HB0231 • 2020

Coal severance tax exemption-Canadian and Mexican ports.

AN ACT relating to taxation and revenue; creating a severance tax exemption for surface coal transported to markets outside of North America as specified; providing a sunset date; requiring rulemaking; and providing for effective dates.

Energy Land Taxes

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Representative Nicholas
Last action: 2020-03-24
Official status: enrolled
Effective date: 7/1/2020

Plain English Breakdown

The bill summary does not specify a particular percentage exemption but mentions an exemption from severance taxes.

Coal Tax Break for Exports

This law creates a tax break for coal companies exporting surface coal to international markets through Canadian or Mexican ports, with an end date set for July 1, 2030 or earlier if certain conditions are met.

What This Bill Does

Creates a severance tax exemption for surface coal shipped internationally from Canada or Mexico.
Repeals the exemption on July 1, 2030, unless it ends sooner due to export tonnage limits.
Requires the Department of Revenue to make rules about how this law works by a certain date.

Who It Names or Affects

Coal companies exporting surface coal through Canadian or Mexican ports.
The Wyoming Department of Revenue, which must create rules for implementing the exemption.

Terms To Know

Severance tax: A tax on natural resources like coal when they are removed from the ground and sold.
Sunset date: The specific date when a law or part of a law stops being in effect.

Limits and Unknowns

It's not clear how many coal companies will be affected by this tax break.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HB0231H3001

3rd reading • Representative Harshman

Withdrawn

Plain English: The amendment changes how coal severance taxes are distributed, adding a new section that specifies where certain percentages of these taxes should go.

Adds language to the bill's title and text to specify that one percent (1%) of surface coal severance tax will be given to the governor’s office for actions aimed at increasing or stabilizing Wyoming mineral exports.
Specifies that a portion of the severance tax on both surface and underground coal should go into the permanent Wyoming mineral trust fund.

The amendment text does not fully explain all aspects of how taxes will be distributed, leaving some details unclear.

HB0231S2001

2nd reading • Senator Case

Adopted

Plain English: The amendment changes the date when a severance tax exemption for surface coal exported outside North America ends from January 1, 2030, to either that date or when ten million tons of such coal are exported through U.S. terminals, whichever happens first.

Changes the sunset date for the severance tax exemption on surface coal transported to markets outside North America from January 1, 2030, to a new earlier date if ten million tons of coal are exported in any calendar year.

The exact impact and implementation details depend on future export volumes which cannot be predicted with certainty.

Bill History

2020-03-24 LSO
Assigned Chapter Number 139
2020-03-24 Governor
Governor Signed HEA No. 0088
2020-03-12 Senate
S President Signed HEA No. 0088
2020-03-12 House
H Speaker Signed HEA No. 0088
2020-03-12 LSO
Assigned Number HEA No. 0088
2020-03-12 House
H Concur:Passed 49-9-2-0-0
2020-03-11 House
H Received for Concurrence
2020-03-11 Senate
S 3rd Reading:Passed 20-9-1-0-0
2020-03-10 Senate
S 2nd Reading:Passed
2020-03-09 Senate
S COW:Passed
2020-03-05 Senate
S Placed on General File
2020-03-05 Senate
S03 - Revenue:Recommend Do Pass 3-2-0-0-0
2020-03-02 Senate
S Introduced and Referred to S03 - Revenue
2020-02-28 Senate
S Received for Introduction
2020-02-28 House
H 3rd Reading:Passed 51-8-1-0-0
2020-02-27 House
H 3rd Reading:Laid Back
2020-02-26 House
H 2nd Reading:Passed
2020-02-25 House
H COW:Passed
2020-02-24 House
H Placed on General File
2020-02-24 House
H03 - Revenue:Recommend Do Pass 5-3-1-0-0
2020-02-14 House
H Introduced and Referred to H03 - Revenue 51-6-3-0-0
2020-02-12 House
H Received for Introduction
2020-02-12 LSO
Bill Number Assigned

Official Summary Text

Bill Summary - 20LSO-0129
Bill No.:

HB0231

Effective:

Multiple Dates

LSO No.:

20LSO-0129

Enrolled Act No.:

HEA No. 0088

Chapter No.:

139

Prime Sponsor:

Nicholas

Catch Title:

Coal severance tax exemption-Canadian and Mexican ports.

Subject:

Coal severance tax exemption for coal shipped internationally from Canadian and Mexican ports.

Summary/Major Elements:

The bill creates a three percent (3%) severance tax exemption for surface coal shipped to international markets using coal export terminals located in Canada or Mexico.

The exemption is repealed effective July 1, 2030 or upon the export, in any calendar year, through United States coal export terminals to international markets of a combined ten million (10,000,000) tons of surface coal, whichever is sooner.

The above summary is not an official publication of the Wyoming Legislature and is not an official statement of legislative intent. While the Legislative Service Office endeavored to provide accurate information in this summary, it should not be relied upon as a comprehensive abstract of the bill.

Current Bill Text

Read the full stored bill text

20LSO-0129

ORIGINAL House

ENGROSSED
Bill No
.
HB0231

ENROLLED ACT NO. 88,

HOUSE OF REPRESENTATIVES

SIXTY-FIFTH LEGISLATURE OF THE STATE OF WYOMING
2020 Budget Session

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

Section 1
.

W.S. 39
‑
14
‑
105 by creating a new subsection (e) is amended to read:

39
‑
14
‑
105.

Exemptions.

(e)

Surface coal transported to market outside of North America using a coal export terminal located in Canada or Mexico is exempt from the severance taxes imposed by W.S. 39
‑
14
‑
104(a)(iii) and (v). The taxpayer shall submit all information and documentation as specified by the department to determine the taxpayer's qualification for the exemption. This subsection is repealed effective July 1, 2030 or upon the export in any calendar year through United States coal export terminals to markets outside of North America of a combined ten million (10,000,000) tons of surface coal subject to the tax as determined by the department of revenue and certified to the governor, whichever is sooner.

Section 2.

The department of revenue shall promulgate rules and regulations necessary to implement this act on or before July 1, 2020.

Section 3.

(a)

Except as provided in subsection (b) of this section, this act is effective July 1, 2020.

(b)

Sections 2 and 3 of this act are 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)

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