§ 39-14-503 — Imposition

Wyoming § 39-14-503

• Jurisdiction: Wyoming
• Title 39: Taxation and Revenue
• Ch. 14: MINE PRODUCT TAXES
• Art. 5: URANIUM

Text

(a) Taxable event. The following shall apply:
(i) There is levied a severance tax on the value of
the gross product for the privilege of severing or extracting
uranium in the state. The severance tax imposed by this article
may be in addition to other taxes, including but not limited to
the ad valorem taxes imposed by W.S. 39-13-104.
(b) Basis of tax (valuation). Except as provided in W.S.
39-14-504(b) and (c), the following shall apply:
(i) Uranium shall be valued for taxation as provided
in this section;
(ii) The value of the gross product shall be the fair
market value of the product at the mouth of the mine where
produced, after the mining or production process is completed;
(iii) Except as otherwise provided, the mining or
production process is deemed completed when mineral product
reaches the mouth of the mine. In no event shall the value of
the mineral product include any processing functions or
operations regardless of where the processing is performed;
(iv) In the event the product as provided by
paragraph (iii) of this subsection is sold at the mouth of the
mine without further movement or processing, the fair market
value shall be the price established by bona fide arms-length
sale less exempt royalties;
(v) In the event the mineral product as provided by
paragraph (iii) of this subsection is not sold at the mouth of
the mine by a bona fide arms-length sale, or, except as
otherwise provided, if the product of the mine is used without
sale, the department shall determine the fair market value of
uranium in accordance with paragraph (vi) or (vii) of this
subsection;
(vi) The department shall calculate the fair market
value of uranium by multiplying the individual producer's sales
value of yellow cake less all royalties, ad valorem production
taxes, and severance taxes multiplied by the industry factor.
The industry factor shall be an average of all uranium
producers' ratios of total mining costs to total mining and
processing costs incurred to produce yellow cake calculated by
the department. Nonexempt royalties, ad valorem production
taxes and severance taxes shall then be added to determine
taxable value. For purposes of this paragraph:
(A) Total mining costs for in situ mines include
labor, including mine foremen and supervisory personnel whose
primary function is the extraction of uranium, supplies,
equipment depreciation and maintenance, fuel, power and other
utilities, uranium transportation to the point of valuation,
indirect costs related to extraction and any other costs
incurred prior to the point of valuation that are specifically
attributable to the installation of the well field, pumps used
for extraction or injection, or any other extraction activity;
(B) Total mining costs for conventional surface
and underground mines include labor, including mine foremen and
supervisory personnel whose primary function is the extraction
of uranium, supplies, equipment depreciation and maintenance,
fuel, power and other utilities, uranium transportation to the
point of valuation, indirect costs related to extraction and any
other costs incurred prior to the point of valuation that are
specifically attributable to the excavation and transportation
of ore to the mine mouth;
(C) Total mining and processing costs include
mining costs determined under subparagraph (A) or (B) of this
paragraph plus mineral processing labor including plant foremen
and supervisory personnel whose primary responsibility is
processing uranium, supplies used for processing, processing
plant and equipment depreciation, fuel, power and other
utilities used for processing, maintenance of processing
equipment, uranium transportation from the mouth of the mine to
the point of shipment, indirect processing costs and any other
costs incurred that are specifically attributable to the mining
or processing of uranium up to the point of sale f.o.b. the
mine;
(D) Indirect costs include but are not limited
to allocations of corporate overhead, data processing costs,
accounting, legal and clerical costs and other general and
administrative costs which cannot be specifically attributed to
an operational function without allocation. Indirect costs
shall be allocated using methods in accordance with generally
accepted accounting principles. Similar costs shall be
allocated using the same method for each producer;
(E) The industry factor shall be recomputed at
four (4) year intervals and will be based on an average of the
four (4) prior years' cost data. The new ratio shall be
effective prospectively.
(vii) In the event that unique or unusual
circumstances exist such that the department or the taxpayer is
unable to determine the value of the gross product of uranium
from a mine or mining claim by application of the methods
provided in this subsection, the taxpayer may petition the
department for approval to use an alternate valuation method.
The department shall approve or deny the use of an alternate
valuation method and shall so inform the 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
mining claims produced under lease, the lessor is liable for the
payment of ad valorem taxes on the product removed only to the
extent of the lessor's retained interest under the lease,
whether royalty or otherwise, and the lessee or his assignee is
liable for all other property taxes due on production under the
lease;
(ii) Any taxpayer paying the taxes imposed by this
article on any valuable deposit may deduct the severance taxes
paid from any amounts due or to become due to the interest
owners of such valuable deposit in proportion to the interest
ownership;
(iii) Any person extracting valuable products subject
to this article and any person owning an interest in the
valuable products to the extent of their interest ownership are
liable for the payment of the severance taxes imposed by this
article together with any penalties and interest.