Interest rate for produced minerals.

WORKING DRAFT
2013
STATE OF
WYOMING
13LSO-0405

HOUSE BILL
NO.

HB0087

Interest rate for produced minerals.

Sponsored by:
Representative(s) Madden and Senator(s) Hines

A BILL

for

AN ACT relating to
mineral taxes; revising the interest rate for delinquent severance and gross product taxes as specified;
and providing for an effective date.

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

Section 1.

W.S. 39
‑
14
‑
108(c)(iii) and (iv), 39
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14
‑
208(c)(iii) and (iv), 39
‑
14
‑
308(c)(iii) and (iv), 39
‑
14
‑
408(c)(iii) and (iv), 39
‑
14
‑
508(c)(iii) and (iv), 39
‑
14
‑
608(c)(iii) and (iv) and 39
‑
14
‑
708(c)(iii) and (iv) are amended to read:

39
‑
14
‑
108.

Enforcement.

(c)

Interest. The following shall apply:

(iii)

The balance of any ad valorem tax
, excluding gross products tax on minerals produced after December 31, 2012,

not paid as provided by W.S. 39
‑
14
‑
107(b)(ii) is delinquent after the day on which it is payable and shall bear interest at eighteen percent (18%) per annum until paid or collected;

(iv)

Effective
January 1,

1994

2013
,
interest at an annual rate equal to the average short term rate plus two percent (2%) as determined by the state treasurer during the preceding fiscal year shall be added to all delinquent severance and gross product taxes on any mineral produced on or after January 1, 2013. To determine the short term rate, the state treasurer shall
use
the short term rate as determined by the secretary of treasury under 26 U.S.C. § 6621 for
December
of the preceding fiscal year.
The interest rate on delinquent severance taxes shall be adjusted on January 1 of each year following the year in which the taxes first became delinquent.
For any mineral produced from January 1, 1994 to December 31, 2012,

i
nterest at an annual rate equal to the average prime interest rate as determined by the state treasurer during the preceding fiscal year
plus four percent (4%)
shall be added to all delinquent severance taxes on any mineral
produced on or after January 1, 1994
and before January 1, 2013
. To determine the average prime interest rate, the state treasurer shall average the
prime interest rate for at least seventy-five percent (75%) of the thirty (30) largest banks in the United States
. The interest rate on delinquent severance taxes shall be adjusted on January 1 of each year following the year in which the taxes first became delinquent.
In no instance shall the delinquent tax rate be less than twelve percent (12%) nor greater than eighteen percent (18%) from any mineral produced on or after January 1, 1994

and before January 1, 2013
.
The interest rate on any delinquent mineral tax from any mineral produced before January 1, 1994, shall be eighteen percent (18%) per annum.

39
‑
14
‑
208.

Enforcement.

(c)

Interest. The following shall apply:

(iii)

The balance of any ad valorem tax
, excluding gross products tax on minerals produced after December 31, 2012,
not paid as provided by W.S. 39
‑
14
‑
207(b)(ii) is delinquent after the day on which it is
payable and shall bear interest at eighteen percent (18%) per annum until paid or collected;

(iv)

Effective
January 1,

1994

2013
,
interest at an annual rate equal to the average short term rate plus two percent (2%) as determined by the state treasurer during the preceding fiscal year shall be added to all delinquent severance and gross product taxes on any mineral produced on or after January 1, 2013. To determine the short term rate, the state treasurer shall
use
the short term rate as determined by the secretary of treasury under 26 U.S.C. § 6621 for
December
of the preceding fiscal year.
The interest rate on delinquent severance taxes shall be adjusted on January 1 of each year following the year in which the taxes first became delinquent.
For any mineral produced from January 1, 1994 to December 31, 2012,

i
nterest at an annual rate equal to the average prime interest rate as determined by the state treasurer during the preceding fiscal year
plus four percent (4%)
shall be added to all delinquent severance taxes on any mineral produced on or after January 1, 1994
and before January 1, 2013
. To determine the average
prime interest rate, the state treasurer shall average
the prime interest rate for at least seventy-five percent (75%) of the thirty (30)
largest banks in the United States
. The interest rate on delinquent taxes shall be adjusted on January 1 of each year following the year in which the taxes first became delinquent.
In no instance shall the delinquent tax rate be less than twelve percent (12%) nor greater than eighteen percent (18%) from any mineral produced on or after January 1, 1994

and before January 1, 2013
.
The interest rate on any delinquent crude oil, lease condensate or natural gas severance tax from any crude oil, lease condensate or natural gas produced before January 1, 1994, shall be eighteen percent (18%) per annum.

39
‑
14
‑
308.

Enforcement.

(c)

Interest. The following shall apply:

(iii)

The balance of any ad valorem tax
, excluding gross products tax on minerals produced after December 31, 2012,
not paid as provided by W.S. 39
‑
14
‑
307(b)(ii) is delinquent after the day on which it is payable and shall bear interest at eighteen percent (18%) per annum until paid or collected;

(iv)

Effective
January 1,

1994

2013
,
interest at an annual rate equal to the average short term rate plus two percent (2%) as determined by the state treasurer during the preceding fiscal year shall be added to all delinquent severance and gross product taxes on any mineral produced on or after January 1, 2013. To determine the short term rate, the state treasurer shall
use
the short term rate as determined by the secretary of treasury under 26 U.S.C. § 6621 for
December
of the preceding fiscal year.
The interest rate on delinquent severance taxes shall be adjusted on January 1 of each year following the year in which the taxes first became delinquent.
For any mineral produced from January 1, 1994 to December 31, 2012,

interest at an annual rate equal to the average prime interest rate as determined by the state treasurer during the preceding fiscal year
plus four percent (4%)
shall be added to all delinquent severance taxes on any mineral produced on or after January 1, 1994
and before January 1, 2013
. To determine the average prime interest rate, the state treasurer shall average the
prime interest rate for at least seventy-five percent (75%) of the thirty (30) largest banks in the United States
. The interest rate on delinquent taxes shall be adjusted on January 1 of each year following the year in which the taxes first became
delinquent.
In no instance shall the delinquent tax rate be less than twelve percent (12%) nor greater than eighteen percent (18%) from any mineral produced on or after January 1, 1994

and before January 1, 2013
.
The interest rate on any delinquent mineral tax from any mineral produced before January 1, 1994, shall be eighteen percent (18%) per annum.

39
‑
14
‑
408.

Enforcement.

(c)

Interest. The following shall apply:

(iii)

The balance of any ad valorem tax
, excluding gross products tax on minerals produced after December 31, 2012,
not paid as provided by W.S. 39
‑
14
‑
407(b)(ii) is delinquent after the day on which it is payable and shall bear interest at eighteen percent (18%) per annum until paid or collected;

(iv)

Effective
January 1,
1994

2013
,
interest at an annual rate equal to the average short term rate plus two percent (2%) as determined by the state treasurer during the preceding fiscal year shall be added to all delinquent severance and gross product taxes on any mineral produced on or after January 1, 2013. To determine the
short term rate, the state treasurer shall
use
the short term rate as determined by the secretary of treasury under 26 U.S.C. § 6621 for
December
of the preceding fiscal year.
The interest rate on delinquent severance taxes shall be adjusted on January 1 of each year following the year in which the taxes first became delinquent.
For any mineral produced from January 1, 1994 to December 31, 2012,

interest at an annual rate equal to the average prime interest rate as determined by the state treasurer during the preceding fiscal year
plus four percent (4%)
shall be added to all delinquent severance taxes on any mineral produced on or after January 1, 1994
and before January 1, 2013
. To determine the average prime interest rate, the state treasurer shall average the
prime interest rate for at least seventy
‑
five percent (75%) of the thirty (30) largest banks in the United States
. The interest rate on delinquent taxes shall be adjusted on January 1 of each year following the year in which the taxes first became delinquent.
In no instance shall the delinquent tax rate be less than twelve percent (12%) nor greater than eighteen percent (18%) from any mineral produced on or after January 1, 1994

and before January 1, 2013
.
The interest rate on any delinquent mineral tax from any mineral produced before January 1, 1994, shall be eighteen percent (18%) per annum.

39
‑
14
‑
508.

Enforcement.

(c)

Interest. The following shall apply:

(iii)

The balance of any ad valorem tax
, excluding gross products tax on minerals produced after December 31, 2012,
not paid as provided by W.S. 39
‑
14
‑
507(b)(ii) is delinquent after the day on which it is payable and shall bear interest at eighteen percent (18%) per annum until paid or collected;

(iv)

Effective
January 1,
1994

2013
,
interest at an annual rate equal to the average short term rate plus two percent (2%) as determined by the state treasurer during the preceding fiscal year shall be added to all delinquent severance and gross product taxes on any mineral produced on or after January 1, 2013. To determine the short term rate, the state treasurer shall
use
the short term rate as determined by the secretary of treasury under 26 U.S.C. § 6621 for
December
of the preceding fiscal year.
The interest rate on delinquent severance taxes shall be adjusted on January 1 of each year following the year in which the taxes first became delinquent.
For any mineral
produced from January 1, 1994 to December 31, 2012,

interest at an annual rate equal to the average prime interest rate as determined by the state treasurer during the preceding fiscal year
plus four percent (4%)
shall be added to all delinquent severance taxes on any mineral produced on or after January 1, 1994
and before January 1, 2013
. To determine the average prime interest rate, the state treasurer shall average the
prime interest rate for at least seventy
‑
five percent (75%) of the thirty (30) largest banks in the United States
. The interest rate on delinquent taxes shall be adjusted on January 1 of each year following the year in which the taxes first became delinquent.
In no instance shall the delinquent tax rate be less than twelve percent (12%) nor greater than eighteen percent (18%) from any mineral produced on or after January 1, 1994

and before January 1, 2013
.
The interest rate on any delinquent mineral tax from any mineral produced before January 1, 1994, shall be eighteen percent (18%) per annum.

39
‑
14
‑
608.

Enforcement.

(c)

Interest. The following shall apply:

(iii)

The balance of any ad valorem tax
, excluding gross products tax on minerals produced after December 31, 2012,
not paid as provided by W.S. 39
‑
14
‑
607(b)(ii) is delinquent after the day on which it is payable and shall bear interest at eighteen percent (18%) per annum until paid or collected;

(iv)

Effective
January 1,
1994

2013
,
interest at an annual rate equal to the average short term rate plus two percent (2%) as determined by the state treasurer during the preceding fiscal year shall be added to all delinquent severance and gross product taxes on any mineral produced on or after January 1, 2013. To determine the short term rate, the state treasurer shall
use
the short term rate as determined by the secretary of treasury under 26 U.S.C. § 6621 for
December
of the preceding fiscal year.
The interest rate on delinquent severance taxes shall be adjusted on January 1 of each year following the year in which the taxes first became delinquent.
For any mineral produced from January 1, 1994 to December 31, 2012,

interest at an annual rate equal to the average prime interest rate as determined by the state treasurer during the preceding fiscal year
plus four percent (4%)
shall be added to all delinquent severance taxes on any mineral
produced on or after January 1, 1994
and before January 1, 2013
. To determine the average prime interest rate, the state treasurer shall average the
prime interest rate for at least seventy
‑
five percent (75%) of the thirty (30) largest banks in the United States
. The interest rate on delinquent taxes shall be adjusted on January 1 of each year following the year in which the taxes first became delinquent.
In no instance shall the delinquent tax rate be less than twelve percent (12%) nor greater than eighteen percent (18%) from any mineral produced on or after January 1, 1994

and before January 1, 2013
.
The interest rate on any delinquent mineral tax from any mineral produced before January 1, 1994, shall be eighteen percent (18%) per annum.

39
‑
14
‑
708.

Enforcement.

(c)

Interest. The following shall apply:

(iii)

The balance of any ad valorem tax
, excluding gross products tax on minerals produced after December 31, 2012,
not paid as provided by W.S. 39
‑
14
‑
707(b)(ii) is delinquent after the day on which it is payable and shall bear interest at eighteen percent (18%) per annum until paid or collected;

(iv)

Effective
January 1,
1994

2013
,
interest at an annual rate equal to the average short term rate plus two percent (2%) as determined by the state treasurer during the preceding fiscal year shall be added to all delinquent severance and gross product taxes on any mineral produced on or after January 1, 2013. To determine the short term rate, the state treasurer shall
use
the short term rate as determined by the secretary of treasury under 26 U.S.C. § 6621 for
December
of the preceding fiscal year.
The interest rate on delinquent severance taxes shall be adjusted on January 1 of each year following the year in which the taxes first became delinquent.
For any mineral produced from January 1, 1994 to December 31, 2012,

interest at an annual rate equal to the average prime interest rate as determined by the state treasurer during the preceding fiscal year
plus four percent (4%)
shall be added to all delinquent severance taxes on any mineral produced on or after January 1, 1994
and before January 1, 2013
. To determine the average prime interest rate, the state treasurer shall average the
prime interest rate for at least seventy
‑
five percent (75%) of the thirty (30) largest banks in the United States
. The interest rate on delinquent taxes shall be adjusted on January 1 of each
year following the year in which the taxes first became delinquent.
In no instance shall the delinquent tax rate be less than twelve percent (12%) nor greater than eighteen percent (18%) from any mineral produced on or after January 1, 1994

and before January 1, 2013
.
The interest rate on any delinquent mineral tax from any mineral produced before January 1, 1994, shall be eighteen percent (18%) per annum.

Section 2.

This act is effective immediately upon completion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constitution.

(END)

1
HB0087