)(x) and 39-13-108 and shall also be subject to enforcement as follows:

(i) If the report and payment of tax required under this section is not provided, the department shall value the property from the best information available to determine the fair market value of the property;

(ii) If a taxpayer producing valuable deposits fails to pay the taxes when due, the department shall file a notice of lien on behalf of the applicable county pursuant to W.S. 39-13- 108(d)(vi);

(iii) Taxes due together with interest, penalties and costs shall be collectible by the department or county by appropriate judicial proceedings.

(f) Notwithstanding subsection (a) of this section or any other provision of law, upon receiving an application from a taxpayer a county may enter into an agreement with the taxpayer to accept payments for the ad valorem tax on mineral production under the processes and procedures in place prior to the effective date of this section, subject to the following:

(i) Prior to entering into any agreement under this subsection, the county shall:

(A) Establish uniform eligibility criteria and an application process;

(B) Conduct at least one (1) public meeting related to the proposed agreement. The county shall notify all taxing authorities that receive any taxes that may be impacted by the agreement of the meeting at least fourteen (14) days prior to the meeting.

(ii) Upon entering into any agreement under this subsection, the county shall notify the department;

(iii) Upon receipt of notice from a county under this subsection, the department shall exempt the taxpayer from the provisions of this section and the taxpayer shall be subject to all processes, procedures and requirements in place prior to the effective date of this section;

(iv) No taxpayer shall be eligible for an agreement under this subsection for mineral production from any property acquired on or after the effective date of this section.

(g) Notwithstanding subsection (a) of this section and except as otherwise provided in subsections (d) and (f) of this section, estimated monthly ad valorem tax payments shall first be due under this section beginning with production on January 1, 2022. The ad valorem tax on mineral production from calendar years 2020 and 2021 shall be paid as provided in this subsection. Fifty percent (50%) of taxes due for production from calendar year 2020 shall be due on and after September 1, 2021 and payable to the counties on and after November 10, 2021. The remaining fifty percent (50%) of the taxes due for production from calendar year 2020, unless the entire tax due for production from calendar year 2020 is paid by December 31, 2021, and all taxes due from production in calendar year 2021 shall be paid through deferred payments as provided in this subsection. The total amount of deferred taxes due under this subsection shall be calculated by the department and the applicable counties. The taxpayer shall make an additional payment for deferred taxes under this subsection on December 1 of each year beginning in 2023 equal to eight percent (8%) of the total amount calculated under this subsection until the total amount has been paid. Each county shall track payments due under this subsection and shall send an invoice to each taxpayer not later than October 1 of each year beginning in 2023 of the deferred payment due under this subsection for that year. Timely deferred payments made in accordance with this subsection shall not be subject to penalties or interest. The following shall apply to deferred payments under this subsection:

(i) If a taxpayer fails to make one (1) deferred payment by December 1 of the year the payment is due under this subsection, all applicable penalties and interest shall be calculated from the date of the missed payment;

(ii) If a taxpayer fails to make a second deferred payment under this subsection, the total remaining amount of deferred taxes due under this subsection shall be immediately due and payable with penalties and interest calculated from the date of the second missed payment;  (iii) If a taxpayer subject to deferred payments under this subsection sells, divests or liquidates its producing mineral assets in a county or counties such that the taxpayer is no longer required to file a monthly severance tax report with the department pursuant to chapter 14 of this title, the total remaining amount of deferred taxes due under this subsection for that county or counties shall be due and payable to the applicable county treasurer on or before the twenty-fifth day of the third month following the month the taxpayer sold, divested, or liquidated its producing mineral assets. If a taxpayer fails to make a deferred payment under this paragraph, all applicable penalties and interest shall be calculated from the date of the missed payment;

(iv) Nothing in this subsection shall prohibit a taxpayer from voluntarily remitting to the counties any remaining portion of nondelinquent deferred taxes without penalty.

CHAPTER 14 - MINE PRODUCT TAXES

ARTICLE 1 - COAL

39-14-101. Definitions.

(a) As used in this article:

(i) "Arm's-length market or sales price" means the transaction price determined in connection with a bona fide arm's length sale;

(ii) "Bona fide arm's-length sale" means a transaction in cash or terms equivalent to cash for specified property rights after reasonable exposure in a competitive market between a willing, well informed and prudent buyer and seller with adverse economic interests and assuming neither party is acting under undue compulsion or duress;

(iii) "Department review" means, but is not limited to, corrections of clerical errors or reconciliations of tax reports with reports required by other state or federal agencies;

(iv) "Mine product valuation amendment" means a valuation adjustment determination made by the department including special directives;  (v) "Mining or production" means drilling, blasting, loading, roadwork, overburden removal, pre-mouth of the mine reclamation, transportation from the point of severance to the mouth of the mine, and maintenance of facilities and equipment directly relating to any of the functions stated in this paragraph;

(vi) "Mouth of the mine" means the point at which a mineral is brought to the surface of the ground and is taken out of the pit, shaft or portal. For a surface mine, this point shall be the top of the ramp where the road or conveying system leaves the pit. For an in situ mine, the point shall be the wellhead;

(vii) "Processing" means crushing, sizing, milling, washing, drying, refining, upgrading, beneficiation, sampling, testing, treating, heating, separating, tailings or reject material disposal, compressing, storing, loading for shipment, transportation from the mouth of the mine to the loadout, transportation to market to the extent included in the price and provided by the producer, processing plant site and post-mouth of mine reclamation, maintenance of facilities and equipment relating to any of the functions stated in this paragraph, and any other function after severance that changes the physical or chemical characteristics or enhances the marketability of the mineral;

(viii) "Purchaser" means the first purchaser who acquires the produced valuable coal deposit from the taxpayer for value;

(ix) "Severance tax" means an excise tax imposed on the present and continuing privilege of removing, extracting, severing or producing any mineral in this state;

(x) Beginning January 1, 1989, "taxable value" means one hundred percent (100%) of the fair market value of the gross product of minerals and mine products;

(xi) "Transportation to market provided by a third party" means the costs incurred for any movement of a mineral which is performed by a third party, after completion of all mining and processing functions, beyond the point of loading for shipment to the customer, commonly referred to as the loadout, established by contract or by government regulations;  (xii) "Transportation to market provided by the producer" means the costs incurred for any movement of a mineral which is performed by the producer beyond the point of loading for shipment to the customer, commonly referred to as the loadout, completed by the employees of the producer using equipment owned by the producer;

(xiii) "Underground coal" means coal mined by methods of man-made excavation underneath the surface of the earth utilizing shafts, tunnels or lifts, including planes connected with excavations penetrating the mineral stratum;

(xiv) "Unreported production" means production volume for which no tax report was filed for the reporting period by the taxpayer or his agent;

(xv) "Value of the gross product" means fair market value as prescribed by W.S. 39-11-101, less any deductions and exemption allowed by Wyoming law or rules.

39-14-102. Administration; confidentiality.

(a) The department shall annually value and assess the gross product of all mines and mining claims at its fair market value for taxation.

(b) Based upon the information received or procured pursuant to W.S. 39-14-107(a) or 39-14-108(a) and except as otherwise provided, the department shall annually value the gross product for the preceding calendar year, in appropriate unit measures of all mines and mining claims from which valuable deposits are produced.

(c) Except as otherwise provided, in the event the product as defined in W.S. 39-14-103(b)(iii) is not sold at the mouth of the mine by bona fide arms-length sale, or if the product of the mine is used without sale, the department shall determine the fair market value by application of recognized appraisal techniques.

(d) Annually, on or before June 1, or as soon thereafter as the fair market value is determined, the department shall certify the valuation determined by the department to the county assessor of the county in which the property is located, to be entered upon the assessment rolls of the county.  (e) All taxpayer returns and return information shall be confidential and, except as authorized below, no current or former official, officer, employee or agent of the state of Wyoming or any political subdivision thereof shall disclose any such information obtained by him in connection with his service as an officer or employee.

(f) As used in this section, taxpayer returns and return information shall include, but not be limited to, all statements, reports, summaries and all other data and documents under audit or provided by the taxpayer in accordance with the provisions of W.S. 39-14-107(a) and related provision.

(g) Without written authorization from the taxpayer, no current or former official, officer, employee or agent of the state of Wyoming or any political subdivision thereof shall release taxpayer returns and return information pertaining to taxes imposed by this article, except:

(i) Information may be released to the governor or his designee, members of the board, to employees of the department of audit, the department of revenue, the consensus revenue estimating group and to the attorney general;

(ii) Upon prior notice to the taxpayer, information may be released by the department, upon written application, to any other governmental entity if the governmental entity shows sufficient reason to obtain the information for official business;

(iii) Information is admissible in court or administrative proceedings related to mineral taxes or government royalties.

(h) Any person receiving information pursuant to paragraph (g)(ii) of this section shall sign an agreement with the department to keep the information confidential.

(j) Units of production reported by the taxpayer and the taxpayer's taxable value are not confidential and may be released without qualification.

(k) Any person who negligently violates subsections (e) through (j) of this section is guilty of a misdemeanor and upon conviction shall be fined not more than one thousand dollars ($1,000.00). Any person who intentionally violates subsections (e) through (j) of this section is guilty of a misdemeanor and upon conviction shall be fined not less than one thousand dollars ($1,000.00), but not more than five thousand dollars ($5,000.00) and imprisoned for not more than one (1) year.

(m) Repealed By Laws 2000, Ch. 68, § 1.

39-14-103. Imposition.

(a) Taxable event. The following shall apply:

(i) There is levied a severance tax on the value of the gross product for the privilege of severing or extracting both surface and underground coal in the state. The severance tax imposed by this article may be in addition to other taxes, including but not limited to the ad valorem taxes imposed by W.S. 39-13-104.

(b) Basis of tax (valuation). The following shall apply:

(i) Coal shall be valued for taxation as provided in this subsection;

(ii) The value of the gross product shall be the fair market value of the product at the mouth of the mine where produced, after the mining or production process is completed;

(iii) Except as otherwise provided, the mining or production process is deemed completed when the mineral product reaches the mouth of the mine. In no event shall the value of the mineral product include any processing functions or operations regardless of where the processing is performed;

(iv) Except as otherwise provided, if the product as defined in paragraph (iii) of this subsection is sold at the mouth of the mine, the fair market value shall be deemed to be the price established by bona fide arms-length sale;

(v) In the event the product as defined in paragraph (iii) of this subsection is sold at the mouth of the mine without further movement or processing, the fair market value shall be the price established by bona fide arms-length sale less exempt royalties;

(vi) In the event the product as defined in paragraph (iii) of this subsection is not sold at the mouth of the mine by bona fide arms-length sale, or, except as otherwise provided, if the product of the mine is used without sale, the department shall determine the fair market value of coal in accordance with paragraph (vii), (viii), (ix) or (x) of this subsection;

(vii) For coal sold away from the mouth of the mine pursuant to a bona fide arms-length sale, the department shall calculate the fair market value of coal by multiplying the sales value of extracted coal, less transportation to market provided by a third party to the extent included in sales value, all royalties, ad valorem production taxes, severance taxes, black lung excise taxes and abandoned mine lands fees, by the ratio of direct mining costs to total direct costs. Nonexempt royalties, ad valorem production taxes, severance taxes, black lung excise taxes and abandoned mine lands fees shall then be added to determine fair market value. For purposes of this paragraph:

(A) The sales value of extracted coal shall be the selling price pursuant to an arms-length contract. To the extent not included in the selling price pursuant to an arms- length contract, and to the extent that the following represent partial consideration for the value of the coal, sales value shall include the value per ton attributable to the extracted coal for any consideration provided to the seller in the form of heat content adjustments, price escalations or de-escalations, expense reimbursements, capital, facilities or equipment, services for mining, handling, processing or transporting the coal at or near the mine site, or any payment received for the current or past sale of extracted coal, by or on behalf of the purchaser. Sales value per ton shall include consideration provided for the deferral of extraction and sale in the taxable period in which the purchaser receives credit for the payment as a result of subsequent extraction and sale of the deferred production;

(B) Direct mining costs include mining labor including mine foremen and supervisory personnel whose primary responsibility is extraction of coal, supplies used for mining, mining equipment depreciation, fuel, power and other utilities used for mining, maintenance of mining equipment, coal transportation from the point of severance to the mouth of the mine, and any other direct costs incurred prior to the mouth of the mine that are specifically attributable to the mining operation;

(C) Total direct costs include direct mining costs determined under subparagraph (B) of this paragraph plus mineral processing labor including plant foremen and supervisory personnel whose primary responsibility is processing coal, supplies used for processing, processing plant and equipment depreciation, fuel, power and other utilities used for processing, maintenance of processing equipment, coal transportation from the mouth of the mine to the point of shipment, coal transportation to market to the extent included in the price and provided by the producer, and any other direct costs incurred that are specifically attributable to the mining, processing or transportation of coal up to the point of loading for shipment to market;

(D) Indirect costs, royalties, ad valorem production taxes, severance taxes, black lung excise taxes and abandoned mine lands fees shall not be included in the computation of the ratio set forth in this paragraph. Indirect costs include but are not limited to allocations of corporate overhead, data processing costs, accounting, legal and clerical costs, and other general and administrative costs which cannot be specifically attributed to an operational function without allocation.

(viii) For coal used without sale, or coal not sold pursuant to a bona fide arms-length agreement, the sales value for the purposes of paragraph (vii) of this subsection shall be the fair market value of coal which is comparable in the quality, quantity, terms and conditions under which the coal is being used or sold, both in the spot market and through long- term agreements negotiated within the previous twelve (12) months, multiplied by the respective number of tons used or sold for each reporting period;

(ix) Notwithstanding paragraph (viii) of this subsection, the sales value for purposes of paragraph (vii) of this subsection for coal used as a feedstock in a coal enhancement process which has been subjected to normal processes necessary to achieve marketability, shall be the market value of comparable coal as determined by this paragraph. The market value of comparable coal attributable to feedstock coal shall be:

(A) A representative selling price received or receivable which shall be determined by the first of the following subdivisions that is applicable, multiplied by the total feedstock tons used in each reporting period:

(I) Arms-length price of comparable coal produced from the same mine and sold under comparable terms, or if a comparable coal price is not available from the same mine, the arms-length price of comparable coal produced from other mines in the area and sold under comparable terms;

(II) Price reported to a public utility commission for comparable coal produced from the same mine and sold under comparable terms, or if a comparable coal price is not available from the same mine, the price reported to a public utility commission for comparable coal produced from other mines in the area and sold under comparable terms;

(III) Other published or publicly available market prices for comparable coal produced from mines in the area and sold under comparable terms.

(B) If subparagraph (A) of this paragraph is not applicable, then the sales value for coal used as a feedstock shall be the total arms-length selling price of the enhanced coal sold during the reporting period multiplied by the total of the enhanced tons sold.

(x) In the event that unique or unusual circumstances exist such that the department or the taxpayer is unable to determine the value of the gross product of coal from a mine or mining claim by application of the methods provided in this subsection, the taxpayer may petition the department for approval to use an alternate valuation method. The department shall approve or deny the use of an alternate valuation method and shall so inform the parties within forty-five (45) days of the date the petition is filed.

(c) Taxpayer. The following shall apply:

(i) In the case of the gross product of all mines and mining claims produced under lease, the lessor is liable for the payment of ad valorem taxes on the product removed only to the extent of the lessor's retained interest under the lease, whether royalty or otherwise, and the lessee or his assignee is liable for all other ad valorem taxes due on production under the lease;

(ii) Any taxpayer paying the taxes imposed by this article on any valuable deposit may deduct the severance taxes paid from any amounts due or to become due to the interest owners of such valuable deposit in proportion to the interest ownership;  (iii) Any person extracting valuable products subject to this chapter and any person owning an interest in the valuable products to the extent of their interest ownership are liable for the payment of the severance taxes imposed by this article together with any penalties and interest.

39-14-104. Tax rate.

(a) The total severance tax rate for surface coal shall be six percent (6%). This rate comprises one and one-half percent (1.5%) imposed by Wyoming constitution article 15, section 19, and four and one-half percent (4.5%) imposed statutorily. The tax shall be distributed as provided in W.S. 39-14-111 and is imposed as follows:

(i) One and one-half percent (1.5%); plus

(ii) One-half percent (.5%); plus

(iii) Two percent (2%); plus

(iv) One percent (1%); plus

(v) One percent (1%).

(vi) Repealed by Laws 2022, ch. 102, § 2.

(b) The total severance tax rate for underground coal shall be three and three-quarters percent (3.75%). The tax shall be distributed as provided in W.S. 39-14-111 and is imposed as follows:

(i) One and one-half percent (1.5%); plus

(ii) One and one-quarter percent (1.25%); plus

(iii) One percent (1%).

39-14-105. Exemptions.

(a) Coal has no value and is exempt from taxation if it is consumed prior to sale for the purpose of treating or processing coal produced from the same mine.

(b) Repealed by Laws 2016, ch. 16, § 2.

(c) Repealed by Laws 2016, ch. 16, § 2.  (d) Repealed By Laws 2008, Ch. 44, § 2.

(e) Surface coal transported to market outside of North America using a coal export terminal located in Canada or Mexico is exempt from the severance taxes imposed by W.S. 39-14- 104(a)(iii) and (v). The taxpayer shall submit all information and documentation as specified by the department to determine the taxpayer's qualification for the exemption. This subsection is repealed effective July 1, 2030 or upon the export in any calendar year through United States coal export terminals to markets outside of North America of a combined ten million (10,000,000) tons of surface coal subject to the tax as determined by the department of revenue and certified to the governor, whichever is sooner.

39-14-106. Licenses; permits.

There are no specific applicable provisions for licenses and permits for this article.

39-14-107. Compliance; collection procedures.

(a) Returns and reports. The following shall apply:

(i) Annually, on or before February 25 of the year following the year of production any person whose property is subject to W.S. 39-14-102(a) shall sign under oath and submit a statement listing the information relative to the property and affairs of the company as the department may require to assess the property:

(A) For mines and mining claims, the same date as prescribed by paragraph (iv) of this subsection for December production. In addition to the information required by this subsection, Wyoming coal producers shall provide to the department a summary of each new coal sales agreement for total sales in excess of ten thousand (10,000) tons and any amendment to an existing agreement for total sales in excess of ten thousand (10,000) tons signed during each calendar quarter no later than the last day of the month following the end of the calendar quarter. Each summary shall be on a form prescribed by the department and shall contain the date the agreement or amendment was executed, term of the agreement or amendment, annual volume or total volume if the agreement or amendment is for less than one (1) year, heat content requirements, quality specifications, nature and extent of enhancement if any, transportation terms, contract price and an explanation of any consideration that is a part of the sales value but not included in the contract price. A copy of each coal sales agreement or amendment shall be provided by the producer to the department no later than eighteen (18) months after the date the agreement or amendment was signed unless the agreement is not yet publicly available. If the agreement is not yet publicly available, the producer shall, in lieu of providing a copy of the agreement, notify the department in writing that the agreement is not yet publicly available and when the producer believes the agreement will be publicly available. It will thereafter be the responsibility of the producer to ascertain if and when the agreement does become publicly available and to provide a copy to the department within thirty (30) days from the date the agreement becomes publicly available. The producer may be relieved of the responsibility of ascertaining the date the agreement becomes publicly available by supplying a copy to the department. The coal sales agreements, amendments and summaries shall not be considered public records and shall not be open to public inspection. The coal sales agreements, amendments and summaries shall be considered taxpayer return information and shall be made available in accordance with applicable confidentiality statutes to the extent needed to carry out official duties under this section and W.S. 39-14-102(e) through (k). Proprietary information derived from the agreements and summaries shall be aggregated by the department on a calendar year basis prior to disclosure to any person not authorized by law to have access to the information. Any producer complying with this section shall not be required to provide subsequent summaries or copies of the same agreement or amendments to any of the agencies or officials identified by this section and W.S.