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HOUSE BILL NO. 420
INTRODUCED BY R. DALE, J. BOHLINGER, T. BECK, B. CRIPPEN, B. DEPRATU, G. DEVLIN,
L. GRINDE, J. HERTEL, D. MAHLUM, J. MERCER, K. OHS, P. SLITER, R. SOMERVILLE, S. STANG,
AN ACT REVISING THE DEFINITION OF "RECEIPTS RECEIVED" TO INCLUDE TRANSPORTATION COSTS AS A DEDUCTION FOR THE PURPOSES OF DETERMINING THE GROSS PROCEEDS TAX OF METAL MINES AND THE METALLIFEROUS MINES LICENSE TAX; 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 market value. (2) "Department" means the department of revenue. (3)(2) "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)(3) "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)(4) "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 from the mine or mill to the smelter or other processor, including costs of demurrage, storage, interest, and other miscellaneous costs related to transporting the mineral product;
(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 not deductible."
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, 1998.
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Latest Version of HB 420 (HB0420.ENR)
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