Metal Mines Gross Proceeds Tax
A yearly ad-valorem tax is imposed on the gross proceeds of metal mines, pursuant to 15-23-801. Gross proceeds means the monetary payment or refined metal received by the mining company from the metal trader, smelter, roaster, or refinery, determined by multiplying the quantity of metal received 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.
The taxable value of metal mines is equal to 3% of annual gross proceeds. This amount is subject to local mill levies in the jurisdiction in which the taxable value of the mining operation is allocated.
Mines that produce less than 20,000 tons of ore in a year are exempt from property taxation on one-half of the merchantable value, pusuant to 15-6-208.
Filing Requirements
Persons mining metals are required to file a statement, on or before March 31 of each year, showing the total gross proceeds of metal mined during the preceding calendar year. Forms are filed with the Department of Revenue.
Distribution of Metal Mines Gross Proceeds Tax
This tax is collected by the local county treasurer. The taxable valuation of hard-rock mining operations is subject to allocations specified by hard-rock mining impact property tax base sharing laws. Generally, the tax base is allocated to taxing jurisdictions based on their associated relative economic impacts.
