Wyoming2007Inactive

HB0262

Coal Valuation Changes

Last scannedOct 19, 2026, 2:19 AM

In one sentence

This bill proposes changes to how the value of coal is calculated for taxes by defining new cost categories and creating a specific definition for depletion.

Creates a new definition for 'depletion' as the reduction in the value of a mineral deposit, calculated by multiplying the percentage of reserves removed in a year by historical acquisition costs.
Amends the rules for calculating the fair market value of coal sold away from the mine mouth.
Requires the tax calculation to subtract specific costs like transportation to market (if provided by a third party), royalties, ad valorem production taxes, severance taxes, black lung excise taxes, and abandoned mine lands fees from the sales value.
Defines 'direct mining costs' to include mining labor, supplies, equipment depreciation, fuel, power, utilities, maintenance, transportation from the point of severance to the mine mouth, depletion, reclamation expenses, and other costs specifically attributable to the mining operation.
Defines 'total direct costs' to include direct mining costs plus mineral processing labor, supplies, processing equipment costs, and transportation from the mine mouth to the point of shipment.
Excludes indirect costs, royalties, and specific taxes from the cost ratio calculation used to determine fair market value.

The bill was marked inactive and returned by the committee, so it did not become law in this session.
The text is a working draft, so final wording may have differed if it had passed.
The bill states that environmental work is included in direct mining costs as allocated by the department, but does not specify the exact method of allocation.

Plain language

Depletion: The reduction in the value of a mineral deposit, calculated by multiplying the percentage of reserves removed in a year by the historical acquisition costs.
Direct mining costs: Expenses specifically attributable to the mining operation, such as labor, supplies, equipment, fuel, and depletion, incurred prior to the mouth of the mine.
Total direct costs: Direct mining costs plus expenses for processing coal and transporting it to the point of shipment.
Indirect costs: General business expenses like corporate overhead, data processing, accounting, legal, and clerical costs that cannot be specifically attributed to an operational function without allocation.

Official record

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Public statements

Last checked Aug 8, 11:05 PM

Couldn't find a published reason.

Wyoming roll calls

1 roll call

H03 Recommended Do Not Pass 4-4-0-0-12007-02-27 · House4 yes 4 no

Official activity