Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1897-07-08
OPINION AT TO MINES.
Revenue Law COntsmplates Assessment
Of the Net Proceeds.

Acting Attorney General Benner X q.
Smith. replying to questions pro.
pounded by Edward Pike. attorney
for Juab county, handed down an
opinion yesterday afternoon holding
that the revenue law contemplated the
assessment of the net proceeds Of all
mines Of whatever nature, operated
throughout tue State. The opinion is
as follows:
1 am in receipt of your communication
OF recent date, asking the following ques-
tons:
First-Under section 62 of the Revenue
Act of the Session Laws of 1896, should
not iron mines located as quartz lodes,
the product of which is sold TO smelters
for iuXing purposes, be classed as "valu-
able mineral deposits" and the net pro-
ceeds of said iron mines be subject to
taxation in the same manner as are other
mines and mineral deposits, to wit, by
furnishing to the assessor the statement
as provided in said section?
Second-Should not gypsum and rock
salt deposits, located and held as either
lode or placer mining claim, be also
classified as valuable mineral deposits
and the net proceeds thereof be taxed as
prONlueu IN Shlu section or
Third-Would II conform to the intent
OF the law governing the assessment Of
the not proceeds of mines, for the owner
OF q mine to deduct from a statement of
bis net proceeds for the year preceding
tho LIST day June, 1897, an account en-
bracing interest on an indebtedness in
CURED by said owner for machinery and
improvements prior to the year imm edi-
ately preceding such statement?
Ihn tAar s,f 4.l -
first inquiry is as follows:
Every person, corporation or associ-
alton engaged in mining upon quartz
vein or lode or placer mining claim con-
tanning any gold, silver, copper, coal or
other valuable mineral deposit must, be-
tween the LIST and 10Th days Of june in
each year make gu: a statement OF the
gross yield OF the above-named metals
or minerals from each mine, during the
year preceding tho first day OF June, and
the value thereof.
The.inlention of the Legislature from
the language used, was to assess the net
proceeds of mines containing all and
every kind of valuable mineral deposits,
and that the same was not intended to be
limited to those specifically named, and
tho net proceeds OF the iron mines To-
Gated as quartz lodes, which are referred
to in your first question, would come
within the meaning OF tho act, aud DO
subject to taxation.
Az to your second inquiry, in refer
ouce to gypsum and rock salt deposits,
located either as lode or placer mining
claims. am of the opinion that they
also come within section 90, and the net
proceeds OF such mines arc subject to
taxation under that act. Tho terms used
are not necessarily limited to valuable
metallic substances, but whatever is
recognized by standard authorities as
mineral and, which have q specific yaluo
as such would come within tho meaning
of the act. Gypsum and rock-salt are
recognized by the United Statos land
Office as valuable mineral deposits.
In answer to your third inquiry, II Is
my opinion that tho owner OF mine
in making statement should not de-
duct from the net proceeds for the year
preceding the lst of June, 1897, interest
paid upon an Indebtedness lcurred
prior to that year. Section GA OF the
Revenue Act specifies what allowances
may be made and Tor what purposes
tho money so allowed is expended, but
1t fails to include in the allowances in
terest upon indebtedness incurred prior
TO the year preceding tho stalement'