W.S. § 39-14-703 — Imposition

(a) Taxable event. The following shall apply:
(i) There is levied a severance tax on the value of
the gross product for the privilege of severing or extracting
other valuable deposits, oil shale or any other fossil fuel in
the state. The severance tax imposed by this article may be in
addition to other taxes, including but not limited to the ad
valorem taxes imposed by W.S. 39-13-104.
(b) Basis of tax (valuation). The following shall apply:
(i) Other valuable deposits shall be valued for
taxation as provided in this section based upon the information
received or procured pursuant to W.S. 39-14-707(a) and except as
otherwise provided, the department shall annually value the
gross product for the preceding calendar year, in appropriate
unit measures of all mines and mining claims from which valuable
deposits are produced. The value of the gross product shall be
the fair market value of the product at the mouth of the mine
where produced, after the mining or production process is
completed;
(ii) Except as otherwise provided, the mining or
production process is deemed completed when the mineral product
reaches the mouth of the mine. In no event shall the value of
the mineral product include any processing functions or
operations regardless of where the processing is performed;
(iii) Except as otherwise provided, if the product as
provided in paragraph (ii) of this subsection is sold at the
mouth of the mine, the fair market value shall be deemed to be
the price established by bona fide arms-length sale;
(iv) Except as otherwise provided, in the event the
product as provided in paragraph (ii) of this subsection is not
sold at the mouth of the mine by bona fide arms-length sale, or
if the product of the mine is used without sale, the department
shall determine the fair market value by application of
recognized appraisal techniques.
(c) Taxpayer. The following shall apply:
(i) In the case of the gross product of all mines and
mining claims produced under lease, the lessor is liable for the
of ad valorem taxes on the product removed only to the extent of
the lessor's retained interest under the lease, whether royalty
or otherwise, and the lessee or his assignee is liable for all
other property taxes due on production under the lease;
(ii) Any taxpayer paying the taxes imposed by this
article on any valuable deposit may deduct the severance taxes
paid from any amounts due or to become due to the interest
owners of such valuable deposit in proportion to the interest
ownership;
(iii) Any person extracting valuable products subject
to this article and any person owning an interest in the
valuable products to the extent of their interest ownership are
liable for the payment of the severance taxes imposed by this
article together with any penalties and interest.