Senate Bill No. 373
Introduced By _______________________________________________________________________________
A Bill for an Act entitled: "An Act revising the definition of "receipts received" to include transportation costs as a deduction from the gross proceeds tax on metal mines; amending section
15-23-801, MCA; and providing an immediate effective date and a retroactive applicability date."
Be it enacted by the Legislature of the State of Montana:
Section 1. Section 15-23-801, MCA, is amended to read:
"15-23-801. Definitions. As used in this part, the following definitions apply:
(1) "Agreement not at arm's length" means an agreement between parties
where when the sales price does not represent
(2) "Department" means the department of revenue.
(3) "Gross proceeds" or "gross metal yield" or "gross value of product" means the receipts realized from the extraction and sale of metals or concentrate containing metals.
(4) "Merchantable value" means the receipts of all salable metals produced or extracted in a county over a 12-month period. If the extracted ores are milled, smelted, or reduced by the taxpayer, then the merchantable value in the county in which they are extracted is the receipts received for these metals after processing.
(5) "Receipts received" means the monetary payment or refined metal received by the mining company from the metal trader, smelter, roaster, or refinery, determined by multiplying the quantity of metal received by the metal trader, smelter, roaster, or refinery by the quoted price for the metal and then subtracting the following:
(a) basic treatment and refinery charges
(b) costs of transporting the mineral product, including demurrage, storage, interest, and other miscellaneous costs related to transporting the mineral product, from the mine or mill to the smelter or other processor;
(c) quantity deductions
(d) price deductions
(f) penalty metal, impurity, and moisture deductions as specified by contract between the mining company and the
receiving metal trader, smelter, roaster, or refinery.
Deductions are not allowed, either directly or indirectly as an offset to
payments, for the cost of transportation from the mine or mill to the smelter, roaster, or refinery. Demurrage, storage,
interest, or any other miscellaneous costs related to transporting the mineral product are considered transportation and are
NEW SECTION. Section 2. Effective date -- retroactive applicability. [This act] is effective on passage and approval and applies retroactively, within the meaning of 1-2-109, to metal mine production occurring after December 31, 1996.