§ 39-14-108 — Enforcement

Wyoming § 39-14-108

• Jurisdiction: Wyoming
• Title 39: Taxation and Revenue
• Ch. 14: MINE PRODUCT TAXES
• Art. 1: COAL

Text

(a) General. The following shall apply:
(i) If the statement provided by W.S. 39-14-107(a)(i)
is not filed, the department shall value the property from the
best information available. The department may use information
other than contained in the statement provided by W.S.
39-14-107(a)(i) to determine the fair market value of the
property provided by W.S. 39-14-102(a);
(ii) When a taxpayer producing valuable deposits
fails to pay the taxes imposed by this article when due, the
purchaser of the produced valuable deposit shall withhold and
remit to the department the taxpayer's subsequently accruing
taxes on the produced valuable deposit acquired by the
purchaser. This provision is subject to the following
conditions:
(A) The department shall notify the purchaser
and taxpayer in writing on or before the first day of the
production month for which subsequent taxes are due that the
purchaser shall begin remitting taxes to the department as
provided in W.S. 39-14-107(b)(iii);
(B) The department shall notify the purchaser in
writing of the proper rates for calculating taxes due and the
percentage of the produced valuable deposit subject to taxation
by this article;
(C) The amount of tax paid by a purchaser to the
department, as required by this paragraph, shall offset and
satisfy all claims for payments for the purchase of produced
valuable deposits to the extent of the tax payment;
(D) This paragraph shall not apply under
circumstances where the purchaser is required to continue
payments due to legal proceedings;
(E) This paragraph shall not apply until after
the purchaser has been notified in writing that subsequent
accruing taxes will be payable by the purchaser.
(iii) Severance taxes due together with interest,
penalties and costs shall be collectible by the department by
appropriate judicial proceedings.
(b) Audits. The following shall apply:
(i) The department may employ examiners and obtain
other technical services, to investigate and examine the books
and records of any person paying taxes imposed under W.S.
39-13-101 through 39-13-111. The department shall notify the
county assessor of any change in valuation as determined by
audits, examinations or investigations establishing:
(A) Taxable volumes or values were not
accurately reported;
(B) Clerical errors were made in determining
taxable volumes or values;
(C) Taxable volumes or values for the year that
production occurred were not calculated in compliance with
Wyoming statutes or rules governing the determinations; or
(D) Additional payment for production was
received and not reported whether such payment was received in
the year of production or in subsequent years.
(ii) Repealed By Laws 2012, Ch. 84, § 102.
(iii) The department is authorized to rely on final
audit findings, taxpayer amended returns or department review,
and to certify mine product valuation amendments to the county
assessor of the county in which the property is located, to be
entered upon the assessment rolls of the county and taxes
computed and collected thereon subject to appeal under 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 period as required by paragraph (vii)
of this subsection. Commencement of an audit, completion of an
audit, and final audit findings and final determination by the
department being issued to the taxpayer shall not preclude the
taxpayer from filing amended returns within the time period
specified herein, and the amended returns may be audited within
the time period stated in paragraph (vii) of this subsection;
(iv) The department is authorized to rely on final
audit findings, taxpayer amended returns or department review,
and to assess deficient severance tax payments, interest and
penalty, if any, for the same periods governing mine product
valuation amendments pursuant to paragraphs (ii) and (iii) of
this subsection;
(v) All audits or department reviews, as applicable,
pursuant to paragraphs (ii), (iii) and (iv) of this subsection
are subject to the following conditions:
(A) Audits are commenced when the taxpayer
receives written notice of the intended action;
(B) Prior to entering the premises of a taxpayer
or third party, 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 to the taxpayer by the department of audit;
(D) Unless otherwise agreed to in writing,
audits shall be completed and the final audit findings issued to
the taxpayer not later than the end of the month two (2) years
after the audit is commenced and not sooner than one (1) year
following the reporting date for ad valorem taxes;
(E) Any assessment or levy, including the
assessment of a penalty and interest, if any, resulting from
final audit findings or department review shall be issued within
one (1) year following the completion of the audit or review;
(F) Upon receipt of department review findings,
the taxpayer shall have sixty (60) days in which to submit a
response.
(vi) Where there is evidence of gross negligence by
the taxpayer in reporting and valuing production, an audit may
examine prior years and issue assessments where gross negligence
occurred. This section shall not apply to mine 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 ad valorem taxes and taxpayers shall
keep accurate books and records of all production subject to
taxes imposed by this article and determinations of taxable
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 prior to the issuance of the final audit
findings may be made available by the taxpayer to the audit
examiners. If the examination discloses evidence of gross
negligence by the taxpayer in reporting and paying the tax, the
department may examine all pertinent records for any reporting
period without regard to the limitations set forth in paragraphs
(vii) and (viii) of this subsection;
(viii) In order to examine relevant books or records
of a taxpayer subject to a tax imposed by this article or to
secure any information related to enforcement of this article,
authorized representatives of the department may at any time
during normal business hours enter premises of a taxpayer liable
for a tax imposed by this article or the premises of any third
party having information regarding that taxpayer's liability.
Prior to entering the premises of a taxpayer or third party, the
department shall provide fourteen (14) days written notice to
the taxpayer and third party;
(ix) The state may employ auditors and obtain other
technical assistance necessary to determine if the tax imposed
by this article has been properly reported and paid.
(c) Interest. The following shall apply:
(i) The taxpayer is entitled to receive an offsetting
credit for any overpaid gross product or severance tax
identified by an audit that is within the scope of the audit
period, without regard to the limitation period for requesting
refunds. In calculating interest regarding severance tax, the
department shall first compute a net deficiency amount after
subtracting any offsetting credit and then calculate any
interest due. In calculating interest regarding ad valorem tax,
the county treasurer shall first compute a net deficiency amount
after subtracting any offsetting credit and then calculate any
interest due. The board of county commissioners shall be bound
by any decision made by the department of revenue in the course
of an audit conducted under subsection (b) of this section
concerning the time period during which interest shall accrue
and be due and payable;
(ii) Taxes are delinquent pursuant to paragraphs
(iii) and (iv) of this subsection when a taxpayer or his agent
knew or reasonably should have known that the total tax
liability was not paid when due;
(iii) Except for any delinquent taxes determined to
be due and owing as a result of an audit conducted under
subsection (b) of this section, the balance of any ad valorem
tax not paid as provided by W.S. 39-14-107(b)(ii) is delinquent
after the day on which it is payable and shall bear interest at
eighteen percent (18%) per annum. Effective January 15, 2015,
for delinquent taxes determined to be due and owing as a result
of an audit conducted under subsection (b) of this section, the
balance of any ad valorem tax not paid as provided by W.S.
39-14-107(b) shall be delinquent following the day on which it
is payable and shall bear interest at the rate set forth in
paragraph (iv) of this subsection until paid or collected;
(iv) Effective January 1, 2015, interest at an annual
rate equal to the average prime interest rate as determined by
the state treasurer during the preceding fiscal year plus four
percent (4%) shall be added to all delinquent severance taxes
and ad valorem taxes determined to be due and owing as a result
of an audit conducted under subsection (b) of this section on
any mineral produced on or after January 1, 2015. To determine
the average prime interest rate, the state treasurer shall
average the prime interest rate for at least seventy-five
percent (75%) of the thirty (30) largest banks in the United
States. The interest rate on delinquent severance taxes and ad
valorem taxes shall be adjusted on January 1 of each year
following the year in which the taxes first became delinquent.
In no instance shall the delinquent tax rate be less than twelve
percent (12%) nor greater than eighteen percent (18%) from any
mineral produced on or after January 1, 2015. The interest rate
on any delinquent severance and ad valorem tax from any mineral
produced before January 1, 2015, shall be as provided by the
statutes in effect at the time the mineral was produced;
(v) The department may credit or waive any interest
on severance tax imposed by this subsection as part of a
settlement or for any other good cause.
(d) Penalties. The following shall apply:
(i) The taxpayer is entitled to receive an offsetting
credit for any overpaid gross product or severance tax
identified by an audit that is within the scope of the audit
period, without regard to the limitation period for requesting
refunds. In calculating penalty, the department or board of
county commissioners shall first compute a net deficiency amount
after subtracting 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 may impose a penalty equal to a total of
one percent (1%) of the taxable value of the production from the
well, mine or mining claim but not to exceed five thousand
dollars ($5,000.00) for each calendar month or portion thereof
that the report or information is late. If any person fails to
file reports and other information required by rule of the
department of revenue other than those required by W.S.
39-14-107(a)(iv) or 39-14-107(a)(i)(A), the department may
impose a penalty of up to one thousand dollars ($1,000.00). The
department may waive penalties under this paragraph for good
cause. Penalties imposed under this paragraph may be appealed to
the state board of equalization;
(iii) If any person fails to make or file a return
and remit the tax as required by W.S. 39-14-107, the department
shall impose a penalty of five percent (5%) of the taxes due for
each thirty (30) day period, or fraction thereof, elapsing
between the due date of the return and the date filed, unless
the person for good cause obtains from the department an
extension of time for filing prior to the due date for filing.
In no event shall the total penalty imposed by this subsection
exceed twenty-five percent (25%) of the tax due. The department,
for good cause, may waive a penalty imposed for failure to file
a return for any one (1) month in a calendar year, provided
that:
(A) The return was filed within five (5)
business days following 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 late filing.
(iv) If any part of a tax deficiency is due to
negligence or intentional disregard of rules and regulations,
there shall be added a penalty of five percent (5%) of the
amount of the deficiency plus interest as provided by paragraph
(c)(iv) of this subsection. The taxes, penalty and interest
shall be paid by the taxpayer within ten (10) days after receipt
of notice and demand by the department;
(v) The department may credit or waive penalties
imposed by paragraphs (iii) and (iv) of this subsection as part
of a settlement or for any other 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 this article 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 and intangible, including all
after acquired property rights, future production and rights to
property, of any person severing minerals in this state and who
is liable under Wyoming law for the collection, payment or
remittance of the severance 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
all interests in the mineral estate from which the production
was severed, and on all future production of the same mineral
from the same leasehold, regardless of any change of ownership
or change in the person extracting the mineral;
(vi) Any lien arising under this subsection is
superior and paramount to all other liens, claims, mortgages or
any other encumbrance of any kind except a lien, claim, mortgage
or other encumbrance of record held by a bona fide creditor and
properly perfected, filed or recorded under Wyoming law prior to
the filing of a lien as provided by paragraph (viii) of this
subsection;
(vii) The department may file a notice of lien at any
time at its discretion, except no lien shall be enforced until
the right of the taxpayer to file and properly perfect an appeal
concerning the tax delinquent property before the state board of
equalization has expired. A properly perfected appeal on the
tax delinquent property before the state board of equalization
or any subsequent properly perfected appeal on the same property
to a district court or the supreme court shall stay enforcement
of a lien filed by the department until such appeal has been
exhausted or concluded;
(viii) In order to perfect a tax lien under this
subsection, the department of revenue shall file a notice of the
tax lien with the secretary of state. The notice of the tax lien
shall contain:
(A) The name and last known address of the
person or persons against whose property the lien is filed
including, but not limited to, the person severing the mineral;
(B) The name and address of the department of
revenue as the holder of the lien and the name of the contact
person within the department;
(C) The amount of the tax, fees, penalties and
interest owed the 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 to the person who
severed the mineral and located within the state of Wyoming, as
well as all interest in the mineral estate from which the
production was severed 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 in paragraph (viii) of this subsection shall
constitute record notice of the tax lien;
(xi) One (1) notice of the tax lien shall be deemed
sufficient to cover all taxes, together with interest, fees and
penalty of the same nature which may accrue after the filing of
the notice;
(xii) Any tax lien created under this subsection and
duly filed with the secretary of state shall survive the death
or incapacitation of any person, and shall survive any other
destruction or attempted destruction of any interest in property
owned by any person liable under Wyoming law for the collection,
payment or remittance of taxes, fees, penalties or interest to
the state;
(xiii) In the event of foreclosure, the department of
revenue shall be entitled to recover the costs of filing the
lien, foreclosing on the lien 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 in the mineral estate from which the production was
severed and on all future production 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
against future production from that leasehold;
(xvi) The secretary of state is authorized and
directed to maintain copies of all tax liens filed by the
department of revenue pursuant to this chapter, and to maintain
a data base of such tax liens and to provide copies to any
person pursuant to the duties of the secretary of state as set
forth in W.S. 9-1-301 et seq. All tax liens on file with any
county in this state and in good standing on the effective date
of this paragraph shall remain effective and in good standing.
Within sixty (60) days of the effective date of this paragraph,
the director of the department of revenue shall transmit to the
secretary of state for filing copies of all tax liens that the
director seeks to have in continuing effect. Upon the filing of
a copy of the tax lien with the secretary of state, the tax lien
shall continue to be fully effective until released by the
department of revenue.
(f) Tax sales. There are no specific applicable
provisions for tax sales for this article.