Nevada Republicans Want New Mining Tax
The NVMA's website also points out that miners' state and local responsibilities do not include the federal taxes that they must also pay. And they do not include the investments that miners are making. Given that Nevada is a gold-rich state, much of this spending is also associated with the yellow metal.
In addition to spending on expansion by majors such as Barrick and Goldcorp (NYSE:GG,TSX:G), the NVMA report identifies Great Basin Gold's investment in the Hollister gold mine project as one the state's major mining investments.
Other juniors are who are active participants in Nevada's gold mining industry include Gold Standard Ventures (TSXV:GSV,NYSE:GSV), which claims to be the third-largest landholder in the Carlin Trend.
Pershing Gold's (OTCQB:PGLC) focus is on Pershing County, an “underexplored” area of the state where the company hopes to develop the past-producing Relief Canyon mine.Rye Patch Gold (TSXV:RPM,OTCQX:RPMGF) is an exploration company with projects along the Oreana trend and the Cortez trend. Voters likely to support increased taxation for miners Still, some say the mining sector is not contributing enough. Nevada's gold mining industry reportedly had gross proceeds of $8.8 billion in 2011, with miners paying $203 million in state and local taxes, according to the Reno Gazette-Journal. Republicans in favor of the mining tax believe that even if the tax on miners is raised to 6.75 percent — the amount the gaming industry pays — the rewards could total $780 million over a two-year period. That is assuming that factors such as production and prices remain the same. But the issue of increasing taxes on miners seems clearly set to create divisions, some of which have already been seen. Nevada's Republican governor, Brian Sandoval, issued a statement saying he is opposed to the idea; his proposed budget already includes increased spending on education, a Las Vegas Sun article notes.
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