HB0154 Severance tax on coal. | Wyoming Bill

Plain English Breakdown

The bill did not pass and therefore its provisions are not in effect.

Severance Tax Reduction for Surface Coal

The bill reduces the severance tax rate for surface coal mining in Wyoming and adjusts how these taxes are distributed.

What This Bill Does

Reduces the total severance tax rate for surface coal from 7% to 6.5%

Changes the distribution of taxes, with one percent going into a specific fund

Repeals an existing provision related to tax distribution

Who It Names or Affects

Coal mining companies in Wyoming that use surface mining methods

Terms To Know

Severance Tax

A tax on the extraction of natural resources, like coal, from the ground.

Surface Coal Mining

The process of removing coal by digging up and moving surface soil to access coal deposits.

Limits and Unknowns

The bill did not pass in its session.

It only affects surface coal mining, not underground mining.

Current Bill Text

Read the full stored bill text

20LSO-0375
2020
STATE OF WYOMING
20LSO-0375
Introduced
2.0

HOUSE BILL NO. HB0154

Severance tax on coal.

Sponsored by: Representative(s) Hallinan, Clem, Edwards, Laursen, Miller and Salazar and Senator(s) Biteman

A BILL

for

AN ACT relating to coal taxation; reducing the severance tax rate for surface coal as specified; conforming related tax distribution provisions; providing applicability; 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) and (v) and 39
‑
14
‑
111(a) are amended to read:

39
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14
‑
104.

Tax rate.

(a)

The total severance tax rate for surface coal shall be
seven percent (7%)
six and one
‑
half percent (6.5%)
. 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%)
five percent (5%)
imposed statutorily. The tax shall be distributed as provided in W.S. 39
‑
14
‑
111 and is imposed as follows:

(v)

One percent (1%)
.
; plus

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%)
six and one
‑
half percent (6.5%)
. 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 one and one
‑
half percent (1.5%) tax imposed by W.S. 39
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14
‑
104(a)(i) and a one and one
‑
half percent (1.5%) tax imposed by W.S. 39
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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.

Section 2.

W.S. 39
‑
14
‑
104(a)(vi) is repealed.

Section 3.

This act shall apply to surface coal produced on or after the effective date of this act.

Section 4.

This act is effective July 1, 2020
.

(END)

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HB0154