Weekly journal-miner., 1915-01-20
NEW MINE LAW IS
 PROPOSED FOR STATE

PROPOSED FOR STATE
 PHOENIX, Jan. 16.-Senator Ba- con (Gila) introduced in the state senate this morning An act to pro vide for the assessment and taxation of mines"
 Section 1 of the proposed act di- vides all mines and mining claims into two classes (a) productive mines and mining claims, and (b) non-pro- ductive mines and mining claims.
 A productive mine or claim is de- fined to be one which, after deduct ing the. expenses of operation, etc, shall yield net proceeds during any calendar year, or d number of mines or claims located in the same district and under one ownership any one or several of which shall yield similar net proceeds. All other mines and claims are classed as non-productlve.
 Section ? provides fer an annual statement to be filed before the first Monday in April each year showing the yield of ores, etc, tor the twelve months prior to the first day of Jan uary of the same year, which state ment must be under oath and dis close the total production, cost and disposition of the production of the mine.
 Section 3 provides that the state tax commission shali compute the gross and net proceeds for the year. The gross proceeds are to be com ruted on a price of SIS per ounce for the gold content and the other con stituents shall be computed on the average price in New York for the ten years next preceding. Net pro cccds are to be determined by de- ducting from the gross all expendi- lures for mining, reducing and trans portation of products of the mine. Each and every productive mine as defined in this act shall be valued at an amount equal to l2l3 per centum of the gross proceeds plus four times the net proceeds" The value thus de tcrmined is made the basis of taxa ton.
 Section provides that mines not producing net revenue shall be as sessed and taxed as other real es- tate"
 Section 5 provides for the assess ment of surface works and improve mcnts, including mills. reduction plants, smelters and thc like, in the same manner is other property is valued.
 Section 7 provides that ores nol sold or treated in the year in which they were mined shall not be taxed in that year but shall be, included in the statement for tre year following.
 The following sections provide am pie machinery for the enforcement of the terms of the act and for the com polling on oath Of suc1 statements as may be required and for the cross examination of inc parties making the statements or of any other wit ncsses who may be called, the object being to secure a full and complete disclosure under the terms of the act of the business of all mining com panies. Both the state and the min ing companies are granted full rights of appeal in all cases.
 Section Is says: Nothing in this act shall be taken or construed to be a tax on either the gross or net pro cecds or earnings of any mine * * it being the purpose of this act, to use aforesaid gross and net proceeds solely and only as basis for reckon- ing the valuation O; mines and min ing claims for purposes of taxation" ."
 Section 16 contains an emergency clause and the bill is declared to go into force immediately on its passage and signing by the governor and is exempted from the operation of the referendum provision Of the state