Severance tax reduction-coal.

Plain English Breakdown

The official source material did not provide information on potential consequences for non-compliance, making it impossible to confirm or deny this claim.

Reducing Coal Severance Tax

This law reduces the severance tax rate for surface coal from seven percent to six and one-half percent, effective July 1, 2022.

What This Bill Does

• Reduces the severance tax rate for surface coal from seven percent (7%) to six and one-half percent (6.5%).
• Changes how the reduced tax is distributed among different state funds.
• Specifies that the new lower tax rate applies only to surface coal produced after July 1, 2022.

Who It Names or Affects

• Coal mining companies that extract surface coal in Wyoming.
• State agencies responsible for collecting and distributing severance taxes.

Terms To Know

Severance tax

A tax on the extraction or production of natural resources, like coal, from a state's land.

Surface coal

Coal that is mined by removing surface layers to access deposits near the ground’s surface.

Limits and Unknowns

• The law only affects surface coal and does not change taxes on underground coal.
• It's unclear how much money will be saved or lost due to this tax reduction.

Official Summary Text

Bill Summary - 22LSO-0229
Bill No.:

HB0105

Effective:

7/1/2022 12:00:00 AM

LSO No.:

22LSO-0229

Enrolled Act No.:

HEA No. 0060

Chapter No.:

102

Prime Sponsor:

Hallinan

Catch Title:

Severance tax reduction-coal.

Subject:

Reducing the severance tax rate for surface coal.

Summary/Major Elements:

This act reduces the severance tax rate for surface coal from seven percent (7%) to six and one-half percent (6.5%) and makes conforming changes to the distribution of the severance tax to reflect the reduction to six and one-half percent (6.5%).

The reduction in the severance tax rate applies only to surface coal that is produced after the effective date of the act, July 1, 2022.
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

22LSO-0229

ORIGINAL House

Bill No
.
HB0105

ENROLLED ACT NO. 60,

HOUSE OF REPRESENTATIVES

SIXTY-SIXTH LEGISLATURE OF THE STATE OF WYOMING
2022 Budget Session

AN ACT relating to taxation and revenue; reducing the severance tax rate for surface coal; conforming related tax distribution provisions; specifying 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
‑
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
‑
14
‑
104(a)(i) and a 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.

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, 2022
.

(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

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