Regulatory Supervisor
The State of Wyoming requires all oil and gas producers to annually file Gross Products (Ad Valorem) tax, which is an Ad valorem property tax based on a taxable value of the previous year’s production. The Gross Products tax is primarily used to fund local school districts (K-12 education) and the remaining money goes to the county, cities and towns, community colleges, and special districts. The Department of Revenue assesses the taxable value which is then certified by the appropriate county and tax district, where an applicable mill levy or tax rate is applied. The counties distribute the tax bills by June 1 and are then responsible for final collection and resolution.
The required Gross Products Forms are:
• 4101: Annual Gross Products for Oil
• 4111: Take In-Kind Balance Sheet for Oil
• 4121: Breakdown by Tax District for Oil
• 4201: Annual Gross Products for Natural Gas
• 4211: Take In-Kind Balance Sheet for Natural Gas
• 4221: Breakdown by Tax District for Natural Gas
• 4231: Attachment for Natural Gas (Plant Products)
Gross Products are due and must be postmarked or electronically filed by February 25 for the previous calendar year’s production. For example, February 25, 2025, is the due date for 2024 production months. Extensions, for cause, may be requested but must also be in writing and postmarked by February 25. The Wyoming Department of Revenue may grant extensions up to two months.
The cost of Gross Products non-compliance can be substantial because the penalty is based on the gross taxable value instead of the tax due. Failure to report on or before February 25, or by the extended due date, results in a penalty equal to one percent (1%) of the total calendar year taxable value. The 1% penalty is assessed for each reporting group every month after the due date, without limitation, until it is filed. Needless to say, you do not want to miss Gross Products tax due date.
How can Martindale Consultants help?
Martindale has a full staff of Regulatory accountants with direct experience and knowledge of the Gross Products tax. In addition, Martindale’s relationships with the Wyoming Department of Revenue and the various counties facilitate the process, thus minimizing time and mitigating or eliminating any costly penalties. Our services include:
➢ File the necessary forms described above
➢ Reconcile volumes with the Form 2 production reports
➢ Reconcile discrepancies in volumes between operators and TIK reporters
➢ Reconcile and amend any variances with severance tax filings
➢ Preparation for next year’s filings
Mia Downing
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