Several Mining Taxes Replaced by Single Severance Tax

Filed under: U.P. News Updates |

New legislation replacing several mining taxes in processMARQUETTE, MI – (Great Lakes Radio News)An Upper Michigan lawmaker has introduced legislation replacing a mix of several mining taxes with a single severance tax.

State Representative Matt Huuki says he has introduced the bills so U.P. based mining companies could help create jobs and become stronger financially.

According to Huuki, the legislation places a 2.75 percent severance tax on gross mineral value on specified non-ferrous metallic minerals such as copper and nickel.  The tax would replace the property tax, corporate income tax, sales tax and use tax that mining companies currently pay.

Sixty percent of the revenue from the severance tax would be retained by counties, townships, school districts and the school aid fund.  The remaining 40 percent would go into a rural development fund to support long-term regional economic opportunities.

The bills are now in the House Tax Policy Committee for consideration.

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