The Marble times and Crystal silver lance., 1901-08-09
Taxation Of Times.

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royalty on the gold production of the
Rand mines, and has indicated 10 per
cent. of the gross yield as the probable
amount of the royalty. The Canadian
Government has for three years col
lected 10 per cent. royalty on the gross
placer gold production of the Yukon
Territory comprehending the Klondike,
and this year has reduced the amount
and is collecting 5 per cent. The Rus
sian Cabinet eNacts 20 per cent. royal
ty of the gross yield of its placers.
The Korean Government, with differ
ent concessions, has made different
roy atty rates on the gross gold yield
up TO 20 per cent. One concession
made the royalty on all metals and
coal 20 per cent. The Netherlands
Government exacts high royalties and
other taxes on mine production in the
Dutch East Indies. The Government
of British Columbia has several grades
of royalty on gross metal production
and large number of Indirect fees
and charges tina. are paid for the pri-
vilege of mine oper alton, regardless
of whether the mine is producing metal
or is not producing it.
| In the United States, Nevada had
bullion tax which was the equivalent
of royalty on the gross value of the
metal production. 1t has been re-
pealed. Montana imposes 3 per cent.
tax on the net annual profits of min
ing, on the net value production in
stead of the gross. Most of the States
and Territories attempt to tax mines
on their property value uniform in its
incidence with the taxation of other
property. Practically it is only an
attempt. In Colorado the attempt has
been made to tax mines on the basis
of an assessment value determined by
the selling value of the stock. Very
generally in other States the mines
that are not producing are taxed on
far higher relative assessments of
valuation than the producing and
profit-earning mines Of the same dis
trict. The writer has in mind an in
stance where mine. paying it's owners
5000, 900 net out of a gross production
of $780, in one year, was that year
taxed $3.50 on valuation of $10,0
A mine alongside of it that did not
produce dollar of value, and in fact
never did, having a finer plant of ma
chinery, was taxed $240 on an assess
ment valuation of $4,000. The facts
were known at the time, yet there was
no protest at what would reasonably
seem an absurd inequality in compara-
tive valuation for taxation.
Through all these royalties and tax
es there seems a general recognition
that taxation of mines and mineral
productions of mines was based on
different principles from the principles
| applied in taxing other properties.
just what the differences are does not
seem to be definitely recognized. There
is no common starting point for the
rules of taxation and clearly no gen.
eral recognition of the real thing that
pays the roy alties and taxes. Montana
alone of all the sovereignties impos-
ing taxes seems to have recognized
what it was paid taxes and to have
based its taxing laws on it.
A mine is not productive property.
| .o1J - ,1 -,
production in the same sense that a
yield of agricultural or pastoral pro-
ducts is production. In the last case
the land that produces can produce
again; with mine the yield is some
of the valuable or reproductive part
of the land itself and diminishes the
total to the extent that it is removed.
In the case of agricultural land and
other such properties the tax is paid
by the reproduction of the land: with
land that is mined the tax is paid by
the delivery of part OF the land itself.
Taxation of agricultural land does
not therefore absorb the land itself,
no matter how long the period of years
cumulated. Taxation of mines can
absorb the land itself within q finite
period of years, and it may be within
d very short period. Therefore it is
that practically mine taxation should
deal with mine production rather than
with mines, mining lands or the tools
and machines of mining. ROYALTIES
are therefore more equitable in prin-
ciple than taxation of mines on assess
ment of the land of the mines on the
current exchange value of such land.
With royalties the business of making
a mine and the expectation of getting
it are not taxed. With the taxation
based on current exchange value of
the land both the business of making a