Title 26—Internal Revenue--Volume 1
PART 50—REGULATIONS RELATING TO THE TAX IMPOSED WITH RESPECT TO CERTAIN HYDRAULIC MINING
§ 50.1   Introduction.
The Act entitled “An Act to create the California Debris Commission and regulate hydraulic mining in the State of California”, approved March 1, 1893, as amended, 27 Stat. 507; 34 Stat. 1001; 48 Stat. 1118; 52 Stat. 1040; 61 Stat. 501; 33 U.S.C. 661-687, provides in part as follows:
That a commission is hereby created, to be known as the California Debris Commission, consisting of three members. * * *
Sec. 3. That the jurisdiction of said commission, insofar as the same affects mining carried on by the hydraulic process, shall extend to all such mining in the territory drained by the Sacramento and San Joaquin river systems in the State of California. * * *
Sec. 8. That for the purposes of this act “hydraulic mining” and “mining by the hydraulic process,” are hereby declared to have the meaning and application given to said terms in said State.
Sec. 9. That the individual proprietor or proprietors, or in the case of a corporation its manager or agent appointed for that purpose, owning mining ground in the territory in the State of California mentioned in section three hereof, which it is desired to work by the hydraulic process, must file with said commission a verified petition, setting forth such facts as will comply with law and the rules prescribed by said commission.
Sec. 13. That in case a majority of the members of said Commission, within thirty days after the time so fixed, concur in the decision in favor of the petitioner or petitioners, the said Commission shall thereupon make an order directing the methods and specifying in detail the manner in which operations shall proceed in such mine or mines; * * *
Sec. 23. Upon the construction by the said commission of dams or other works for the detention of debris from hydraulic mines and the issuing of the order provided for by this Act to any individual, company, or corporation to work any mine or mines by hydraulic process, the individual, company, or corporation operating thereunder working any mine or mines by hydraulic process, the debris from which flows into or is in whole or in part restrained by such dams or other works erected by said commission, shall pay for each cubic yard mined from the natural bank a tax equal to the total capital cost of the dam, reservoir, and rights of way divided by the total capacity of the reservoir for the restraint of debris, as determined in each case by the California Debris Commission, which tax shall be paid annually on a date fixed by said commission and in accordance with regulations to be adopted by the Secretary of the Treasury, and the Treasurer of the United States is hereby authorized to receive the same. * * * The Secretary of the Army is authorized to enter into contracts to supply storage for water and use of outlet facilities from debris storage reservoirs, for domestic and irrigation purposes and power development upon such conditions of delivery, use, and payment as he may approve: Provided, That the moneys received from such contracts shall be deposited to the credit of the reservoir project from which the water is supplied, and the total capital cost of said reservoir, which is to be repaid by tax on mining operations as herein provided, shall be reduced in the amount so received.
§ 50.2   Scope of regulations.
(a) In general. The regulations in this part relate to the tax imposed with respect to hydraulic mining, the debris from which flows into or is in whole or in part restrained by dams or other works erected for the detention of debris by the California Debris Commission in the area drained by the Sacramento and San Joaquin river systems in the State of California. The regulations have application to taxable years beginning after August 31, 1959. For definition of the term taxable year, see § 50.3(g).
(b) Extent to which the regulations in this part supersede prior regulations. The regulations in this part, with respect to the subject matter within the scope thereof, supersede Treasury Decision 4952 (26 CFR (1939) part 317).
§ 50.3   General definitions and use of terms.
As used in the regulations in this part:
(a) The term Act means “An Act to create the California Debris Commission and regulate hydraulic mining in the State of California” approved March 1, 1893, as amended, 27 Stat. 507; 34 Stat. 1001; 48 Stat. 1118; 52 Stat. 1040; 61 Stat. 501; 33 U.S.C. 661-687.
(b) The term person means an individual, a trust, estate, partnership, company, or corporation.
(c) The term Secretary means the Secretary of the Treasury.
(d) The term Commissioner means the Commissioner of Internal Revenue.
(e) The term district director means the district director of internal revenue.
(f) The terms hydraulic mining and mining by the hydraulic process shall have the meaning and application given said terms in the State of California.
(g) The term taxable year means the twelve-month period ending on August 31 of each year for which the tax imposed by the Act is payable.
§ 50.4   Rates of tax.
(a) Determination of rate. Under the Act the California Debris Commission will determine and prescribe with respect to each debris dam or other works the rate of tax payable in the area served by the particular debris dam or works. The Secretary of the Army will notify the Secretary of the Treasury of the rate of tax fixed with respect to each debris dam or works as such rate becomes known.
(b) Measure of tax. The tax is payable annually on the basis of the number of cubic yards mined from the natural bank by the hydraulic process during the taxable year.
§ 50.5   Liability for the tax.
Liability for tax attaches to any person engaged at any time during the taxable year in hydraulic mining in the area identified in paragraph (a) of § 50.2, if the debris from such mining operations is in whole or in part restrained by any of the debris dams or works constructed by the California Debris Commission.
§ 50.6   Ascertainment of quantity mined.
Each person engaged in hydraulic mining operations within the scope of the tax shall make or cause to be made appropriate surveys of the premises on which such hydraulic mining operations are conducted for the purpose of determining the cubic yardage mined from the natural bank. Such surveys shall be made at the beginning and end of hydraulic mining operations in each taxable year by a licensed engineer or other qualified agency having prior approval of the California Debris Commission, and shall conform to requirements prescribed by the California Debris Commission.
§ 50.7   Returns.
(a) Form of return. Every person liable for tax for any taxable year shall prepare for such year a return on Form 1 (California Debris) in accordance with the instructions thereon and in accordance with the regulations in this part.
(b) Content of return. The return shall show:
(1) The identity of the particular dam or other works restraining debris from the mine;
(2) The name and location of the mine;
(3) The name and address of the person to whom the California Debris Commission has issued a license to operate the mine;
(4) The number and date of the license;
(5) The name and address of the owner of the mine;
(6) The dates on which hydraulic mining operations began and ended during the taxable year for which the return is made;
(7) The number of cubic yards mined by the hydraulic process at the mine during the taxable year;
(8) The rate of tax per cubic yard determined by the California Debris Commission applicable to the particular mine; and
(9) The amount of tax due and payable (cubic yards mined multiplied by the rate of tax per cubic yard).
(c) Supporting statement. With each return there must be submitted a supporting statement of the person who made the surveys at the mine for the mining season covered by the return (see § 50.6), stating that such surveys were made in accordance with requirements prescribed by the California Debris Commission.
(d) Verification of return and supporting statement. The return and the supporting statement shall be verified by written declarations that they are made under the penalties of perjury.
§ 50.8   Due date and place for filing returns and paying tax.
The return for a taxable year shall be filed with, and the tax shall be paid to, the district director at San Francisco, California, on or before September 30 of the calendar year in which the taxable year ends. The tax is due and payable on such date without assessment by, or notice from, the district director.