(1) Every person
owning or operating any mine classified as a producing mine shall, no later than
April 15 of each year, prepare, sign under the penalty of perjury in the second
degree, and file with the assessor of the county wherein such mine is located a
statement showing:
(a) The name of such mine and a list of mining claims and any other lands
comprising the mining property of such mine, together with the total number of
acres contained in each claim or parcel so listed;
(b) The name of the owner thereof, together with the name of the operator
thereof, and the address of each;
(c) The total number of acres contained in such mine and, if such mine is
located in more than one county, the total number of acres contained in such mine
in each county;
(d) The number of tons of ore extracted therefrom during the calendar year
immediately preceding and, if the value of the products derived from the ore is used
in determining gross value, the number of tons, pounds, or ounces of products
derived from the ore;
(e) The gross value from production of the ore extracted during said
calendar year, which means and includes the amount for which ore or the first
salable products derived therefrom were or could be sold by the owner or operator
of a mine, as determined using actual gross selling prices;
(f) The costs of extracting such ore, excluding the compensation of any
officer or agents not actively and continuously engaged in or about the mine;
(g) The costs of treatment, reduction, transportation, and sale of such ore or
the first salable products derived therefrom;
(h) The gross proceeds from production of such ore, which means and
includes the value of the ore immediately after extraction, which value may be
determined by deducting from gross value all costs of treatment, reduction,
transportation, and sale of such ore or the first salable products derived therefrom;
(i) The net proceeds from production of such ore, which means and includes
the amount determined by deducting from the gross proceeds all costs of
extracting such ore.
(1.4) (a) The owner or operator of a producing mine may request permission
to state an average figure for the items required by paragraphs (d) to (i) of
subsection (1) of this section based on any three-year, five-year, or ten-year period
immediately preceding January 1 of the year in which the statement must be filed.
The same reporting method shall be used for all annual statements filed in a single
year pertaining to a particular mine.
(b) (I) The owner or operator may make an initial request pursuant to this
subsection (1.4) by filing the request with the board of county commissioners of
each county in which the mine is located at least forty-five days prior to the
reporting date specified in the introductory portion to subsection (1) of this section
and attaching a copy of the request to the annual statement filed pursuant to
subsection (1) of this section with the county assessor of each county in which the
mine is located.
(II) The owner or operator may make subsequent changes in the reporting
method pursuant to this subsection (1.4) by filing a request for a change in the
reporting method with the board of county commissioners and the county assessor
of every county in which the mine is located at least forty-five days prior to the
reporting date specified in the introductory portion to subsection (1) of this section.
(III) The board of county commissioners of each county which receives a
request pursuant to this subsection (1.4) shall approve or deny the request at least
thirty days prior to the reporting date specified in the introductory portion to
subsection (1) of this section. Failure of a board of county commissioners to approve
or deny the request within the thirty days shall be deemed an approval of the
request.
(c) Once an owner or operator has made the initial election allowed by this
subsection (1.4), the owner or operator shall file all subsequent annual statements
pursuant to subsection (1) of this section using the same reporting method. The
owner or operator shall not alter the reporting method until the board of county
commissioners for every county in which the mine is located authorizes the use of
the alternate method.
(d) The fact that authorization to alter the reporting method has not been
received from all or any of the boards of county commissioners for the counties in
which the mine is located shall not relieve the owner or operator from the obligation
to file the annual statement pursuant to subsection (1) of this section with all
counties in which the mine is located.
(1.7) As used in subsection (1) of this section, unless the context otherwise
requires:
(a) (I) Costs means those costs directly attributable to the operation of the
producing mine and to the treatment, reduction, transportation, or sale of the ore
and includes, but is not limited to, allocation of:
(A) The costs of capital assets, which only include those expenditures listed
on the fixed asset records of the mine;
(B) Preproduction development costs amortized over the life of the mine; and
(C) Off-site costs directly attributable to the operation of the producing mine
or to the treatment, reduction, transportation, or sale of the ore; however, in no
event shall off-site costs include compensation of any officer or agent not actively
and continuously engaged in or about the mine.
(II) Allocation of the costs of capital assets pursuant to this paragraph (a)
shall be done in accordance with generally accepted accounting principles. No
change in the allocation method may be made without the prior approval of the
county boards of equalization in all counties in which the mine is located.
(b) Costs does not include:
(I) Any amounts designated as profit or margin which are attributable to any
part of the treatment, reduction, transportation, or sale of the ore; or
(II) Any amounts which have been or could have been deducted previously as
part of the valuation of the producing mine pursuant to this section.
(2) On the basis of the information contained in such statement, the assessor
shall value such mine for assessment at an amount equal to twenty-five percent of
the gross proceeds, but if the net proceeds exceed twenty-five percent of the gross
proceeds, then such mine shall be valued for assessment at the amount of such net
proceeds.
(3) If any mining claim or other land is owned by the same person operating a
producing mine which is contiguous to said claim and if, during the preceding
calendar year, ore was actually extracted from said claim or other land or
transported through such claim or other land by cut or tunnel or if any phase of the
operation of said producing mines was conducted on such claim or other land, then
such claim or other land shall be deemed to be a part of such producing mine and
assessed therewith. All other claims or other land under the same ownership shall
be valued in the same manner as other real property, on an acreage basis,
regardless of surface contiguity.
(4) If any mining claim comprising part of the mining property of a producing
mine is not patented or entered for patent, then the possessory interest therein
shall be the subject of taxation.
(5) Any increase in the valuation of a producing mine shall constitute an
addition to taxable real property for purposes of the definition of local growth
contained in section 20 (2)(g) of article X of the state constitution.
(6) This section shall apply to and affect only the valuation of producing
mines pursuant to this article.