Live Precious Metals Prices

Wednesday, December 19, 2007

Some Alaska lawmakers want revisions in mining industry tax code

JUNEAU - Some lawmakers are calling for a revision of Alaska's mining tax code, which they say is outdated and doesn't give the state's citizens the best return for their resources.

House Bill 156 is one of several bills up for debate in the upcoming regular session of the Alaska Legislature that could have repercussions for the mining industry. Other bills include efforts to protect water quality or restrict the ability to mine in certain areas.

The tax bill's prime sponsor, Rep. Paul Seaton, R-Homer, said it's important to review how the state taxes the mining industry because mining has changed over the decades in Alaska.

“It used to be that it was pretty much small, mom-and-pop mines, and now it's large multinational corporations,” Seaton said.

Currently, mining royalties are paid based on net profits. The bill proposes calculating the state's royalties based on the value of what's extracted minus smelter and transportation costs, called the “net smelter return.” The method would reap larger returns for the state.

Full Story

No comments: