2004 Minnesota Statutes

     298.01 Mining or producing ores. 

    Subdivision 1. Repealed, 1987 c 268 art 9 s 43 

    Subd. 2. Repealed, 1985 c 300 s 30 

    Subd. 3.    Occupation tax; other ores.  Every person 
 engaged in the business of mining or producing ores in this 
 state, except iron ore or taconite concentrates, shall pay an 
 occupation tax to the state of Minnesota as provided in this 
 subdivision.  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), and 290.17, subdivision 4, do not 
 apply.  The tax is in addition to all other taxes. 

    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. 

    (b) In applying section 290.191, subdivision 5, transfers 
 of ores are deemed to be sales outside this state if the ores 
 are transported out of this state after the ores have been 
 converted to a marketable quality. 

    Subd. 3b.    Deductions.  (a) For purposes of 
 determining taxable income under subdivision 3, the deductions 
 from gross income include only those expenses necessary to 
 convert raw ores to marketable quality.  Such expenses include 
 costs associated with refinement but do not include expenses 
 such as transportation, stockpiling, marketing, or marine 
 insurance that are incurred after marketable ores are produced, 
 unless the expenses are included in gross income. 

    (b) The provisions of section 290.01, subdivisions 19c, 
 clauses (6) and (9), and 19d, clauses (7) and (11), are not used 
 to determine taxable income. 

    Subd. 3c.    Alternative minimum tax.  For purposes of 
 calculating the alternative minimum tax under section 290.0921, 
 Minnesota alternative minimum taxable income must be computed 
 under the provisions of subdivisions 3, 3a, and 3b, and the 
 provisions of section 290.0921, except that: 

    (1) the adjustment for adjusted current earnings under 
 section 56(g) of the Internal Revenue Code of 1986, as amended 
 through December 31, 1996, must be determined using gross income 
 as defined in subdivision 3a; and 

    (2) the tax preference for depletion under section 57(a)(1) 
 of the Internal Revenue Code of 1986, as amended through 
 December 31, 1996, must be included in alternative minimum 
 taxable income. 

    Subd. 3d.    Alternative minimum tax credit.  A credit 
 is allowed against qualified regular tax for qualified 
 alternative minimum tax previously paid.  The amount of the 
 credit allowed under this subdivision is determined under 
 section 290.0921, subdivision 8.  For purposes of calculating 
 this credit, the following terms have the meanings given: 

    (a) "Qualified alternative minimum tax" means the amount 
 determined under subdivision 3 and section 290.0921, subdivision 
 1. 

    (b) "Qualified regular tax" means the tax imposed under 
 subdivision 3 and section 290.06, subdivision 1. 

    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 by section 290.02, except that sections 290.05, 
 subdivision 1, clause (a), and 290.17, subdivision 4, do not 
 apply.  The tax is in addition to all other taxes. 

    Subd. 4a.    Gross income.  (a) For purposes of 
 determining a person's taxable income under subdivision 4, gross 
 income is determined by the mine value of the ore mined in 
 Minnesota and includes any gain or loss recognized from the sale 
 or disposition of assets used in the business in this state. 

    (b) Mine value is the value, or selling price, of iron ore 
 or taconite concentrates, f.o.b. mine.  The mine value is 
 calculated by multiplying the iron unit price for the period, as 
 determined by the commissioner, by the tons produced and the 
 weighted average analysis. 

    (c) In applying section 290.191, subdivision 5, transfers 
 of iron ore and taconite concentrates are deemed to be sales 
 outside this state if the iron ore or taconite concentrates are 
 transported out of this state after the raw iron ore and 
 taconite concentrates have been converted to a marketable 
 quality. 

    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. 

    Subd. 4c.    Special deductions; net operating loss.  (a)
 For purposes of determining taxable income under subdivision 4, 
 the provisions of section 290.01, subdivisions 19c, clauses (6) 
 and (9), and 19d, clauses (7) and (11), are not used to 
 determine taxable income. 

    (b) The amount of net operating loss incurred in a taxable 
 year beginning before January 1, 1990, that may be carried over 
 to a taxable year beginning after December 31, 1989, is the 
 amount of net operating loss carryover determined in the 
 calculation of the hypothetical corporate franchise tax under 
 Minnesota Statutes 1988, sections 298.40 and 298.402. 

    Subd. 4d.    Alternative minimum tax.  For purposes of 
 calculating the alternative minimum tax under section 290.0921, 
 Minnesota alternative minimum taxable income must be computed 
 under the provisions of subdivisions 4, 4a, 4b and 4c, and the 
 provisions of section 290.0921, except that: 

    (1) for purposes of the depreciation adjustments provided 
 by section 56(a)(1) of the Internal Revenue Code of 1986, as 
 amended through December 31, 1996, the basis for depreciable 
 property placed in service is the remaining depreciable basis as 
 defined in subdivision 4c; 

    (2) the adjustment for adjusted current earnings under 
 section 56(g) of the Internal Revenue Code of 1986, as amended 
 through December 31, 1996, must be determined using gross income 
 as defined in subdivision 4a; 

    (3) the tax preference for depletion under section 57(a)(1) 
 of the Internal Revenue Code of 1986, as amended through 
 December 31, 1996, must be included in alternative minimum 
 taxable income; and 

    (4) for purposes of calculating the tax preference for 
 accelerated depreciation or amortization of certain property 
 placed in service before January 1, 1987, under section 57(a)(7) 
 of the Internal Revenue Code of 1986, as amended through 
 December 31, 1996, the deduction allowable for the taxable year 
 shall mean the deduction allowable under subdivision 4c, 
 provided that this modification must not reduce the amount of 
 tax preference to less than zero. 

    Subd. 4e.    Alternative minimum tax credit.  A credit 
 is allowed against qualified regular tax for qualified 
 alternative minimum tax previously paid.  The amount of the 
 credit allowed under this paragraph is determined under section 
 290.0921, subdivision 8.  For purposes of calculating this 
 credit, the following terms have the meanings given: 

    (1) "Qualified alternative minimum tax" means the amount 
 determined under subdivision 4d and section 290.0921, 
 subdivision 1. 

    (2) "Qualified regular tax" means the tax imposed under 
 subdivision 4 and section 290.06, subdivision 1. 

    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.

    HIST: (2373, 2373-1) 1921 c 223 s 1; Ex1937 c 85 s 1; 1939 c 
 356 s 1; 1941 c 544 s 1; 1943 c 590 s 1,2; 1945 c 448 s 1; 1947 
 c 542 s 1; Ex1955 c 2 art 2 s 1; Ex1957 c 1 art 4 s 1; Ex1959 c 
 70 art 8 s 1; Ex1971 c 31 art 4 s 1; 1973 c 631 s 1,2; 1984 c 
 502 art 7 s 10; 1985 c 300 s 20; 1Sp1985 c 14 art 10 s 7; 1987 c 
 268 art 9 s 22-25; 1988 c 719 art 2 s 51,52; 1989 c 27 art 1 s 
 3-9; 1Sp1989 c 1 art 10 s 38,39; 1991 c 291 art 11 s 12-15; 1993 
 c 375 art 8 s 14; 1994 c 587 art 1 s 24; 1995 c 264 art 1 s 4; 
 art 7 s 1; 1996 c 471 art 9 s 15; 1997 c 231 art 6 s 24; 1Sp2001 
 c 5 art 9 s 26,27; 2002 c 377 art 8 s 3,4