2006 Minnesota Statutes

298.405 IRON ORE BEARING MATERIAL OTHER THAN TACONITE AND
SEMITACONITE; TAXATION.
    Subdivision 1. Imposition of tax. In any year in which iron bearing material other than
taconite and semitaconite as defined by law, having not more than 46.5 percent natural iron
content on the average, produced from any 40 acre tract or governmental lot, but not from
more than three such tracts or lots by an individual producer, is finer than or is ground to 90
percent passing 20 mesh and is treated for the purpose of separating the iron particles from silica,
alumina, or other detrimental compounds or elements unless used in a direct reduction process,
and is treated in Minnesota:
(a) By either electrostatic separation, roasting and magnetic separation, or flotation or
(b) By a direct reduction process or
(c) By any combination of such processes or
(d) By any other process or method not presently employed in gravity separation plants
employing only crushing, screening, washing, jigging, heavy media separation, spirals, cyclones,
drying or any combination thereof, the production of such ore shall be taxed in the manner and at
the rates provided for the taxation of semitaconite under section 298.35 provided that the amount
of concentrates or final product so produced each year from any one 40 acre tract or governmental
lot exceeds 100,000 tons or exceeds 25,000 tons from any one 40 acre tract or governmental lot
where the average phosphorus content exceeds .125 percent dry analysis or .10 percent sulphur
dry analysis. Such tax shall be in addition to the occupation and royalty taxes but shall be in
lieu of all other taxes upon the said 40 acre tract or governmental lot, the iron ore contained
therein, the concentrates produced, and the mining and beneficiating facilities used in such
production. The determination as to what materials will qualify under this law will be made by the
commissioner of revenue who may use the services of the Ore Estimate Division of the University
of Minnesota, Department of Civil and Mineral Engineering, which is hereby established as a
technical consultant to the commissioner for the purposes of this section. The tax imposed shall
be collected, paid, and the proceeds thereof distributed in the same manner and at the same time
as the tax imposed upon semitaconite by section 298.35 is collected, paid, and distributed.
    Subd. 2. Producer; annual report. On or before October 1 of each calendar year each
producer of the iron bearing material described above in this section subject to taxation under
section 298.35 (hereinafter called "taxpayer") shall file with the commissioner of revenue a
report in the form prescribed by the commissioner of revenue. Such report shall show, with such
other facts as the commissioner may require, by months the number of tons of such iron bearing
material produced in each 40 acre tract or governmental lot, with a description thereof and of the
number of concentrates produced therefrom, all during the current calendar year; the estimated
number of tons of such material and of concentrates which will be produced in each such tract or
governmental lot during the remainder of the current calendar year and the name and location
of the beneficiating facilities used in such production; and a description of the 40 acre tract or
governmental lot and a description of the real property which it is claimed is exempt from taxation
under the in lieu provisions of subdivision 1 by virtue of the removal of iron ore bearing material
from such 40 acre tract or governmental lot. From such report, the commissioner of revenue
shall tentatively determine the descriptions of real estate which it appears will not be subject to
general ad valorem taxation under the in lieu provisions of subdivision 1, and certify the same
to the appropriate county auditor. As soon as possible after each March 1, the commissioner of
revenue shall make a final determination of the descriptions of the real estate which will not be
subject to general ad valorem taxation under the in lieu provisions of subdivision 1, and certify
the same to the appropriate county auditor.
    Subd. 3. Producer; final report; payment. On or before February 15 of each calendar
year the taxpayer shall file with the commissioner of revenue a final report in such form as the
commissioner of revenue may prescribe setting forth the description of each 40 acre tract or
governmental lot from which such iron bearing material was processed, and the number of tons of
concentrate produced from such iron bearing materials from each 40 acre tract or governmental
lot. The taxpayer shall pay the tax due on or before the March 1 next following.
    Subd. 4. Commissioner of revenue; certification of nonexempt real property. If less than
100,000 tons of concentrates are produced from a 40 acre tract or governmental subdivision which
was listed in the report required by subdivision 2 in a calendar year, the commissioner of revenue
shall certify such fact to the county auditor of the county in which the affected lands are located.
If any of such lands and mining and beneficiating facilities have been treated as exempt from
taxation under the provisions of this section, the county auditor shall treat such lands and facilities
as omitted property and proceed with collection of the taxes thereon.
History: 1963 c 735 s 1; 1963 c 841 s 1; 1973 c 582 s 3; 1992 c 464 art 2 s 6