Mineral audit period.

WORKING DRAFT

ORIGINAL HOUSE

BILL

NO.
0012

ENROLLED ACT NO. 2, HOUSE OF REPRESENTATIVES

FIFTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
2005 GENERAL SESSION

AN ACT relating to taxation and revenue; providing for audit periods for mineral taxation as specified; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1.

W.S. 39
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108(b)(iii), (v)(D) and (vii), 39
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208(b)(iii), (v)(D) and (vii), 39
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308(b)(iii), (v)(D) and (vii), 39
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408(b)(iii), (v)(D) and (vii), 39
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508(b)(iii), (v)(D) and (vii), 39
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608(b)(iii), (v)(D) and (vii) and 39
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708(b)(iii), (v)(D) and (vii) are amended to read:

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108.

Enforcement.

(b)

Audits. The following shall apply:

(iii)

Commencing January 1, 2003, the department is authorized to rely on final audit findings, taxpayer amended returns or department review, and to certify mine product valuation amendments to the county assessor of the county in which the property is located, to be entered upon the assessment rolls of the county and taxes computed and collected thereon subject to appeal under W.S. 39
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109(b)(ii), provided that the return is filed within three (3) years from the date the production should have been or was reported pursuant to W.S. 39
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107(a)(i), whichever is later, and that the audit or review commenced within the time period as required by paragraph (vii) of this subsection
. Commencement of an audit, completion of an audit, and final audit findings and final determination by the department being issued to the taxpayer shall not preclude the taxpayer from filing amended returns within the time period specified herein, and the amended returns may be audited within the time period stated in paragraph (vii) of this subsection
;

(v)

All audits or department reviews, as applicable, pursuant to paragraphs (ii), (iii) and (iv) of this subsection are subject to the following conditions:

(D)

Unless otherwise agreed to in writing, audits shall be completed and the final audit findings issued to the taxpayer not later than the end of the month two (2) years after the audit is commenced
and not sooner than one (1) year following the reporting date for ad valorem taxes
;

(vii)

Audits provided by this article shall commence within
three (3) years and
six (6) months immediately following the
three (3) years following the
reporting
period
date for ad valorem taxes
and taxpayers shall keep accurate books and records of all production subject to taxes imposed by this article and determinations of taxable value as prescribed by W.S. 39
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103(b) for a period of seven (7) years and make them available to department examiners for audit purposes.
Amended returns filed with the department during the conduct of an audit prior to the issuance of the final audit findings may be made available by the taxpayer to the audit examiners.
If the examination discloses evidence of gross negligence by the taxpayer in reporting and paying the tax, the department may examine all pertinent records for any reporting period without regard to the limitations set forth in paragraphs (vii) and (viii) of this subsection;

39
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208.

Enforcement.

(b)

Audits.

The following shall apply:

(iii)

Commencing January 1, 2003, the department is authorized to rely on final audit findings, taxpayer amended returns or department review, and to certify mine product valuation amendments to the county assessor of the county from which the crude oil, lease condensate or natural gas was produced, to be entered upon the assessment rolls of the county and taxes computed and collected thereon subject to appeal under W.S. 39
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209(b)(v), provided that the return is filed within three (3) years from the date the production should have been or was reported pursuant to W.S. 39
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207(a)(i), whichever is later, and that the audit or review commenced within the time period as required by paragraph (vii) of this subsection
. Commencement of an audit, completion of an audit, and final audit findings and final determination by the department being issued to the taxpayer shall not preclude the taxpayer from filing amended returns within the time period specified herein, and the amended returns may be audited within the time period stated in paragraph (vii) of this subsection
;

(v)

All audits or department reviews, as applicable, pursuant to paragraphs (ii), (iii) and (iv) of this subsection are subject to the following conditions:

(D)

Unless otherwise agreed to in writing, audits shall be completed and the final audit findings issued to the taxpayer not later than the end of the month two (2) years after the audit is commenced
and not sooner than one (1) year following the reporting date for ad valorem taxes
;

(vii)

Audits provided by this article shall commence within
three (3) years and
six (6) months immediately following the
three (3) years following the
reporting
period
date for ad valorem taxes
and taxpayers shall keep accurate books and records of all production subject to severance taxes imposed by this article and determinations of taxable value as prescribed by W.S. 39
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14
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103(b) for a period of seven (7) years and make them available to department examiners for audit purposes.
Amended returns filed with the department during the conduct of an audit prior to the issuance of the final audit findings may be made available by the taxpayer to the audit examiners.
If the examination discloses evidence of gross negligence by the taxpayer in reporting and paying the tax, the department may examine all pertinent records for any reporting period without regard to the limitations set forth in paragraphs (vii) and (viii) of this subsection;

39
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308.

Enforcement.

(b)

Audits.

The following shall apply:

(iii)

Commencing January 1, 2003, the department is authorized to rely on final audit findings, taxpayer amended returns or department review, and to certify mine product valuation amendments to the county assessor of the county in which the property is located, to be entered upon the assessment rolls of the county and taxes computed and collected thereon subject to appeal under W.S. 39
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14
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309(b)(ii), provided that the return is filed within three (3) years from the date the production should have been or was reported pursuant to W.S. 39
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307(a)(i), whichever is later, and that the audit or review commenced within the time period as required by paragraph (vii) of this subsection
. Commencement of an audit, completion of an audit, and final audit findings and final determination by the department being issued to the taxpayer shall not preclude the taxpayer from filing amended returns within the time period specified herein, and the amended returns may be audited within the time period stated in paragraph (vii) of this subsection
;

(v)

All audits or department reviews, as applicable, pursuant to paragraphs (ii), (iii) and (iv) of this subsection are subject to the following conditions:

(D)

Unless otherwise agreed to in writing, audits shall be completed and the final audit findings issued to the taxpayer not later than the end of the month two (2) years after the audit is commenced
and not sooner than one (1) year following the reporting date for ad valorem taxes
;

(vii)

Audits provided by this article shall commence within
three (3) years and
six (6) months immediately following the
three (3) years following the
reporting
period
date for ad valorem taxes
and taxpayers shall keep accurate books and records of all production subject to taxes imposed by this article and determinations of taxable value as prescribed by W.S. 39
‑
14
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303(b) for a period of seven (7) years and make them available to department examiners for audit purposes.
Amended returns filed with the department during the conduct of an audit prior to the issuance of the final audit findings may be made available by the taxpayer to the audit examiners.
If the examination discloses evidence of gross negligence by the taxpayer in reporting and paying the tax, the department may examine all pertinent records for any reporting period without regard to the limitations set forth in paragraphs (vii) and (viii) of this subsection;

39
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408.

Enforcement.

(b)

Audits. The following shall apply:

(iii)

Commencing January 1, 2003, the department is authorized to rely on final audit findings, taxpayer amended returns or department review, and to certify mine product valuation amendments to the county assessor of the county in which the property is located, to be entered upon the assessment rolls of the county and taxes computed and collected thereon subject to appeal under W.S. 39
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14
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409(b)(ii), provided that the return is filed within three (3) years from the date the production should have been or was reported pursuant to W.S. 39
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14
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407(a)(i), whichever is later, and that the audit or review commenced within the time period as required by paragraph (vii) of this subsection
. Commencement of an audit, completion of an audit, and final audit findings and final determination by the department being issued to the taxpayer shall not preclude the taxpayer from filing amended returns within the time period specified herein, and the amended returns may be audited within the time period stated in paragraph (vii) of this subsection
;

(v)

All audits or department reviews, as applicable, pursuant to paragraphs (ii), (iii) and (iv) of this subsection are subject to the following conditions:

(D)

Unless otherwise agreed to in writing, audits shall be completed and the final audit findings issued to the taxpayer not later than the end of the month two (2) years after the audit is commenced
and not sooner than one (1) year following the reporting date for ad valorem taxes
;

(vii)

Audits shall commence within
three (3) years and
six (6) months immediately following the
three (3) years following the
reporting
period
date for ad valorem taxes
and taxpayers shall keep accurate books and records of all production subject to taxes imposed by this article and determinations of taxable value as prescribed by W.S. 39
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14
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403(b) for a period of seven (7) years and make them available to department examiners for audit purposes.
Amended returns filed with the department during the conduct of an audit prior to the issuance of the final audit findings may be made available by the taxpayer to the audit examiners.
If the examination discloses evidence of gross negligence by the taxpayer in reporting and paying the tax, the department may examine all pertinent records for any reporting period without regard to the limitations set forth in paragraphs (vii) and (viii) of this subsection;

39
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508.

Enforcement.

(b)

Audits. The following shall apply:

(iii)

Commencing January 1, 2003, the department is authorized to rely on final audit findings, taxpayer amended returns or department review, and to certify mine product valuation amendments to the county assessor of the county in which the property is located, to be entered upon the assessment rolls of the county and taxes computed and collected thereon subject to appeal under W.S. 39
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509(b)(ii), provided that the return is filed within three (3) years from the date the production should have been or was reported pursuant to W.S. 39
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507(a)(i), whichever is later, and that the audit or review commenced within the time period as required by paragraph (vii) of this subsection
. Commencement of an audit, completion of an audit, and final audit findings and final determination by the department being issued to the taxpayer shall not preclude the taxpayer from filing amended returns within the time period specified herein, and the amended returns may be audited within the time period stated in paragraph (vii) of this subsection
;

(v)

All audits or department reviews, as applicable, pursuant to paragraphs (ii), (iii) and (iv) of this subsection are subject to the following conditions:

(D)

Unless otherwise agreed to in writing, audits shall be completed and the final audit findings issued to the taxpayer not later than the end of the month two (2) years after the audit is commenced
and not sooner than one (1) year following the reporting date for ad valorem taxes
;

(vii)

Audits provided by this article shall commence within
three (3) years and
six (6) months immediately following the
three (3) years following the
reporting
period
date for ad valorem taxes
and taxpayers shall keep accurate books and records of all production subject to taxes imposed by this article and determinations of taxable value as prescribed by W.S. 39
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14
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503(b) for a period of seven (7) years and make them available to department examiners for audit purposes.
Amended returns filed with the department during the conduct of an audit prior to the issuance of the final audit findings may be made available by the taxpayer to the audit examiners.
If the examination discloses evidence of gross negligence by the taxpayer in reporting and paying the tax, the department may examine all pertinent records for any reporting period without regard to the limitations set forth in paragraphs (vii) and (viii) of this subsection;

39
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608.

Enforcement.

(b)

Audits. The following shall apply:

(iii)

Commencing January 1, 2003, the department is authorized to rely on final audit findings, taxpayer amended returns or department review, and to certify mine product valuation amendments to the county assessor of the county in which the property is located, to be entered upon the assessment rolls of the county and taxes computed and collected thereon subject to appeal under W.S. 39
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14
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609(b)(ii), provided that the return is filed within three (3) years from the date the production should have been or was reported pursuant to W.S. 39
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607(a)(i), whichever is later, and that the audit or review commenced within the time period as required by paragraph (vii) of this subsection
. Commencement of an audit, completion of an audit, and final audit findings and final determination by the department being issued to the taxpayer shall not preclude the taxpayer from filing amended returns within the time period specified herein, and the amended return may be audited within the time period stated in paragraph (vii) of this subsection
;

(v)

All audits or department reviews, as applicable, pursuant to paragraphs (ii), (iii) and (iv) of this subsection are subject to the following conditions:

(D)

Unless otherwise agreed to in writing, audits shall be completed and the final audit findings issued to the taxpayer not later than the end of the month two (2) years after the audit is commenced
and not sooner than one (1) year following the reporting date for ad valorem taxes
;

(vii)

Audits provided by this article shall commence within
three (3) years and
six (6) months immediately following the
three (3) years following the
reporting
period
date for ad valorem taxes
and taxpayers shall keep accurate books and records of all production subject to taxes imposed by this article and determinations of taxable value as prescribed by W.S. 39
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14
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603(b) for a period of seven (7) years and make them available to department examiners for audit purposes.
Amended returns filed with the department during the conduct of an audit prior to the issuance of the final audit findings may be made available by the taxpayer to the audit examiners.
If the examination discloses evidence of gross negligence by the taxpayer in reporting and paying the tax, the department may examine all pertinent records for any reporting period without regard to the limitations set forth in paragraphs (vii) and (viii) of this subsection;

39
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708.

Enforcement.

(b)

Audits. The following shall apply:

(iii)

Commencing January 1, 2003, the department is authorized to rely on final audit findings, taxpayer amended returns or department review, and to certify mine product valuation amendments to the county assessor of the county in which the property is located, to be entered upon the assessment rolls of the county and taxes computed and collected thereon subject to appeal under W.S. 39
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14
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709(b)(ii), provided that the return is filed within three (3) years from the date the production should have been or was reported pursuant to W.S. 39
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14
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707(a)(i), whichever is later, and that the audit or review commenced within the time period as required by paragraph (vii) of this subsection
. Commencement of an audit, completion of an audit, and final audit findings and final determination by the department being issued to the taxpayer shall not preclude the taxpayer from filing amended returns within the time period specified herein, and the amended returns may be audited within the time period stated in paragraph (vii) of this subsection
;

(v)

All audits or department reviews, as applicable, pursuant to paragraphs (ii), (iii) and (iv) of this subsection are subject to the following conditions:

(D)

Unless otherwise agreed to in writing, audits shall be completed and the final audit findings issued to the taxpayer not later than the end of the month two (2) years after the audit is commenced
and not sooner than one (1) year following the reporting date for ad valorem taxes
;

(vii)

Audits provided by this article shall commence within
three (3) years and
six (6) months immediately following the
three (3) years following the
reporting
period
date for ad valorem taxes
and taxpayers shall keep accurate books and records of all production subject to taxes imposed by this article and determinations of taxable value as prescribed by W.S. 39
‑
14
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703(b) for a period of seven (7) years and make them available to department examiners for audit purposes.
Amended returns filed with the department during the conduct of an audit prior to the issuance of the final audit findings may be made available by the taxpayer to the audit examiners.
If the examination discloses evidence of gross negligence by the taxpayer in reporting and paying the tax, the department may examine all pertinent records for any reporting period without regard to the limitations set forth in paragraphs (vii) and (viii) of this subsection;

Section 2.

This act is effective July 1, 2005.

(END)

Speaker of the House

President of the Senate

Governor

TIME APPROVED: _________

DATE APPROVED: _________

I hereby certify that this act originated in the House.

Chief Clerk

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