Statutes, codes, and regulations
Wyoming Administrative Code
Agency 011 - Revenue DeptSubagency 0005 - Mineral Tax
Chapter 6 - AD VALOREM AND SEVERANCE TAXES ON MINERAL PRODUCTION
Section 6-10 - Recognized Appraisal Techniques Applicable to Miscellaneous Minerals

011-6 Wyo. Code R. § 6-10

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Current through April 27, 2019
Section 6-10 - Recognized Appraisal Techniques Applicable to Miscellaneous Minerals

(a) When the Department is required to appraise or determine the fair market value of miscellaneous minerals by application of recognized appraisal techniques, the Department shall use one or more of the following approaches or a combination thereof:

  • (i) Cost approach. Applied to minerals, the cost approach is a method of estimating the value of a mineral by determining the total of direct and indirect costs attributable to mining or production of a mineral. Other elements of value include but are not limited to royalty, and return on and of investment.
  • (ii) Comparison approach. Applied to minerals, the comparison approach is a method of determining the fair market value of a mineral by comparison with sales of minerals similar in quality and characteristics. This approach includes consideration of:
    • (A) Direct arm's-length sales of unprocessed minerals at the mine or oil and gas property; and
    • (B) Direct sales of processed or transported minerals whether at or away from the mine or oil and gas property.

(b) The Department shall consider whether the sales price includes the value of processing or transportation to market or both added after the mineral has passed beyond the point of valuation.

  • (i) If the selling price includes such value, the Department shall deduct such value from the selling price to determine the fair market value of the mineral.
  • (ii) If the value or cost of processing or transportation to market or both is represented by a bona fide arm's-length contract, such value or cost shall be deemed to be the appropriate deduction from the selling price.

(c) Return on investment attributable to mining and processing may be determined by a direct cost ratio proportion of costs, the proportion of investment, or rates of return prevalent in the industry.

(d) The Department shall weigh the relative significance, applicability and appropriateness of the indicators of value derived from the approaches to value or methods outlined above, including comparison of value indicators for similar minerals which best approximates the value of the mineral being appraised or valued.

(e) The fair market value of a mineral shall not include direct and indirect costs attributable to processing or transportation to market.

011-6 Wyo. Code R. § 6-10