Montana Department of Revenue

Metal Mines Gross Proceeds Tax

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Quick Information

Due Date

March 31

Fees

3% of Gross Proceeds

Metal mines gross proceeds tax is collected by your county treasurer.

All metal mines must file a Statement of Gross Proceeds of Metal Mines (Form MMG).

Tax Rates

MMG tax value is 3% of annual gross proceeds (15-23-801, MCA). Local mill levies apply to this value to determine the tax.

\text{Tax Value}\times\text{Mill Levies}=\text{Tax Owed}

Determining Gross Proceeds

Gross proceeds are the payment or refined metal received by the mine from the metal trader, smelter, roaster, or refinery, multiplied by the quoted price minus allowed costs.

\left(\text{Amount of Metal Received}\times\text{Quoted Price}\right)-\text{Allowed Costs}=\text{Gross Proceeds}

Mines producing less than 20,000 tons of ore in a year are exempt from property tax on half of the gross proceeds. (15-6-208, MCA)

Allowed Costs

Metal traders, smelters, roasters, and refineries specify the allowed costs in the contract. These costs may include:

  • Basic treatment and refinery charges
  • Quantity deductions
  • Price deductions
  • Interest
  • Penalty metal deductions
  • Impurity deductions
  • Moisture deductions

Reporting and Payment Options

File through our TransAction Portal (TAP).

Local county treasurers collect MMG Tax. Contact your county for more information.

Revenue Distribution

County treasurers distribute the Metal Mines Gross Proceeds Tax to taxing jurisdictions based on their associated relative economic impact.

Hard-rock mining operations are subject to hard-rock mining impact property tax base sharing laws.

Related Laws

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