No New Mining Taxes
Common Sense Business
Adoption of any one of these resolutions would have catastrophic effects on rural Nevada’s economy. Basic business principles and practices clearly demonstrate that a company can be taxed out of business. The mining industry already pays nearly double what they would if they operated within any other industry with gaming being the only exception. As operational costs increase, including taxes, margins naturally decline. To continue on such a trajectory eventually leads to a point where it is no longer profitable to do business – the result, a company closes its doors. It is no different for the mining industry, regardless of where a deposit is located, if it is not profitable to pursue that deposit, it will simply be left in the ground and that company will invest their capital in other mining jurisdictions – in this case – outside of Nevada.
THESE ARE THE FACTS
- Nevada mining pays all of the same taxes as any other industry PLUS an industry specific tax (Net Proceeds of Minerals).
- The Net Proceeds of Minerals tax accounts for nearly half (48%) of what mining companies pay in total taxes. In other words, this industry specific tax already doubles their overall tax burden.
- The mining industry is one of only two Nevada industries that pays over $20,000 per employee in taxes. The State average is $6,217.
- These resolutions could potentially raise mining taxes anywhere from 130% to 385% – an unreasonable demand on any industry that will lead to mine site closures.
- 37,000 people are employed by the Nevada mining supply chain, representing all 17 Nevada counties.
- Mining is crucial to rural Nevada economics as it accounted for $3.8 Billion in Northeastern Nevada Gross Regional Product (GRP) in 2018 while all other industries within the region generated $3.2 Billion (GRP) combined.
- Nevada mining contributed $11.2 billion dollars to Nevada’s economy in 2019.
Common Sense Economics
The more taxes a mining company pays, the less capital it has at its disposal for business development; for mining that means a decline of exploration, stifled resource development, less capital spending, reduced production, and limited supply chain support. For areas where mine sites have to cease operations, the implications are far more destructive as unemployment surges, property values plummet, and local government revenue for services such as education, roads, public safety, and social services are greatly reduced. Further, historical patterns have shown, especially in areas like the American Appalachians or the dozens of ghost towns that dot the Nevada landscape, that when a non-renewable resource has been exhausted and the revenue generated from that resource are both removed from said region, that the communities therein trend towards depreciation, blight, economic decline, social erosion, and complete dependence on urban taxpayers. To date, Nevada mining companies have been proactively funding and supporting small business development while encouraging economic diversification to ensure a vibrant and sustainable economy long after their mine sites have ceased to operate. Without this support, rural Nevada communities stand to walk the same path of decline as the dozens of historical communities within Nevada that have long stood abandoned. Long story short – these resolutions could potentially set rural Nevada back 20-40 years in terms of business development and economic diversification!
WHAT CAN YOU DO?
- Go to the Nevada Legislature “Share Your Opinion with Your Legislators” page, select all three resolutions from the drop down box and let them know that these resolutions are dangerous for Nevada and disastrous for rural Nevada.
- Join the Nevada Mining Association’s efforts to STAND UP FOR NEVADA MINING.
- Write letters/emails to your state legislators along with those outside of your district to tell them how dangerous these resolutions are for Nevada.