Wis. Stat. § 70.375 — WI Code / Chapter 70 / Section 70.375
Section 70.375
Status: in_force

(j) Losses from uninsured casualty losses and the sale of personal property used in mining metalliferous minerals.

(k) Depreciation or amortization on property used in connection with mining. With respect to property first eligible for depreciation or amortization before January 1, 1981, the deduction shall be limited to the deduction under s. 70.375 (4) (k) , 1979 stats. With respect to property first eligible for depreciation or amortization on or after January 1, 1981, the deduction shall be limited to the amount allowable as a deduction to corporations in computing net income under s. 71.26 (2) . The following assets may be depreciated or amortized:

1. Machinery, mills and reduction works.

2. Buildings, structures and other improvements.

3. Permit fees, license fees and any other fees for formal written authorization required by a department or instrumentality of the state.

4. Development of the mine after the date on which extraction begins.

(L) Royalties paid to owners of the mineral rights to the lands where the mine or an extension of the mine is located. In this paragraph, “owners” does not include the person mining or a controlled entity or controlling entity of the person mining.

(m) Amortization by a straight-line method over the life of the mine commencing with production of premining costs, including costs for drilling, geological and engineering studies, design of facilities, pilot mines, mine testing, environmental surveys, facilities siting surveys and other exploration and development activities.

(n) Expenses under par. (m) incurred after mining begins, those costs to be expensed currently.

(o) Actual and necessary reclamation and restoration costs associated with a mine in this state, including payments for future reclamation and postmining costs which are required by law or by department of natural resources order and fees and charges under chs. 281 , 285 or 289 to 299 not otherwise deductible under this section. Any refunds of escrowed or reserve fund payments allowed as a deduction under this paragraph shall be taxed as net proceeds at the average effective tax rate for the years the deduction was taken.

(p) Interest determined as follows:

1. If the interest is specifically allocable to the development or operation of a mine or beneficiation facility from which net proceeds are derived, all of the interest is deductible.

2. If the interest is not specifically allocable to the development or operation of a mine or beneficiation facility, the proportion of the interest that equals the proportion of the capital investment in the mine and beneficiation facilities as compared to the taxpayer’s total capital investment.

3. If a mine is owned by a corporation that is part of an affiliated group of corporations, “interest” means the interest paid to nonmembers of the group.

4. The deduction for interest under this paragraph shall not exceed 5 percent of the total gross proceeds for the taxable year.

(q) An allowance for depletion of ores on the basis of their actual original cost in cash or the equivalent of cash.

(r) Administrative fees under s. 70.3965 .

(4m) Generally accepted accounting principles. Except as otherwise provided under this section, a person subject to the tax imposed under sub. (2) , shall use generally accepted accounting principles to determine the person’s net proceeds occupation tax liability under this section.

(5) Rates. The tax to be assessed, levied and collected upon persons engaging in mining metalliferous minerals in this state shall be computed at the following rates:

(a) On the amount from $250,001 to $5,000,000, at a rate of 3 percent.

(b) On the amount from $5,000,001 to $10,000,000, at a rate of 7 percent.

(c) On the amount from $10,000,001 to $15,000,000, at a rate of 10 percent.

(d) On the amount from $15,000,001 to $20,000,000, at a rate of 13 percent.

(e) On the amount from $20,000,001 to $25,000,000, at a rate of 14 percent.

(f) On the amount exceeding $25,000,000, at a rate of 15 percent.

(6) Indexing. For calendar year 1983 and corresponding fiscal years and thereafter, the dollar amounts in sub. (5) and s. 70.395 (1) and (2) (d) 1m. and 5. a. shall be changed to reflect the percentage change between the gross national product deflator for June of the current year and the gross national product deflator for June of the previous year, as determined by the U.S. department of commerce as of December 30 of the year for which the taxes are due, except that no annual increase may be more than 10 percent. For calendar year 1983 and corresponding fiscal years and thereafter until calendar year 1997 and corresponding fiscal years, the dollar amounts in s. 70.395 (1m) , 1995 stats., shall be changed to reflect the percentage change between the gross national product deflator for June of the current year and the gross national product deflator for June of the previous year, as determined by the U.S. department of commerce as of December 30 of the year for which the taxes are due, except that no annual increase may be more than 10 percent. The revised amounts shall be rounded to the nearest whole number divisible by 100 and shall not be reduced below the amounts under sub. (5) on November 28, 1981. Annually, the department shall adopt any changes in dollar amounts required under this subsection and incorporate them into the appropriate tax forms.

History: 1977 c. 31 , 272 ; 1979 c. 32 s. 92 (1) ; 1981 c. 86 , 314 ; 1983 a. 27 ss. 1184b to 1184m , 1803g , 1803r , 2202 (45) ; 1985 a. 29 ; 1987 a. 27 ; 1987 a. 312 ss. 1 , 17 ; 1991 a. 39 ; 1993 a. 112 ; 1995 a. 27 , 225 , 227 ; 1997 a. 27 , 237 ; 2005 a. 347 ; 2013 a. 1 ; 2015 a. 55 ; 2017 a. 134 .