Miscellaneous Mines Net Proceeds Tax
A yearly ad-valorem tax is imposed on the net proceeds of gems, vermiculite, bentonite or other valuable minerals, pursuant to 15-23-501.
The taxable value is equal to 100% of the annual net proceeds with the exception of talc, vermiculite, quicklime and rougher garnet concentrate. For these four minerals the taxable value is derived by multiplying the number of tons produced by a specific price calculated each year as directed by statute. The taxable value is then multiplied by the local mill levy, which results in the tax owed.
Sand and gravel are exempt from mines net proceeds taxation. Producers of industrial garnets, travertine and building stone, pusuant to 15-23-518 and 15-6-208, are exempt from mines net proceeds taxation on their first 1,000 tons of production.
Filing Requirements
Persons operating miscellaneous mines are required to file a statement, on or before March 31 of each year, showing the total gross proceeds of minerals mined during the preceding calendar year, and information on costs associated with the mining operation sufficient to allow calculation of the net proceeds from the operation. Forms are filed with the Department of Revenue.
Distribution of Miscellaneous Mines Net Proceeds Tax
The local county treasurer collects the tax. The net proceeds of miscellaneous mines are subject to mill levies of those taxing jurisdictions in which the mine is located. The tax is distributed on the basis of relative mills levied by all jurisdictions levying taxes in the area.
