(1)In order to provide for the payment of the
expenses of a drainage system and for the payment of any issue of bonds, the
board of supervisors has power to levy and cause to be collected a tax upon all
mining claims within the district. Such tax shall be voted only at a regular meeting
of the board and shall not exceed in any one year fifty mills on every dollar of
valuation as shown by the assessment roll of the county assessor.
(2)The board of supervisors in lieu of said tax levy upon the valuation for
assessment, or in the event such levy will not produce sufficient revenue to meet
the payments from time to time accruing upon said bonds and interest thereon and
the expenses of the mine drainage district, may order a levy against the net sale
price of all ores produced in th
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(1) In order to provide for the payment of the
expenses of a drainage system and for the payment of any issue of bonds, the
board of supervisors has power to levy and cause to be collected a tax upon all
mining claims within the district. Such tax shall be voted only at a regular meeting
of the board and shall not exceed in any one year fifty mills on every dollar of
valuation as shown by the assessment roll of the county assessor.
(2) The board of supervisors in lieu of said tax levy upon the valuation for
assessment, or in the event such levy will not produce sufficient revenue to meet
the payments from time to time accruing upon said bonds and interest thereon and
the expenses of the mine drainage district, may order a levy against the net sale
price of all ores produced in the mine drainage district, using either in combination,
with such division or combination of the tax to be raised as to the board of
supervisors seems meet and proper.
(3) Said tax levy, whether by one or both of said methods, or a combination
thereof, shall be voted by said board of supervisors annually and shall be certified
to the board of county commissioners of the county wherein said mine drainage
district is located on or before the first Monday in November in each year.
(4) In any mining district where there already exists a drainage tunnel which
has lowered the water or drained the district to some ascertained level, there shall
be no taxation on the net value of ores under the provisions of this article, in respect
to any ore taken out of any portion of any mine above the level now drained by any
existing tunnel.
(5) The additional levy last mentioned shall not exceed ten percent of the
net sales price of such ores, and the moneys so levied and collected from said levy
on said net sales price shall be used for the payment of bonds and interest thereon
and other expenses of the mine drainage district the same as if it had been
collected under the tax levy provided in subsection (1) of this section. Said net sales
price shall be computed from the gross sales price after deducting the reasonable
cost of haulage from the mine to the railroad or smelter or mill, and railroad freight
and smelter or other treatment charges in mill or smelter. In order to effectuate the
payment of said royalty, said board may order that all such ore so produced and
sold from the mine drainage district shall be shipped under such rules and
regulations as the board of supervisors may prescribe, either in the name of the
board of supervisors, or with notice to the ore purchaser, smelter, or miller that the
said ores are subject to the taxation provided in this section.
(6) It is the duty of the ore purchaser, smelter, or miller to deduct said tax
before making settlement with the mine owner, lessee, or other shipper, and to pay
the amount of said tax direct to the county treasurer of the county in which said
drainage district shall be situated; and it is the duty of the county treasurer to issue
proper receipts therefor to the purchaser, smelter, or miller, and to all persons
interested in the net proceeds of the ore sale so taxed.
(7) The tax on the net sales price of such ores shall be levied against the
mine owner or lessor, and against the lessee, sublessee, or other persons having
property rights in said ore, and shall be paid by them respectively in the proportion
in which they are respectively interested in the net sales price. Said persons
respectively shall file with the board of supervisors proper papers to evidence their
respective interest in said net sales price, and if such filings are not made then the
board of supervisors shall collect said tax against the owner of the property, or
against the owner and lessee as their respective interest may appear from any
recorded lease or working contract which is on record in the office of the county
clerk and recorder of said county at the date of said levy or tax.
(8) In the event that at the date of said tax there are any valid mining leases
on property within the drainage district executed prior to January 30, 1934, said tax
shall be apportioned among and paid by the owners, lessors, lessees, or sublessees
or other persons in interest in the sale of said ores in the manner provided in
subsection (7) of this section. Whenever any such lease or any mining lease is
executed after January 30, 1934, and contains a covenant that the lessee shall pay
taxes, or general taxes, such covenant shall not be construed to include any special
tax authorized by this article; and in such event the mine drainage district taxes
shall be apportioned as provided in this section, and said taxes shall not be
chargeable against the lessee or sublessee except by express mention of mine
drainage district taxes. It is lawful for the parties in interest to contract for and
agree among themselves as to their respective liabilities for the mine drainage
district taxes, and upon recording such contract or agreement in the office of the
county clerk and recorder in the county in which the mine drainage district is
situated and serving a copy of said contract or agreement upon the board of
supervisors, it is the duty of the board of supervisors to make such orders as will
effectuate the division of the tax liability according to the terms of said contract or
agreement.
(9) It is the duty of the county treasurer to carry all taxes collected by him
under the provisions of this article in a separate fund in the name of the mine
drainage district and to disburse the said funds under the provisions of this article
and the orders of the board of supervisors of the mine drainage district; and said
funds shall be disbursed only for the lawful purposes of the mine drainage district.