The metal mines license tax is based on the gross value of the product and is applied to the payment the mining company receives from metal traders, smelters, roasters, or refineries.
The metal mines license tax only applies to gross values over $250,000.
Gross values under $250,000 are subject to the Resource Indemnity and Ground Water Assessment Tax (RIT).
|Shipment Type||Tax Rate|
|Dore, bullion, or matte||1.6%|
|Concentrate or crude ore||1.81%|
|Gold, silver or any platinum-group metal that is dore, bullion, matte, or other form of processed concentrate that is processed in a treatment facility owned or operated by the taxpayer and that is sold or shipped to a refinery for final processing|
Determining Gross Value
Determine the gross value by multiplying the quantity of metal received by the trader, smelter, roaster, or refinery by the quoted price for the metal, then, subtract allowed expenses.
You may subtract the contract costs. These are payment deductions specified in the contract between the mining company and the metal trader, smelter, roaster, or refinery.
- Basic treatment and refinery charges
- Quantity deductions
- Penalty metal deductions
- Impurity deductions
- Moisture deductions
- Price deductions
You may also subtract the cost of shipping from the mine or mill to the smelter, roaster, or refinery.
Reporting and Payment Options
File and pay through our TransAction Portal (TAP).
The tax is due twice each year:
- Period Ending June 30
- August 15
- Period Ending December 31
- March 31
Penalties and Interest
The Metal Mines License Tax is subject to uniform penalties and interest.
Revenue from the Metal Mines License tax is distributed:
- 47% to the state general fund
- 8.5% to the hard-rock mining reclamation debt service fund
- 7% to the natural resources operations state special revenue account
- 2.5% to the hard-rock mining impact trust account
- 35% to the county or counties identified as experiencing fiscal or economic impacts under an impact plan. If there is no impact plan prepared, this amount goes to the county where the mine is located.