§ 39-14-603 — Imposition

(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
sand and gravel 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). The following shall apply:
(i) Sand and gravel shall be valued for taxation as
provided in this subsection. For purposes of this subsection,
the term "sand and gravel" includes aggregates used in
construction. Based upon the information received or procured
pursuant to W.S. 39-14-607(a)(i) or 39-14-608(a)(i), the
department shall annually value the gross product for the
preceding calendar year, in appropriate unit measures of all
mines and mining claims from which valuable deposits are
produced, at the fair market value of the product at the mouth
of the pit or quarry where produced, after the mining or
production process is completed;
(ii) In the event the sand and gravel are sold at the
mouth of the pit or quarry without further movement or
processing, the fair market value shall be the price established
by bona fide arms-length sale less exempt royalty;
(iii) In the event the sand and gravel are not sold
at the mouth of the pit or quarry by a bona fide arms-length
sale, or, except as otherwise provided, if the product of the
pit or quarry is used without sale, the department shall
determine the fair market value of sand and gravel in accordance
with paragraph (iv) or (v) of this subsection;
(iv) For sand and gravel sold away from the mouth of
the mine pursuant to a bona fide arms-length sale the department
shall calculate the fair market value by multiplying the sales
value of the sand and gravel less exempt royalties by twenty-
five hundredths (0.25);
(v) For sand and gravel used without sale or not sold
pursuant to a bona fide arms-length agreement the fair market
value shall be the fair market value of sand and gravel which is
comparable in quality, quantity, terms and conditions under
which the sand and gravel is being used or sold;
(vi) 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;
(vii) Except as otherwise provided, the mining or
production process is deemed completed when the 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;
(viii) Except as otherwise provided, if the product
as provided in paragraph (vii) of this subsection is sold at the
mouth of the mine, the fair market value shall be deemed to be
the price established by bona fide arms-length sale.
(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
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.