Wyoming Coal Royalties Going Down?

Wyoming is considering dropping the royalty rates paid by coal companies, to bring them in line with those paid by the oil and gas industry. A bill introduced in the State’s House of Representatives this week, would reduce the severance tax rate for coal producers from 7 to 6 percent. Estimates are that the state could lose as much as $9.4 million in revenue if the change is made. Supporters of the bill say that the changes would not only positively impact coal producers in the state, but would also help support businesses that provide parts and services to the mines. Those against the bill argue that coal producers have already passed the costs associated with taxes on to their customers, so any increased revenue from the tax decrease would go directly into the pockets of companies like Arch Coal and Peabody.

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