Minnesota Statutes Excise and Sales Taxes (Ch. 296-299) § 298.01. Mining or producing ores

Subdivision 1. Repealed by Laws 1987, c. 268, art. 9, § 43 (c).

Subd. 2. Repealed by Laws 1985, c. 300, § 30.

Subd. 3. Occupation tax; other ores. Every person engaged in the business of mining, refining, or producing ores, metals, or minerals in this state, except iron ore or taconite concentrates, shall pay an occupation tax to the state of Minnesota as provided in this subdivision. For purposes of this subdivision, mining includes the application of hydrometallurgical processes. Hydrometallurgical processes are processes that extract the ores, metals, or minerals, by use of aqueous solutions that leach, concentrate, and recover the ore, metal, or mineral. The tax is determined in the same manner as the tax imposed bysection 290.02, except thatsections 290.05, subdivision 1, clause (a),290.17, subdivision 4, and290.191, subdivision 2, do not apply, and the occupation tax must be computed by applying to taxable income the rate of 2.45 percent.

The tax is in addition to all other taxes.

Subds. 3c, 3d. Repealed byLaws 2006, c. 259, art. 12, § 17.

Subd. 4. Occupation tax; iron ore; taconite concentrates. A person engaged in the business of mining or producing of iron ore, taconite concentrates or direct reduced ore in this state shall pay an occupation tax to the state of Minnesota. The tax is determined in the same manner as the tax imposed bysection 290.02, except thatsections 290.05, subdivision 1, clause (a),290.17, subdivision 4, and290.191, subdivision 2, do not apply, and the occupation tax shall be computed by applying to taxable income the rate of 2.45 percent.

The tax is in addition to all other taxes.

Subd. 4b. Deductions. For purposes of determining taxable income under subdivision 4, the deductions from gross income include only those expenses necessary to convert raw iron ore or taconite concentrates to marketable quality. Such expenses include costs associated with beneficiation and refinement but do not include expenses such as transportation, stockpiling, marketing, or marine insurance that are incurred after marketable iron ore or taconite pellets are produced. The allowable deductions from a mine or plant that mines and produces iron ore or taconite and one or more mineral or metal referred to insection 298.016must be determined separately for the purposes of computing the deduction insection 290.0133, subdivision 9. These deductions may be combined on one occupation tax return to arrive at the deduction from gross income for all production.

Subd. 4c. Special deductions. For purposes of determining taxable income under subdivision 4, the provisions ofsections 290.0133, subdivisions 7and9, and290.0134, subdivisions 7and9, are not used to determine taxable income.

Subds. 4d, 4e. Repealed byLaws 2006, c. 259, art. 12, § 17.

Subd. 5. If declared unconstitutional.If the taxes imposed in subdivisions 3 and 4 are found unconstitutional by any court of last resort, then persons engaged in the business of mining or producing iron ore or other ores shall pay the occupation taxes imposed in Minnesota Statutes 1986, chapter 298.

Subd. 6.Deductions applicable to mining both taconite and other ores; ratio applied. If a person is engaged in the business of mining or producing both iron ores, taconite concentrates, or direct reduced ore, and other ores from the same mine or facility, that person must separately determine the mine value of (1) the iron ore, taconite concentrates, and direct reduced ore, and (2) the amount of gross proceeds from mining other ores in Minnesota. The ratio of mine value from iron ore, taconite concentrates, and direct reduced ore to gross proceeds from mining other ores must be applied to deductions common to both processes to determine taxable income for tax paid pursuant to subdivisions 3 and 4.