Metal Mines License Tax
Mining operations in which metal or gems are extracted are subject to a license tax, which is based on the gross value of the product.
The value to which the tax rate is applied is the monetary payment the mining company receives from the metal trader, smelter, roaster, or refinery. This is determined by multiplying the quantity of metal received by the metal trader, smelter, roaster, or refinery by the quoted price for the metal and then subtracting basic treatment and refinery charges, quantity deductions, price deductions, interest and penalty, metal impurity, and moisture deductions as specified by contract between the mining company and the receiving metal trader, smelter, roaster, or refinery. Deductions also are allowed for the cost of transportation from the mine or mill to the smelter, roaster, or refinery.
Concentrate shipped to a smelter, mill or reduction work is taxed at 1.81% of gross value over $250,000. Gold, silver or any platinum-group metal that is dore, bullion matte or other form of processed concentrate that is processed in a treatment facility owned or operated by the taxpayer and that is sold or shipped to a refinery for final processing is taxed at 1.6% of gross value over $250,000. Gross value under $250,000 is exempt from metal mines license taxation. They instead pay the Resource Indemnity and Ground Water Assessment Tax (RIGWAT) at a rate of 1/2 of 1%, pursuant to 15-38-104.
Persons extracting metals are required to file reports containing information sufficient to calculate the tax due. Reports and payments of metal mines license tax are due semi annually beginning January 1, 2003 for the products produced in the preceding 6 months. The report for period ending June 30 is due and payable by August 15. The report for period ending December 31 is due and payable by March 31.
The revenue collected during the biennium is deposited as follows: 58% in the General Fund; 8.5% in the abandoned mines account; 7% in the reclamation and development grants account; 2.5% in the hard rock mining impact trust account; and 24% to the county or counties identified as experiencing fiscal and economic impacts under an impact plan. If no such plan has been prepared, that same 24% goes instead to the county in which the mine is located. We strongly encourage you to file your Metal Mines License Tax (MML) online through Tax Payer Access Point (TAP).
Last updated 1/23/2012 2:37:52 PM