Nevada Republicans Want New Mining Tax
Will the gold industry suffer?
The details surrounding the new mining tax have not been worked out. Thus far, there is nothing to suggest that the measure will single out gold miners, but Nevada is the United States' top gold-producing state. Furthermore, there are indications that the gold industry is viewed as a potential cash cow.
“We value the industry's positive impact on Nevada's economy and our communities, and we want the mining industry to be productive and profitable,” Roberson said in a media statement, according to Mineweb.
“However, mining is different from every other industry in this state. Billions of dollars of nonrenewable natural resources are extracted from our state and shipped out-of-state every year. At some point the gold will be gone. And, when the gold is gone, mining will be gone. It is imperative that we ensure that Nevadans get the best deal we can, while we can,” he continued.NVMA advocates for miners The Nevada Mining Association (NVMA) openly recognizes the need for the industry to pay its fair share of taxes and has expressed a commitment to working with the government to address budget shortfalls and modify tax policy. But the NVMA insists on its website that “[t]he state must not seek any new single-source taxes, such as new or increased taxes solely on gaming, mining, or insurance industries.” Only four industries in the state are currently subject to an industry specific tax, according to the NVMA. Mining is one of them, with the 5-percent Net Proceeds of Mines (NPOM) tax. Miners are also subject to property taxes, as well as sales taxes, which the NVMA states are the largest tax obligation for such companies. The association's report on mining's role in Nevada's economy reveals that Newmont Mining (TSX:NMC,NYSE:NEM) and Barrick Gold (TSX:ABX,NYSE:ABX) are among the top taxpayers in several of the state's resource-rich counties.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV