Monthly payment of ad valorem tax on mineral production.

2016
State of Wyoming
16LSO-0200
Introduced
1.3

HOUSE BILL

NO.

HB0064

Monthly payment of ad valorem tax on mineral production.

Sponsored by:
Joint Revenue Interim Committee

A BILL

for

AN ACT relating to ad valorem taxation of mineral production; providing for monthly payment of ad valorem taxes on mineral production commencing January 1, 2019; providing a process for reporting, payment, reconciliation and distribution of the monthly ad valorem tax; providing legislative findings; providing a revised payment schedule for the transition period; requiring a report; and providing for an effective date.

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

Section 1
.

W.S. 39
‑
13
‑
113 is created to read:

39
‑
13
‑
113
.

Month
ly
payment of ad valorem tax on gross product of mineral production.

(a)

Commencing
with mineral production on
January 1, 2019, this section shall govern the payment of all ad valorem taxes on the value o
f the gross
product
of
the mineral
produced. A
ny provisions of
this title
related to taxation of mineral production
that do not conform to the processes and procedures set forth in this
s
ection and that have not been specifically amended or re
pealed by the l
egislature ar
e superseded by this section
.

(b)

Commencing January 1, 2019, a
ll mineral producers in the s
tate shall report and pay an ad valorem tax on the value
of the gross product produced, also called the
ad valorem tax on mineral p
roduction,
on a monthly basis in the same manner as the severance tax
on minerals established in chapter 14 of this title
.

(c)

Monthly report.
Each taxpayer liable for ad valorem taxes on the value of the gross product produced shall report monthly to the department in accordance with
the processes and timing governing severance tax set
forth in W.S. 39
‑
14
‑
107(a)(iv) for coal, W.S. 39
‑
14
‑
207(a)(iv)
for oil and gas,
W.S.
39
‑
14
‑
307(a)(iv) for trona,
W.S.
39
‑
14
‑
407(a)(iv) for bentonite,
W.S.
39
‑
15
‑
507(a)(iv) for uranium,
W.S.
39
‑
14
‑
607(a)(iv) for sand and gravel and
W.S.
39
‑
14
‑
707(a)(iv) for other valuable deposits.

(d)

A
d va
lorem tax on mineral production.
The ad valorem tax shall be determined by the taxpayer, subject to review
and audit by the department
,
on a monthly basis by applying the mil
l levy rate established by the county c
ommissioners under W.S. 39
‑
13
‑
102, 39
‑
13
‑
104 and
39
‑
13
‑
107 in the immediately preceding year to the
value of the gross product
of the mineral produced, as reported on the monthly
form filed with the department.
For monthly reports of the ad valorem tax on mineral production filed by March 25
of each year for production in January of that year,
the taxpayer shall use as the basis of the tax the mil
l levy rate established by the c
ounty
commissioners in August of the preceding year.
The same mill levy rate shall be used for production
through the month of June
as the basis for the m
onthly tax report and payment.
After the counties
adopt new mill levy rates in August of each year, the department shall not later than September 15 of each year send to each mineral producer a statement that identifies the difference between the mill levy rate in the prior year and the newly adopted mill levy rate. If the mill levy rate has increased the statement shall constitute an invoice to the mineral producer to apply the difference bet
ween the rates
to the taxes
reported and
paid by the producer for January through June production and pay the increased tax within thirty (30) days of receipt of the statement. If the mill levy rate has decreased the producer shall seek a refund of the taxes overpaid for January through June production. The mineral producer shall apply the newly adopted mill levy rate to determine the taxes due on production from July 1 through June of the following year.

(e)

Distribution.
The monthly payment of ad valorem tax on mineral production
as
provided in this section shall be
collected

by
the depa
rtment
on behalf of the county
.

Except as otherwise provided in this subsection, t
he department
shall properly account for the
payments
received and distribute the

payments
promptly in the course of
ordinary business to the county treasurer of the county where the production oc
curred. The department shall, on behalf of the county treasurer, distribute the
revenue arising from the
twenty
‑
five (25) mills collected under W.S
.
21
‑
13
‑
102 and the six (6) mills collected under W.S. 21
‑
13
‑
201 to the appropriate school districts.
The department shall also distribute the
revenue arising from the
twelve (12) mills collected under W.S. 21
‑
13
‑
303 to the department of education.
Nothing in this subsection shall be deemed to change the distribution of any funds under the school foundation program as provided in title 21
,
chapter 13 of the Wyoming statutes.

Section 2
.

W.S. 39
‑
13
‑
107(b)(i)(D), 39
‑
13
‑
108(b)(i), 39
‑
13
‑
111 by creating a new subsection (c), 39
‑
14
‑
107(b)(ii), 39
‑
14
‑
207(b)(ii), 39
‑
14
‑
307(b)(ii), 39
‑
14
‑
407(b)(ii), 39
‑
14
‑
507(b)(ii), 39
‑
14
‑
607(b)(ii) and 39
‑
14
‑
707(b)(ii) are amended to read:

39
‑
13
‑
107
.

Compliance; collection procedures.

(b)

The following provisions shall apply to the payment of taxes, distraint of property and deferral:

(i)

The following shall apply to the payment of taxes due:

(D)

Except as otherwise provided in W.S. 39
‑
13
‑
113, t
axes provided by this act are due and payable at the office of the county treasurer of the county in which the taxes are levied. Fifty percent (50%) of the taxes are due on and after September 1 and payable on and after November 10 in each year and the remaining fifty percent (50%) of the taxes are due on and after March 1 and payable on and after May 10 of the succeeding calendar year except as hereafter provided. If the entire tax is paid on or before December 31, no interest or penalty is chargeable;

39
‑
13
‑
108
.

Enforcement.

(b)

Interest.
The following shall apply:

(i)

Except as otherwise provided in W.S. 39
‑
13
‑
113, t
axes provided by this act are due and payable at the office of the county treasurer of the county in which the taxes are levied. Fifty percent (50%) of the taxes are due on and after September 1 and payable on and after November 10 in each year and the remaining fifty percent (50%) of the taxes are due on and after March 1 and payable on and after May 10 of the succeeding calendar year except as hereafter provided. If the entire tax is paid on or before December 31, no interest or penalty is chargeable;

39
‑
13
‑
111
.

Distribution.

(c)

Taxes collected pursuant to W.S. 39
‑
13
‑
113 shall be distributed as provided in W.S. 39
‑
13
‑
113(
e).

39
‑
14
‑
107
.

Compliance; collection procedures.

(b)

Payment. The following shall apply:

(ii)

Ad valorem taxes provided by this act are due and payable
:

(A)

For the 2018 tax year and all
preceding
tax years,
a
t the office of the county treasurer of the county in which the taxes are levied. Fifty percent (50%) of the taxes are due on and after September 1 and payable on and after November 10 in each year and the remaining fifty percent (50%) of the taxes are due on and after March 1 and payable on and after May 10 of the succeeding calendar year except as hereafter provided. If the entire tax is paid on or before December 31, no interest or penalty is chargeable;

(B)

Effective January 1, 2019 for
tax year 2019
and each year thereafter, ad valorem taxes are due as provided in W.S. 39
‑
13
‑
113.

39
‑
14
‑
207
.

Compliance; collection procedures.

(b)

Payment. The following shall apply:

(ii)

Ad valorem taxes are due and payable
:

(A)

For the 2018 tax year and all
preceding
tax years,
a
t the office of the county treasurer of the county in which the taxes are levied. Fifty percent (50%) of the taxes are due on and after September 1 and payable on and after November 10 in each year and the remaining fifty percent (50%) of the taxes are due on and after March 1 and payable on and after May 10 of the succeeding calendar year except as hereafter provided. If the entire tax is paid on or before December 31, no interest or penalty is chargeable;

(B)

Effective January 1, 2019 for
tax year 2019
and each year thereafter, ad valorem taxes are due as provided in W.S. 39
‑
13
‑
113.

39
‑
14
‑
307
.

Compliance; collection procedures.

(b)

Payment. The following shall apply:

(ii)

Ad valorem taxes provided
by this act are due and payable
:

(A)

For the 2018 tax year and all
preceding
tax years
,
a
t the office of the county treasurer of the county in which the taxes are levied. Fifty percent (50%) of the taxes are due on and after September 1 and payable on and after November 10 in each year and the remaining fifty percent (50%) of the taxes are due on and after March 1 and payable on and after May 10 of the succeeding calendar year except as hereafter provided. If the entire tax is paid on or before December 31, no interest or penalty is chargeable;

(B)

Effective January 1, 2019 for tax year
2019
and each year thereafter, ad valorem taxes are due as provided in W.S. 39
‑
13
‑
113.

39
‑
14
‑
407
.

Compliance; collection procedures.

(b)

Payment. The following shall apply:

(ii)

Ad valorem taxes provided by this act are due and payable
:

(A)

For the 2018 tax year and all
preceding
tax years,
a
t the office of the county treasurer of the county in which the taxes are levied. Fifty percent (50%) of the taxes are due on and after September 1 and payable on and after November 10 in each year and the remaining fifty percent (50%) of the taxes are due on and after March 1 and payable on and after May 10 of the succeeding calendar year except as hereafter provided. If the entire tax is paid on or before December 31, no interest or penalty is chargeable;

(B)

Effective January 1, 2019 for tax year
2019
and each year thereafter, ad valorem taxes are due as provided in W.S. 39
‑
13
‑
113.

39
‑
14
‑
507
.

Compliance; collection procedures.

(b)

Payment. The following shall apply:

(ii)

Ad valorem taxes provided by this act are due and payable
:

(A)

For the 2018 tax year and all
preceding
tax years,
a
t the office of the county treasurer of the county in which the taxes are levied. Fifty percent (50%) of the taxes are due on and after September 1 and payable on and after November 10 in each year and the remaining fifty percent (50%) of the taxes are due on and after March 1 and payable on and after May 10 of the succeeding calendar year except as hereafter provided. If the entire tax is paid on or before December 31, no interest or penalty is chargeable;

(B)

Effective January 1, 2019 for tax year
2019
and each year thereafter, ad valorem taxes are due as provided in W.S. 39
‑
13
‑
113.

39
‑
14
‑
607
.

Compliance; collection procedures.

(b)

Payment. The following shall apply:

(ii)

Ad valorem taxes provided by this act are due and payable
:

(A)

For the 2018 tax year and all
preceding
tax years,
a
t the office of the county treasurer of the county in which the taxes are levied. Fifty percent (50%) of the taxes are due on and after September 1 and payable on and after November 10 in each year and the remaining fifty percent (50%) of the taxes are due on and after March 1 and payable on and after May 10 of the succeeding calendar year except as hereafter provided. If the entire tax is paid on or before December 31, no interest or penalty is chargeable;

(B)

Effective January 1, 2019 for tax year
2019
and each year thereafter, ad valorem taxes are due as provided in W.S. 39
‑
13
‑
113.

39
‑
14
‑
707
.

Compliance; collection procedures.

(b)

Payment. The following shall apply:

(ii)

Ad valorem taxes provided by this act are due and payable
:

(A)

For the 2018 tax year and all
preceding
tax years,
a
t the office of the county treasurer of the county in which the taxes are levied. Fifty percent (50%) of the taxes are due on and after September 1 and payable on and after November 10 in each year and the remaining fifty percent (50%) of the taxes are due on and after March 1 and payable on and after May 10 of the succeeding calendar year except as hereafter provided. If the entire tax is paid on or before December 31, no interest or penalty is chargeable;

(B)

Effective January 1, 2019 for tax year
2019
and each year thereafter, ad valorem taxes are due as provided in W.S. 39
‑
13
‑
113.

Section 3
.

(a)

The legislature recognizes that there will be a transition in calendar years 2019 and 2020 in which mineral
producers will pay the ad valorem tax on mineral
production
in two (2) ways and in two (2) separate amounts. The legislature asserts that this is not double taxation of the same
production,
it is taxation of two
(2)
separate and distinct taxable events. The taxable events are the taxation of 2018 mineral production which
is
payable in 2019 and 2020 under the processes and procedures prior to the effective date of
W.S. 39
‑
13
‑
113 as provided by
this act
,
and the monthly tax
payment
of ad valorem taxes on mineral production
beginning January 1, 2019 as provided by this act. For calendar years 2019 and 2020 only, in addition to the monthly payment of ad valorem tax on mineral production as provided in W.S. 39
‑
13
‑
113 and commencing with the first reports and payments due March 25, 2019, the legislature recognizes that mineral producers shall also owe the following
pursuant
to the processes and procedures
in place
prior to
January 1, 2019 as provided in
W.S. 39
‑
13
‑
113
(
a) and (b)
:

(i)

Ad valorem tax on production from
calendar year
2017 of which the second half of the payment is due by
May 10, 2019 unless the entire amount was paid by December 31, 2018;

(ii)

Ad valorem tax on production from
calendar year
2018.
Notwithstanding
W.S.
39
‑
14
‑
107(b)(ii), 39
‑
14
‑
207(b)(ii), 39
‑
14
‑
307(b)(ii), 39
‑
14
‑
407(b)(ii), 39
‑
14
‑
507(b)(ii), 39
‑
14
‑
607(b)(ii) and 39
‑
14
‑
707(b)(ii),
ad valorem tax on production from
calendar year
2018 shall be due and payable
as provided in this paragraph.
Failure to pay any tax due pursuant to
this paragraph
shall be subject to interest and penalties as provided by law:

(A)

The first half of the payment for 2018 production is due by November 10, 2019 pursuant to the processes and procedures prior to the effective date of this act
;

(B)

Notwithstanding W.S. 39
‑
13
‑
113 as created by this act, the first monthly payment under W.S. 39
‑
13
‑
113 shall be due in September 2019 for July 2019 mineral production;

(C)

Beginning January 1, 2020
mineral
producers shall make double monthly payments each month under W.S. 39
‑
13
‑
113 to account for the second half of the payment for 201
8
mineral production
,
which would otherwise be due by May 10, 2020
,
and
to account
for the
monthly payments due for mineral production under W.S. 39
‑
13
‑
113 from January 1 through June 30, 2019 which were not made as provided by subparagraph (B) of this paragraph. Double payments shall continue until all of the unpaid taxes are paid.

(b)

The mineral tax task force shall conduct a review of related statutes to ensure no conflicting or superfluous provisions exist as a result of passage of this act. The task force shall report to the joint revenue interim committee prior to the 2017 general session and shall include any draft legislation necessary to address any items found through the review process.

Section
4
.

This
act is effective July 1,
201
6
.

(END)

1
HB0064