MARQUETTE, MI – (Great Lakes Radio News) – The State House Tax Policy Committee has approved legislation authored by an Upper Peninsula lawmaker to help U.P. mining companies create jobs and become financially stronger.
The bills, introduced by 110th District State Representative Matt Huuki, would place a 2.75 percent severance tax on gross mineral value on specified non-ferrous metallic minerals such as copper and nickel. The tax replaces the property tax, corporate income tax, sales tax and use tax that mining companies currently pay.
The legislation allows 65 percent of the revenue from the severance tax to be retained by counties, townships, school districts and the school aid fund. The remaining 35 percent would go into a rural development fund to support long-term regional economic opportunities.
The bills now go to the full House for consideration.
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