Legal Updates

Back Up The Train!! Wyoming Enacts Further Changes to its Ad Valorem Taxes on Produced Minerals

On November 23, 2020, in “Liens, Taxes and Bankruptcy in Wyoming- Oh My! 2020 Changes to Ad Valorem Tax and Lien Law”, I reported on Wyoming’s attempts to change its ad valorem tax payment and reporting system for produced minerals.  The goal was to make ad valorem filings and payments simultaneous with severance tax filings and payments.  As part of the 2020 legislation, the Legislature attempted to lessen the payment burden on the mineral industry by providing for a graduated change in the ad valorem tax payments to a monthly payment system.  However, the graduated system was complex and the overall implementation of the changeover resulted in confusion for everyone – the responsible governmental agencies, local officials and, of course, taxpayers.

Following several committee meetings, the Legislature enacted new provisions in an attempt to reduce both the complexity of the conversion as well as the potential financial impacts on counties and taxpayers. Senate File 60 (Enrolled Act 9).  The new law was signed by Governor Gordon on and is effective February 9, 2021.  The law repeals portions of 2020 WY Legis. 142 (Enrolled Act 78), including the complex graduated payment system, and includes relief packages for counties as well as funding for the system change.

The new payment due dates are below.  If a taxpayer misses a due date, all interest and penalties will be calculated from the date the tax would have been due if monthly payments began on January 1, 2020.  Please note that ad valorem taxes on minerals produced in 2020 can still be paid in full by December 31, 2021 without penalty or interest, if the November 10, 2021 deadline is missed.

Production Year Due Date[1]
2019 50% November 10, 2020

50% May 10, 2021

2020 50% November 10, 2021

50% due in 8% increments for 12 months before the 1st of the month beginning December 1, 2023, and 4% before December 1, 2024

2021 Due in 8% increments for 12 months before the 1st of the month beginning December 1, 2023, and 4% before December 1, 2024
2022 and beyond  

Estimated ad valorem tax is due monthly as part of the new simultaneous reporting of severance and ad valorem taxes.  For example, for oil and gas production, reports are filed on the 25th day after the month of production (e.g., the January production report is filed and taxes must be paid on March 25th).

[1] The “Due Date” is the date by which the tax must be paid or it will be delinquent.  For example, the 50% payment for 2020 Production is actually due on September 1, 2021 but will not be considered late so long as it is paid on or before November 10, 2021.