Mining taxes in Minnesota have been lowered by legislators in an attempt to stimulate mineral exploration. Although the state has no base or precious metal mine production, a high tax rate — one of the highest in the U.S. — was considered a disincentive to exploration, Whitney & Whitney, a Nevada- based mining consulting firm, concluded in a report on mining taxes in the U.S.
The Whitney study examined property taxes, mineral specific taxes and general business taxes, including income, sales and unemployment taxes.
“The improvement in mining taxes is the result of tax reforms which took place during the 1987 Minnesota legislature, principally, the repeal of the property tax on base and precious metals and replacement with a tax on net proceeds from such mining operations,” Sir John James, commissioner for the Department of Revenue in Minnesota.
When all types of mining operations are examined, Minnesota was found to rank in the middle of a group of 18 mining states. States with tax rates higher than those found in Minnesota include Michigan, South Dakota, Utah, Idaho, Montana, Colorado and Arizona.
States with lower rates include Tennessee, New Mexico, Nevada, South Carolina, Oregon and Missouri.
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