To take or not

As the State of Wyoming moves forward with the process of monthly mineral ad valorem tax collection, counties affected by the process are now eligible for loans impacted by delayed payments for production in 2020 and 2021.

During the 2021 Legislative Session, Senate File 60 established a monthly collection of mineral ad valorem taxes, changing it from biannual collection of such taxes. Included within this legislation were provisions which deferred payment on production for the later half of calendar year 2020 and all of calendar year 2021.

“If you recall, with Senate File 60 a couple years ago and Senate File 38 in the most recent session, there’s a loan program through the legislature that counties can access for our delayed payments. If you remember, part of 2020 and all of ‘21 production taxes were deferred, basically, and allowed to be paid over 13 years through 2035 in December of each year to counties,” said Gwynn Bartlett, Carbon County Clerk. “They calculate our loss at $506,041 for counties only and an additional amount of special districts, if you were to want to go there.”

The loan program, which was first established with Senate File 60, allocated approximately $16 million for loans to be made to counties due to the deferred payments from 2020 and 2021 production. In July 2021, former county treasurer Pattie Bentsen expressed concern about the loan program as repayment of the loans were to come from the collected deferred payments.

“Who’s responsible if these companies aren’t around in 12 years since we borrowed the money on their behalf?” Bentsen said at the time. “What if they filed bankruptcy and we borrowed on their behalf?”

This problem appears to have been solved by Senate File 38.

According to the subsection created by the legislation passed during the 2022 Legislative Session, “If a taxpayer subject to deferred payments under this subsection sells, divests or liquidates its producing mineral assets in a county or counties such that the taxpayer is no longer required to file a monthly severance tax report with the department … the total remaining amount of deferred taxes due under this subsection for that county or counties shall be due and payable to the applicable county treasurer on or before the twenty‑fifth day of the third month following the month the taxpayer sold, divested, or liquidated its producing mineral assets. If a taxpayer fails to make a deferred payment under this paragraph, all applicable penalties and interest shall be calculated from the date of the missed payment.”

Bartlett told the commissioners they could take the loan—the full $506,000—and place it in a fund to accrue interest and use the fund for emergency situations. She cautioned, however, if a December payment was not made, the county would be “on the hook” for repayment.

Under a subsection created by Senate File 38, if a taxpayer is late on one deferred payment “all applicable penalties and interest shall be calculated from the date of the missed payment”. Additionally, if a taxpayer fails to make the second deferred payment, the total amount of deferred payments is due along with penalties and interest.

“We can turn it down, we can request any part of that $506,000,” Bartlett said. “We can do this for special districts as well, but the county is on the hook for their payment.”

Chairman John Johnson told Bartlett he believed the county should take the loan, to which the remaining commissioners agreed.

“I think we should take it,” said Commissioner John Espy. “I think park it and if we need it, we need it and, if not, we can just give it back at the end of the day.”

Bartlett told the BOCCC she was only needing a “thumbs up” at the moment, adding the State of Wyoming would need to know by April 20, 2022 if Carbon County were to accept the entire loan, a portion of it, or decline it all together. A formal motion could be made at the April 19 meeting of the county commissioners. The county clerk also said there could be the possibility of additional funds, but no guarantee of those funds beyond the $506,000 estimated for the county.

While the county commissioners could also accept additional funds on behalf of special districts within the county’s borders, the county government would also be required to repay those funds as well. Johnson asked Bartlett if any special districts had reached out to her. According to Bartlett, none had expressed interest.

“Part of being a special district is being responsible for yourself,” added Commissioner Sue Jones.

The next meeting of the Board of Carbon County Commissioners will be at 2 p.m. on April 19 at the Grand Encampment Opera House (622 Rankin Avenue) in Encampment.