2015 Wyoming Code
TITLE 39 - TAXATION AND REVENUE
CHAPTER 14 - MINE PRODUCT TAXES
ARTICLE 1 - COAL
SECTION 39-14-105. - Exemptions.

39-14-105. Exemptions.

(a) Coal has no value and is exempt from taxation if it is consumed prior to sale for the purpose of treating or processing coal produced from 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 a ton 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 tax which exceeds the maximum amount per ton. This exemption shall be applicable to:

(i) New agreements entered into between March 31, 1987, and December 31, 2003, if:

(A) The application of the taxes in W.S. 39-14-104 results in a tax on a ton of surface mined coal in excess of sixty cents ($.60), or thirty cents ($.30) on a ton of underground mined coal at the time the agreement is entered and the coal is first produced under the agreement;

(B) Production and delivery of coal actually commences pursuant to the agreement between March 31, 1987, and December 31, 2003;

(C) The coal is transported and consumed outside the borders of the state of Wyoming; and

(D) The new contract or agreement is not the result of the purchaser breaching a contract with another Wyoming producer; or

(ii) New agreements entered into between January 1, 1987, and December 31, 2003, to supply coal to a facility in the planning stage or under construction at the time the new agreement is entered if:

(A) The application of the taxes in W.S. 39-14-104 results in a tax on a ton of surface mined coal in excess of sixty cents ($.60), or thirty cents ($.30) on a ton of underground mined coal at the time the agreement is entered and the coal is first produced under the agreement;

(B) The coal is transported and consumed outside the borders of the state of Wyoming; and

(C) The new contract or agreement is not the result of the purchaser 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 purchaser for consumption in an electrical generating facility or coking facility located in Wyoming to the extent that the producer's annual production and deliveries under the contract exceeds the average annual tonnage of coal delivered during calendar years 1985 and 1986 under the same contract. The exemption applies to the amount of additional coal produced in each of calendar years 1987 through 2003 and thereafter, so long as the additional coal is produced and delivered annually. If the annual deliveries after calendar year 2003 fall below the average of the 1985 and 1986 production, the exemption will no longer apply even if subsequent production exceeds the average of the 1985 and 1986 production unless the annual deliveries after calendar year 2000 fall below the average 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 the reasonable control of either party to the contract or agreement. The exemption applies to contracts or agreements described in this paragraph only if a facility's total annual purchase of Wyoming coal exceeds the average annual tonnage of Wyoming coal purchased by the facility during calendar years 1985 and 1986;

(iv) Coal consumed by any coking facility located in Wyoming if the producer demonstrates to the department of revenue that the Wyoming coal consumed at the coking facility has displaced an equivalent quantity of coal produced outside of Wyoming. The exemption applies to the amount of Wyoming coal delivered and consumed by the coking facility in calendar year 1989 and thereafter, so long as the Wyoming coal is produced and delivered annually. If annual deliveries after calendar year 2003 fall below the previous year's deliveries, the exemption will no longer apply unless shipments are curtailed as the result of conditions described under paragraph (iii) of this subsection.

(c) The limitation on excise taxation provided for in subsection (b) of this section shall be applicable to a contract or agreement for the duration of its term or any extension thereof executed prior to December 31, 2003. If a producer and purchaser of coal under a contract or agreement existing on January 1, 1999, mutually rescind that contract or agreement and execute a new contract or agreement under substantially similar terms or amend an existing contract to diminish the total revenue which would have accrued under that contract, the coal sold under the new or amended contract shall be taxed under the provisions of this section without regard to the tax limitation imposed by subsection (b) of this section.

(d) Repealed By Laws 2008, Ch. 44, 2.