Chapter 11 - Administration
CHAPTER 14 - MINE PRODUCT TAXES ARTICLE 1 COAL
39-14-101. Definitions.
(a) As used in this article:
(i) "Arm's-length market or sales price" means thetransaction price determined in connection with a bona fide arm's length sale;
(ii) "Bona fide arm's-length sale" means a transactionin cash or terms equivalent to cash for specified property rights afterreasonable exposure in a competitive market between a willing, well informedand prudent buyer and seller with adverse economic interests and assumingneither party is acting under undue compulsion or duress;
(iii) "Department review" means, but is not limited to,corrections of clerical errors or reconciliations of tax reports with reportsrequired by other state or federal agencies;
(iv) "Mine product valuation amendment" means avaluation adjustment determination made by the department including specialdirectives;
(v) "Mining or production" means drilling, blasting,loading, roadwork, overburden removal, pre-mouth of the mine reclamation,transportation from the point of severance to the mouth of the mine, andmaintenance of facilities and equipment directly relating to any of thefunctions stated in this paragraph;
(vi) "Mouth of the mine" means the point at which amineral is brought to the surface of the ground and is taken out of the pit,shaft or portal. For a surface mine, this point shall be the top of the rampwhere the road or conveying system leaves the pit. For an in situ mine, thepoint shall be the wellhead;
(vii) "Processing" means crushing, sizing, milling,washing, drying, refining, upgrading, beneficiation, sampling, testing,treating, heating, separating, tailings or reject material disposal,compressing, storing, loading for shipment, transportation from the mouth ofthe mine to the loadout, transportation to market to the extent included in theprice and provided by the producer, processing plant site and post-mouth ofmine reclamation, maintenance of facilities and equipment relating to any ofthe functions stated in this paragraph, and any other function after severancethat changes the physical or chemical characteristics or enhances themarketability of the mineral;
(viii) "Purchaser" means the first purchaser whoacquires the produced valuable coal deposit from the taxpayer for value;
(ix) "Severance tax" means an excise tax imposed onthe present and continuing privilege of removing, extracting, severing orproducing any mineral in this state;
(x) Beginning January 1, 1989, "taxable value" meansone hundred percent (100%) of the fair market value of the gross product ofminerals and mine products;
(xi) "Transportation to market provided by a thirdparty" means the costs incurred for any movement of a mineral which isperformed by a third party, after completion of all mining and processingfunctions, beyond the point of loading for shipment to the customer, commonlyreferred to as the loadout, established by contract or by governmentregulations;
(xii) "Transportation to market provided by theproducer" means the costs incurred for any movement of a mineral which isperformed by the producer beyond the point of loading for shipment to thecustomer, commonly referred to as the loadout, completed by the employees ofthe producer using equipment owned by the producer;
(xiii) "Underground coal" means coal mined by methods ofman-made excavation underneath the surface of the earth utilizing shafts,tunnels or lifts, including planes connected with excavations penetrating themineral stratum;
(xiv) "Unreported production" means production volumefor which no tax report was filed for the reporting period by the taxpayer orhis agent;
(xv) "Value of the gross product" means fair marketvalue as prescribed by W.S. 39-11-101, less any deductions and exemptionallowed by Wyoming law or rules.
39-14-102. Administration; confidentiality.
(a) The department shall annually value and assess the grossproduct of all mines and mining claims at its fair market value for taxation.
(b) Based upon the information received or procured pursuant toW.S. 39-14-107(a) or 39-14-108(a) and except as otherwise provided, thedepartment shall annually value the gross product for the preceding calendaryear, in appropriate unit measures of all mines and mining claims from whichvaluable deposits are produced.
(c) Except as otherwise provided, in the event the product asdefined in W.S. 39-14-103(b)(iii) is not sold at the mouth of the mine by bonafide arms-length sale, or if the product of the mine is used without sale, thedepartment shall determine the fair market value by application of recognizedappraisal techniques.
(d) Annually, on or before June 1, or as soon thereafter as thefair market value is determined, the department shall certify the valuationdetermined by the department to the county assessor of the county in which theproperty is located, to be entered upon the assessment rolls of the county.
(e) All taxpayer returns and return information shall beconfidential and, except as authorized below, no current or former official,officer, employee or agent of the state of Wyoming or any political subdivisionthereof shall disclose any such information obtained by him in connection withhis service as an officer or employee.
(f) As used in this section, taxpayer returns and returninformation shall include, but not be limited to, all statements, reports,summaries and all other data and documents under audit or provided by thetaxpayer in accordance with the provisions of W.S. 39-14-107(a) and relatedprovision.
(g) Without written authorization from the taxpayer, no currentor former official, officer, employee or agent of the state of Wyoming or anypolitical subdivision thereof shall release taxpayer returns and returninformation pertaining to taxes imposed by this article, except:
(i) Information may be released to the governor or hisdesignee, members of the board, to employees of the department of audit, thedepartment of revenue, the consensus revenue estimating group and to theattorney general;
(ii) Upon prior notice to the taxpayer, information may bereleased by the department, upon written application, to any other governmentalentity if the governmental entity shows sufficient reason to obtain theinformation for official business;
(iii) Information is admissible in court or administrativeproceedings related to mineral taxes or government royalties.
(h) Any person receiving information pursuant to paragraph(g)(ii) of this section shall sign an agreement with the department to keep theinformation confidential.
(j) Units of production reported by the taxpayer and thetaxpayer's taxable value are not confidential and may be released withoutqualification.
(k) Any person who negligently violates subsections (e) through(j) of this section is guilty of a misdemeanor and upon conviction shall befined not more than one thousand dollars ($1,000.00). Any person whointentionally violates subsections (e) through (j) of this section is guilty ofa misdemeanor and upon conviction shall be fined not less than one thousanddollars ($1,000.00), but not more than five thousand dollars ($5,000.00) andimprisoned for not more than one (1) year.
(m) Repealed By Laws 2000, Ch. 68, 1.
39-14-103. Imposition.
(a) Taxable event. The following shall apply:
(i) There is levied a severance tax on the value of the grossproduct for the privilege of severing or extracting both surface andunderground coal in the state. The severance tax imposed by this article may bein addition to other taxes, including but not limited to the ad valorem taxesimposed by W.S. 39-13-104.
(b) Basis of tax (valuation). The following shall apply:
(i) Coal shall be valued for taxation as provided in thissubsection;
(ii) The value of the gross product shall be the fair marketvalue of the product at the mouth of the mine where produced, after the miningor production process is completed;
(iii) Except as otherwise provided, the mining or productionprocess is deemed completed when the mineral product reaches the mouth of themine. In no event shall the value of the mineral product include any processingfunctions or operations regardless of where the processing is performed;
(iv) Except as otherwise provided, if the product as defined inparagraph (iii) of this subsection is sold at the mouth of the mine, the fairmarket value shall be deemed to be the price established by bona fidearms-length sale;
(v) In the event the product as defined in paragraph (iii) ofthis subsection is sold at the mouth of the mine without further movement orprocessing, the fair market value shall be the price established by bona fidearms-length sale less exempt royalties;
(vi) In the event the product as defined in paragraph (iii) ofthis subsection is not sold at the mouth of the mine by bona fide arms-lengthsale, or, except as otherwise provided, if the product of the mine is usedwithout sale, the department shall determine the fair market value of coal inaccordance with paragraph (vii), (viii), (ix) or (x) of this subsection;
(vii) For coal sold away from the mouth of the mine pursuant to abona fide arms-length sale, the department shall calculate the fair marketvalue of coal by multiplying the sales value of extracted coal, lesstransportation to market provided by a third party to the extent included insales value, all royalties, ad valorem production taxes, severance taxes, blacklung excise taxes and abandoned mine lands fees, by the ratio of direct miningcosts to total direct costs. Nonexempt royalties, ad valorem production taxes,severance taxes, black lung excise taxes and abandoned mine lands fees shallthen be added to determine fair market value. For purposes of this paragraph:
(A) The sales value of extracted coal shall be the sellingprice pursuant to an arms-length contract. To the extent not included in theselling price pursuant to an arms-length contract, and to the extent that thefollowing represent partial consideration for the value of the coal, salesvalue shall include the value per ton attributable to the extracted coal forany consideration provided to the seller in the form of heat contentadjustments, price escalations or de-escalations, expense reimbursements,capital, facilities or equipment, services for mining, handling, processing ortransporting the coal at or near the mine site, or any payment received for thecurrent or past sale of extracted coal, by or on behalf of the purchaser. Sales value per ton shall include consideration provided for the deferral ofextraction and sale in the taxable period in which the purchaser receivescredit for the payment as a result of subsequent extraction and sale of thedeferred production;
(B) Direct mining costs include mining labor including mineforemen and supervisory personnel whose primary responsibility is extraction ofcoal, supplies used for mining, mining equipment depreciation, fuel, power andother utilities used for mining, maintenance of mining equipment, coaltransportation from the point of severance to the mouth of the mine, and anyother direct costs incurred prior to the mouth of the mine that arespecifically attributable to the mining operation;
(C) Total direct costs include direct mining costs determinedunder subparagraph (B) of this paragraph plus mineral processing laborincluding plant foremen and supervisory personnel whose primary responsibilityis processing coal, supplies used for processing, processing plant andequipment depreciation, fuel, power and other utilities used for processing,maintenance of processing equipment, coal transportation from the mouth of themine to the point of shipment, coal transportation to market to the extentincluded in the price and provided by the producer, and any other direct costsincurred that are specifically attributable to the mining, processing or transportationof coal up to the point of loading for shipment to market;
(D) Indirect costs, royalties, ad valorem production taxes,severance taxes, black lung excise taxes and abandoned mine lands fees shallnot be included in the computation of the ratio set forth in this paragraph. Indirect costs include but are not limited to allocations of corporateoverhead, data processing costs, accounting, legal and clerical costs, andother general and administrative costs which cannot be specifically attributedto an operational function without allocation.
(viii) For coal used without sale, or coal not sold pursuant to abona fide arms-length agreement, the sales value for the purposes of paragraph(vii) of this subsection shall be the fair market value of coal which iscomparable in the quality, quantity, terms and conditions under which the coalis being used or sold, both in the spot market and through long-term agreementsnegotiated within the previous twelve (12) months, multiplied by the respectivenumber of tons used or sold for each reporting period;
(ix) Notwithstanding paragraph (viii) of this subsection, thesales value for purposes of paragraph (vii) of this subsection for coal used asa feedstock in a coal enhancement process which has been subjected to normalprocesses necessary to achieve marketability, shall be the market value ofcomparable coal as determined by this paragraph. The market value of comparablecoal attributable to feedstock coal shall be:
(A) A representative selling price received or receivable whichshall be determined by the first of the following subdivisions that isapplicable, multiplied by the total feedstock tons used in each reportingperiod:
(I) Arms-length price of comparable coal produced from the samemine and sold under comparable terms, or if a comparable coal price is notavailable from the same mine, the arms-length price of comparable coal producedfrom other mines in the area and sold under comparable terms;
(II) Price reported to a public utility commission forcomparable coal produced from the same mine and sold under comparable terms, orif a comparable coal price is not available from the same mine, the pricereported to a public utility commission for comparable coal produced from othermines in the area and sold under comparable terms;
(III) Other published or publicly available market prices forcomparable coal produced from mines in the area and sold under comparableterms.
(B) If subparagraph (A) of this paragraph is not applicable,then the sales value for coal used as a feedstock shall be the totalarms-length selling price of the enhanced coal sold during the reporting periodmultiplied by the total of the enhanced tons sold.
(x) In the event that unique or unusual circumstances existsuch that the department or the taxpayer is unable to determine the value ofthe gross product of coal from a mine or mining claim by application of themethods provided in this subsection, the taxpayer may petition the departmentfor approval to use an alternate valuation method. The department shallapprove or deny the use of an alternate valuation method and shall so informthe parties within forty-five (45) days of the date the petition is filed.
(c) Taxpayer. The following shall apply:
(i) In the case of the gross product of all mines and miningclaims produced under lease, the lessor is liable for the payment of ad valoremtaxes on the product removed only to the extent of the lessor's retainedinterest under the lease, whether royalty or otherwise, and the lessee or hisassignee is liable for all other ad valorem taxes due on production under thelease;
(ii) Any taxpayer paying the taxes imposed by this article onany valuable deposit may deduct the severance taxes paid from any amounts dueor to become due to the interest owners of such valuable deposit in proportionto the interest ownership;
(iii) Any person extracting valuable products subject to thischapter and any person owning an interest in the valuable products to theextent of their interest ownership are liable for the payment of the severancetaxes imposed by this article together with any penalties and interest.
39-14-104. Tax rate.
(a) Except as otherwise provided by W.S. 39-14-105, the totalseverance tax rate for surface coal shall be seven percent (7%). This ratecomprises one and one-half percent (1.5%) imposed by Wyoming constitutionarticle 15, section 19, and five and one-half percent (5.5%) imposed statutorily. The tax shall be distributed as provided in W.S. 39-14-111 and is imposed asfollows:
(i) One and one-half percent (1.5%); plus
(ii) One-half percent (.5%); plus
(iii) Two percent (2%); plus
(iv) One and one-half percent (1.5%); plus
(v) One percent (1%); plus
(vi) One-half percent (.5%).
(b) The total severance tax rate for underground coal shall bethree and three-quarters percent (3.75%). The tax shall be distributed asprovided in W.S. 39-14-111 and is imposed as follows:
(i) One and one-half percent (1.5%); plus
(ii) One and one-quarter percent (1.25%); plus
(iii) One percent (1%).
39-14-105. Exemptions.
(a) Coal has no value and is exempt from taxation if it isconsumed prior to sale for the purpose of treating or processing coal producedfrom the same mine.
(b) Notwithstanding W.S. 39-14-104 and effective January 1,1999, when the application of taxes under W.S. 39-14-104 results in a tax on aton of surface mined coal in excess of sixty cents ($.60), or thirty cents($.30) on a ton of underground mined coal, the coal is exempt from the taxwhich exceeds the maximum amount per ton. This exemption shall be applicableto:
(i) New agreements entered into between March 31, 1987, andDecember 31, 2003, if:
(A) The application of the taxes in W.S. 39-14-104 results in atax on a ton of surface mined coal in excess of sixty cents ($.60), or thirtycents ($.30) on a ton of underground mined coal at the time the agreement isentered and the coal is first produced under the agreement;
(B) Production and delivery of coal actually commences pursuantto the agreement between March 31, 1987, and December 31, 2003;
(C) The coal is transported and consumed outside the borders ofthe state of Wyoming; and
(D) The new contract or agreement is not the result of thepurchaser breaching a contract with another Wyoming producer; or
(ii) New agreements entered into between January 1, 1987, andDecember 31, 2003, to supply coal to a facility in the planning stage or underconstruction at the time the new agreement is entered if:
(A) The application of the taxes in W.S. 39-14-104 results in atax on a ton of surface mined coal in excess of sixty cents ($.60), or thirtycents ($.30) on a ton of underground mined coal at the time the agreement isentered and the coal is first produced under the agreement;
(B) The coal is transported and consumed outside the borders ofthe state of Wyoming; and
(C) The new contract or agreement is not the result of thepurchaser breaching a contract with another Wyoming producer; or
(iii) A contract or agreement which existed on January 1, 1987,or a modification to that contract or agreement occurring between March 31,1987, and December 31, 2003, between a Wyoming coal producer and a purchaserfor consumption in an electrical generating facility or coking facility locatedin Wyoming to the extent that the producer's annual production and deliveriesunder the contract exceeds the average annual tonnage of coal delivered duringcalendar years 1985 and 1986 under the same contract. The exemption applies tothe amount of additional coal produced in each of calendar years 1987 through2003 and thereafter, so long as the additional coal is produced and deliveredannually. If the annual deliveries after calendar year 2003 fall below theaverage of the 1985 and 1986 production, the exemption will no longer applyeven if subsequent production exceeds the average of the 1985 and 1986production unless the annual deliveries after calendar year 2000 fall below theaverage of the 1985 and 1986 production by reason of fire, explosion,earthquake, windstorm, accident, flood, equipment failure, act of God, war,seizure or activities of the armed forces, or other casualty or act beyond thereasonable control of either party to the contract or agreement. The exemptionapplies to contracts or agreements described in this paragraph only if a facility'stotal annual purchase of Wyoming coal exceeds the average annual tonnage ofWyoming coal purchased by the facility during calendar years 1985 and 1986;
(iv) Coal consumed by any coking facility located in Wyoming ifthe producer demonstrates to the department of revenue that the Wyoming coalconsumed at the coking facility has displaced an equivalent quantity of coalproduced outside of Wyoming. The exemption applies to the amount of Wyomingcoal delivered and consumed by the coking facility in calendar year 1989 andthereafter, so long as the Wyoming coal is produced and delivered annually. Ifannual deliveries after calendar year 2003 fall below the previous year'sdeliveries, the exemption will no longer apply unless shipments are curtailedas the result of conditions described under paragraph (iii) of this subsection.
(c) The limitation on excise taxation provided for insubsection (b) of this section shall be applicable to a contract or agreementfor the duration of its term or any extension thereof executed prior toDecember 31, 2003. If a producer and purchaser of coal under a contract oragreement existing on January 1, 1999, mutually rescind that contract oragreement and execute a new contract or agreement under substantially similarterms or amend an existing contract to diminish the total revenue which wouldhave accrued under that contract, the coal sold under the new or amendedcontract shall be taxed under the provisions of this section without regard tothe tax limitation imposed by subsection (b) of this section.
(d) Repealed By Laws 2008, Ch. 44, 2.
39-14-106. Licenses; permits.
There are no specific applicable provisionsfor licenses and permits for this article.
39-14-107. Compliance; collection procedures.
(a) Returns and reports. The following shall apply:
(i) Annually, on or before February 25 of the year followingthe year of production any person whose property is subject to W.S.39-14-102(a) shall sign under oath and submit a statement listing the informationrelative to the property and affairs of the company as the department mayrequire to assess the property:
(A) For mines and mining claims, the same date as prescribed byparagraph (iv) of this subsection for December production. In addition to the informationrequired by this subsection, Wyoming coal producers shall provide to thedepartment a summary of each new coal sales agreement for total sales in excessof ten thousand (10,000) tons and any amendment to an existing agreement fortotal sales in excess of ten thousand (10,000) tons signed during each calendarquarter no later than the last day of the month following the end of thecalendar quarter. Each summary shall be on a form prescribed by the departmentand shall contain the date the agreement or amendment was executed, term of theagreement or amendment, annual volume or total volume if the agreement oramendment is for less than one (1) year, heat content requirements, qualityspecifications, nature and extent of enhancement if any, transportation terms,contract price and an explanation of any consideration that is a part of thesales value but not included in the contract price. A copy of each coal salesagreement or amendment shall be provided by the producer to the department nolater than eighteen (18) months after the date the agreement or amendment wassigned unless the agreement is not yet publicly available. If the agreement isnot yet publicly available, the producer shall, in lieu of providing a copy ofthe agreement, notify the department in writing that the agreement is not yetpublicly available and when the producer believes the agreement will bepublicly available. It will thereafter be the responsibility of the producer toascertain if and when the agreement does become publicly available and toprovide a copy to the department within thirty (30) days from the date theagreement becomes publicly available. The producer may be relieved of theresponsibility of ascertaining the date the agreement becomes publiclyavailable by supplying a copy to the department. The coal sales agreements,amendments and summaries shall not be considered public records and shall notbe open to public inspection. The coal sales agreements, amendments andsummaries shall be considered taxpayer return information and shall be madeavailable in accordance with applicable confidentiality statutes to the extentneeded to carry out official duties under this section and W.S. 39-14-102(e)through (k). Proprietary information derived from the agreements and summariesshall be aggregated by the department on a calendar year basis prior todisclosure to any person not authorized by law to have access to theinformation. Any producer complying with this section shall not be required toprovide subsequent summaries or copies of the same agreement or amendments toany of the agencies or officials identified by this section and W.S.39-14-102(e) through (k). Any producer complying with this section shall notbe required to provide other state agencies authorized by law to have access tothe information, additional copies of sales agreements, amendments or summariesexcept as required through formal discovery in a contested case.
(ii) All information and reports shall be notarized and signedby a person who has legal authority to bind the taxpayer;
(iii) For mines and mining claims, the department may presumethat the property is located in the county in which production is reported bythe taxpayer. The department shall not direct any county to provide relief fortaxes paid on taxable valuation which was erroneously reported and certified tothe wrong county unless the taxpayer files or is directed to file amendedreturns within two (2) years of the date of the original certification of theproduction. Unless there is evidence of bad faith or willful disregard ofproduction circumstances, no taxpayer shall be required to pay taxes onproduction which was erroneously reported and certified to the wrong county ifrelief for taxes paid is not allowed under this provision;
(iv) Except as provided in paragraph (v) of this subsection,each taxpayer liable for severance taxes under W.S. 39-14-103 shall reportmonthly to the department. The monthly tax reports are due on or before thetwenty-fifth day of the second month following the month of production. Reportsshall be filed on forms prescribed by the department. The department may allowextensions for filing returns by regulation;
(v) If a taxpayer's liability for severance tax imposed underthis article is less than thirty thousand dollars ($30,000.00) for thepreceding calendar year, monthly reporting requirements are waived and thetaxpayer shall report annually. The annual report is due on February 25 of theyear following the year in which production occurred. If a taxpayer who reportsand pays annually accumulates an annual liability exceeding thirty thousanddollars ($30,000.00), that taxpayer shall commence reporting monthly asprovided in paragraph (iv) of this subsection during the production year followingthe year in which the accumulated tax liability exceeded thirty thousanddollars ($30,000.00). It is the taxpayer's responsibility to notify thedepartment concerning the change from annual to monthly reporting requirementsor from monthly to annual reporting;
(vi) For mines and mining claims, the taxpayer shall report thelocation of the production to the county and tax district in which the mine ormining claim is located, based upon the actual taxable production produced bythe mine in each county or tax district. Other reasonable methods of reportingthe location of production may be approved by the department upon writtenrequest of the taxpayer or taxing jurisdiction.
(b) Payment. The following shall apply:
(i) Annually, on or before October 10 the county treasurershall send a written statement in sealed envelopes of total tax due, itemizedas to property description, assessed value and mill levies, to each taxpayer athis last known address. Failure to send notice, or to demand payment of taxes,does not invalidate any taxes due;
(ii) Ad valorem taxes provided by this act are due and payableat the office of the county treasurer of the county in which the taxes arelevied. Fifty percent (50%) of the taxes are due on and after September 1 andpayable on and after November 10 in each year and the remaining fifty percent(50%) of the taxes are due on and after March 1 and payable on and after May 10of the succeeding calendar year except as hereafter provided. If the entiretax is paid on or before December 31, no interest or penalty is chargeable;
(iii) Except as provided in paragraph (iv) of this subsection,each taxpayer liable for a severance tax under W.S. 39-14-103 shall pay monthlytax payments to the department. The payment shall be determined by the taxpayerbased on the value of the gross product produced and saved during the secondpreceding month, and tax computed on value at rates prescribed in this chapter.The monthly tax payments are due on or before the twenty-fifth day of thesecond month following the month of production. If the report the taxpayer isrequired to file shows tax due, the taxpayer shall pay the tax due when thereport is filed. The department may allow extensions for paying taxes byregulation. The department may, if an extension is granted, request the paymentof the reasonable estimate of ninety percent (90%) of the tax by the statutorydue date, with the remaining tax remitted with the extended return;
(iv) If a taxpayer's liability for severance tax imposed underthis article is less than thirty thousand dollars ($30,000.00) for thepreceding calendar year, monthly payment requirements are waived and thetaxpayer shall pay the tax annually. The annual payment is due on February 25of the year following the year in which production occurred. If a taxpayer whopays annually accumulates an annual liability exceeding thirty thousand dollars($30,000.00), that taxpayer shall commence remitting tax payments as providedin paragraph (iii) of this subsection during the production year following theyear in which the accumulated tax liability exceeded thirty thousand dollars($30,000.00). It is the taxpayer's responsibility to notify the departmentconcerning the change from annual to monthly payment requirements or frommonthly to annual payment.
(c) Timelines. Except as otherwise provided, there are nospecific applicable provisions for timelines for this article.
39-14-108. Enforcement.
(a) General. The following shall apply:
(i) If the statement provided by W.S. 39-14-107(a)(i) is notfiled, the department shall value the property from the best informationavailable. The department may use information other than contained in thestatement provided by W.S. 39-14-107(a)(i) to determine the fair market valueof the property provided by W.S. 39-14-102(a);
(ii) When a taxpayer producing valuable deposits fails to paythe taxes imposed by this article when due, the purchaser of the producedvaluable deposit shall withhold and remit to the department the taxpayer'ssubsequently accruing taxes on the produced valuable deposit acquired by thepurchaser. This provision is subject to the following conditions:
(A) The department shall notify the purchaser and taxpayer inwriting on or before the first day of the production month for which subsequenttaxes are due that the purchaser shall begin remitting taxes to the departmentas provided in W.S. 39-14-107(b)(iii);
(B) The department shall notify the purchaser in writing of theproper rates for calculating taxes due and the percentage of the producedvaluable deposit subject to taxation by this article;
(C) The amount of tax paid by a purchaser to the department, asrequired by this paragraph, shall offset and satisfy all claims for paymentsfor the purchase of produced valuable deposits to the extent of the taxpayment;
(D) This paragraph shall not apply under circumstances wherethe purchaser is required to continue payments due to legal proceedings;
(E) This paragraph shall not apply until after the purchaserhas been notified in writing that subsequent accruing taxes will be payable bythe purchaser.
(iii) Severance taxes due together with interest, penalties andcosts shall be collectible by the department by appropriate judicialproceedings.
(b) Audits. The following shall apply:
(i) The department may employ examiners and obtain othertechnical services, to investigate and examine the books and records of anyperson paying taxes imposed under W.S. 39-13-101 through 39-13-111. Thedepartment shall notify the county assessor of any change in valuation asdetermined by audits, examinations or investigations establishing:
(A) Taxable volumes or values were not accurately reported;
(B) Clerical errors were made in determining taxable volumes orvalues;
(C) Taxable volumes or values for the year that productionoccurred were not calculated in compliance with Wyoming statutes or rulesgoverning the determinations; or
(D) Additional payment for production was received and notreported whether such payment was received in the year of production or insubsequent years.
(ii) Effective until March 1, 1994, the department is authorizedto rely on final audit findings under W.S. 9-2-2003, taxpayer amended returnsor department review, and to certify mine product valuation amendments for productionin calendar year 1985 and thereafter, to the county assessor of the county inwhich the property is located, to be entered upon the assessment rolls of thecounty and taxes computed and collected thereon subject to appeal under W.S.39-14-109(b)(ii);
(iii) Commencing January 1, 2003, the department is authorized torely on final audit findings, taxpayer amended returns or department review,and to certify mine product valuation amendments to the county assessor of thecounty in which the property is located, to be entered upon the assessmentrolls of the county and taxes computed and collected thereon subject to appealunder W.S. 39-14-109(b)(ii), provided that the return is filed within three (3)years from the date the production should have been reported pursuant to W.S.39-14-107(a)(i), and that the audit or review commenced within the time periodas required by paragraph (vii) of this subsection. Commencement of an audit,completion of an audit, and final audit findings and final determination by thedepartment being issued to the taxpayer shall not preclude the taxpayer fromfiling amended returns within the time period specified herein, and the amendedreturns may be audited within the time period stated in paragraph (vii) of thissubsection;
(iv) The department is authorized to rely on final auditfindings, taxpayer amended returns or department review, and to assessdeficient severance tax payments, interest and penalty, if any, for the sameperiods governing mine product valuation amendments pursuant to paragraphs (ii)and (iii) of this subsection;
(v) All audits or department reviews, as applicable, pursuantto paragraphs (ii), (iii) and (iv) of this subsection are subject to thefollowing conditions:
(A) Audits are commenced when the taxpayer receives writtennotice of the intended action;
(B) Prior to entering the premises of a taxpayer or thirdparty, the taxpayer or third party shall be provided at least fourteen (14)days written notice;
(C) Audits are completed when the final findings are issued tothe taxpayer by the department of audit;
(D) Unless otherwise agreed to in writing, audits shall becompleted and the final audit findings issued to the taxpayer not later thanthe end of the month two (2) years after the audit is commenced and not soonerthan one (1) year following the reporting date for ad valorem taxes;
(E) Any assessment or levy, including the assessment of apenalty and interest, if any, resulting from final audit findings or departmentreview shall be issued within one (1) year following the completion of theaudit or review;
(F) Upon receipt of department review findings, the taxpayershall have sixty (60) days in which to submit a response.
(vi) Where there is evidence of gross negligence by the taxpayerin reporting and valuing production, an audit may examine prior years and issueassessments where gross negligence occurred. This section shall not apply tomine product valuation amendments to add the value of unreported production;
(vii) Audits provided by this article shall commence within three(3) years and six (6) months immediately following the reporting date for advalorem taxes and taxpayers shall keep accurate books and records of allproduction subject to taxes imposed by this article and determinations oftaxable value as prescribed by W.S. 39-14-103(b) for a period of seven (7)years and make them available to department examiners for audit purposes.Amended returns filed with the department during the conduct of an audit priorto the issuance of the final audit findings may be made available by thetaxpayer to the audit examiners. If the examination discloses evidence of grossnegligence by the taxpayer in reporting and paying the tax, the department mayexamine all pertinent records for any reporting period without regard to thelimitations set forth in paragraphs (vii) and (viii) of this subsection;
(viii) In order to examine relevant books or records of a taxpayersubject to a tax imposed by this article or to secure any information relatedto enforcement of this article, authorized representatives of the departmentmay at any time during normal business hours enter premises of a taxpayerliable for a tax imposed by this article or the premises of any third partyhaving information regarding that taxpayer's liability. Prior to entering thepremises of a taxpayer or third party, the department shall provide fourteen(14) days written notice to the taxpayer and third party. Such examinationsshall be completed and the written results thereof provided to the taxpayer bythe end of the third calendar year following the calendar year in which theaudit was commenced;
(ix) The state may employ auditors and obtain other technicalassistance necessary to determine if the tax imposed by this article has beenproperly reported and paid.
(c) Interest. The following shall apply:
(i) The taxpayer is entitled to receive an offsetting creditfor any overpaid gross product or severance tax identified by an audit that iswithin the scope of the audit period, without regard to the limitation periodfor requesting refunds. In calculating interest, the department or board ofcounty commissioners shall first compute a net deficiency amount aftersubtracting any offsetting credit and then calculate any interest due;
(ii) Taxes are delinquent pursuant to paragraphs (iii) and (iv)of this subsection when a taxpayer or his agent knew or reasonably should haveknown that the total tax liability was not paid when due;
(iii) The balance of any ad valorem tax not paid as provided byW.S. 39-14-107(b)(ii) is delinquent after the day on which it is payable andshall bear interest at eighteen percent (18%) per annum until paid orcollected;
(iv) Effective January 1, 1994, interest at an annual rate equalto the average prime interest rate as determined by the state treasurer duringthe preceding fiscal year plus four percent (4%) shall be added to alldelinquent severance taxes on any mineral produced on or after January 1,1994. To determine the average prime interest rate, the state treasurer shallaverage the prime interest rate for at least seventy-five percent (75%) of thethirty (30) largest banks in the United States. The interest rate ondelinquent severance taxes shall be adjusted on January 1 of each yearfollowing the year in which the taxes first became delinquent. In no instanceshall the delinquent tax rate be less than twelve percent (12%) nor greaterthan eighteen percent (18%) from any mineral produced on or after January 1,1994. The interest rate on any delinquent mineral tax from any mineralproduced before January 1, 1994, shall be eighteen percent (18%) per annum.
(d) Penalties. The following shall apply:
(i) The taxpayer is entitled to receive an offsetting creditfor any overpaid gross product or severance tax identified by an audit that iswithin the scope of the audit period, without regard to the limitation periodfor requesting refunds. In calculating penalty, the department or board ofcounty commissioners shall first compute a net deficiency amount aftersubtracting any offsetting credit and then calculate any penalty due;
(ii) If any person fails to file the report required by W.S.39-14-107(a)(i)(A) by the due date or any extension thereof, the department mayimpose a penalty equal to a total of one percent (1%) of the taxable value ofthe production from the well, mine or mining claim but not to exceed fivethousand dollars ($5,000.00) for each calendar month or portion thereof thatthe report or information is late. If any person fails to file reports andother information required by rule of the department of revenue other thanthose required by W.S. 39-14-107(a)(iv) or 39-14-107(a)(i)(A), the departmentmay impose a penalty of up to one thousand dollars ($1,000.00). The departmentmay waive penalties under this paragraph for good cause. Penalties imposedunder this paragraph may be appealed to the state board of equalization;
(iii) If any person fails to make or file a return and remit thetax as required by W.S. 39-14-107, the department shall impose a penalty offive percent (5%) of the taxes due for each thirty (30) day period, or fractionthereof, elapsing between the due date of the return and the date filed, unlessthe person for good cause obtains from the department an extension of time forfiling prior to the due date for filing. In no event shall the total penaltyimposed by this subsection exceed twenty-five percent (25%) of the tax due. Thedepartment, for good cause, may waive a penalty imposed for failure to file areturn for any one (1) month in a calendar year, provided that:
(A) The return was filed within five (5) business daysfollowing the due date, including an approved extension period; and
(B) The taxpayer requests the waiver in writing within fifteen(15) days after the return was filed, setting forth the reasons for the latefiling.
(iv) If any part of a tax deficiency is due to negligence orintentional disregard of rules and regulations, there shall be added a penaltyof five percent (5%) of the amount of the deficiency plus interest as providedby paragraph (c)(iv) of this subsection. The taxes, penalty and interest shallbe paid by the taxpayer within ten (10) days after receipt of notice and demandby the department;
(v) The department may credit or waive penalties imposed byparagraphs (iii) and (iv) of this subsection as part of a settlement or for anyother good cause.
(e) Liens. The following shall apply:
(i) Repealed by Laws 2002, Ch. 50, 2.
(ii) Repealed By Laws 2002, Ch. 50, 2.
(iii) Repealed By Laws 2002, Ch. 50, 2.
(iv) All taxes, fees, penalties and interest imposed under thisarticle are an automatic and continuing lien in favor of the state of Wyoming.The lien is on all property in the state of Wyoming, real, tangible andintangible, including all after acquired property rights, future production andrights to property, of any person severing minerals in this state and who isliable under Wyoming law for the collection, payment or remittance of theseverance tax and corresponding penalty or interest as of the date such taxes,fees, penalties or interest is due, and remains a lien until paid;
(v) A lien under this subsection is also a lien on allinterests in the mineral estate from which the production was severed, and onall future production of the same mineral from the same leasehold, regardlessof any change of ownership or change in the person extracting the mineral;
(vi) Any lien arising under this subsection is superior andparamount to all other liens, claims, mortgages or any other encumbrance of anykind except a lien, claim, mortgage or other encumbrance of record held by abona fide creditor and properly perfected, filed or recorded under Wyoming lawprior to the filing of a lien as provided by paragraph (viii) of thissubsection;
(vii) The department may file a notice of lien at any time at itsdiscretion, except no lien shall be enforced until the right of the taxpayer tofile and properly perfect an appeal concerning the tax delinquent propertybefore the state board of equalization has expired. A properly perfectedappeal on the tax delinquent property before the state board of equalization orany subsequent properly perfected appeal on the same property to a districtcourt or the supreme court shall stay enforcement of a lien filed by thedepartment until such appeal has been exhausted or concluded;
(viii) In order to perfect a tax lien under this subsection, thedepartment of revenue shall file a notice of the tax lien with the secretary ofstate. The notice of the tax lien shall contain:
(A) The name and last known address of the person or personsagainst whose property the lien is filed including, but not limited to, theperson severing the mineral;
(B) The name and address of the department of revenue as theholder of the lien and the name of the contact person within the department;
(C) The amount of the tax, fees, penalties and interest owedthe state of Wyoming;
(D) A statement that the amount of the unpaid tax, fees,penalties or interest is a lien on all property, real, tangible or intangible,including all after acquired property and rights to the property belonging tothe person who severed the mineral and located within the state of Wyoming, aswell as all interest in the mineral estate from which the production wassevered and any future production from the same mineral leasehold.
(ix) No other action beyond that described in paragraph (viii)of this subsection shall be required to perfect a tax lien;
(x) The filing of the notice of the tax lien as described inparagraph (viii) of this subsection shall constitute record notice of the taxlien;
(xi) One (1) notice of the tax lien shall be deemed sufficientto cover all taxes, together with interest, fees and penalty of the same naturewhich may accrue after the filing of the notice;
(xii) Any tax lien created under this subsection and duly filedwith the secretary of state shall survive the death or incapacitation of anyperson, and shall survive any other destruction or attempted destruction of anyinterest in property owned by any person liable under Wyoming law for thecollection, payment or remittance of taxes, fees, penalties or interest to thestate;
(xiii) In the event of foreclosure, the department of revenueshall be entitled to recover the costs of filing the lien, foreclosing on thelien and reasonable attorney's fees;
(xiv) All notice of tax liens shall be released within sixty (60)days after taxes, penalties and interest due are paid or collected;
(xv) Notwithstanding that the lien is a lien on all interests inthe mineral estate from which the production was severed and on all futureproduction from the same leasehold, the department may for good cause shown,release the lien on all property in this state, real, tangible and intangible,and settle delinquent taxes, interest and penalties to be collected againstfuture production from that leasehold;
(xvi) The secretary of state is authorized and directed tomaintain copies of all tax liens filed by the department of revenue pursuant tothis chapter, and to maintain a data base of such tax liens and to providecopies to any person pursuant to the duties of the secretary of state as setforth in W.S. 9-1-301 et seq. All tax liens on file with any county in thisstate and in good standing on the effective date of this paragraph shall remaineffective and in good standing. Within sixty (60) days of the effective date ofthis paragraph, the director of the department of revenue shall transmit to thesecretary of state for filing copies of all tax liens that the director seeksto have in continuing effect. Upon the filing of a copy of the tax lien withthe secretary of state, the tax lien shall continue to be fully effective untilreleased by the department of revenue.
(f) Tax sales. There are no specific applicable provisions fortax sales for this article.
39-14-109. Taxpayer remedies.
(a) Interpretation requests. The following shall apply:
(i) The taxpayer may request a value determination from thedepartment and propose a value determination method which may be used until thedepartment issues a value determination. The taxpayer shall submit allavailable data relevant to its proposal and any additional information thedepartment deems necessary. After the department issues its determination, thetaxpayer shall make adjustments based upon the value established or request ahearing by the board;
(ii) A taxpayer may request and the department shall providewritten interpretations of these statutes and rules. When requesting aninterpretation, a taxpayer must set forth the facts and circumstances pertinentto the issue. If the department deems the facts and circumstances provided tobe insufficient, it may request additional information. A taxpayer may act inreliance upon a written interpretation through the end of the calendar year inwhich the interpretation was issued, or until revoked by the department,whichever occurs last if the pertinent facts and circumstances weresubstantially correct and fully disclosed.
(b) Appeals. The following shall apply:
(i) Following determination of the fair market value ofproperty the department shall notify the taxpayer by mail of the assessedvalue. The person assessed may file written objections to the assessment withthe board within thirty (30) days of the date of postmark and appear before theboard at a time specified by the board. The person assessed shall also file acopy of the written objections with the county treasurer of the county in whichthe property is located, who shall notify the county assessor and the board ofcounty commissioners, with an estimate of the tax amount under appeal basedupon the previous year's tax levy;
(ii) Mine product valuation amendments under this section may beappealed by the taxpayer to the board within thirty (30) days of the finaladministrative decision;
(iii) Any taxpayer who feels aggrieved by the valuation and taxeslevied by this article may appeal to the board. The appeal does not relieve thetaxpayer from paying the tax when due and payable nor does the payment invalidatethe appeal. No restraining order or injunction shall be granted or issued byany court or judge to restrain or enjoin the collection of any tax, interest orpenalty imposed by this article;
(iv) The state board of equalization shall perform the dutiesspecified in article 15, section 10 of the Wyoming constitution and shall hearappeals from county boards of equalization and review final decisions of thedepartment upon application of any interested person adversely affected,including boards of county commissioners for the purposes of this paragraph,under the contested case procedures of the Wyoming Administrative ProcedureAct. Any interested person adversely affected by the adoption, amendment orrepeal of a rule pursuant to W.S. 16-3-103(a) shall be afforded an opportunityfor a hearing before the board;
(v) Any person including the state of Wyoming aggrieved by anyorder issued by the board, or any county board of equalization whose decisionhas been reversed or modified by the state board of equalization, may appealthe decision of the board to the district court of the county in which theproperty or some part thereof is situated.
(c) Refunds. The following shall apply:
(i) If a taxpayer has reason to believe that ad valorem taxesimposed by this article have been overpaid, a request for refund shall be filedwith the department by submitting amended returns within three (3) years fromthe date the production should have been reported pursuant to W.S.39-14-107(a)(i). Any refund granted shall be subject to modification orrevocation upon audit;
(ii) If a taxpayer has reason to believe that taxes imposed bythis article have been overpaid, a request for refund shall be filed with thedepartment by submitting an amended return within three (3) years from the datethe production should have been reported pursuant to W.S. 39-14-107(a)(i).Refunds of two thousand dollars ($2,000.00), or less may be applied tosubsequent payments for taxes imposed by this article. Requests for refundsexceeding two thousand dollars ($2,000.00) shall be approved in writing by thedepartment prior to the taxpayer receiving credit. All refunds granted aresubject to modification or revocation upon audit;
(iii) Notwithstanding paragraphs (i) and (ii) of this subsection,the taxpayer is entitled to receive a refund of any overpaid ad valorem orseverance tax identified by an audit regardless of whether a refund has beenrequested.
(d) Credits. The following shall apply:
(i) Any refund may, at the discretion of the board of countycommissioners, be made in the form of credit against future tax payments for aperiod not to exceed five (5) years. Unless otherwise agreed to by thetaxpayer, refunds in the form of credit against future tax payments shall bemade in no less than equal annual amounts. The board of county commissionersshall not provide a credit for interest on the excess tax paid unless the taxesare paid under protest due to an appeal pending before the state board ofequalization and the taxpayer prevails in the appeal;
(ii) The taxpayer is entitled to receive an offsetting creditfor any overpaid gross product or severance tax identified by an audit that iswithin the scope of the audit without regard to the limitation period forrequesting refunds;
(iii) If a taxpayer overpaid taxes imposed by this article, thedepartment shall allow a credit in the amount of the overpayment to be taken onthe taxpayer's subsequent monthly reports for the production year.
(e) Redemption. There are no specific applicable provisionsfor redemption for this article.
(f) Escrow. The following shall apply:
(i) If ad valorem taxes are paid under protest to the extent ofand due to an appeal pending before the state board of equalization or anycourt of competent jurisdiction, the county treasurer shall deposit thatprotested amount under appeal in an interest bearing escrow account andwithhold distribution until a final decision on the appeal has been rendered.To the extent the taxpayer prevails in the appeal, the county treasurer shallrefund that amount under appeal, plus interest earned thereon, to the taxpayerwithin thirty (30) days from the day the final decision is rendered. If thetaxpayer pays to the county an amount in excess of the protested amount underappeal, the excess shall be distributed as provided by law;
(ii) If severance taxes are paid under protest to the extent ofand due to an appeal pending before the state board of equalization or anycourt of competent jurisdiction, the state treasurer shall deposit thatprotested amount under appeal in a separate interest bearing escrow account andwithhold distribution until a final decision on the appeal has been rendered bythe state board of equalization or the court. To the extent the taxpayerprevails in the appeal, the state treasurer shall refund that amount underappeal, plus interest earned thereon, to the taxpayer within thirty (30) daysfrom the day the final decision is rendered. If the taxpayer pays to the statean amount in excess of the protested amount under appeal, the excess shall bedistributed as provided by law;
(iii) This provision does not enlarge or curtail the ability of ataxpayer to appeal any department of revenue decision as otherwise provided forunder this act.
39-14-110. Statute of limitations.
Except as otherwise provided in thisarticle, there is no general statute of limitations for this article.
39-14-111. Distribution.
(a) As provided by W.S. 39-14-104(a), the total severance taxrate for surface coal shall be seven percent (7%). As provided by W.S.39-14-104(b), the total severance tax rate for underground coal shall be threeand three-quart