Mohave County miner. [volume] (Mineral Park, A.T. [Ariz.]) 1882-1918, 1903-10-24
Taxes on Mining.

With all the encouragement given to
rnining by the Mexican government,
the taxes on this leading industry of
the republic has grown by gradual
additions until it is now a serious
problem. Now that the dynamite tax
of 2l0S per ton is coming on, the taxes
on the industry are assuming large
proportions. Mine owners are becom
ing restless, as the taxes on the pro
duct of every mine can be figured at
from to 121a per cent; in other words
a mine has got to pay 20 per cent clear
over the cost of production to allow
any reasonable margin to the operator
after the government taxes are paid.
Yet the miner has gone along all the
time uncomplainingly, making money
to be sure where mines are so rich as
in Mexico. But he is becoming rest
less and feels that he is paying more
than his share, as no other business
in the Republic is taxed so much. En-
gineers have to figure these taxes in
making estimates on the value of
mines, and taxes from 8 to l212 per
cent of the yield of ore as measured in
money is enough to appall the pros
pective investor.
But right here some one says "you
will just scare away capital, by agitat-
ing this subject" We reply there is
no use in trying to keep these things
quiet; the thing to do is for the mining
fraternity by concerted action to get
to work and procure a reduction. Mex
leo is like any other country, if you
want anything you have to ask for it.
The miner has got to help himself, as
long as he sits supinely back he can
pay his taxes and enjoy his receipts
therefor.
But let Us look at some of these fig
ures. The rough estimate of 8 to l215
per cent of the yield of the ore as
measured in money depends, to be
sure, upon the location of the mine, its
distance from the railroad, the modes
of communication, tineness of the bull
ion produced, etc. But here are some
figures: Federal taxes, which include
lst, coinage duty of per cent; ID, a
stamp duty of three per cent, and Sd,
government assayer's fee of 2.5OS per
bar of 35 kg., or fraction thereof: State
tax which includes 1T, an export duty
of 2 per cent, aud ID, stamp duty
levied by the Federal government of
p per cent of the state export duty of
per cent. In this connection it must
be remem bered that for collecting the
Federal taxes silver is valued at
40.l95S per kilogram, and gold at 675.-
4l6S aud to this must be added the
rate of exchange on gold for the first
fifteen days of the month previous to
gold valuation and the duties collected
on that sum.
As an example, that eminent mining
authority, The Engineering and Mining
Journal, says: "In the case of a rep
resentative mine located in northeast
ern Mexico the figures for period of
nine months show that the expenses
on cyanide bullion for duties, ex-
pressage, refining and melting amount
ed altogether to per cent, while simi
lar expenses on mill bullion during
the same period averaged nearly 814
per cent of the gross value of the bull
ion."
Add to this the dynamite tax.
Again, what is TO be done? Either
pay it and say nothing or get together
and ask the government for a reduc-
tion. 1t will meet the miners half
way, without doubt.
In treating of this subject, by the
way, we have said nothing about de-
nouncement fees of 2Ss each, and the
annual tax of los per pertenencia, tax
on capital stock if organized into cor
poration, etc. 1t is best to figure 10
per cent for all these taxes as being
the safe and average figure. This
would be a good question for the
Chamber of Commerce to take up.
Chihuahua Enterprise.