70.375 Net proceeds occupation tax on mining of metallic minerals; computation.

816 words·~4 min read·/wi/chapter-70/70-375-3

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)Definitions. In ss. 70.37 to 70.3965 :

(ab)“Controlled entity” means a person at least 50 percent of the voting stock of which is owned directly or indirectly by another person who is engaged in mining metalliferous minerals.

(ad)“Controlling entity” is a person who owns directly or indirectly at least 50 percent of the voting stock of another person who is engaged in mining metalliferous minerals.

(ae)“Department” means the department of revenue.

(ag)“Extraction of ores or minerals from the ground” includes the extraction, by owners or operators of mines, of ores or minerals from the waste or residue of prior mining unless the extraction is made by a purchaser of waste or residue or by a purchaser of the rights to extract ores or minerals from the waste or residue.

(ai)“Gross income from mining” means that amount of income which is attributable to the processes of extraction of ores or minerals from the ground and the application of mining processes, including mining transportation and as further defined in 26 CFR section 1.613-4. In this paragraph “income” means the actual amount for which ore or mineral, less trade and cash discounts actually allowed, is sold if the taxpayer sells the ore or mineral after the application of mining processes. If ore or minerals are sold after the application of nonmining processes, gross income from mining shall be computed as provided in 26 CFR section 1.613-4.

(am)“Gross proceeds” means gross income from mining except as provided under sub.

(3).

(ar)“Internal Revenue Code” means the federal Internal Revenue Code, as amended, and applicable federal regulations adopted by the federal department of the treasury.

(as)“Mine” means an excavation in or at the earth’s surface made to extract metalliferous minerals for which a permit has been issued under s. 293.49 or 295.58 .

(av)“Mine site” means the underground and surface area disturbed by a mine, including the locations from which the minerals or refuse or both have been removed, the surface area covered by refuse, and any surface areas in which structures, haulageways, pipelines, equipment, materials and any other things used directly in connection with the mine are situated.

1. “Mining” has the meaning under section 613

(c)of the internal revenue code and includes the extraction of ores or minerals from the ground, the transportation of ores or minerals from the point of extraction to the plants or mills at which the treatment processes are applied and the following treatment processes applied to an ore or mineral for which the owner or operator is entitled to a deduction for depletion under section 611 of the internal revenue code:

a. In the case of iron ore, bauxite and other ores or minerals that are customarily sold in the form of a crude mineral product; sorting, concentrating, sintering and substantially equivalent processes that bring the ore or mineral to shipping grade and form, and loading for shipment.

b. In the case of lead, zinc, copper, gold, silver, uranium and other ores or minerals that are not customarily sold in the form of the crude mineral product; crushing, grinding and beneficiation by concentration by means of gravity, flotation, amalgamation, electrostatic or magnetic processes, cyanidation, leaching, crystallization or precipitation; not including electrolytic deposition, roasting, thermal or electric smelting or refining; or by substantially equivalent processes or by a combination of processes used in the separation or extraction of the products from other material taken out of the mine or out of another natural deposit.

c. The furnacing of quicksilver ores.

d. Treatment processes necessary or incidental to the processes under subd. 1. a. to c.

e. Any treatment processes provided for by rules promulgated by the department.

2. For purposes of this section, “mining” does not include the extraction or beneficiation of sand or gravel or the following treatment processes unless they are provided for under subd. 1. d. : electrolytic deposition, roasting, calcining, thermal or electric smelting, refining, polishing, fine pulverization, blending with other materials, treatment effecting a chemical change, thermal action, molding and shaping.

(bm)“Mining-related purposes” means activities which are directly in response to the application for a mining permit under s. 293.37 or 295.47 ; directly in response to construction, operation, curtailment of operation or cessation of operation of a metalliferous mine site; or directly in response to conditions at a metalliferous mine site which is not in operation. “Mining-related purposes” also includes activities which anticipate the economic and social consequences of the cessation of mining. “Mining-related purposes” also includes the purposes under s. 70.395

(g).

(c)“Municipality” means any county, city, village, town or school district.

(d)“Person” means a sole proprietorship, partnership, limited liability company, association or corporation and includes a lessee engaged in mining metalliferous minerals.

(e)“Secretary” means the secretary of revenue.