Severance tax distribution-highway fund.

Plain English Breakdown

The candidate explanation incorrectly stated that the changes would start on July 1, 2025. The bill is marked as inactive and will not move forward in this session.

Severance Tax for Highway Fund

The bill changes the distribution of severance tax to the highway fund starting from fiscal year 2026 and removes an old rule about where this tax goes.

What This Bill Does

• Changes the way severance tax money is divided so that two-thirds of the tax collected from fiscal year 2026 onwards will go into the highway fund.
• Removes a part of the law that allowed for the distribution of severance tax in the general appropriations bill.

Who It Names or Affects

• The state government and agencies responsible for managing highway funds.
• Oil and gas companies that pay severance taxes in Wyoming.

Terms To Know

Severance tax

A tax paid by oil, gas, and mining companies when they extract natural resources from the land.

Highway fund

Money set aside to pay for building and maintaining roads and highways.

Limits and Unknowns

• The bill is marked as inactive in Wyoming, meaning it will not move forward in this session.
• It only affects fiscal years starting from 2026 onwards.

Current Bill Text

25LSO-0258
2025
STATE OF WYOMING
25LSO-0258
Introduced
2.0

HOUSE BILL NO. HB0029

Severance tax distribution-highway fund.

Sponsored by: Joint Transportation, Highways & Military Affairs Interim Committee

A BILL

for

AN ACT relating to taxation and revenue; changing the distribution of severance tax to the highway fund; repealing a provision allowing for the distribution of severance tax in the general appropriations bill; and providing for an effective date.

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

Section 1.

W.S. 39
‑
14
‑
801(b)(v) and by creating a new paragraph (vii) is amended to read:

39
‑
14
‑
801.

Severance tax distributions; distribution account created; formula.

(b)

Before making distributions from the severance tax distribution account under subsections (c) through (e) of this section, an amount equal to two
‑
thirds (2/3) of the amount of tax collected under W.S. 39
‑
14
‑
104(a)(i) and (b)(i) and 39
‑
14
‑
204(a)(i) for the same period shall be deposited as follows:

(v)

For fiscal year

2023 through fiscal year
2028
2025,
these funds shall be deposited equally to the permanent Wyoming mineral trust fund and to the common school account within the permanent land fund;

(vii)

For fiscal year 2026 and thereafter, these funds shall be deposited to the highway fund.

Section 2.

W.S. 39
‑
14
‑
801(b)(vi) and (f) is repealed.

Section 3.

This act is effective July 1, 2025.

(END)

1
HB0029