Draft Environmental Impact Statement for Roca Honda Mine

Public Finance
Chapter 3. Affected Environment and Environmental Consequences
The State of New Mexico levies direct taxes on uranium, including a severance tax, a natural
resources excise tax, and a conservation tax on the value of uranium produced. The severance tax
is 3.5 percent of the taxable value of each pound of severed and saved uranium. The resources
excise tax is 0.75 percent of the value of the uranium with some deductions allowed. The
conservation tax is levied at 0.19 percent of the taxable value of uranium sold (NMTRD, 2011).
Property taxes are dependent upon the appraised value of the property for taxation purposes and
on the property tax rates (table 54). Two types of property taxes are levied on uranium operations
by the local government as well as the State government. The property tax levy is applied to 50
percent of the production value of uranium. The average nonresidential property tax rate in 2009
for these two counties was 1.106 percent. A property tax is also levied on 33 percent of the value
of mining equipment.
Table 54. Net taxable value for property tax purposes, 2009
County
Total Appraised
Value Available for
County Taxation
Nonresidential
All Property
Types Tax Rate
Nonresidential
Property Tax
Rate
Cibola $275,071,854 $177,916,811 1.034 1.063
McKinley $737,555,704 $480,875,429 1.101 1.149
Source: New Mexico Taxation and Revenue Department, 2009
Environmental Consequences
The analysis for socioeconomics evaluates the social and economic effects, both positive and
negative, of the development, operation, and reclamation phases of the proposed action.
As noted earlier, the ROI for the socioeconomic analysis includes Cibola and McKinley Counties,
or the communities most likely to be affected by the proposed project. These communities may
experience a direct, indirect, and/or induced economic impact as a result of the proposed mine,
either as a result of permitting, construction, operation, or reclamation (e.g., from employment,
wages and taxes, etc.). Additionally, the impact may consist of changes in the quality of life for
area residents and visitors due to tax increases. The framework for analysis utilizes the following
criteria:
• Magnitude of the impact (how much);
• Duration or frequency of the impact (how long or how often);
• Extent of the impact (how far);
• Likelihood of the impact occurring (probability); and
• Precedence and uniqueness of the impact (e.g., unique setting and controversiality).
The temporal bounds of analysis for analyzing socioeconomics will be guided in part by available
data, an assessment of current conditions (without the proposed mine or associated activity), and
the phases of activity associated with the proposed mine, including construction, operation,
reclamation, and closure.
DEIS for Roca Honda Mine, Cibola National Forest 287