April 30, 2015
We found that some statutes authorizing taxes on taconite mining are complex and outdated. In addition, the distribution of revenue from the main tax on mining (the production tax) lacks transparency and predictability. The Legislature should improve the allocation of production tax revenue to make it a more predictable source of revenue for local jurisdictions. The Legislature should establish a formal process to make one-time grants of production tax revenue to local jurisdictions. It should also clarify the purpose of a fund used primarily for grants to mining companies to improve plants and mining equipment, and delete obsolete mineral tax statutes.
