Since the late 1980s, the Legislature has enacted numerous tax breaks for various types of oil, gas, coal, and uranium production.

These breaks were first enacted for a limited period of time. The Legislature has subsequently extended these time periods; several were about to expire again and were renewed in the 1997 and 1998 sessions.

Lobbyists for the energy industries contend that these breaks are necessary to keep Wyoming's production competitive and, in the cases of oil and uranium, to assist declining or marginal industries.

However, opponents point out that no data has ever been presented to substantiate these arguments, and that international market forces determine production decisions, not Wyoming's tax structure. Consequently, the tax breaks cost the state badly needed revenue without offsetting benefits.

Tax breaks for the energy industries result in less income to various earmarked funds and the Permanent Wyoming Mineral Trust Fund. Interest from the Permanent Wyoming Mineral Trust Fund is one of the two largest sources of income to the General Fund, which funds most state programs and services. (The other principal source of income to the General Fund is sales tax.)

The enactment of tax breaks for the energy industries and the continuation of the fourth cent of statewide sales tax effectively moves part of the overall tax burden from the energy industries to the general population.

A description of each of the tax break bills follows, accompanied by production data if available. The votes on all the tax break bills are listed together in tables following the descriptions.