[Rev. 2/10/2015 5:10:48
PM--2014R2]
CHAPTER 362 - TAXES ON PATENTED MINES AND
PROCEEDS OF MINERALS
GENERAL PROVISIONS
NRS 362.010 Definitions.
ASSESSMENT OF PATENTED MINES AND MINING CLAIMS
NRS 362.030 County
assessor to assess surface of patented mines and mining claims; exceptions.
NRS 362.040 Exclusion
of assessment from roll.
NRS 362.050 Affidavit
of labor: Requirement for exemption of surface of patented mine or mining claim
from taxation; form and contents.
NRS 362.060 Who
may make affidavit.
NRS 362.070 Contiguous
patented mines or mining claims: Performance of work on one mine.
NRS 362.090 One
affidavit may be recorded for labor on several patented mines or mining claims.
NRS 362.095 Method
of taxation of patented mine or mining claim used for purpose other than mining
or agriculture.
ASSESSMENT AND TAXATION OF NET PROCEEDS OF MINERALS
NRS 362.100 Duties
of Department.
NRS 362.105 “Royalty”
defined.
NRS 362.110 Annual
statement of gross yield and claimed net proceeds. [Effective through June 30,
2015.]
NRS 362.110 Annual
statement of gross yield and claimed net proceeds; annual list of lessees.
[Effective July 1, 2015.]
NRS 362.115 Annual
statement of estimated gross yield, net proceeds and royalties; quarterly
reports; payment of estimated tax liability; use of statement by Department.
[Effective through June 30, 2015.]
NRS 362.115 Annual
statement of estimated gross yield, net proceeds and royalties; use of
statement. [Effective July 1, 2015.]
NRS 362.120 Computation
of gross yield and net proceeds; required reports. [Effective through December
31, 2015.]
NRS 362.120 Computation
of gross yield and net proceeds; required reports. [Effective January 1, 2016.]
NRS 362.130 Annual
preparation and mailing of certificate by Department; payment of tax due and
penalty; overpayments. [Effective through June 30, 2015.]
NRS 362.130 Preparation
and mailing of certificate of amount of net proceeds and tax due; due date of
tax; overpayments. [Effective July 1, 2015.]
NRS 362.135 Appeal
of certification to State Board of Equalization; payment of tax pending
determination of appeal.
NRS 362.140 Rate
of tax upon net proceeds.
NRS 362.150 Liens
for taxes on proceeds of minerals.
NRS 362.160 When
tax becomes delinquent; collection of delinquency, penalty and interest; appeal
of imposition of penalty and interest.
NRS 362.170 Appropriation
to county of amount of tax, penalties and interest attributable to extractive
operations in county; apportionment by county treasurer; Department to report
amount received as tax upon net proceeds of geothermal resources. [Effective
through June 30, 2015.]
NRS 362.170 Appropriation
to county of amount of tax, penalties and interest attributable to extractive
operations in county; apportionment by county treasurer; Department to report
amount received as tax upon net proceeds of geothermal resources. [Effective
July 1, 2015.]
NRS 362.171 Establishment
and use of county fund for mitigation and school district fund for mitigation.
NRS 362.175 Procedure
for removal of amount of tax and name from records of Department when tax
impossible or impractical to collect.
NRS 362.180 Burden
of proof on taxpayer to show certification by Department to be unjust, improper
or invalid.
NRS 362.200 Powers
of Department: Examination of records; hearings.
NRS 362.230 Penalty
for failure to file statements.
NRS 362.240 Penalty
for false statements.
_________
NOTE: Sections 2 to 12, inclusive, of
chapter 449, Statutes of Nevada 2011, at p. 2691, have been codified as chapter 514A of NRS.
_________
GENERAL PROVISIONS
NRS 362.010 Definitions. As
used in this chapter, unless the context otherwise requires:
1. “Mine” means an excavation in the earth
from which ores, coal or other mineral substances are extracted, or a
subterranean natural deposit of minerals located and identified as such by the
staking of a claim or other method recognized by law. The term includes a well
drilled to extract minerals.
2. “Mineral” includes oil, gas and other
hydrocarbons, but does not include sand, gravel or water, except hot water or
steam in an operation extracting geothermal resources for profit.
3. “Patented mine or mining claim” means
each separate, whole or fractional patented mining location, whether such whole
or fractional mining location is covered by an independent patent or is included
under a single patent with other mining locations.
[1:206:1915; 1919 RL p. 3009; NCL § 6592]—(NRS A
1975, 317; 1989, 33;
2013, 3120)
ASSESSMENT OF PATENTED MINES AND MINING CLAIMS
NRS 362.030 County assessor to assess surface of patented mines and mining
claims; exceptions. The county
assessor shall assess the surface of each patented mine and mining claim in the
county for which an affidavit was not filed pursuant to NRS
362.050, 362.070 and 362.090
and return the assessment as required by law.
[3:206:1915; 1919 RL p. 3009; NCL § 6594]—(NRS A 1989, 33)
NRS 362.040 Exclusion of assessment from roll. Upon
receipt of an affidavit from the county recorder pursuant to NRS 362.050 stating that at least $100 in development
work has been actually performed upon the patented mine or mining claim during
the federal mining assessment work period ending within the year before the
fiscal year for which the assessment has been levied, the assessor shall
exclude from the roll the assessment against the patented mine or mining claim
named in the affidavit.
[4:206:1915; A 1933, 233; 1931 NCL § 6595]—(NRS A 1989, 33, 1831; 1991, 2105; 2003, 2772)
NRS 362.050 Affidavit of labor: Requirement for exemption of surface of
patented mine or mining claim from taxation; form and contents.
1. To obtain the exemption of the surface
of a patented mine or mining claim from taxation ad valorem, pursuant to Section
5 of Article 10 of the Constitution of this state, the owner must record an
affidavit with the office of the county recorder for the county in which the
mine is located on or before December 30 covering work done during the 12
months next preceding 12 a.m. on September 1 of that year. The exemption then
applies to the taxes for the fiscal year beginning on July 1 following the
filing of the affidavit. Upon receipt of such an affidavit, the county recorder
shall transmit a copy of the affidavit, without charge, to the county assessor.
2. The affidavit of labor must describe
particularly the work performed, upon what portion of the mine or claim, and
when and by whom done, and may be substantially in the following form:
State of Nevada }
}ss.
County of.................................. }
................................, being first duly
sworn, deposes and says: That development work worth at least $100 was
performed upon the ............................... patented mine or mining
claim, situated in the ........................................ Mining
District, County of ..........................................., State of
Nevada, during the federal mining assessment work period ending within the year
....... . The work was done at the expense of ..............................,
the owner (or one of the owners) of the patented mine or mining claim, for the
purpose of relieving it from the tax assessment. It was performed by
................................, at about ................ feet in a
................ direction from the monument of location, and was done between
the ........ day of the month of ........ of the year ......., and the
.......... day of the month of .......... of the year ......., and consisted of
the following work:
.......................................................................................................................................................
.......................................................................................................................................................
...............................................................
(Signature)
Subscribed and sworn to before me
this ...... day of the month of ...... of the year ......
...............................................................................
Notary Public (or other person
authorized to administer oaths)
[7:206:1915; A 1933, 233; 1931 NCL § 6598]—(NRS A
1975, 317; 1985,
1221, 1503;
1989, 33; 1991, 2105; 2001, 52; 2003, 2773)
NRS 362.060 Who may make affidavit. The
affidavit may be made by the owner or agent of the owner, or the person
performing the labor, or by any person familiar with the facts, on behalf of
the owner.
[8:206:1915; 1919 RL p. 3010; NCL § 6599]
NRS 362.070 Contiguous patented mines or mining claims: Performance of work
on one mine. The owner of two or
more contiguous patented mines or mining claims may perform all the work
required by Section 5 of Article 10 of the Constitution of this state upon one
mine or claim only; but the aggregate amount of such work must be equal to $100
for each of the contiguous patented mines or claims.
[9:206:1915; 1919 RL p. 3010; NCL § 6600]—(NRS A 1989, 34)
NRS 362.090 One affidavit may be recorded for labor on several patented
mines or mining claims. A single
affidavit may be recorded for the labor on several patented mines or mining
claims belonging to the same person or held in common ownership, provided all
are located in the same county.
[11:206:1915; 1919 RL p. 3011; NCL § 6602]—(NRS A 1989, 34, 1832)
NRS 362.095 Method of taxation of patented mine or mining claim used for
purpose other than mining or agriculture.
1. Whenever any portion of a patented mine
or mining claim is used by the patentee or a successor in interest for a
purpose unrelated to mining or agriculture, the portion of such patented mine
or mining claim so used shall cease to be a patented mine or mining claim or
part thereof and shall be taxed as other real property is taxed.
2. For the purpose of this section, a
dwelling placed upon a patented mine or mining claim to be occupied by the
operator of such patented mine or mining claim or his or her agent is not a use
unrelated to mining.
3. Whenever any patented mine or mining
claim is taxed as real property, such taxation shall not affect the status of
contiguous patented mines or mining claims.
(Added to NRS by 1967, 839; A 1989, 34)
ASSESSMENT AND TAXATION OF NET PROCEEDS OF MINERALS
NRS 362.100 Duties of Department.
1. The Department shall:
(a) Investigate and determine the net proceeds of
all minerals extracted and certify them as provided in NRS
362.100 to 362.240, inclusive.
(b) Appraise and assess all reduction, smelting
and milling works, plants and facilities, whether or not associated with a
mine, all drilling rigs, and all supplies, machinery, equipment, apparatus,
facilities, buildings, structures and other improvements used in connection
with any mining, drilling, reduction, smelting or milling operation as provided
in chapter 361 of NRS.
2. As used in this section, “net proceeds
of all minerals extracted” includes the proceeds of all:
(a) Operating mines;
(b) Operating oil and gas wells;
(c) Operations extracting geothermal resources
for profit, except an operation which uses natural hot water to enhance the
growth of animal or plant life; and
(d) Operations extracting minerals from natural
solutions.
[Part 13:177:1917; 1919 RL p. 3202; NCL § 6554] +
[1:77:1927; NCL § 6578]—(NRS A 1975, 1675; 1983, 2088; 1985, 1305; 1989, 34; 2013, 3121)
NRS 362.105 “Royalty” defined. As
used in NRS 362.100 to 362.240,
inclusive, unless the context otherwise requires:
1. “Royalty” means a portion of the
proceeds from extraction of a mineral which is paid for the privilege of
extracting the mineral.
2. “Royalties” do not include:
(a) Rents or other compensatory payments which
are fixed and certain in amount and payable periodically over the duration of
the lease regardless of the extent of extractions; or
(b) Minimum royalties covering periods when no
mineral is extracted if the payments are fixed and certain in amount and
payable on a regular periodic basis.
(Added to NRS by 1975, 135; A 1989, 35; 2013, 3143)
NRS 362.110 Annual statement of gross yield and claimed net proceeds.
[Effective through June 30, 2015.]
1. Every person extracting any mineral in
this State:
(a) Shall, on or before February 16 of each year,
file with the Department a statement showing the gross yield and claimed net
proceeds from each geographically separate operation where a mineral is
extracted by that person during the calendar year immediately preceding the
year in which the statement is filed.
(b) May have up to 30 days after filing the
statement required by paragraph (a) to file an amended statement.
2. The statement must:
(a) Show the claimed deductions from the gross
yield in the detail set forth in NRS 362.120. The
deductions are limited to the costs incurred during the calendar year
immediately preceding the year in which the statement is filed.
(b) Be in the form prescribed by the Department.
(c) Be verified by the manager, superintendent,
secretary or treasurer of the corporation, or by the owner of the operation,
or, if the owner is a natural person, by someone authorized in his or her
behalf.
[2:77:1927; A 1929, 120; NCL § 6579]—(NRS A 1971,
562; 1973, 1293; 1975, 1675; 1979, 819; 1983, 878; 1989, 35; 1995, 40; 1999, 732; 2001, 661; 2005, 296; 2008, 25th
Special Session, 15; 2011, 2896;
2013, 3122,
3425)
NRS 362.110 Annual statement of gross
yield and claimed net proceeds; annual list of lessees. [Effective July 1,
2015.]
1. Every person extracting any mineral in
this State or receiving any royalty:
(a) Shall, on or before February 16 of each year,
file with the Department a statement showing the gross yield and claimed net
proceeds from each geographically separate operation where a mineral is
extracted by that person during the calendar year immediately preceding the
year in which the statement is filed.
(b) May have up to 30 days after filing the
statement required by paragraph (a) to file an amended statement.
2. The statement must:
(a) Show the claimed deductions from the gross
yield in the detail set forth in NRS 362.120. The
deductions are limited to the costs incurred during the calendar year
immediately preceding the year in which the statement is filed.
(b) Be in the form prescribed by the Department.
(c) Be verified by the manager, superintendent,
secretary or treasurer of the corporation, or by the owner of the operation,
or, if the owner is a natural person, by someone authorized in his or her
behalf.
3. Each recipient of a royalty as
described in subsection 1 shall annually file with the Department a list
showing each of the lessees responsible for taxes due in connection with the
operation or operations included in the statement filed pursuant to subsections
1 and 2.
[2:77:1927; A 1929, 120; NCL § 6579]—(NRS A 1971,
562; 1973, 1293; 1975, 1675; 1979, 819; 1983, 878; 1989, 35; 1995, 40; 1999, 732; 2001, 661; 2005, 296; 2008, 25th
Special Session, 15; 2011, 2896;
2013, 3122,
3425,
effective July 1, 2015)
NRS 362.115 Annual statement of estimated gross yield, net proceeds and
royalties; quarterly reports; payment of estimated tax liability; use of
statement by Department. [Effective through June 30, 2015.]
1. In addition to the statement required
by subsection 1 of NRS 362.110, each person
extracting any mineral in this State:
(a) Shall, on or before March 1 of each year,
file with the Department a statement showing the estimated gross yield and
estimated net proceeds from each such operation for the entire current calendar
year and an estimate of all royalties that will be paid during the current
calendar year and shall pay the tax upon the net proceeds and upon the
royalties so estimated. The estimated payment may be reduced by the amount of
any credit to which the taxpayer is entitled pursuant to NRS
362.130. The amount of the tax paid upon royalties must be deducted from
the payment of the royalties.
(b) May file with the Department a quarterly
report stating an estimate for the year and the actual quarterly amounts of
production, gross yield and net proceeds as of March 31, June 30, September 30
and December 31, and pay any additional amount due. The additional estimated
tax liability must be calculated by determining the difference between the
revised estimates of net proceeds based on the recent production figures as
indicated by the quarterly reports and the original estimate supplied pursuant
to paragraph (a). If the person chooses to submit such reports, the reports
must be submitted on a form prescribed by the Department not later than the
last day of the month following the end of the calendar quarter and payment
must be made within 30 days after filing any quarterly report that indicates an
additional estimated tax liability.
2. The Department shall:
(a) Use the statement filed pursuant to
subsection 1 to prepare estimates for use by local governments in the preparation
of their budgets; and
(b) Submit those estimates to the affected local
governments on or before March 15 of each year.
(Added to NRS by 1987, 2141; A 1989, 36, 1536; 1993, 1360; 1995, 40; 1999, 733; 2005, 308; 2008, 25th
Special Session, 15; 2011, 2896;
2013, 3123,
3425)
NRS 362.115 Annual statement of
estimated gross yield, net proceeds and royalties; use of statement. [Effective
July 1, 2015.]
1. In addition to the statement required
by subsection 1 of NRS 362.110, each person
extracting any mineral in this State shall, on or before March 1 of each year,
file with the Department a statement showing the estimated gross yield and
estimated net proceeds from each such operation for the entire current calendar
year and an estimate of all royalties that will be paid during the current
calendar year.
2. The Department shall:
(a) Use the statement filed pursuant to
subsection 1 only to prepare estimates for use by local governments in the
preparation of their budgets; and
(b) Submit those estimates to the local
governments on or before March 15 of each year.
(Added to NRS by 1987, 2141; A 1989, 36, 1536; 1993, 1360; 1995, 40; 1999, 733; 2005, 308; 2008, 25th
Special Session, 15; 2011, 2896;
2013, 3123,
3425,
effective July 1, 2015)
NRS 362.120 Computation of gross yield and net proceeds; required reports.
[Effective through December 31, 2015.]
1. The Department shall, from the
statement filed pursuant to NRS 362.110 and from
all obtainable data, evidence and reports, compute in dollars and cents the
gross yield and net proceeds of the calendar year immediately preceding the
year in which the statement is filed.
2. The gross yield must include the value
of any mineral extracted which was:
(a) Sold;
(b) Exchanged for any thing or service;
(c) Removed from the State in a form ready for
use or sale; or
(d) Used in a manufacturing process or in
providing a service,
Ê during that
period.
3. The net proceeds are ascertained and
determined by subtracting from the gross yield the following deductions for
costs incurred during that period, and none other:
(a) The actual cost of extracting the mineral,
which is limited to direct costs for activities performed in the State of
Nevada.
(b) The actual cost of transporting the mineral
to the place or places of reduction, refining and sale.
(c) The actual cost of reduction, refining and
sale.
(d) The actual cost of delivering the mineral.
(e) The actual cost of maintenance and repairs
of:
(1) All machinery, equipment, apparatus
and facilities used in the mine.
(2) All milling, refining, smelting and
reduction works, plants and facilities.
(3) All facilities and equipment for
transportation except those that are under the jurisdiction of the Public
Utilities Commission of Nevada or the Nevada Transportation Authority.
(f) Depreciation of the original capitalized cost
of the machinery, equipment, apparatus, works, plants and facilities mentioned
in paragraph (e). The annual depreciation charge consists of amortization of
the original cost in a manner prescribed by regulation of the Nevada Tax
Commission. The probable life of the property represented by the original cost
must be considered in computing the depreciation charge.
(g) All money paid as contributions or payments
under the unemployment compensation law of the State of Nevada, as contained in
chapter 612 of NRS, all money paid as
contributions under the Social Security Act of the Federal Government, and all
money paid to either the State of Nevada or the Federal Government under any
amendment to either or both of the statutes mentioned in this paragraph.
(h) The costs of employee travel which occurs
within the State of Nevada and which is directly related to mining operations
within the State of Nevada.
(i) The costs of Nevada-based corporate services
relating to paragraphs (e) to (h), inclusive.
(j) The actual cost of developmental work in or
about the mine or upon a group of mines when operated as a unit, which is
limited to work that is necessary to the operation of the mine or group of
mines.
(k) The costs of reclamation work in the years
the reclamation work occurred, including, without limitation, costs associated
with the remediation of a site.
(l) All money paid as royalties by a lessee or
sublessee of a mine or well, or by both, in determining the net proceeds of the
lessee or sublessee, or both.
4. Royalties deducted by a lessee or
sublessee constitute part of the net proceeds of the minerals extracted, upon
which a tax must be levied against the person to whom the royalty has been
paid.
5. Every person acquiring property in the
State of Nevada to engage in the extraction of minerals and who incurs any of
the expenses mentioned in subsection 3 shall report those expenses and the
recipient of any royalty to the Department on forms provided by the Department.
The Department shall report annually to the Mining Oversight and Accountability
Commission the expenses and deductions of each mining operation in the State of
Nevada.
6. The several deductions mentioned in
subsection 3 do not include any expenditures for salaries, or any portion of
salaries, of any person not actually engaged in:
(a) The working of the mine;
(b) The operating of the mill, smelter or
reduction works;
(c) The operating of the facilities or equipment
for transportation;
(d) Superintending the management of any of those
operations;
(e) The State of Nevada, in office, clerical or
engineering work necessary or proper in connection with any of those operations;
or
(f) Nevada-based corporate services.
7. The following expenses are specifically
excluded from any deductions from the gross yield:
(a) The costs of employee housing.
(b) Except as otherwise provided in paragraph (h)
of subsection 3, the costs of employee travel.
(c) The costs of severing the employment of any
employees.
(d) Any dues paid to a third-party organization
or trade association to promote or advertise a product.
(e) Expenses relating to governmental relations
or to compensate a natural person or entity to influence legislative decisions.
(f) The costs of mineral exploration.
(g) Any federal, state or local taxes.
8. As used in this section, “Nevada-based
corporate services” means corporate services which are performed in the State
of Nevada from an office located in this State and which directly support
mining operations in this State, including, without limitation, accounting
functions relating to mining operations at a mine site in this State such as
payroll, accounts payable, production reporting, cost reporting, state and
local tax reporting and recordkeeping concerning property.
[3:77:1927; A 1937, 139; 1939, 256; 1931 NCL §
6580]—(NRS A 1971, 926; 1973, 1294; 1975, 1676; 1979, 820; 1983, 254; 1989, 36, 1533; 1991, 146; 1997, 1990; 2001, 661; 2011, 2694;
2013, 3124,
3819)
NRS 362.120 Computation of gross
yield and net proceeds; required reports. [Effective January 1, 2016.]
1. The Department shall, from the
statement filed pursuant to NRS 362.110 and from
all obtainable data, evidence and reports, compute in dollars and cents the
gross yield and net proceeds of the calendar year immediately preceding the
year in which the statement is filed.
2. The gross yield must include the value
of any mineral extracted which was:
(a) Sold;
(b) Exchanged for any thing or service;
(c) Removed from the State in a form ready for
use or sale; or
(d) Used in a manufacturing process or in
providing a service,
Ê during that
period.
3. The net proceeds are ascertained and determined
by subtracting from the gross yield the following deductions for costs incurred
during that period, and none other:
(a) The actual cost of extracting the mineral,
which is limited to direct costs for activities performed in the State of
Nevada.
(b) The actual cost of transporting the mineral
to the place or places of reduction, refining and sale.
(c) The actual cost of reduction, refining and
sale.
(d) The actual cost of delivering the mineral.
(e) The actual cost of maintenance and repairs of:
(1) All machinery, equipment, apparatus
and facilities used in the mine.
(2) All milling, refining, smelting and
reduction works, plants and facilities.
(3) All facilities and equipment for
transportation except those that are under the jurisdiction of the Public
Utilities Commission of Nevada or the Nevada Transportation Authority.
(f) Depreciation of the original capitalized cost
of the machinery, equipment, apparatus, works, plants and facilities mentioned
in paragraph (e). The annual depreciation charge consists of amortization of
the original cost in a manner prescribed by regulation of the Nevada Tax
Commission. The probable life of the property represented by the original cost
must be considered in computing the depreciation charge.
(g) All money expended for premiums for
industrial insurance, and the actual cost of hospital and medical attention and
accident benefits and group insurance for employees actually engaged in mining
operations within the State of Nevada.
(h) All money paid as contributions or payments
under the unemployment compensation law of the State of Nevada, as contained in
chapter 612 of NRS, all money paid as
contributions under the Social Security Act of the Federal Government, and all
money paid to either the State of Nevada or the Federal Government under any
amendment to either or both of the statutes mentioned in this paragraph.
(i) The costs of employee travel which occurs
within the State of Nevada and which is directly related to mining operations
within the State of Nevada.
(j) The costs of Nevada-based corporate services
relating to paragraphs (e) to (i), inclusive.
(k) The actual cost of developmental work in or
about the mine or upon a group of mines when operated as a unit, which is
limited to work that is necessary to the operation of the mine or group of
mines.
(l) The costs of reclamation work in the years
the reclamation work occurred, including, without limitation, costs associated
with the remediation of a site.
(m) All money paid as royalties by a lessee or
sublessee of a mine or well, or by both, in determining the net proceeds of the
lessee or sublessee, or both.
4. Royalties deducted by a lessee or
sublessee constitute part of the net proceeds of the minerals extracted, upon
which a tax must be levied against the person to whom the royalty has been
paid.
5. Every person acquiring property in the
State of Nevada to engage in the extraction of minerals and who incurs any of
the expenses mentioned in subsection 3 shall report those expenses and the
recipient of any royalty to the Department on forms provided by the Department.
The Department shall report annually to the Mining Oversight and Accountability
Commission the expenses and deductions of each mining operation in the State of
Nevada.
6. The several deductions mentioned in
subsection 3 do not include any expenditures for salaries, or any portion of
salaries, of any person not actually engaged in:
(a) The working of the mine;
(b) The operating of the mill, smelter or
reduction works;
(c) The operating of the facilities or equipment
for transportation;
(d) Superintending the management of any of those
operations;
(e) The State of Nevada, in office, clerical or
engineering work necessary or proper in connection with any of those operations;
or
(f) Nevada-based corporate services.
7. The following expenses are specifically
excluded from any deductions from the gross yield:
(a) The costs of employee housing.
(b) Except as otherwise provided in paragraph (i)
of subsection 3, the costs of employee travel.
(c) The costs of severing the employment of any
employees.
(d) Any dues paid to a third-party organization
or trade association to promote or advertise a product.
(e) Expenses relating to governmental relations
or to compensate a natural person or entity to influence legislative decisions.
(f) The costs of mineral exploration.
(g) Any federal, state or local taxes.
8. As used in this section, “Nevada-based
corporate services” means corporate services which are performed in the State
of Nevada from an office located in this State and which directly support
mining operations in this State, including, without limitation, accounting
functions relating to mining operations at a mine site in this State such as
payroll, accounts payable, production reporting, cost reporting, state and
local tax reporting and recordkeeping concerning property.
[3:77:1927; A 1937, 139; 1939, 256; 1931 NCL §
6580]—(NRS A 1971, 926; 1973, 1294; 1975, 1676; 1979, 820; 1983, 254; 1989, 36, 1533; 1991, 146; 1997, 1990; 2001, 661; 2011, 2694,
2696; 2013, 3126,
3426, 3819,
effective January 1, 2016)
NRS 362.130 Annual preparation and mailing of certificate by Department; payment
of tax due and penalty; overpayments. [Effective through June 30, 2015.]
1. When the Department determines from the
annual statement filed pursuant to NRS 362.110 the
net proceeds of any minerals extracted, it shall prepare its certificate of the
amount of the net proceeds, the amount of the estimated tax paid in the prior
calendar year pursuant to paragraph (a) of subsection 1 of NRS 362.115 and any additional payments made pursuant
to paragraph (b) of subsection 1 of that section, and the balance of the tax
due, if any, and send a copy of the certificate to the owner or operator of the
mine.
2. The certificate must be prepared and
mailed not later than:
(a) April 20 immediately following the month of
February during which the annual statement was filed; or
(b) April 30 immediately thereafter if an amended
statement is filed in a timely manner.
3. The tax due as indicated in the
certificate and any penalty must be paid on or before May 10 of the year in
which the certificate is received.
4. If the amount paid pursuant to
paragraph (a) of subsection 1 of NRS 362.115 in the
prior calendar year is less than 90 percent of the amount certified pursuant to
this section, the amount due must include a penalty of 10 percent of the amount
by which the tax was underpaid unless:
(a) The amount paid pursuant to paragraph (a) of
subsection 1 of NRS 362.115 in the prior calendar
year is equal to or greater than the total liability of the operation for the
preceding calendar year; or
(b) The person files quarterly reports pursuant
to paragraph (b) of subsection 1 of NRS 362.115 in
a timely manner for that year and the total of all payments exceeds 90 percent
of the amount certified.
5. If an overpayment was made, the
overpayment must be credited toward the payment due on March 1 of the next
calendar year. If the certificate shows a net loss for the year covered by the
certificate or an amount of tax due for that year which is less than an
overpayment made for the preceding year, the amount or remaining amount of the
overpayment must, after being credited against any amount then due from the
taxpayer in accordance with NRS 360.236,
be refunded to the taxpayer within 30 days after the certification was sent to
the taxpayer.
[4:77:1927; NCL § 6581]—(NRS A 1969, 561; 1973, 1295;
1975, 1677; 1979,
822; 1981,
809; 1987,
168, 2141;
1989, 38, 1537; 1991, 653; 1993, 1361; 1995, 41; 1999, 733; 2001, 663; 2005, 297; 2008, 25th
Special Session, 16; 2009, 65; 2011, 2896;
2013, 3128,
3425)
NRS 362.130 Preparation and mailing
of certificate of amount of net proceeds and tax due; due date of tax;
overpayments. [Effective July 1, 2015.]
1. When the Department determines from the
annual statement filed pursuant to NRS 362.110 the
net proceeds of any minerals extracted, it shall prepare its certificate of the
amount of the net proceeds and the tax due and send a copy of the certificate
to the owner of the mine, operator of the mine or recipient of the royalty, as
the case may be.
2. The certificate must be prepared and
mailed not later than:
(a) April 20 immediately following the month of
February during which the annual statement was filed; or
(b) April 30 immediately thereafter if an amended
statement is filed in a timely manner.
3. The tax due as indicated in the
certificate must be paid on or before May 10 of the year in which the
certificate is received.
4. If an overpayment was made, the
overpayment must be credited toward the payment due on May 10 of the next
calendar year. If the certificate shows a net loss for the year covered by the
certificate or an amount of tax due for that year which is less than an
overpayment made for the preceding year, the amount or remaining amount of the
overpayment must, after being credited against any amount then due from the
taxpayer in accordance with NRS 360.236,
be refunded to the taxpayer within 30 days after the certification was sent to
the taxpayer.
[4:77:1927; NCL § 6581]—(NRS A 1969, 561; 1973, 1295;
1975, 1677; 1979,
822; 1981,
809; 1987,
168, 2141;
1989, 38, 1537; 1991, 653; 1993, 1361; 1995, 41; 1999, 733; 2001, 663; 2005, 297; 2008, 25th
Special Session, 16; 2009, 65; 2011, 2896;
2013, 3128,
3425,
effective July 1, 2015)
NRS 362.135 Appeal of certification to State Board of Equalization; payment
of tax pending determination of appeal.
1. Any person dissatisfied by any
certification of the Department may appeal from that determination to the State
Board of Equalization. The appeal must be filed within 30 days after the
certification is sent to the taxpayer.
2. Pending determination of the appeal,
the person certified as owing the tax shall pay it on or before the date due,
and the tax is considered to be paid under protest.
(Added to NRS by 1977, 1052; A 1987, 169; 1989, 38; 2013, 3129)
NRS 362.140 Rate of tax upon net proceeds.
1. Except as otherwise provided in this
section, the rate of tax upon the net proceeds of each geographically separate
extractive operation depends upon the ratio of the net proceeds to the gross
proceeds of that operation as a whole, according to the following table:
Net Proceeds as Percentage Rate
of Tax as Percentage
of Gross Proceeds of
Net Proceeds
Less than 10........................................................................................... 2.00
10 or more but less than 18................................................................. 2.50
18 or more but less than 26................................................................. 3.00
26 or more but less than 34................................................................. 3.50
34 or more but less than 42................................................................. 4.00
42 or more but less than 50................................................................. 4.50
50 or more............................................................................................... 5.00
2. If the combined rate of tax ad valorem
which would be assessed but for the provisions of Section 5 of Article 10 of
the Constitution of this state, including any rate levied by the State of
Nevada, upon property at the situs of the operation is more than 2 percent, the
minimum rate of tax under this section equals that rate of tax ad valorem.
3. The rate of tax upon royalties is 5
percent.
4. The rate of tax upon the net proceeds
of a geothermal operation taxable pursuant to NRS
362.100 is the combined rate of tax ad valorem applicable to the property
at the situs of the operation.
5. The rate of tax upon an operation for
which the net proceeds in a calendar year exceed $4,000,000 is 5 percent.
[Part 75:99:1891; C § 1147; RL § 3687; NCL §
6481]—(NRS A 1989,
38, 1537;
2013, 3129)
NRS 362.150 Liens for taxes on proceeds of minerals. Every tax levied under the authority or
provisions of NRS 362.100 to 362.240,
inclusive, on the proceeds of minerals extracted is hereby made a lien on the
mines from which minerals are extracted for sale or reduction, and also on all
machinery, fixtures, equipment and stockpiles of the taxpayer located at the
mine site or elsewhere in the State. The lien attaches on the 1st day of
January of each year, for the calendar year commencing on that day and may not
be removed or satisfied until the taxes are all paid, or the title to those
mines has vested absolutely in a purchaser under a sale for those taxes.
[76:99:1891; C § 1148; RL § 3688; NCL § 6482]—(NRS A 1979, 822; 1989, 39; 2013, 3130)
NRS 362.160 When tax becomes delinquent; collection of delinquency, penalty
and interest; appeal of imposition of penalty and interest.
1. Except as otherwise provided in NRS 360.232 and 360.320, if the amount of any tax required
by NRS 362.100 to 362.240,
inclusive, is not paid within 10 days after it is due, it is delinquent and
must be collected as other delinquent taxes are collected by law, together with
a penalty of 10 percent of the amount of the tax which is owed, as determined
by the Department, in addition to the tax, plus interest at the rate of 1
percent per month, or fraction of a month, from the date the tax was due until
the date of payment.
2. Any person extracting any mineral or
receiving a royalty may appeal from the imposition of the penalty and interest
to the Nevada Tax Commission by filing a notice of appeal in accordance with
the requirements set forth in NRS 360.245.
[5:77:1927; NCL § 6582]—(NRS A 1975, 1678; 1987, 169; 1989, 39; 1995, 42; 1999, 2490; 2013, 3130)
NRS 362.170 Appropriation to county of amount of tax, penalties and interest
attributable to extractive operations in county; apportionment by county
treasurer; Department to report amount received as tax upon net proceeds of
geothermal resources. [Effective through June 30, 2015.]
1. There is hereby appropriated to each
county the total of the amounts obtained by multiplying, for each extractive
operation situated within the county, the net proceeds of that operation and
any royalties paid by that operation, as estimated and paid pursuant to NRS 362.115, plus any amounts paid pursuant to NRS 362.130 by the combined rate of tax ad valorem for
the fiscal year to which the payments apply, excluding any rate levied by the
State of Nevada, for property at that site, plus a pro rata share of any
penalties and interest collected by the Department for the late payment of taxes
distributed to the county. The Department shall report to the State Controller
on or before May 25 of each year the amount appropriated to each county, as
calculated for each operation from the estimate provided pursuant to NRS 362.115 for the current calendar year and any
adjustments made pursuant to NRS 362.130 for the
preceding calendar year. The State Controller shall distribute all money due to
a county on or before May 30 of each year. The Department shall report to the
State Controller any additional payments made pursuant to paragraph (b) of
subsection 1 of NRS 362.115 within 15 days after
receipt of the payment, and the State Controller shall distribute the money to
the appropriate county within 5 days after receipt of the report from the
Department. For the purposes of this subsection, payments made pursuant to
paragraph (b) of subsection 1 of NRS 362.115 apply
to the fiscal year in which the statement of the estimated net proceeds is
filed pursuant to paragraph (a) of subsection 1 of NRS
362.115.
2. The county treasurer shall apportion to
each local government or other local entity an amount calculated by:
(a) Determining the total of the amounts obtained
by multiplying, for each extractive operation situated within its jurisdiction,
the net proceeds of that operation and any royalty payments paid by that
operation, by the rate levied on behalf of that local government or other local
entity;
(b) Adding to the amount determined pursuant to
paragraph (a) a pro rata share of any penalties and interest collected by the
Department for the late payment of taxes distributed to that local government
or local entity; and
(c) Subtracting from the amount determined
pursuant to paragraph (b) a commission of 5 percent of that amount, of which 3
percent must be deposited in the county general fund and 2 percent must be
accounted for separately in the account for the acquisition and improvement of
technology in the office of the county assessor created pursuant to NRS 250.085.
3. The amounts apportioned pursuant to
subsection 2, including, without limitation, the amount retained by the county
and excluding the percentage commission, must be applied to the uses for which
each levy was authorized in the same proportion as the rate of each levy bears
to the total rate.
4. The Department shall report to the
State Controller on or before May 25 of each year the amount received as tax
upon the net proceeds of geothermal resources which equals the product of those
net proceeds multiplied by the rate of tax levied ad valorem by the State of
Nevada.
[Part 1:57:1885; BH § 2386; C § 1241; RL § 1581; NCL
§ 2062]—(NRS A 1959, 761; 1989, 39, 1538; 1995, 42; 1999, 735; 2001, 663; 2005, 2667; 2007, 1899; 2008, 25th
Special Session, 16, 17; 2009, 1232;
2011, 91,
2896, 3531; 2013, 299, 3130, 3425)
NRS 362.170 Appropriation to county
of amount of tax, penalties and interest attributable to extractive operations
in county; apportionment by county treasurer; Department to report amount
received as tax upon net proceeds of geothermal resources. [Effective July 1,
2015.]
1. There is hereby appropriated to each
county the total of the amounts obtained by multiplying, for each extractive
operation situated within the county, the net proceeds of that operation and
any royalties paid by that operation, by the combined rate of tax ad valorem,
excluding any rate levied by the State of Nevada, for property at that site,
plus a pro rata share of any penalties and interest collected by the Department
for the late payment of taxes distributed to the county. The Department shall
report to the State Controller on or before May 25 of each year the amount
appropriated to each county, as calculated for each operation from the final
statement made in February of that year for the preceding calendar year. The
State Controller shall distribute all money due to a county on or before May 30
of each year.
2. The county treasurer shall apportion to
each local government or other local entity an amount calculated by:
(a) Determining the total of the amounts obtained
by multiplying, for each extractive operation situated within its jurisdiction,
the net proceeds of that operation and any royalty payments paid by that
operation, by the rate levied on behalf of that local government or other local
entity;
(b) Adding to the amount determined pursuant to
paragraph (a) a pro rata share of any penalties and interest collected by the
Department for the late payment of taxes distributed to that local government
or local entity; and
(c) Subtracting from the amount determined
pursuant to paragraph (b) a commission of 5 percent, of which 3 percent must be
deposited in the county general fund and 2 percent must be accounted for
separately in the account for the acquisition and improvement of technology in
the office of the county assessor created pursuant to NRS 250.085.
3. The amounts apportioned pursuant to
subsection 2, including, without limitation, the amount retained by the county
and excluding the percentage commission, must be applied to the uses for which
each levy was authorized in the same proportion as the rate of each levy bears
to the total rate.
4. The Department shall report to the
State Controller on or before May 25 of each year the amount received as tax
upon the net proceeds of geothermal resources which equals the product of those
net proceeds multiplied by the rate of tax levied ad valorem by the State of
Nevada.
[Part 1:57:1885; BH § 2386; C § 1241; RL § 1581; NCL
§ 2062]—(NRS A 1959, 761; 1989, 39, 1538; 1995, 42; 1999, 735; 2001, 663; 2005, 2667; 2007, 1899; 2008, 25th
Special Session, 16, 17; 2009, 1232;
2011, 91,
2896, 3531; 2013, 299, 3131, 3425,
effective July 1, 2015)
NRS 362.171 Establishment and use of county fund for mitigation and school
district fund for mitigation.
1. Each county to which money is
appropriated by subsection 1 of NRS 362.170 may set
aside a percentage of that appropriation to establish a county fund for
mitigation. Money from the fund may be appropriated by the board of county
commissioners only to mitigate adverse effects upon the county, or the school
district located in the county, which result from:
(a) A decline in the revenue received by the
county from the tax on the net proceeds of minerals during the 2 fiscal years
immediately preceding the current fiscal year; or
(b) The opening or closing of an extractive
operation from the net proceeds of which revenue has been or is reasonably
expected to be derived pursuant to this chapter.
2. Each school district to which money is
apportioned by a county pursuant to subsection 2 of NRS
362.170 may set aside a percentage of the amount apportioned to establish a
school district fund for mitigation. Except as otherwise provided in subsection
3, money from the fund may be used by the school district only to mitigate
adverse effects upon the school district which result from:
(a) A decline in the revenue received by the
school district from the tax on the net proceeds of minerals;
(b) The opening or closing of an extractive
operation from the net proceeds of which revenue has been or is reasonably
expected to be derived pursuant to this chapter; or
(c) Expenses incurred by the school district
arising from a natural disaster.
3. In addition to the authorized uses for
mitigation set forth in subsection 2, a school district in a county whose
population is less than 4,500 may, as the board of trustees of the school
district determines is necessary, use the money from the fund established
pursuant to subsection 2:
(a) To retire bonds issued by the school district
or any other outstanding obligations of the school district; and
(b) To continue the instructional programs of the
school district or the services and activities that are necessary to support
those instructional programs, which would otherwise be reduced or eliminated if
not for the provisions of this section.
Ê Before
authorizing the expenditure of money pursuant to this subsection, the board of
trustees shall hold at least one public hearing on the matter.
(Added to NRS by 1993, 2289; A 1999, 736; 2009, 297; 2011, 1222;
2013, 3132)
NRS 362.175 Procedure for removal of amount of tax and name from records of
Department when tax impossible or impractical to collect.
1. If at any time, in the opinion of the
Executive Director, it becomes impossible or impractical to collect any tax
certified on the proceeds of minerals extracted, the Executive Director may
apply to the Nevada Tax Commission to have the amount of the tax and the name
of the person against whom the tax is certified removed from the tax records of
the Department.
2. If the Nevada Tax Commission approves
the application, the Department may remove the name and amount from its tax
records.
(Added to NRS by 1960, 84; A 1975, 1678; 1989, 40; 2013, 3133)
NRS 362.180 Burden of proof on taxpayer to show certification by Department
to be unjust, improper or invalid. In
any suit arising concerning the certification and taxation of the net proceeds
of minerals extracted, the burden of proof is upon the taxpayer to show if the
taxpayer so alleges or contends that the certification by the Department is
unjust, improper or otherwise invalid.
[Part 13:177:1917; 1919 RL p. 3202; NCL § 6554] +
[6:77:1927; NCL § 6583]—(NRS A 1975, 1678; 1977, 1052; 1989, 40; 2013, 3133)
NRS 362.200 Powers of Department: Examination of records; hearings.
1. The Department may examine the records
of any person operating or receiving royalties from any extractive operation in
this state. The records are subject to examination at all times by the
Department or its authorized agents and must remain available for examination
for a period of 4 years from the date of any entry therein.
2. If any person whose gross yield from an
extractive operation as reported to the Department for any annual reporting
period during the 4 years immediately preceding the examination was $100,000 or
more keeps his or her books and records pertaining to that operation or
royalties outside this state, the person shall pay an amount per day equal to
the amount set by law for out-of-state travel for each day or fraction thereof
during which an examiner is actually engaged in examining the books, plus the
actual expenses of that examiner during the time he or she is absent from
Carson City, Nevada, for the purpose of making the examination, but the time
must not exceed 1 day going to and 1 day coming from the place of examination.
No more than one examination may be charged against a person in any 1 fiscal
year.
3. The Department may hold hearings and
summon and subpoena witnesses to appear and testify upon any subject material
to the determination of the net proceeds of minerals extracted. The hearings
may be held at any place the Department designates, after not less than 10
days’ notice of the time and place of the hearing given in writing to the owner
or operator of the mine. The owner or operator is entitled, on request made to
the Executive Director, to the issuance of the Department’s subpoena requiring
witnesses in behalf of the owner or operator to appear and testify at such
hearing.
4. The failure of a witness to obey the
subpoena of the Department subjects the witness to the same penalties
prescribed by law for failure to obey a subpoena of a district court.
[9:77:1927; NCL § 6586]—(NRS A 1975, 318, 1679; 1977, 1052; 1985, 1438; 1989, 40; 2013, 3133)
NRS 362.230 Penalty for failure to file statements.
1. Every person extracting any mineral in
this state, or receiving a royalty in connection therewith, who fails to file
with the Department the statements provided for in NRS
362.100 to 362.240, inclusive, during the time
and in the manner provided for in NRS 362.100 to 362.240, inclusive, shall pay a penalty of not more
than $5,000. If any such person fails to file the statement, the Department may
ascertain and certify the net proceeds of the minerals extracted or the value
of the royalty from all data and information obtainable, and the amount of the
tax due must be computed on the basis of the amount due so ascertained and
certified.
2. The Executive Director shall determine
the amount of the penalty. This penalty becomes a debt due the State of Nevada
and, upon collection, must be deposited in the State Treasury to the credit of
the State General Fund.
3. Any person extracting any mineral or
receiving a royalty may appeal from the imposition of the penalty to the Nevada
Tax Commission by filing a notice of appeal in accordance with the requirements
set forth in NRS 360.245.
[7:77:1927; NCL § 6584]—(NRS A 1971, 563; 1973, 1296;
1975, 135, 1679; 1989,
41; 1995, 43;
1999, 2491;
2013, 3134)
NRS 362.240 Penalty for false statements. Any
person who verifies under oath to the truthfulness of a statement required by NRS 362.100 to 362.240,
inclusive, that is false in any material respect shall be liable to a penalty
of not more than 15 percent of the tax as determined by the Executive Director
after reasonable notice and hearing.
[8:77:1927; NCL § 6585]—(NRS A 1975, 1680; 2013, 3134)
