The Impact of State and Provincial Tax and Royalty Policies on Non-Ferrous Mining Ventures: a Comparative Economic Analysis

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The Impact of State and Provincial Tax and Royalty Policies on Non-Ferrous Mining Ventures: a Comparative Economic Analysis

Published Date

1988-09

Publisher

University of Minnesota Duluth

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Technical Report

Abstract

This report summarizes a Natural Resources Research Institute supported study (Zanko, 1988) in which the tax and royalty policies of Minnesota, Michigan, South Dakota, Idaho, Utah, Nevada, and the Canadian province of Ontario were examined and their impact on the cost of mining evaluated. The evaluation was accomplished by applying the policies of each state and province to three hypothetical non-ferrous mining operations and performing an after tax economic analysis. The analysis demonstrated that such policies have a profound effect on mining costs, and also showed that policy differences between each state and Ontario are potentially significant enough to influence mineral exploration and mineral investment decisions. However, and perhaps most importantly, the analysis also revealed that Minnesota is no longer a high tax state with regard to non-ferrous mining activity, and in fact compares very well with states recognized for their lower tax burdens.

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Natural Resources Research Institute, University of Minnesota Duluth, 5013 Miller Trunk Highway, Duluth, MN 55811-1442

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Zanko, Lawrence M. (1988). The Impact of State and Provincial Tax and Royalty Policies on Non-Ferrous Mining Ventures: a Comparative Economic Analysis. Retrieved from the University Digital Conservancy, https://hdl.handle.net/11299/188492.

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