NEVADA Senate Panel unanimously votes to remove mining taxation limits
NEVADA mining companies now find themselves directly in the sights of cash-starved local governments, human resources programs, and school districts desperately seeking more revenue.
http://www.mineweb.com/mineweb/content/en/mineweb-political-economy?oid=183728&sn=Detail
Author: Dorothy Kosich
Posted: Wednesday , 27 Mar 2013
RENO (MINEWEB) -
The NEVADA State Senate Committee on Revenue unanimously approved a proposed constitutional amendment on Tuesday to lift the 5% cap on net proceeds taxes paid by mines.
“You have the ability to tax us with sales taxes, modified business tax which we pay,” said NEVADA Mining Association President Tim Crowley. “Should you implement a margins tax, the mining industry would pay that. We are not immune to taxation.”
The Las Vegas Review Journal said, “Most Senate Republicans have already pledged to increase mining taxes significantly in 2015 and use the extra revenue, estimated at $600 million to $800 million for public education.”
None of the members of the Senate Revenue Committee represents a rural NEVADA gold mining company, Assemblyman Ira Hansen, R-Sparks, told the committee. He cautioned his colleagues that NEVADA needs to be careful not to drive the industry out of the state with a high mineral tax.
NEVADA is the top U.S. gold producer and one of the world’s highest producing gold regions.
The mining industry is one of several NEVADA industries specifically mentioned in the state’ constitution. Banking and the financial sector also have constitutional tax exemptions. The inventories of retailers are also exempted from taxation in the constitution.
State Sen. Greg Brower-- who received campaign contributions from mining in his successful bid to defeat long-time mining foe State Sen. Shelia Leslie—declared Tuesday, “At this point, I just think it’s a no-brainer to bring control of taxation back to the Legislature.”
If SJR 15 is approved by this second consecutive session of the NEVADA Legislature, the measure then goes to a vote of the people in 2014. If voters remove the constitutional cap on mining taxation, legislation to raise net proceeds taxes on mining would have to be voted on by the 2015 Legislature.
However, some lawmakers hope another measure will make it on the 2014 election ballot that will raise mining taxes.
SJR 15 now goes to a vote of the full State Senate. |
