Mining Tax Guide - Minnesota State Legislature
Mining Tax Guide - Minnesota State Legislature
Mining Tax Guide - Minnesota State Legislature
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
The <strong>Minnesota</strong> <strong>Mining</strong> <strong>Tax</strong> <strong>Guide</strong> is published to identify all<br />
<strong>Minnesota</strong> mining-related taxes paid by the mining industry.<br />
This book strives to simplify the complicated tax statutes using<br />
language that is easy to understand and non-technical narratives,<br />
tables, graphs and flowcharts.<br />
Taconite Production <strong>Tax</strong><br />
The taconite production tax is the largest tax paid by the iron<br />
mining industry. It is a major source of revenue to the counties,<br />
municipalities and school districts within the taconite assistance<br />
area.<br />
The production tax distributed in 2011 is the tax due for the 2010<br />
production year. The taconite production tax rate for concentrates<br />
and pellets produced in 2010 was $2.380 per taxable ton. The<br />
taxable tonnage for 2010 is the average tonnage produced in<br />
2008, 2009 and 2010. If this tax is imposed on other iron-bearing<br />
material, it is applied to the current-year production.<br />
The inside front cover illustrates where the production tax is<br />
distributed. It shows both the cents per ton (cpt) distribution<br />
and the total amount distributed to various funds. The funds to<br />
Millions of Long Tons Produced<br />
2400<br />
2300<br />
2200<br />
2100<br />
2000<br />
1900<br />
1800<br />
1700<br />
1600<br />
1500<br />
1400<br />
1300<br />
1200<br />
1100<br />
1000<br />
900<br />
800<br />
700<br />
600<br />
500<br />
400<br />
300<br />
200<br />
100<br />
0<br />
1008 1020 1016<br />
Figure 1<br />
Iron Ore Production Comparison<br />
935<br />
916<br />
1102<br />
61 62 61<br />
44<br />
58 62<br />
44 43 41 43 45 51 49<br />
32 39 35<br />
1996<br />
1997<br />
1998<br />
977<br />
1999<br />
2000<br />
2001<br />
1060<br />
Introduction<br />
2002<br />
2003<br />
1250<br />
2004<br />
1<br />
which the production tax are distributed are explained on pages<br />
7–11, Distribution of Funds.<br />
<strong>State</strong> <strong>Tax</strong>es<br />
Other major taxes paid by the mining industry are the occupation<br />
tax, similar to an income tax, pages 30 - 38, and sales and use tax,<br />
pages 42–44. These taxes are deposited in the <strong>State</strong> General Fund.<br />
Aggregate Material Sales/Use <strong>Tax</strong><br />
An explanation of sales and use tax on aggregate material is found<br />
on page 45.<br />
County <strong>Tax</strong>es<br />
Other taconite and iron ore ad valorem (property) taxes are paid<br />
directly to the counties, pages 46–52. These are property taxes<br />
assessed on taconite railroads, unmined taconite ore, auxiliary<br />
mining lands, unmined natural ore and severed mineral interests.<br />
<strong>Tax</strong>es on Other Minerals<br />
<strong>Tax</strong>es on minerals other than taconite or iron, such as gold, silver,<br />
copper, nickel, lead and other nonferrous minerals are explained<br />
on pages 53–55.<br />
54 41<br />
1496<br />
54 41<br />
2005<br />
1663<br />
53 40<br />
2006<br />
1900<br />
52 38<br />
2007<br />
2220<br />
54 39<br />
2008<br />
2240<br />
27 17<br />
2009<br />
2400<br />
49 35<br />
2010<br />
Wo rld<br />
U. S.<br />
<strong>Minnesota</strong><br />
United <strong>State</strong>s includes <strong>Minnesota</strong><br />
United <strong>State</strong>s and World Production numbers from American Iron Ore Assocation<br />
Starting with 2002 Production, numbers are from the U.S.Geological Survey
Change language