Severance tax.

WORKING DRAFT
2014
STATE OF
WYOMING
14LSO-0266

HOUSE BILL
NO.

HB0066

Severance tax.

Sponsored by:
Representative(s) Barlow and Senator(s) Driskill

A BILL

for

AN ACT relating to
mine product taxes; revising the tax rate for surface coal and
underground coal; providing that certain exemptions for coal and oil and gas shall not apply to a portion of the tax; repealing certain exemptions;
and providing for an effective date.

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

Section 1.

W.S. 39
‑
14
‑
104
(a)(intro), (b)(intro) and (ii)
, 39
‑
14
‑
105
(a) and by creating a new subsection (e)
, 39
‑
14
‑
111
(a)
, 39
‑
14
‑
204
(a)(iii) and (iv)
and 39
‑
14
‑
205
(d)
and
(j)
are amended to read:

39
‑
14
‑
104.

Tax rate.

(a)

Except as otherwise provided by W.S. 39
‑
14
‑
105, the total severance tax rate for surface coal shall be
seven percent (7%)

six percent (6%)
. This rate comprises one and one-half percent (1.5%) imposed by Wyoming constitution article 15, section 19, and
five and one-half percent (5.5%)

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:

(b)

Except as otherwise provided by W.S. 39
‑
14
‑
105, t
he total severance tax rate for underground coal shall be
three and three-quarters percent (3.75%)

three percent (3%)
.
This rate comprises one and one-half percent (1.5%) imposed by Wyoming constitution article 15, section 19, and
one and one-half percent (1.5%) imposed statutorily.

The tax shall be distributed as provided in W.S. 39
‑
14
‑
111 and is imposed as follows:

(ii)

One and one-quarter percent (1.25%)

One-half percent (0.5%)
; plus

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

is exempt from severance taxes imposed by W.S. 39
‑
14
‑
104(
a)(ii), (iii), (iv) and (vi) and 39
‑
14
‑
104(b)(ii) and (iii)
.

(e)

Coal mined from federal lease acreage
which is
purchased

on or after January 1, 2014 is exempt from the severance taxes imposed by W.S. 39
‑
14
‑
104(a)(vi) and (b)(ii).

39
‑
14
‑
111.

Distribution.

(a)

As provided by W.S. 39
‑
14
‑
104(
a), the total severance tax rate for surface coal shall be seven percent (7%). As provided by W.S. 39
‑
14
‑
104(
b), the total severance tax rate for underground coal shall be three and three-quarters percent (3.75%). A

The

one and one-half percent (1.5%) tax imposed by W.S. 39
‑
14
‑
104(a)(
i
) and
a

the

one and one-half percent (1.5%) tax imposed by W.S. 39
‑
14
‑
104(b)(
i
) shall be deposited into the permanent Wyoming mineral trust fund. All other taxes imposed by W.S. 39
‑
14
‑
104(
a) and (b) shall be deposited into the severance tax distribution account.

39
‑
14
‑
204.

Tax rate.

(a)

Except as otherwise provided by this section and W.S. 39
‑
14
‑
205, the total severance tax on crude oil, lease condensate or natural gas shall be six percent (6%), comprising one and one-half percent (1.5%) imposed by the Wyoming constitution article 15, section 19 and the remaining amount imposed by Wyoming statute. The tax shall be distributed as provided in W.S. 39
‑
14
‑
211 and is imposed as follows:

(iii)

Two percent (2%)
;
, except for the period January 1, 1999 through December 31, 1999, the rate for crude oil production under this paragraph shall be one percent (1%). If the average monthly price received by Wyoming crude oil producers as determined by the department of revenue equals or exceeds twenty dollars ($20.00) per barrel for three (3) consecutive months, the reduced tax rate of one percent (1%) specified in this paragraph for the period of January 1, 1999 through December 31, 1999 shall terminate
;
plus

(iv)

Two percent (2%)
.
, except for the period January 1, 1999 through December 31, 1999, the rate for crude oil production under this paragraph shall be one percent (1%). If the average monthly price received by Wyoming crude oil producers as determined by the department of revenue equals or exceeds twenty dollars ($20.00) per barrel for three (3) consecutive months, the reduced tax rate of one percent (1%) specified in this paragraph for the period of January 1, 1999 through December 31, 1999 shall terminate
.

39
‑
14
‑
205.

Exemptions.

(d)

In the case of tertiary production of crude oil resulting from injection of carbon dioxide gas, all Wyoming severance taxes paid on the carbon dioxide gas injected shall be deducted from and allowed as a credit against the severance taxes imposed
by W.S. 39
‑
14
‑
204(
a)(ii), (iii) and (iv)

on the oil produced by the injection.

(j)

Natural gas which is vented or flared under the authority of the Wyoming oil and gas conservation commission and natural gas which is
reinjected
or consumed prior to sale for the purpose of maintaining, stimulating,
treating, transporting or producing crude oil or natural gas on the same lease or unit from which it was produced
has no value and is exempt from taxation

is exempt from severance taxes imposed by W.S. 39
‑
14
‑
204(
a)(ii), (iii) and (iv)
.

Section 2.

W.S.
39
‑
14
‑
104(
a)(v),
39
‑
14
‑
105(b)
and
(c), 39
‑
14
‑
111(e) and 39
‑
14
‑
205(b)
, (c)
,
(e)
through
(h)
and (k)
are repealed.

Section 3.

This act is effective July 1, 2014
.

(END)

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HB0066