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Nine of the 10 largest coal mines in the United States are located in Wyoming’s Powder River Basin.
Wyoming production accounted for approximately a third of the nation’s coal in 2001, according to the
Department of Energy’s Energy Information Administration, and is expected to further expand its market share.
PWMTF: Legacy for
Wyoming’s Future
Like the “temporary” fourth cent of statewide
sales tax that was made permanent, the coal impact
and capital facilities taxes could have been made
permanent and the revenues directed to the
Permanent Wyoming Mineral Trust Fund.
How would restoring Wyoming’s coal severance
tax to 10.5% affect the state’s budget situation? The
ESPC has prepared the following estimate to show
the increased income to the General Fund from
depositing all the restored revenue into the
Permanent Wyoming Mineral Trust Fund (PWMTF).
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Responsible stewardship means saving
against the day when the market for coal
begins to shrink. The Equality State Policy
Center proposes:
- • Wyoming’s coal severance tax should be
restored to 10.5% and the revenues banked
in the Permanent Wyoming Mineral Trust
Fund.
- • The process of determining the value of
coal for tax purposes should be closely
tracked, and any decrease in values investigated.
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Restoring Wyoming’s Coal Severance Tax to 10.5%
100% of proceeds to PWMTF/Interest to General Fund
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2003
$3,736,000 |
2004
$7,725,000 |
2005
$11,114,000 |
2006
$14,868,842 |
2007
$18,623,684 |
2008
$22,378,526 |
2010
$29,888,212 |
2015
$48,664,068 |
2020
$67,399,927
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History of Wyoming Coal Production and Revenues
| Year |
Coal Production (Tons) |
Number of Employees |
Coal Severance Taxes |
Federal Coal Royalties, Wyo. Share |
Combined Severance and Royalty Revenues |
Coal Bonuses, Wyo. Share* |
| 1980 |
94,986,433 |
6,231 |
$42,935,199 |
$4,350,343 |
$47,285,542 |
$0 |
| 1981 |
102,695,536 |
6,015 |
$60,128,097 |
$8,644,851 |
$68,772,948 |
$6,400 |
| 1982 |
107,954,583 |
5,681 |
$105,780,128 |
$10,665,678 |
$116,445,806 |
$568,396 |
| 1983 |
112,187,874 |
5,401 |
$113,000,193 |
$10,512,055 |
$123,512,248 |
$13,138,252 |
| 1984 |
130,745,779 |
5,336 |
$121,015,589 |
$11,724,946 |
$132,740,535 |
$10,782,578 |
| 1985 |
140,424,446 |
5,275 |
$125,683,123 |
$13,852,971 |
$139,536,094 |
$5,871,839 |
| 1986 |
135,403,347 |
4,671 |
$131,736,882 |
$14,243,389 |
$145,980,271 |
$194,927 |
| 1987 |
146,488,648 |
4,423 |
$115,475,944 |
$30,447,263 |
$145,923,207 |
$10,593,938 |
| 1988 |
163,588,200 |
4,533 |
$84,075,144 |
$45,929,281 |
$130,004,425 |
$2,233,700 |
| 1989 |
171,140,004 |
4,560 |
$89,123,775 |
$50,058,130 |
$139,181,905 |
$1,107,632 |
| 1990 |
184,005,701 |
4,623 |
$89,108,141 |
$55,596,113 |
$144,704,254 |
$0 |
| 1991 |
193,863,806 |
4,663 |
$93,419,414 |
$73,579,270 |
$166,998,684 |
$824,500 |
| 1992 |
189,470,256 |
4,648 |
$103,815,239 |
$71,859,271 |
$175,674,510 |
$163,474 |
| 1993 |
209,925,826 |
4,562 |
$100,349,235 |
$75,254,300 |
$175,603,535 |
$21,835,720 |
| 1994 |
236,908,067 |
4,572 |
$75,192,986 |
$79,604,271 |
$154,797,257 |
$17,487,914 |
| 1995 |
263,938,023 |
4,374 |
$74,797,503 |
$89,101,167 |
$163,898,670 |
$19,551,196 |
| 1996 |
278,424,956 |
4,398 |
$81,511,782 |
$88,327,897 |
$169,839,679 |
$21,398,236 |
| 1997 |
281,481,516 |
4,303 |
$80,676,620 |
$79,159,999 |
$159,836,619 |
$22,303,698 |
| 1998 |
314,962,091 |
4,335 |
$92,985,342 |
$84,115,651 |
$177,100,993 |
$5,810,132 |
| 1999 |
336,459,938 |
4,606 |
$85,333,688 |
$96,725,632 |
$182,059,320 |
$32,213,968 |
| 2000 |
338,852,148 |
4,414 |
$85,163,673 |
$100,593,328 |
$185,757,001 |
$32,371,983 |
| 2001 |
368,878,135 |
4,532 |
$97,478,127 |
$109,518,308 |
$206,996,435 |
$39,646,955 |
| 2002 |
372,800,000 |
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$109,711,373 |
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$76,897,236 |
| % change (1986 through 2001) |
+172% |
-3% |
-26% |
+669% |
+42% |
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*Coal bonuses are kept distinct because they are a one-time, competitive
bid payment; that is, companies decide how much it’s worth to outbid
a competitor for lease. Bonuses are not a continuing revenue source, but
strongly demonstrate the industry’s confidence in the future profitability of
Wyoming coal.
Data sources: Preliminary 2002 production reported 1/5/03 Casper Star-Tribune; Coal Production and
Employees, Annual Reports, Wyoming State Inspector of Mines; Severance Taxes, Consensus Revenue
Estimating Group, January 2003 report; Federal Coal Royalties, Minerals Management Service, U.S.
Department of Interior; Coal Bonuses, Legislative Service Office. Mixing of calendar and fiscal years
results in small inconsistencies in data. Compiled by the Equality State Policy Center, updated 2/03.
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