Minnesota Legislature
HF 1239
as introduced - 87th Legislature (2011 - 2012) Posted on 03/21/2011 09:57am
Bill Text Versions
| Engrossments | ||
|---|---|---|
| Introduction | Posted on 03/21/2011 |
Current Version - as introduced
1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20
1.21 1.22
1.23 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17
2.18 2.19
2.20 2.21 2.22 2.23 2.24
2.25 2.26
2.27 2.28 2.29 2.30 2.31 2.32 2.33 3.1 3.2
3.3 3.4
3.5 3.6 3.7 3.8 3.9 3.10 3.11
3.12 3.13
3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 3.33 4.1 4.2 4.3
4.4 4.5
4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16
4.17 4.18
4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27
4.28 4.29
4.30 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16
5.17 5.18
A bill for an act
relating to taxation; minerals; providing for taxation of mining, and refining of
nonferrous ores, metals, minerals; amending Minnesota Statutes 2010, sections
272.02, by adding a subdivision; 290.05, subdivision 1; 297A.68, subdivision 4;
297A.71, by adding a subdivision; 298.001, by adding a subdivision; 298.01,
subdivisions 3, 3a; 298.015, subdivision 1; 298.016, subdivision 4.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2010, section 272.02, is amended by adding a
subdivision to read:
new text begin Subd. 95. new text end
new text begin
Property used in the business of mining subject to the net proceeds
tax.
new text end
new text begin
The following property used in the business of mining that is subject to the net
proceeds tax under section 298.015 is exempt:
new text end
new text begin
(1) deposits of ores, metals, and minerals and the lands in which they are contained;
new text end
new text begin
(2) all real and personal property used in mining, quarrying, producing, or refining
ores, minerals, or metals, including lands occupied by or used in connection with the
mining, quarrying, production, or ore refining facilities; and
new text end
new text begin
(3) concentrate or direct reduced ore.
new text end
new text begin
This exemption applies for each year that a person subject to tax under section
298.015 uses the property for mining, quarrying, producing, or refining ores, metals, or
minerals.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxes payable in 2012 and
thereafter.
new text end
Sec. 2.
Minnesota Statutes 2010, section 290.05, subdivision 1, is amended to read:
Subdivision 1.
Exempt entities.
The following corporations, individuals, estates,
trusts, and organizations shall be exempted from taxation under this chapter, provided
that every such person or corporation claiming exemption under this chapter, in whole
or in part, must establish to the satisfaction of the commissioner the taxable status of
any income or activity:
(a) corporations, individuals, estates, and trusts engaged in the business of mining or
producing iron ore and new text begin mining, producing, or refining new text end other oresnew text begin , metals, and minerals,new text end
the mining deleted text begin ordeleted text end new text begin ,new text end productionnew text begin , or refiningnew text end of which is subject to the occupation tax imposed
by section 298.01; but if any such corporation, individual, estate, or trust engages in any
other business or activity or has income from any property not used in such business it
shall be subject to this tax computed on the net income from such property or such other
business or activity. Royalty shall not be considered as income from the business of
mining or producing iron ore within the meaning of this section;
(b) the United States of America, the state of Minnesota or any political subdivision
of either agencies or instrumentalities, whether engaged in the discharge of governmental
or proprietary functions; and
(c) any insurance company.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after
December 31, 2010.
new text end
Sec. 3.
Minnesota Statutes 2010, section 297A.68, subdivision 4, is amended to read:
Subd. 4.
Taconitenew text begin , other ores, metals, or minerals;new text end production materials.
Mill
liners, grinding rods, and grinding balls that are substantially consumed in the production
of taconite new text begin or other ores, metals, or minerals new text end are exempt when sold to or stored, used, or
consumed by persons taxed under the in-lieu new text begin or net proceeds new text end provisions of chapter 298.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after
June 30, 2011.
new text end
Sec. 4.
Minnesota Statutes 2010, section 297A.71, is amended by adding a subdivision
to read:
new text begin Subd. 43. new text end
new text begin
Construction materials and equipment; nonferrous metals and
minerals facility.
new text end
new text begin
Materials and supplies used or consumed in, and equipment
incorporated into, the improvement, construction, or expansion of an existing taconite ore
processing facility to extract and refine nonferrous ores, metals, and minerals, including
the construction, improvement, or expansion of a hydrometallurgical processing facility,
are exempt. This exemption includes any delivery or installation charges relating to
materials, supplies, and equipment exempt under this section.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after
June 30, 2011, and before July, 1, 2015.
new text end
Sec. 5.
Minnesota Statutes 2010, section 298.001, is amended by adding a subdivision
to read:
new text begin Subd. 10. new text end
new text begin Refining. new text end
new text begin
"Refining" means and is limited to refining:
new text end
new text begin
(1) of ores, metals, or mineral products, the mining, extraction, or quarrying of
which were subject to tax under section 298.015; and
new text end
new text begin
(2) carried out by the entity, or an affiliated entity, that mined, extracted, or quarried
the metal or mineral products.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after
December 31, 2010.
new text end
Sec. 6.
Minnesota Statutes 2010, section 298.01, subdivision 3, is amended to read:
Subd. 3.
Occupation tax; other ores.
Every person engaged in the business of
miningnew text begin , refining,new text end or producing oresnew text begin , metals, or mineralsnew text end in this state, except iron ore or
taconite concentrates, shall pay an occupation tax to the state of Minnesota as provided
in this subdivision. new text begin For purposes of this subdivision, mining includes the application
of hydrometallurgical processes. new text end The tax is determined in the same manner as the tax
imposed by section 290.02, except that sections 290.05, subdivision 1, clause (a), 290.17,
subdivision 4, and 290.191, subdivision 2, do not apply, and the occupation tax must
be computed by applying to taxable income the rate of 2.45 percent. A person subject
to occupation tax under this section shall apportion its net income on the basis of the
percentage obtained by taking the sum of:
(1) 75 percent of the percentage which the sales made within this state in connection
with the trade or business during the tax period are of the total sales wherever made in
connection with the trade or business during the tax period;
(2) 12.5 percent of the percentage which the total tangible property used by the
taxpayer in this state in connection with the trade or business during the tax period is of
the total tangible property, wherever located, used by the taxpayer in connection with the
trade or business during the tax period; and
(3) 12.5 percent of the percentage which the taxpayer's total payrolls paid or incurred
in this state or paid in respect to labor performed in this state in connection with the trade
or business during the tax period are of the taxpayer's total payrolls paid or incurred in
connection with the trade or business during the tax period.
The tax is in addition to all other taxes.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after
December 31, 2010.
new text end
Sec. 7.
Minnesota Statutes 2010, section 298.01, subdivision 3a, is amended to read:
Subd. 3a.
Gross income.
(a) For purposes of determining a person's taxable income
under subdivision 3, gross income is determined by the amount of gross proceeds from
mining in this state under section 298.016 and includes any gain or loss recognized
from the sale or disposition of assets used in the business in this state. If more than one
new text begin ore, new text end mineral, new text begin or new text end metaldeleted text begin , or energy resourcedeleted text end referred to in section 298.016 is mined and
processed at the same mine and plant, a gross income for each new text begin ore, new text end mineral, new text begin or new text end metaldeleted text begin , or
energy resourcedeleted text end must be determined separately. The gross incomes may be combined on
one occupation tax return to arrive at the gross income of all production.
(b) In applying section 290.191, subdivision 5, transfers of oresnew text begin , metals, or minerals
that are subject to tax under this chapternew text end are deemed to be sales in this state.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after
December 31, 2010.
new text end
Sec. 8.
Minnesota Statutes 2010, section 298.015, subdivision 1, is amended to read:
Subdivision 1.
Tax imposed.
A person engaged in the business of mining shall pay
to the state of Minnesota for distribution as provided in section 298.018 a net proceeds tax
equal to two percent of the net proceeds from mining in Minnesota. The tax applies to all
deleted text begin mineral and energy resourcesdeleted text end new text begin ores, metals, and mineralsnew text end mined deleted text begin ordeleted text end new text begin ,new text end extractednew text begin , produced,
or refinednew text end within the state of Minnesota except for sand, silica sand, gravel, building
stone, crushed rock, limestone, granite, dimension granite, dimension stone, horticultural
peat, clay, soil, iron ore, and taconite concentrates. new text begin Except as provided in section 272.02,
subdivision 95, new text end the tax is in addition to all other taxes provided for by law.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after
December 31, 2010.
new text end
Sec. 9.
Minnesota Statutes 2010, section 298.016, subdivision 4, is amended to read:
Subd. 4.
Definitions.
For the purposes of sections 298.015 and 298.017, the
terms defined in this subdivision have the meaning given them unless the context clearly
indicates otherwise.
(a) "Metal or mineral products" means all those deleted text begin mineral and energy resourcesdeleted text end new text begin ores,
metals, and mineralsnew text end subject to the tax provided in section 298.015.
(b) "Exploration" means activities designed and engaged in to ascertain the
existence, location, extent, or quality of any deposit of metal or mineral products prior to
the development of a mining site.
(c) "Development" means activities designed and engaged in to prepare or develop
a potential mining site for mining after the existence of metal or mineral products in
commercially marketable quantities has been disclosed including, but not limited to,
the clearing of forestation, the building of roads, removal of overburden, or the sinking
of shafts.
(d) "Research" means activities designed and engaged in to create new or improved
methods of mining, producing, processing, beneficiating, smelting, or refining metal
or mineral products.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after
December 31, 2010.
new text end