Weekly journal-miner., 1915-04-07
WANTS sESstoN TO
 TAKE UP MINE TAX
(From Saturdays Daily.)

A member of the legislature who
 is writing a series of articles for the
 Arizona Gazette presents the follow
 ing views on the mine tax question
 The law under which were taxed
 the mining interests of this state ex-
 pired by its own operation while the legislature was in session. The law
 had been enacted by the last legis-
 lature after its passage had been rec
 commended by Gov. Hunt in his mes
 sage.
 Few men know much about taxa
 ton. Paying their taxes, they grumble
 about the amounts, and let it go at
 widely discussed and a false impress
 sion has been created in the public
 mind A brief review of the bill and
 its provisions will be in place.
 The tax commission was wished
 upon the people of this state by the
 first legislature, and as was explained Ito the people during the late cam
 raign by candidates for reelection, they have quite succeeded in lower
 ing the tax rate and raising the taxes to the present dizzy height, and, quot
 ing Jim Goodwin, That's going some"
 In the states where mines are op- erated, various methods are employed ia determining what is the just share of the taxes to be paid by the mines.
 Michigan alone has adopted what is known as the ad valorem or physical valuation of the properties assessed, but the physical valuation is in real ity hut a small factor in the assess ments, though the nature of the de- posits by reason of certain similari- ty, lend themselves more readily to physical valuation than in Arizona, where the deposits differ widely in their physical makeup. Under the law as applied here in Arizona all min ing claims were classed as either pro ductive or non-productive mines. A productive mine is briefly, under the law, one which, after deducting the expenses of operating does yield net profit to the owners or operators. This applies also to all contiguous mines or claims under one ownership. l Detailed statements from owners or 1 operators, to the tax commission, of | location, ownership etc, together with number of tons of ore mined, | sold or treated during the period GOV cred by the statement, character of ore, kind and yield of mineral, de- tailed cost Of production ,transporta- ion, treatment and marketing. The act provided that the tax commission should, from such detailed statement determine and compute the gross pro iuct and its value in money for the preceding year, and to determine the ret proceeds after deducting all mon ,ys paid for necessary labor, machin- ,fy aud supplies needed and used. All moneys. expended for betterments 4 and about the mines, for treatment ltd reductIonl for repairs and better ii6fits to mills and reduction works, ass etc. The e>only expenditures not Aiowed, appatently, and so specified hellde purchase price of mine, in cal estate, new mills and reduction works and the salaries of anyone not ictualy Of consecutively employed in votking the mine or in personal sup or infringement thereof, n the state. The value of the product must be based on reported market -alue of such product in New York ity during current year. After such and deductions the tax commission fixes valuation upon the nine for the purpose of taxation for urrent year, by adding together four ime5 the, value of the net proceeds nd an amount equal to l2 per cent f the total value of the gross pro { eeds of such, and upon such valua- [ ion the assessment is made, and the anne rate of taxation is levied as is 1 evied on other property in the same 1 ounty. To illustrate: Value of the l otal or gross production of a mine , $l,0m,OO0, while the net proceeds 1 fter deducting all expenses is valued I t $l0,0O0; the commission adds l2 [ CT cent of the gross valuation of pro 1 uct, or one'eighth of $l,000,0OO, or lZ5,000, to four times the net value, { r $4OOy0O0, a total of $525,OO0, which t 5 the taxable valuation of the mine. I Under this law the mining interests ( f this state paid 35.7 per cent of the ( axes and the law was considered fair l nd just. Though it did not quite f qualize among the mines, yet it came | ear enough to be acceptable to all oncerned except to two of the mem ' CTS of the tax commission. They g laimed that only a limited amount i appended in developing could be harged as current expenses; also hat taxes could not be charged as ex-