Time to Hold Mining Accountable: SJR 15, SB 493, SB 492, AB 428
Tuesday, April 5, 2011 at 17:22 It’s time to agitate.
It’s time to set the mining industry straight about paying their share as the rest of us do.
It’s time to show up and be counted at the Nevada Legislature on Thursday morning.
Here’s what Erin Neff of ProgressNow Nevada had to say on their Facebook Page:
Erin NeffApril 5, 2011 at 5:18pm
Subject: Let’s pack Thursday’s hearing…
This afternoon, I testified before the Senate Revenue Committee in support of SJR15 and SB493. The first will put a measure on the ballot to take mining’s protected tax status out of the Constitution. The second would create a Mining Oversight Commission to make sure the industry respects tax and environmental rules and laws.
While both of these measures are critically needed, neither does anything about the current deficit.
That’s why we must stand strongly in support of AB428 on Thursday at the Assembly Taxation Committee.
We need at least 100 people to show up to fill the room.
So please tell your friends and bring as many people as you can. The mining industry will put up a large fight to this bill (all of it, deductible, of course) and we’ve got to stand up to these corporate interests.
The meeting starts at 8 a.m. Even if you can’t stay, please come and sign in for the record before you head off to work or school.
SJR 15 Will amend the Nevada Constitution to remove mining and it’s separate tax rates
AB 428 Will made adjustments to the deductions mining may claim against their tax liability
SB 493 Creates the Mining Oversight and Accountability Commission
SB 492 Revises the payments on mining claims
The following article is by Anjeanette Damon from the Las Vegas Sun, March 28:
As promised, legislative Democrats didn’t let the opportunity pass to attempt to extract more tax revenue from the mining industry.
The Senate Revenue Committee today introduced a measure, Senate Joint Resolution 15, that would begin the process of repealing the constitutional protection the industry enjoys on its net proceeds tax.
Because the measure seeks to amend the constitution, the Legislature would have to pass it twice before it would go to voters for a final ratification.
Currently, the mining industry pays a 5 percent property tax on its mineral resources, but is allowed to deduct the cost of extracting and processing the minerals. The deductions have significantly reduced the industry’s tax bill to the state.
Because the tax is enshrined in the constitution, lawmakers are unable to change the rate and are prohibited from assessing any other tax on minerals.
The measure introduced today completely removes the mining tax from the state constitution. That would allow lawmakers to impose a completely different tax or fiddle with the rate.
Because the entire process would take five years, the change would not help lawmakers as they seek more revenue to offset the budget cuts proposed by Gov. Brian Sandoval.
Assemblywoman Peggy Pierce, D-Las Vegas, has introduced a bill that would reduce the industry’s allowable deductions by 60 percent. That measure, which has gained some traction with legislative leadership, would net the state tax revenue much more quickly than the constitutional amendment.
A second measure introduced by the Revenue Committee today would create a new Mining Oversight and Accountability Commission. The new commission would be responsible for writing the tax regulations, taking that duty away from the Nevada Tax Commission.
Senate Majority Leader Steven Horsford, D-North Las Vegas, has criticized the tax commission for passing regulations that he believes expands the mining industry’s deductions beyond what is allowed in statute.
The new commission would also oversee environmental and safety regulations.
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