Electricity production-taxation.

09LSO-0611.L1

FISCAL NOTE

	FY 2010	FY 2011	FY 2012
NON-ADMINISTRATIVE IMPACT
Anticipated Revenue Increase:
GENERAL FUND	0	34,600,000	34,600,000
OTHER – LIEAP PROGRAM	0	1,110,000	1,110,000

Source of revenue increase:

Excise tax on electricity generation in the state of Wyoming.  Tax is based on a $.001 per Kilowatt hour of electricity produced.  Proceeds of the tax net of the credit for severance taxes paid are distributed to the general fund.  It is important to note that the severance tax paid by a mineral producer will in most circumstances not be available to the energy producer.

Assumptions:  

Assumed 45.7 Million Megawatt hours of energy produced in Wyoming from information provided by the Energy Information Administration.  Also assumed a short ton of coal can produce 2,100 kilowatt hours of electricity.  From this data determined that 21,755,000 tons of coal was used to produce this electricity with an average severance tax paid of $.51 per ton.  Converted megawatt hours to kilowatt hours and multiplied the result by tax rate.  Result is $45,700,000 in tax.  Multiplied the number of tons of coal produced by the average severance tax paid.  The resulting credit is $11,100,000 of which 10% or $1,110,000 would go back to the LIEAP program.  No data on the amount of electrical generation potential in Wyoming.

This bill is effective on January 1, 2010. Any person owing this tax shall pay the tax once each year on or before February 1 of the year immediately following the year in which the electricity was produced and sold. Therefore, the first tax payments under this bill would be due by February 1, 2011 (FY 2011).

Prepared by:   Dan Noble, Dept. of Revenue Phone: 777-5220