Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.02 - IDAHO SALES AND USE TAX ADMINISTRATIVE RULES › Section 35.01.02.081 - UNDERGROUND MINING

Current through August 31, 2023
Sections
				63-3605B,
				63-3622,
				63-3622D,
				63-3622HH, Idaho Code This rule is
				meant to show how the production exemption applies to the underground mining
				industry. This rule is based on the usual methods of doing business.
				Differences in the way a specific taxpayer conducts his business can result in
				determinations different from those in this rule. In cases not covered by this
				rule, the general principles in Rule
				079 of these rules apply.
				Determinations of taxability are based on the primary use of equipment.
				(3-31-22)
01.
Nontaxable
			 Purchases
. The following are generally considered nontaxable: (3-31-22)
a. Development of known ore deposits,
			 including diamond drilling and other activities to develop levels, laterals,
			 crosscuts, drifts, stopes, raises and shafts. (3-31-22)
b. Support materials, including, timber,
			 concrete, rock bolts, shotcrete, matting, and equipment used to install them.
			 (3-31-22)
c. Drilling of blast
			 holes to facilitate the extraction of ore including pneumatic rock drills and
			 compressors used to supply compressed air to operate pneumatic rock drills.
			 (3-31-22)
d. Blasting to facilitate
			 the extraction of ore using explosives, caps, fuses, etc. (3-31-22)
e. Slushing/mucking to convey broken ore and
			 waste to passes and chutes using scrapers, slushers, muckers, hoists and
			 loaders, and backhoes used to recover both ore and waste. (3-31-22)
f. Hauling, horizontal transportation, to
			 transport ore, waste, men or materials from chutes into cars and the movement
			 of the cars to shaft stations using skips, hoists, hoist cable, shafts, shaft
			 timbers, shaft stations, shaft pockets, shaft guides, concrete, etc.
			 (3-31-22)
g. Haulage, vertical
			 transportation, to hoist ore, waste, men or materials in skips, using skips,
			 hoists, hoist cable, shafts, shaft timbers, shaft stations, shaft pockets,
			 shaft guides, concrete, etc. (3-31-22)
h. Transportation to the surface to load the
			 ore, waste, men or materials into main haulage cars for transportation using
			 locomotives, haulage cars, track and track spikes, fuel batteries used to power
			 locomotives, and conveyors and conveyor belts. (3-31-22)
i. Backfilling to pump tailings back
			 underground as hydraulic sandfill to backfill mined-out areas using, pumps,
			 sumps, pipe, and concrete. (3-31-22)
j. Personal equipment including hard hats,
			 miners' lights, belts, and batteries. (3-31-22)
k. Sampling/assaying for quality control
			 purposes. (3-31-22)
l. Safety
			 equipment and supplies required by a state or federal agency when used directly
			 in a mining area. (3-31-22)
m.
			 Equipment used primarily to install production equipment. (3-31-22)
n. Equipment used primarily to fabricate
			 production equipment. (3-31-22)
o.
			 Equipment and supplies used in the performance of a quality control function
			 which is an integral and necessary step in maintaining specific product
			 standards. (3-31-22)