An Act to Conform the Mining Excise Tax Laws to the Maine Metallic Mineral Mining Act and Set the Mining Excise Tax at 10 Percent
Maine Legislature, Session 131, LD 1853
Committee: Taxation
Sponsors: COLLINGS, LANDRY, TALBOT ROSS
Amends: 36 MRSA §603, 36 MRSA §2852, 36 MRSA §2853, 36 MRSA §2854, 36 MRSA §2855, 36 MRSA §2856, 36 MRSA §2857, 36 MRSA §2858, 36 MRSA §2859, 36 MRSA §2862, 36 MRSA §2863, 36 MRSA §2865

Legislative Document
No. 1853
H.P. 1183
House of Representatives, May 1, 2023
An Act to Conform the Mining Excise Tax Laws to the Maine 
Metallic Mineral Mining Act and Set the Mining Excise Tax at 10 
Percent
(EMERGENCY)
Reference to the Committee on Taxation suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative COLLINGS of Portland.
Cosponsored by Representatives: LANDRY of Farmington, Speaker TALBOT ROSS of 
Portland.
Emergency preamble.  Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and
Whereas, there are inconsistencies between Maine's excise tax law and the Maine 
Metallic Mineral Mining Act; and
Whereas, clarifying these inconsistencies is essential to provide immediate clarity for 
mining permits; and
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore,
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §603, sub-§10, as amended by PL 1983, c. 776, §2, is further 
amended to read:
10.  Tax situs.  The tax situs of tangible personal property shall be at is the mine site 
mining area if that property is:
A.  Owned, leased or otherwise subject to possessory control of a mining company 
metallic mineral operator; and
B.  On route to or from, being transported to or from or destined to or from a mine site 
mining area.
Except as otherwise provided in this subsection, the tax situs of tangible personal property 
leased to a mining company shall be in metallic mineral operator is the place where the 
property is situated.
For the purposes of this subsection, the definitions of section 2855 shall apply.
Sec. 2.  36 MRSA §2852, sub-§1, as enacted by PL 1981, c. 711, §10, is amended 
to read:
1.  Mineral Metallic mineral resources fundamental.  Mineral Metallic mineral 
resources are fundamental to modern civilization.
Sec. 3.  36 MRSA §2852, sub-§2, as enacted by PL 1981, c. 711, §10, is amended 
to read:
2.  Mineral Metallic mineral resources as economic wealth.  Mineral Metallic 
mineral resources have historically been a primary source of economic wealth, are valuable 
and, once removed, are forever lost as an economic asset to the State.
Sec. 4.  36 MRSA §2852, sub-§3, as enacted by PL 1981, c. 711, §10, is amended 
to read:
3.  Development of metallic mineral resources.  Development of this country's 
metallic mineral resources has involved only a small portion of its land area and may be 
expected to involve a similarly small portion of the land area of Maine.
Sec. 5.  36 MRSA §2852, sub-§8, as enacted by PL 1981, c. 711, §10, is amended 
to read:
8.  Size of mining operation.  As the size of a mining operation increases, the cost to 
the State and its political subdivisions may increase, as do the effects on the environment.  
As the size of a mining operation increases, the mining company metallic mineral operator 
benefits from economies of scale in the mining operation.
Sec. 6.  36 MRSA §2853, first ¶, as enacted by PL 1981, c. 711, §10, is amended 
to read:
It is the policy of the State to encourage the sound and orderly development of Maine's 
metallic mineral resources.  The object of this policy is to assure that the actions associated 
with development of these resources will:
Sec. 7.  36 MRSA §2853, sub-§3, as enacted by PL 1981, c. 711, §10, is amended 
to read:
3.  Assistance to municipalities and counties.  Provide planning and development 
assistance to municipalities, counties and the unorganized territory if significantly affected 
by metallic mineral resource development; and
Sec. 8.  36 MRSA §2853, sub-§4, as enacted by PL 1981, c. 711, §10, is amended 
to read:
4.  Scheme of taxation.  Establish a practical scheme of taxation on mining companies 
which metallic mineral operators that will:
A.  Permit these companies to profitably operate mines within the State;
B.  Encourage the economically efficient extraction of metallic minerals;
C.  Permit the State to derive a benefit from the extraction of a nonrenewable resource; 
and
D.  Compensate the State and its political subdivisions for present and future costs 
incurred or to be incurred as a result of the mining activity.
Sec. 9.  36 MRSA §2854, sub-§1, as enacted by PL 1981, c. 711, §10, is amended 
to read:
1.  Annual excise tax.  A mining company metallic mineral operator shall pay to the 
State Tax Assessor, for the use set forth in this chapter, an annual excise tax for the privilege 
of conducting mining within the State.
Sec. 10.  36 MRSA §2854, sub-§2, ¶B, as enacted by PL 1981, c. 711, §10, is 
amended to read:
B.  Land, excluding the value of metallic minerals or metallic mineral rights.
Sec. 11.  36 MRSA §2855, sub-§1-A is enacted to read:
1-A.  Advanced exploration.  "Advanced exploration" means any metallic mineral 
bulk sampling or exploratory activity that exceeds those activities that are exploration 
activities and are specified in rules adopted by the Department of Environmental 
Protection. Samples taken as part of exploration are not considered bulk sampling.
Sec. 12.  36 MRSA §2855, sub-§1-B is enacted to read:
1-B.  Affected area.  "Affected area" means an area outside of a mining area where 
the land surface, surface water, groundwater, air resources, soils or existing uses are 
potentially affected by mining operations as determined through an environmental impact 
assessment.
Sec. 13.  36 MRSA §2855, sub-§2, ¶A, as enacted by PL 1981, c. 711, §10, is 
amended to read:
A.  The surface soil is broken in order to facilitate or accomplish the extraction or 
removal, within 12 successive calendar months, of more than 1,000 cubic yards from 
the earth of a metallic mineral, top soil or other solid matter or material naturally lying 
over the metallic minerals, except in connection with exploratory an exploration 
activity; or
Sec. 14.  36 MRSA §2855, sub-§3, as enacted by PL 1981, c. 711, §10, is repealed 
and the following enacted in its place:
3.  Exploration.  "Exploration" or "exploration activity" means the following activities 
when conducted in accordance with rules adopted by the Department of Environmental 
Protection for the purpose of determining the location, extent and composition of metallic 
mineral deposits: test boring, test drilling, hand sampling, the digging of test pits, trenching 
or outcrop stripping for the removal of overburden having a maximum surface opening of 
square feet per test pit or trench or other test sampling methods determined by the 
department to cause minimal disturbance of soil and vegetative cover.
Sec. 15.  36 MRSA §2855, sub-§4, as enacted by PL 1981, c. 711, §10, is amended 
to read:
4.  Facilities and equipment.  "Facilities and equipment" means all mining property, 
excluding land and metallic mineral products.
Sec. 16.  36 MRSA §2855, sub-§5, as enacted by PL 1981, c. 711, §10, is amended 
to read:
5.  Gross proceeds.  "Gross proceeds" means a mining company's metallic mineral 
operator's federal gross income from mining with respect to a mine site, as defined in 
Section 613 of the code mining area.
Sec. 17.  36 MRSA §2855, sub-§6, as enacted by PL 1981, c. 711, §10, is amended 
to read:
6.  Land.  "Land" means all real estate and all natural resources and any interest in or 
right involving that real estate or those natural resources including, without limitation, 
metallic minerals, metallic mineral rights, timber, timber rights, water and water rights.  
"Land" does not include improvements constructed, placed or located within a mine site 
mining area, such as buildings, structures, fixtures, fences, bridges, dikes, canals, dams, 
roads or other improvements within a mine site mining area.
Sec. 18.  36 MRSA §2855, sub-§7, as enacted by PL 1981, c. 711, §10, is repealed 
and the following enacted in its place:
7.  Mining area.  "Mining area" means an area of land described in a permit application 
and approved by the Department of Environmental Protection, including but not limited to 
land from which earth material is removed in connection with mining, the lands on which 
material from that mining is stored or deposited, the lands on which beneficiating or 
treatment facilities, including groundwater and surface water management treatment 
systems, are located or the lands on which water reservoirs used in a mining operation are 
located.  The mining area must be determined according to section 2865.
Sec. 19.  36 MRSA §2855, sub-§8, as amended by PL 1983, c. 776, §4, is further 
amended to read:
8.  Mineral Metallic mineral products.  "Mineral Metallic mineral products" means 
all unextracted and extracted metallic minerals and all products derived therefrom by 
mining.
Sec. 20.  36 MRSA §2855, sub-§9, as enacted by PL 1981, c. 711, §10, is repealed 
and the following enacted in its place:
9.  Metallic mineral.  "Metallic mineral" means any ore or material to be excavated 
from the natural deposits on or in the earth for its metallic mineral content to be used for 
commercial or industrial purposes. "Metallic mineral" does not include thorium or uranium.
Sec. 21.  36 MRSA §2855, sub-§10, as enacted by PL 1981, c. 711, §10, is repealed 
and the following enacted in its place:
10.  Mining, mining operation or mining activity.  "Mining," "mining operation" or 
"mining activity" means activities, facilities or processes necessary for the extraction or 
removal of metallic minerals or overburden or for the preparation, washing, cleaning or 
other treatment of metallic minerals and includes the bulk sampling, advanced exploration, 
extraction or beneficiation of metallic minerals as well as waste storage and other stockpiles 
and reclamation activities, but does not include exploration.
Sec. 22.  36 MRSA §2855, sub-§11, as enacted by PL 1981, c. 711, §10, is repealed 
and the following enacted in its place:
11.  Metallic mineral operator.  "Metallic mineral operator" means a permittee or 
other person who is engaged in, or who is preparing to engage in, mining operations for 
metallic minerals, whether individually or jointly or through agents, employees or 
contractors.
Sec. 23.  36 MRSA §2855, sub-§12, as amended by PL 1983, c. 776, §5, is further 
amended to read:
12.  Mining property.  "Mining property" means:
A.  All real estate on, under, within or comprising a mine site mining area; and
B.  All tangible personal property on, under or within a mine site mining area, or on 
route to or from a mine site mining area, or being transported to or from or destined to 
or from a mine site mining area, and which that is owned, leased or otherwise subject 
to possessory control by a mining company metallic mineral operator.
C.  Mining property does not include:
(1)  All property which is not mineral products and is not primarily used or held 
for use in connection with mining or the business of mining at a mine site, or any 
activity necessary or incidental to or in support of mining or the business of mining 
engaged in at a mine site; or
(2)  Those vehicles upon which state excise taxes are paid for the current 
registration period pursuant to chapter 111.
"Mining property" does not include all property that is not metallic mineral products and is 
not primarily used or held for use in connection with mining or the business of mining at a 
mining area, or any activity necessary or incidental to or in support of mining or the 
business of mining engaged in at a mining area, or those vehicles upon which state excise 
taxes are paid for the current registration period pursuant to chapter 111.
Sec. 24.  36 MRSA §2855, sub-§14, as amended by PL 1993, c. 395, §18, is further 
amended to read:
14.  Net proceeds.  "Net proceeds" means a mining company's metallic mineral 
operator's federal taxable income from the property with respect to a mine site mining area 
(computed without allowance for depletion as defined in Section 613 of the code) adjusted 
as follows.
A.  The following deductions are allowed in addition to those allowed in computing 
taxable income from the property under the code:
(1)  Cost depletion as would be allowed under Section 611 of the code without 
regard to percentage depletion;
(2)  Exploration and development costs as defined in Sections 616 and 617 of the 
code.  Exploration and development costs incurred prior to the commencement of 
mining must be recovered proportionately over the life of the mine in the same 
manner as that provided in Section 611 of the code with respect to cost depletion.  
Exploration and development costs incurred after the commencement of mining 
must be recovered in the year incurred;
(3)  Net operating loss deductions as defined in Section 172 of the code, but not 
including the exclusions under paragraph B; and
(4)  Reasonable accruals for all reclamation, restoration and shut-down costs 
required by state or federal laws, regulations or permits.  These accruals must be 
made on a proportionate basis over the accrual period.
B.  The following may not be allowed as deductions:
(1)  Property taxes paid that are allowed as a credit against the tax provided by this 
chapter;
(2)  The tax provided by this chapter; and
(3)  Percentage depletion as allowed under Section 613 of the code.
Sec. 25.  36 MRSA §2855, sub-§14-A is enacted to read:
14-A.  Reclamation.  "Reclamation" or "reclamation operation" means the 
rehabilitation of the mining area, affected area and any other area of land or water body 
affected by mining under an environmental protection, reclamation and closure plan 
approved by the Department of Environmental Protection. "Reclamation" includes, but is 
not limited to, stabilization of slopes, creation of safety benches, planting of forests, seeding 
of grasses and legumes for grazing purposes, planting of crops for harvest and enhancement 
of wildlife and aquatic resources.
Sec. 26.  36 MRSA §2855, sub-§15, as enacted by PL 1981, c. 711, §10, is amended 
to read:
15.  Tax year.  "Tax year" means an annual accounting period ending on the last day 
of the month of the period used by the mining company metallic mineral operator as its 
taxable year for federal income tax purposes.
Sec. 27.  36 MRSA §2855, sub-§16, as enacted by PL 1981, c. 711, §10, is amended 
to read:
16.  Termination of mining.  "Termination of mining" means, and shall be is deemed 
to occur on March 31st of any year if:
A.  The mining company metallic mineral operator has permanently abandoned mining 
during the previous 12 months; or
B.  During the previous 2 years, there has been:
(1)  Extraction or removal from the earth or sale of less than 1,000 cubic yards of 
metallic minerals, top soil, other solid matter or material naturally lying over the 
metallic minerals; and
(2)  No construction or reconstruction of fixtures, buildings or surface 
improvements which that are mining property.
Sec. 28.  36 MRSA §2855, sub-§17, ¶B, as enacted by PL 1981, c. 711, §10, is 
amended to read:
B.  Which are, on the last day of the tax year:
(1)  On, under or within a mine site mining area; or
(2)  Within the State and on route to or from a mine site mining area, or being 
transported to or from or destined to or from a mine site mining area.
Sec. 29.  36 MRSA §2856, first ¶, as enacted by PL 1981, c. 711, §10, is amended 
to read:
The amount of the annual excise tax on a mining company metallic mineral operator 
shall be is the sum of the excise taxes due on each mine site mining area.  The excise tax 
due on each mine site shall be mining area is the greater of the following:
Sec. 30.  36 MRSA §2856, sub-§2, ¶A, as corrected by RR 2013, c. 2, §45, is 
amended by amending subparagraph (1) to read:
(1)  0.009 0.1; or
Sec. 31.  36 MRSA §2856, sub-§2, ¶B, as corrected by RR 2013, c. 2, §45, is 
amended to read:
B.  If net proceeds are equal to or less than zero, then 0.009 0.1.
Sec. 32.  36 MRSA §2857, sub-§1, as enacted by PL 1981, c. 711, §10, is amended 
to read:
1.  Annual return.  A mining company metallic mineral operator shall file, on or 
before the date the mining company's metallic mineral operator's state income tax return is 
due to be filed, an annual return on a form specified by the State Tax Assessor for each tax 
year.
Sec. 33.  36 MRSA §2857, sub-§3, as enacted by PL 1981, c. 711, §10, is amended 
to read:
3.  Payments.  A mining company metallic mineral operator shall pay the tax due, less 
estimated tax payments and credits, at the time its annual return is due without extensions.
Sec. 34.  36 MRSA §2857, sub-§5, as enacted by PL 1981, c. 711, §10, is amended 
to read:
5.  Computation.  In computing a mining company's metallic mineral operator's tax, 
gross proceeds and net proceeds shall must be computed as if each mine site mining area 
were a separate taxpayer. The State Tax Assessor may distribute, apportion or allocate on 
a reasonable basis gross proceeds, deductions, credits or allowances between or among 
mining companies metallic mineral operators or mine sites mining areas, if such 
distribution, apportionment or allocation is necessary to prevent evasion of taxes imposed 
by this chapter, or to reflect clearly the gross or net proceeds of any mining company 
metallic mineral operator or mine site mining area.
Sec. 35.  36 MRSA §2858, as amended by PL 1987, c. 772, §26, is further amended 
to read:
§2858.  Credits, refunds and amendments
Credits, refunds and amendments shall must be computed and applied separately for 
each mine site mining area.  The following provisions shall apply.
1.  Credit for property tax prior to commencement of mining.  A credit shall be is 
allowed for property taxes paid by a mining company metallic mineral operator or any 
other person on property which that becomes exempt during the year under section 2854, 
subsection 2.  The amount of the credit shall be is computed as follows: The number of 
days remaining in the property tax year beginning with the date mining commences and 
the next March 31st, inclusive, shall must be divided by 365; the percentage thus arrived 
at shall must be multiplied by the property taxes paid during that property tax year against 
such property. The credit may be used in the tax year in which the property tax was paid or 
in any tax years thereafter.
2.  Credit for property tax paid on land and buildings.  A credit shall be is allowed 
for property taxes paid by a mining company metallic mineral operator or any other person 
on land and buildings that are mining property.  The credit may be used in the tax year in 
which the property tax was paid or in any tax years thereafter.
3.  Credits for prepayment of taxes.  The following provisions apply to prepayment 
of taxes other than estimated tax payments.
A.  A person may prepay to the State Tax Assessor at any time prior to the end of the 
years following the commencement of mining, a portion of the taxes due under this 
chapter not to exceed $250,000 in one year or $500,000 for a mine site mining area.
B.  If a person (whether or not it was a mining company metallic mineral operator at 
the time of the prepayment) prepays a portion of the taxes due under this chapter, it 
may take that prepayment as a credit against the taxes due under this chapter in any tax 
years following prepayment.
5.  Refunds.  Tax refunds and abatements shall must be made in accordance with 
section 2011, except if estimated tax payments exceed the tax due for the tax year, the State 
Tax Assessor shall refund the excess, unless the mining company metallic mineral operator 
requests otherwise.
6.  Amendment for unexpended accruals.  If accruals taken as deductions under 
section 2855, subsection 14, are not actually expended for the purposes for which they were 
accrued, then the mining company metallic mineral operator shall amend its returns for the 
tax years the deductions were taken to reduce those deductions to actual expenditures.
Sec. 36.  36 MRSA §2859, as repealed and replaced by PL 1985, c. 691, §§27 and 
48, is amended to read:
§2859.  Estimated tax requirements
A mining company metallic mineral operator shall make payments of estimated tax 
pursuant to section 5228, except that the estimated tax liability is to be based on liability 
for the mining excise tax rather than the income tax.
Sec. 37.  36 MRSA §2862, sub-§7, as enacted by PL 1981, c. 711, §10, is amended 
to read:
7.  Changes in mining activity.  If, prior to the commencement of extraction of 
metallic minerals for sale, a mining company metallic mineral operator ceases construction 
of a mine site mining area, any taxes due during the period of construction cessation shall 
must be distributed according to the most recently applicable provision of this section.
Sec. 38.  36 MRSA §2863, sub-§1, ¶C, as enacted by PL 1981, c. 711, §10, is 
amended to read:
C.  "Related to mining" means directly related to mining or to the construction or 
reconstruction of a mine site mining area.  New or additional public facilities or 
services shall be are deemed to be related to mining when they are provided to a mining 
company metallic mineral operator, to employees of the mining company metallic 
mineral operator or its contractors or subcontractors and their families, or when they 
are required because of an increase in population directly attributable to mining or to 
the construction or reconstruction of a mine site mining area.
Sec. 39.  36 MRSA §2863, sub-§4, as enacted by PL 1981, c. 711, §10, is amended 
to read:
4.  Grants to municipalities in which a mine site mining area is located.  To the 
extent funds are available from the excise tax revenues attributable to a mine site mining 
area located within a municipality, the commissioner shall make a grant to that 
municipality.  The amount of that grant may not be greater than 50% of the amount 
calculated under section 2861, subsection 3, paragraph E.
Sec. 40.  36 MRSA §2865, as amended by PL 2007, c. 627, §76, is further amended 
to read:
§2865.  Mine site Mining area and valuation determinations
1.  Mine site Mining area.  The State Tax Assessor shall determine the area of a mine 
site mining area, taking into account all relevant information, including, but not limited to, 
plans or permits approved under the site location of development law, Title 38, chapter 3, 
subchapter 1, Article article 6.  The assessor shall give notice to the mining company 
metallic mineral operator and to the municipality in which the mine site mining area is 
located of the determination.  The assessor's determination is reviewable under section 151.
2.  Valuation.  If a mine site mining area is located in a municipality, the assessor shall 
determine the valuation of mining property and the percentage of that valuation represented 
by land and buildings that are not exempt from property taxes. That valuation of land and 
buildings must be applied in determining the property taxes.  The municipality in which 
the mine site mining area is located may appeal that determination to the State Board of 
Property Tax Review as provided in chapter 101, subchapter 2‑A.
Emergency clause.  In view of the emergency cited in the preamble, this legislation 
takes effect when approved.
SUMMARY
This bill conforms the definitions in the mining excise tax laws to the Maine Metallic 
Mineral Mining Act.  The bill also increases from 0.009 to 0.1 the tax rate on gross proceeds 
from a mining area.