Governor Mandates Monthly Wyoming Ad Valorem Production Tax Payments

This past week, starting in 2023, Governor Mark Gordon signed House Bill 159 that mandates mineral producers in the state of Wyoming will have to start paying their ad valorem production tax monthly.

With HB159 officially signed into law, all producers must start paying their taxes monthly to the state starting January 1, 2023. Operators have the option to start these payments monthly earlier if they choose, beginning on 1/1 of 2021, or 1/1 of 2022. The Wyoming Ad Valorem Tax has been considering making changes to the methodology in recent years, but this is one of the first large changes in the system recently.

The new law mandates that all producers must pay their ad valorem production taxes monthly starting in 2023

The County Commissioner of Campbell County Rusty Bell called HB 159 “one of the most important pieces of legislation passed in the last few years” and a “big first step for Wyoming.”

In another quote to the Jackson Hole News & Guide, Mr. Bell said, “I don’t think we should say it will work perfectly fine,” adding that HB 159 is long and complex, and that time will tell if there are “any hiccups in there we need to fix.”