The Department of Revenue

Important Links

DOR Website: http://revenue.wyo.gov/

DOR Rules: https://revenue.wyo.gov/about-us/rules-and-regulations

Wyoming Statutes & Constitution: http://www.wyoleg.gov/StateStatutes/StatutesConstitution?tab=0

Severance Tax Stripper Rate Qualification

(not applicable to gas)

Taxpayer Type “O” – Operators - complete section “C” on their GP Form 4101. The Department of Revenue (DOR) assumes the operator’s GP return is the authority.

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The incentive rate is based on Gross Products reporting, however stripper is a severance tax incentive not a Gross Products incentive.

Forms and detailed instructions can be accessed at:

https://revenue.wyo.gov/divisions/mineral-tax/mineral-tax-forms

If GP return filed by the operator does not qualify for the stripper S10 rate, and the Operator and/or TIK interest owner reports the Severance return under S10, it results in a Crude/Stripper Discrepancy.

Crude Stripper Discrepancy Notice

If taxpayer files for the S10 rate on their severance return and they don’t qualify for stripper per their GP return, they will receive a discrepancy notice informing them that the production does not qualify.

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Stripper oil is treated as a separate product in the tax system. Therefore, when changing from the S10 rate to the BAS rate or vice versa the previously reported production must be zeroed out and then the new production reported under the proper rate code.

Crude Stripper Assessment Letter

If company does not resolve their discrepancy letter within 60 days, they will receive an assessment letter.

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The assessment letter will document the amount they will be assessed.

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This is a final administrative action and the taxpayer has 30 days in which to appeal.

Crude Oil Stripper Review Timing

Following certification the DOR analyzes returns & issues a discrepancy notification. Usually in October.

DOR assesses any unqualified stripper reporting 30 days prior to the statute of limitations tolling.

DOR sends the final discrepancy notification in November prior to the statute of limitations tolling.

Senior Tax Examiner

(Take-in-kind

& Crude oil/ stripper comparisons )

Savina Contratto

Ph: (307) 777-5445

E-mail: savina.contratto1@wyo.gov