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SF0060 • 2021

Monthly ad valorem tax revisions-2.

AN ACT relating to ad valorem taxation of mineral production; specifying that the monthly payment of ad valorem taxation begins January 1, 2022; providing for the payment of ad valorem taxes from calendar years 2020 and 2021; clarifying distribution of the taxes; making conforming changes; repealing an existing ad valorem tax payment transition period; providing for loans to counties; providing appropriations; and providing for an effective date.

Budget Education Land Taxes
Enacted

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

Sponsor
Revenue
Last action
2021-02-09
Official status
enrolled
Effective date
2/9/2021

Plain English Breakdown

The official source does not provide specific details on how penalties and interest will be handled if payments are late.

Monthly ad valorem tax changes for mineral production

This law requires monthly payments of ad valorem taxes on mineral production starting January 1, 2022 and provides loans to counties to cover shortfalls from the transition.

What This Bill Does

  • Requires monthly payment of ad valorem tax on mineral production beginning January 1, 2022.
  • Specifies that fifty percent (50%) of taxes due for calendar year 2020 and all taxes due for calendar year 2021 will be paid in installments starting December 1, 2023 until the total amount is repaid.
  • Provides loans to counties to cover funding shortfalls caused by transitioning to monthly tax payments.
  • Appropriates funds from the school foundation program account to address decreased local revenues due to the transition to monthly ad valorem taxes.

Who It Names or Affects

  • Mineral production companies that pay ad valorem taxes
  • Counties receiving tax payments from mineral production companies

Terms To Know

ad valorem tax
A property tax based on the value of a product or asset.
mineral production
The process of extracting minerals from the earth for commercial use.

Limits and Unknowns

  • Does not specify how penalties and interest will be handled if payments are late.
  • Details about loan repayment schedules by counties are determined after application to the state treasurer.

Amendments

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

SF0060H2001

2nd reading • Representative Gray

Failed

Plain English: The amendment requires counties to pay for their share of implementing monthly ad valorem tax collection and allows the state to withhold a county's tax revenue if they do not make these payments.

  • Adds a requirement that counties must cover the costs related to collecting monthly ad valorem taxes based on their mineral production volume.
  • Specifies that the Department of Revenue will determine how much each county needs to pay and can hold back a county's tax revenue if they do not make these payments.
  • The exact amount counties need to pay is determined by the Department of Revenue, which may be unclear until it makes its determination.
  • Details on how the costs will be calculated and distributed are not provided in this amendment text.
SF0060H3001

3rd reading • Representative Harshman

Adopted

Plain English: The amendment changes specific monetary amounts in the bill from $40 million to $16,726,000 and from $1 to $274,000.

  • Changes the amount from $40,000,000.00 to $16,726,000.00 in one place.
  • Changes another amount from $1.00 to $274,000.00.
  • The amendment does not explain the reasons for these changes or their broader impacts on the bill's overall purpose.
SF0060HS001

Standing Committee • House Revenue Committee

Adopted

Plain English: The amendment modifies the bill to specify how mineral production ad valorem taxes are collected and distributed monthly by county treasurers.

  • Adds language making conforming changes to the bill text.
  • Inserts new provisions for annual computation of district revenues, including details on revenue collections from nonmineral and mineral ad valorem taxes.
  • Modifies distribution rules for taxes collected under W.S. 39-13-113 to ensure timely payment by county treasurers.
  • Adjusts the amount appropriated for administering an education resource block grant model due to changes in local school district revenues.
  • The amendment includes technical legal language that may be difficult to fully interpret without additional context.
SF0060SW001

Committee of the Whole • Senator Case

Adopted

Plain English: The amendment clarifies how ad valorem taxes on mineral production are distributed and modifies the tax payment schedule for calendar years 2020 and 2021.

  • Adds a new section (39-13-111(d)) to clarify that taxes collected under W.S. 39-13-113 will be distributed as specified in the act, including after final reconciliation.
  • Inserts language specifying how monthly and annual ad valorem tax payments on mineral production are collected by the department and then distributed to county treasurers for further distribution within the county.
  • Modifies the payment schedule for taxes due from calendar years 2020 and 2021, setting deadlines for when these amounts must be paid.
  • The amendment text does not provide specific details on how the tax distribution will change or what 'properly account' means in practice.
  • Some technical legal language is used that may require further explanation to understand fully.
SF0060SS001

Standing Committee • Senate Revenue Committee

Adopted

Plain English: The amendment changes how ad valorem taxes are paid for mineral production from calendar years 2020 and 2021, increases the loan amount available to counties, and adds a small appropriation for implementing the act.

  • Changes the payment schedule for ad valorem taxes due in 2020 and 2021, specifying that half of the 2020 taxes must be paid by November 5, 2021, with the rest to follow as specified.
  • Increases the loan amount available to counties from $10 million to $40 million.
  • Adds a small appropriation of $1.00 for implementing the act.
  • The amendment text does not provide details on how the remaining taxes will be paid after November 5, 2021.

Bill History

  1. 2021-02-09 LSO

    Assigned Chapter Number 28

  2. 2021-02-09 Governor

    Governor Signed SEA No. 0009

  3. 2021-02-05 House

    H Speaker Signed SEA No. 0009

  4. 2021-02-05 Senate

    S President Signed SEA No. 0009

  5. 2021-02-04 LSO

    Assigned Number SEA No. 0009

  6. 2021-02-04 Senate

    S Concur:Passed 24-6-0-0-0

  7. 2021-02-04 Senate

    S Received for Concurrence

  8. 2021-02-04 House

    H 3rd Reading:Passed 47-13-0-0-0

  9. 2021-02-03 House

    H 2nd Reading:Passed

  10. 2021-02-02 House

    H COW:Passed

  11. 2021-02-02 House

    H Placed on General File

  12. 2021-02-02 House

    H03 - Revenue:Recommend Amend and Do Pass 6-3-0-0-0

  13. 2021-02-01 House

    H Introduced and Referred to H03 - Revenue

  14. 2021-02-01 House

    H Received for Introduction

  15. 2021-01-29 Senate

    S 3rd Reading:Passed 27-1-1-1-0

  16. 2021-01-29 Senate

    S 2nd Reading:Passed

  17. 2021-01-28 Senate

    S COW:Passed

  18. 2021-01-27 Senate

    S Placed on General File

  19. 2021-01-27 Senate

    S02 - Appropriations:Recommend Do Pass 5-0-0-0-0

  20. 2021-01-27 Senate

    :Rerefer to S02 - Appropriations

  21. 2021-01-27 Senate

    S03 - Revenue:Recommend Amend and Do Pass 5-0-0-0-0

  22. 2021-01-12 Senate

    S Introduced and Referred to S03 - Revenue

  23. 2021-01-12 Senate

    S Received for Introduction

  24. 2021-01-11 LSO

    Bill Number Assigned

Official Summary Text

Bill Summary - 21LSO-0305
Bill No.:

SF0060

Effective:

Immediately

LSO No.:

21LSO-0305

Enrolled Act No.:

SEA No. 0009

Chapter No.:

28

Prime Sponsor:

Joint Revenue Interim Committee

Catch Title:

Monthly ad valorem tax revisions-2.

Subject:

Monthly payment of ad valorem taxes on mineral production.

Summary/Major Elements:

This bill provides for the monthly payment of ad valorem taxes on mineral production beginning January 1, 2022.

The bill specifies that fifty percent (50%) of production from calendar year 2020 and all of production from calendar year 2021 will be paid at eight percent (8%) per year beginning December 1, 2023 until the total outstanding amount is repaid.

The bill appropriates funds for loans to counties to address shortfalls caused by the transition to monthly payments.

The bill appropriates funds from the school foundation program account to address decreased local revenues caused by the transition to monthly payments and makes revisions to the annual computation of school district revenues to account for the payment of monthly ad valorem taxes.

The bill also appropriates funds to the Department of Revenue to administer the collection of ad valorem tax by the Department.
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
21LSO-0305

ORIGINAL Senate

ENGROSSED
File No
.
SF0060

ENROLLED ACT NO. 9,

SENATE

SIXTY-SIXTH LEGISLATURE OF THE STATE OF WYOMING
2021 General Session

AN ACT relating to ad valorem taxation of mineral production; specifying that the monthly payment of ad valorem taxation begins January 1, 2022; providing for the payment of ad valorem taxes from calendar years 2020 and 2021; clarifying distribution of the taxes; making conforming changes; repealing an existing ad valorem tax payment transition period; providing for loans to counties; providing appropriations; and providing for an effective date.

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

Section 1.

W.S. 21
‑
13
‑
310(a)(i), (ii)(A), (B) and (d), 39
‑
13
‑
111(d) and 39
‑
13
‑
113(c) and by creating a new subsection (g) are amended to read:

21
‑
13
‑
310.

Annual computation of district revenues.

(a)

To ensure revenues available to each district are uniformly sufficient to enable compliance with the uniform standards for educational programs prescribed under W.S. 21
‑
9
‑
101 and 21
‑
9
‑
102 and to secure state board accreditation of educational programs under W.S. 21
‑
2
‑
304(a)(ii), the revenues specified under this subsection shall be deemed state revenues and shall be considered in determining the amount to be distributed to each district under W.S. 21
‑
13
‑
311. A district shall make an annual computation of the following revenues:

(i)

The revenue collections
estimated
to be received by each district during the school year as its proportionate share of the county six (6) mill levy imposed under W.S. 21
‑
13
‑
201(a) as certified on August 10 under W.S. 39
‑
11
‑
102.1(c)(v) for that school year;

(ii)

The required local tax effort in the current school year for the assessment and levy of school taxes by the district according to the following schedule:

(A)

Any district actually and physically operating a school within the boundaries of the district offering instruction in kindergarten through grade twelve (12), the amount of revenue collections
estimated
to be received during the school year under the twenty
‑
five (25) mill local district levy as certified on August 10 under W.S. 39
‑
11
‑
102.1(c)(v) for that school year;

(B)

Any nonunified district actually and physically operating a school within the boundaries of the district offering instruction in kindergarten through grade eight (8), the amount of revenue collections
estimated
to be received during the school year under the number of mills levied pursuant to W.S. 21
‑
13
‑
102(a)(ii)(A), as certified on August 10 under W.S. 39
‑
11
‑
102.1(c)(v) for that school year.

(d)

As used in this section,
assessed valuation means the assessed valuation certified on August 10 under W.S. 39
‑
11
‑
102.1(c)(v)
"revenue collections estimated to be received" means nonmineral

ad valorem taxes due in accordance with W.S. 39
‑
13
‑
107(b)(i)(D) as certified on August 10 under W.S. 39
‑
11
‑
102.1(c)(v) and monthly payment of ad valorem taxes on mineral production due in accordance with W.S.

39
‑
13
‑
113
.

39
‑
13
‑
111.

Distribution.

(d)

Taxes collected pursuant to W.S. 39
‑
13
‑
113 shall be distributed
as provided in this section
by the county
treasurer on or before the tenth day of the month following the month of receipt. Taxes collected
following final reconciliation of the taxes under W.S. 39
‑
13
‑
113(b)
shall be distributed by the county treasurer on or before the tenth day of the month following the month of collection
.

39
‑
13
‑
113.

Monthly payment of ad valorem tax on gross product of mineral production.

(c)

Collection and distribution. Monthly and annual payments of the ad valorem tax on mineral production shall be collected by the department on behalf of each county. The department shall properly account for the payments received and distribute the payments
promptly in the course of ordinary business
monthly
to the county treasurer. Upon distribution of funds to counties under this subsection the amount shall be proportionally distributed by the county treasurer to each taxing entity within the county as provided in W.S. 39
‑
13
‑
111.

(g)

Notwithstanding subsection (a) of this section and except as otherwise provided in subsections (d) and (f) of this section, estimated monthly ad valorem tax payments shall first be due under this section beginning with production on January 1, 2022. The ad valorem tax on mineral production from calendar years 2020 and 2021 shall be paid as provided in this subsection. Fifty percent (50%) of taxes due for production from calendar year 2020 shall be due on and after September 1, 2021 and payable to the counties on and after November 10, 2021. Unless the entire tax due for production from calendar year 2020 is paid by December 31, 2021, the remaining fifty percent (50%) of the taxes due for production from calendar year 2020 and all taxes due from production in calendar year 2021 shall be paid as provided in this subsection. The total amount of
2020 and 2021 remaining taxes due under this subsection shall be calculated by the department and the applicable counties. The taxpayer shall make an additional payment on December 1 of each year beginning in 2023 equal to eight percent (8%) of the total amount calculated under this subsection until the total amount has been paid. Timely payments made in accordance with this subsection shall not be subject to penalties or interest. If a taxpayer fails to make timely payments under this subsection, all applicable penalties and interest shall be calculated from the date the tax would have been paid if monthly payments began January 1, 2020.

Section 2.

2020 Wyoming Session Laws, Chapter 142, Section 3 is repealed.

Section 3
.

(a)

There is appropriated sixteen million seven hundred twenty
‑
six thousand dollars ($16,726,000.00) from the legislative stabilization reserve account to the state treasurer. This amount shall only be used to make loans to counties to cover funding shortfalls caused by the transition to payment of ad valorem taxes under W.S. 39
‑
13
‑
113(g) upon application to the state treasurer. Loans shall be repaid by the county on a schedule determined by the state treasurer consistent with the schedule for the payment of remaining taxes under W.S. 39
‑
13
‑
113(g) at an interest rate of zero percent (0%) per annum and the loans shall be guaranteed by the payment of remaining taxes made under W.S. 39
‑
13
‑
113(g). Repayments of loans made under this section shall be deposited in the legislative stabilization reserve account. This appropriation shall be for the period beginning with the effective date of this act and ending June 30, 2022.

This appropriation shall not
be transferred or expended for any other purpose and any unexpended, unobligated funds remaining from this appropriation shall revert as provided by law on June 30, 2022.

(b)

There is appropriated twenty
‑
six million dollars ($26,000,000.00) from the school foundation program account to the department of education for purposes of administering the education resource block grant model in school year 2021
‑
2022 to address decreased local school district revenues caused by the transition to monthly payment of ad valorem taxes under W.S. 39
‑
13
‑
113(g).

Section 4.

There is appropriated two hundred seventy
‑
four thousand dollars ($274,000.00) from the legislative stabilization reserve account to the department of revenue for the costs of implementing this act. This appropriation shall be for the period beginning with the effective date of this act and ending June 30, 2022. This appropriation shall not be transferred or expended for any other purpose and any unexpended, unobligated funds remaining from this appropriation shall revert as provided by law on June 30,

2022. It is the intent of the legislature that this appropriation not be included in the department's standard budget for the immediately succeeding fiscal biennium.

Section 5.

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)

Speaker of the House

President of the Senate

Governor

TIME APPROVED: _________

DATE APPROVED: _________

I hereby certify that this act originated in the Senate.

Chief Clerk

1