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SF0038 • 2022

Monthly ad valorem tax revisions.

AN ACT relating to ad valorem taxation of mineral production; clarifying and modifying the reporting and payment of ad valorem taxes on mineral production; clarifying and modifying provisions for the payment of deferred taxes; providing an appropriation; and providing for an effective date.

Budget Land Taxes
Enacted

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

Sponsor
Revenue
Last action
2022-03-11
Official status
enrolled
Effective date
3/11/2022

Plain English Breakdown

The official source material does not provide details on how the $3 million loan fund will be distributed or used.

Monthly ad valorem tax changes for mineral production

This law updates how companies report and pay taxes on minerals they produce, sets rules for paying back taxes from 2020 and 2021, and provides money to help counties deal with the new payment system.

What This Bill Does

  • Changes when mineral producers must report and pay ad valorem taxes each month.
  • Requires the Department of Revenue to send invoices to taxpayers for monthly tax payments.
  • Clarifies rules for paying back taxes from calendar years 2020 and 2021, including penalties if not paid on time.
  • Specifies that counties must track deferred tax payments and send annual invoices to taxpayers.

Who It Names or Affects

  • Mineral producers who pay ad valorem taxes in Wyoming
  • Counties that collect these taxes

Terms To Know

ad valorem tax
A property tax based on the value of a product or asset.
deferred taxes
Taxes that are due but not yet paid, often with penalties if not settled by a certain date.

Limits and Unknowns

  • The bill does not specify how the $3 million loan fund will be distributed to counties.
  • It is unclear what happens if mineral producers do not comply with new reporting and payment requirements.

Amendments

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

SF0038HW001

Committee of the Whole • Representative Harshman

Adopted

Plain English: The amendment changes the wording in a bill about mineral production taxes to clarify how tax payments are handled.

  • Removes the word 'the' after 'counties'.
  • Replaces 'remaining balance of' with 'any remaining portion of nondelinquent'
  • The exact impact of these changes on how mineral production taxes are reported and paid is not fully explained in the amendment text.
SF0038SS001

Standing Committee • Senate Revenue Committee

Adopted

Plain English: The amendment changes how mineral production tax reports are made and allows taxpayers to pay any leftover unpaid taxes without penalties.

  • Changes 'reports' to 'report' in the bill text.
  • Adds a new provision that lets taxpayers pay any remaining deferred taxes without facing penalties.
  • The amendment's text is limited and does not provide full context for how these changes will be implemented or their broader impacts.

Bill History

  1. 2022-03-11 LSO

    Assigned Chapter Number 53

  2. 2022-03-11 Governor

    Governor Signed SEA No. 0030

  3. 2022-03-09 House

    H Speaker Signed SEA No. 0030

  4. 2022-03-09 Senate

    S President Signed SEA No. 0030

  5. 2022-03-09 LSO

    Assigned Number SEA No. 0030

  6. 2022-03-09 Senate

    S Concur:Passed 24-5-1-0-0

  7. 2022-03-08 Senate

    S Received for Concurrence

  8. 2022-03-08 House

    H 3rd Reading:Passed 53-5-2-0-0

  9. 2022-03-07 House

    H 2nd Reading:Passed

  10. 2022-03-04 House

    H COW:Passed

  11. 2022-03-03 House

    H Placed on General File

  12. 2022-03-03 House

    H02 - Appropriations:Recommend Do Pass 7-0-0-0-0

  13. 2022-03-02 House

    H03 - Revenue:Rerefer to H02 - Appropriations

  14. 2022-03-01 House

    H03 - Revenue:Recommend Do Pass 8-1-0-0-0

  15. 2022-02-23 House

    H Introduced and Referred to H03 - Revenue

  16. 2022-02-21 House

    H Received for Introduction

  17. 2022-02-21 Senate

    S 3rd Reading:Passed 30-0-0-0-0

  18. 2022-02-18 Senate

    S 2nd Reading:Passed

  19. 2022-02-17 Senate

    S COW:Passed

  20. 2022-02-17 Senate

    S Placed on General File

  21. 2022-02-17 Senate

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

  22. 2022-02-16 Senate

    S03 - Revenue:Rerefer to S02 - Appropriations

  23. 2022-02-16 Senate

    S03 - Revenue:Recommend Amend and Do Pass 4-1-0-0-0

  24. 2022-02-14 Senate

    S Introduced and Referred to S03 - Revenue 24-6-0-0-0

  25. 2022-02-07 Senate

    S Received for Introduction

  26. 2022-01-19 LSO

    Bill Number Assigned

Official Summary Text

Bill Summary - 22LSO-0234
Bill No.:

SF0038

Effective:

Immediately

LSO No.:

22LSO-0234

Enrolled Act No.:

SEA No. 0030

Chapter No.:

53

Prime Sponsor:

Joint Revenue Interim Committee

Catch Title:

Monthly ad valorem tax revisions.

Subject:

Collection and reporting of ad valorem taxes on mineral production.

Summary/Major Elements:

This act revises the timing for reporting and payment of ad valorem taxes on mineral production and requires the Department of Revenue to provide an invoice to the taxpayer.

This act clarifies existing law related to the payment of deferred taxes on mineral production from calendar years 2020 and 2021 and specifies that counties are required to track payments of deferred taxes and send an annual invoice to the taxpayer.

This act specifies penalties for a failure to make deferred tax payments and specifies a procedure for payment of the remaining deferred taxes if the taxpayer is no longer required to file a severance tax report with the Department of Revenue.

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
22LSO-0234

ORIGINAL Senate

ENGROSSED
File No
.
SF0038

ENROLLED ACT NO. 30,

SENATE

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

AN ACT relating to ad valorem taxation of mineral production; clarifying and modifying the reporting and payment of ad valorem taxes on mineral production; clarifying and modifying provisions for the payment of deferred taxes; providing an appropriation; and providing for an effective date.

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

Section 1.

W.S. 39
‑
13
‑
113(b)(intro), (d) and (g) is amended to read:

39
‑
13
‑
113.

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

(b)

Except as provided in this section, all mineral and mine producers in the state shall report
ad valorem mineral production to the department on or before the twenty
‑
fifth day of the second month following the month of production
and
shall
pay the ad valorem tax on mineral production for each county on a monthly basis
as indicated on an invoice sent by the department. The department shall invoice each producer on or before the tenth day of the month following the report
. Payments shall be due and payable to the department on or before the twenty
‑
fifth day of the
second
third
month following the month of production. Payments under this subsection shall not be less than the amount calculated by the
taxpayer
department
by applying the mill levy rate established by the county in the immediately preceding year to the value of the gross product of minerals and mine products produced each month.

Annually, on or before September 20, the county treasurer shall send a written statement to each taxpayer by mail at his last known address or, if offered by the county and upon request of the taxpayer, by electronic transmission,
of any tax due or overpayment received after applying the amount the county has received from that taxpayer through monthly payments under this section by reconciling those payments with the applicable mill levy rate for that production year, itemized as to property description, assessed value and applicable mill levies. Failure to send notice, or to demand payment of taxes, does not invalidate any taxes due. The taxpayer shall reconcile the amount indicated on the notice as follows:

(d)

If a taxpayer's liability for severance tax as imposed under chapter 14 of this title is less than thirty thousand dollars ($30,000.00) for the preceding calendar year, the monthly payment requirements for the ad valorem tax on mineral production under this chapter are waived and the taxpayer shall report
to the department on or before the twenty
‑
fifth day of February of the year following the production year
and
shall
pay the ad valorem tax on mineral production annually as
provided in this subsection
indicated on an invoice sent by the department. The department shall invoice each producer on or before the tenth day of the month following the report
. The
annual report and
payment shall be due and payable on
February
March
25 of the year following the year of production. Annual payments shall be calculated by the
taxpayer
department
by applying the mill levy rate established by the county commissioners in the production year
, along with any adjustments made in accordance with law and reported by the county to the department by January 15 of the year following the production year,
to the value of the gross product of minerals and mine products produced in the applicable year. Annual payments made under this subsection shall be paid to the department and deposited with the applicable county treasurer as provided in subsection (c)
of this section and reconciled as provided in subsection (b) of this section.

(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,
T
he remaining fifty percent (50%) of the taxes due for production from calendar year 2020
, unless the entire tax due for production from calendar year 2020 is paid by December 31, 2021,
and all taxes due from production in calendar year 2021 shall be paid
through deferred payments
as provided in this subsection. The total amount of
2020 and 2021 remaining
deferred
taxes due under this subsection shall be calculated by the department and the applicable counties. The taxpayer shall make an additional payment
for deferred taxes under this subsection
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.
Each county shall track payments due under this subsection and shall send an invoice to each taxpayer not later than October 1 of each year beginning in 2023 of the deferred payment due under this subsection for that year.
Timely
deferred
payments made in accordance with this subsection shall not be subject to penalties or interest.
If a taxpayer fails to make timely
The following shall apply to deferred
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.

(i)

If a taxpayer fails to make one (1) deferred payment by December 1 of the year the payment is due under this subsection, all applicable penalties and interest shall be calculated from the date of the missed payment;

(ii)

If a taxpayer fails to make a second deferred payment under this subsection, the total remaining amount of deferred taxes due under this subsection shall be immediately due and payable with penalties and interest calculated from the date of the second missed payment;

(iii)

If a taxpayer subject to deferred payments under this subsection sells, divests or liquidates its producing mineral assets in a county or counties such that the taxpayer is no longer required to file a monthly severance tax report with the department pursuant to chapter 14 of this title, the total remaining amount of deferred taxes due under this subsection for that county or counties shall be due and payable to the applicable county treasurer on or before the twenty
‑
fifth day of the third month following the month the taxpayer sold, divested, or liquidated its producing mineral assets. If a taxpayer fails to make a deferred payment under this paragraph, all applicable penalties and interest shall be calculated from the date of the missed payment;

(iv)

Nothing in this subsection shall prohibit a taxpayer from voluntarily remitting to the counties any remaining portion of nondelinquent deferred taxes without penalty.

Section 2
.

There is appropriated three million dollars ($3,000,000.00) from the legislative stabilization reserve account to the state treasurer. This appropriation 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) as provided in 2021 Wyoming Session Laws, Chapter 28, Section 3(a). 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.

Section 3.

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