Joint Minerals Committee Meeting Summary (May 21-22, 2002)

The Joint Minerals, Business and Economic Development Interim Committee met on May 21 and 22, 2002 in Casper.  The Committee received information on Wyoming’s mineral tax system, taxpayer compliance and proportionate profits for coal.  The Committee received testimony regarding five different coal valuation issues, including: the Powder River Coal Company Decision; point of valuation; the valuation floor for coal; inter-company/affiliate sales; and alternate valuation methods. 

The Committee directed the Department of Revenue and the coal industry to develop proposed legislative changes to clarify direct and indirect costs and cost allocation.  The Committee tabled the point of valuation issue and the Department and industry are to report back to the Committee this interim.  The Committee also tabled addressing the valuation floor for coal until the Department gives the Committee a reasonable estimate comparing the cost buildup method versus proportionate profits.  The Committee directed LSO staff to work with the Department to draft changes to current law for inter-company/affiliate sales.  The Committee also directed LSO to draft legislation to allow the Department to use an alternative method for coal valuation. 

The Committee will meet again on July 11 and 12, 2002 in Laramie to consider issues related to the Business Council, the Board of Professional Engineers, the Board of Geologists, the State Mining Council, Banking, the UW Public Policy Institute, and trona valuation.

 (View Minutes)