Coal severance tax rate.

Plain English Breakdown

The official summary and text do not provide details on how the distribution of funds changes beyond reducing the overall tax rate.

Lowering Coal Tax for Surface Mining

This law reduces the severance tax rate on surface coal mining from 6.5% to 6%, and updates related laws accordingly.

What This Bill Does

• Reduces the severance tax rate for surface coal from 6.5% to 6%
• Updates other parts of the law to match these changes
• Sets a start date of July 1, 2025 for when this new tax rate takes effect

Who It Names or Affects

• Coal mining companies that extract surface coal in Wyoming
• The state government and its funds

Terms To Know

Severance Tax

A tax on the removal of natural resources from a state, like coal or oil.

Limits and Unknowns

• The bill only affects surface coal mining, not underground coal mining.
• It does not specify how much money will be saved or lost by changing the tax rate.

Official Summary Text

Bill Summary - 25LSO-0295

Bill No.:

HB0075

Effective:

7/1/2025

LSO No.:

25LSO-0295

Enrolled Act No.:

HEA No. 0011

Chapter No.:

31

Prime Sponsor:

Clouston

Catch Title:

Coal severance tax rate.

Has Report:

No

Subject:

Coal severance tax rate.

Summary/Major Elements:

This bill reduces the severance tax rate for surface coal from six and one
‑
half percent (6.5%) to six percent (6%).

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

25LSO-0295

ORIGINAL House

Bill No
.
HB0075

ENROLLED ACT NO. 11,

HOUSE OF REPRESENTATIVES

SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
2025 General Session

AN ACT relating to severance tax; decreasing the severance tax rate for surface coal; making conforming changes; 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 (iv) 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
six and one
‑
half percent (6.5%)
six percent (6%)
.

This rate comprises one and one
‑
half percent (1.5%) imposed by Wyoming constitution article 15, section 19, and
five percent (5%)
four and one
‑
half percent (4.5%)
imposed statutorily.

The tax shall be distributed as provided in W.S. 39
‑
14
‑
111 and is imposed as follows:

(iv)

One and one
‑
half percent (1.5%)
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
six and one
‑
half percent (6.5%)
six percent (6%)
. 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
.

This act is effective July 1, 2025
.

(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

1