This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Nevada Panel Oks Lifting Mining Tax Protections

By SANDRA CHEREB

CARSON CITY, Nev. (AP) â¿¿ A Nevada Senate committee Tuesday unanimously approved a proposed constitutional amendment to repeal tax protections for the mining industry following a hearing peppered by testy exchanges between mining representatives and a Republican lawmaker pushing for higher mining taxes.

Senate Joint Resolution 15, first approved by the 2011 Legislature, would repeal a state constitutional provision that allows for the taxation of net proceeds on minerals. A 5 percent cap, added in 1989, is calculated after costs for extraction minerals and other business expenses are deduced.

Nevada Mining Association president Tim Crowley argued that repealing the mining provision would "cause significantly less revenue for state and local governments," and create instability in local economies and the mining industry.

"The Constitution doesn't protect the industry," he said, adding it allows for the taxation of mining "above and beyond" taxes paid by all industries, including mining.

If SJR15 is approved, he argued, the industry's 5 percent net proceeds taxes would be lowered to that of other property taxes.

But that argument is in contrast to an opinion by legislative lawyer, who said net proceeds provisions are still in state statute and would be enforceable.

Crowley's testimony brought a terse response from Senate Minority Leader Michael Roberson, R-Henderson, who has said he'll push for higher mining taxes as an alternative to a business margins tax that will appear on the November 2014 ballot.

Roberson pressed Crowley on whether the industry would sue the state over tax levies should SJR15 prevail.

Crowley said that decision would be left up to individual mining companies.

Under questioning by Sen. Greg Brower, R-Reno, Crowley said the Legislature has the power to impose other taxes on mining.

"You have the ability to tax us with sales taxes, modified business tax which we pay. Should you implement a margins tax, the mining industry would pay that. We are not immune to taxation," Crowley said.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,126.96 +30.06 0.17%
S&P 500 2,101.74 +3.21 0.15%
NASDAQ 4,984.8380 +17.6970 0.36%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs