Year: 1879

Text of the Act to Provide for tht


Taxation of the Proceeds of Mines.


BE 1t enacted By the Legislative assembly O
the Territory OF Montana.


Sec. l. That every person, corporation OF


association engaged in mining upon any


quartz vein or lode or placer mining claim


containing gold, silver, copper or lead, is


hereby required, between the first and tenth


days OF August in each year, to make out q


statement OF the gross yield of the above


named metals from such mine or mines, being


owned or worked by such person, corporation


or association during the year next proceed.
ing the first day of August in each year,


and the value thereof; which said statement


shall be verified by the oath of such person,


or the superintendent or managing agent of
| such corporation or association, and deliver


the same to the assessor of the county in


which such mine or mines are situated, be-


tween the dates above mentioned. That said


statement, verified as above provided, shall


also contain the true and correct amount of


the actual expenditures of money and labor in


and about extracting such ore, the reduction
| thereof, and the conversion of the bullion de-


rived therefrom into money or its equivalent
during such year.


Sec. 2. That in making the statement of
the expenditures mentioned in the foregoing
section, such person, corporation or associa-
ton shall be allowed to include therein all
sums of money that have been expended for
necessary labor, machinery, supplies of every
kind and character needed and used in his or
its mining operations, for improvements act
ually necessary in and about the working of
such mine or mines, reducing the ores there
from, and expended in and abont the con-
structiOn of mills or reduction works used and
operated in connection with said mine or
mines for the purpose of reducing and ex-
tracing the precious metals therefrOm, and
shall not include any money invested in said
mines or Improvements made on the same
during any year except the year Immediately
proceeding such statement; P100ided, that
nothing herein contained shall exempt such
improvements, mills and reduction works and
supplies from taxation as now provided bv
law; Pr0rided, that the expenditures referred
to herein shall not include the salaries, or any
portion thereof, of the officers of any corpor-
alton not actually engaged in the working of
such mine or mines, or personally superin-
tending the management thereof.


Sec. g. That a tax shall be levied annually
upon the net proceeds of all mines above
named, such net proceeds to be ascertained
and determined in the manner provided in
the foregoing sections of this act, and that
such tax shall be collected and the payment
thereof enforced as now provided by law for
the collection of other taxes.


Sec. 4. That if any person, corporation
or association, engaged in the kind OF mining
named in this act, shall refuse or neglect to
make and deliver to the assessor of the cOun-
ty where his or their mines are situated, the
statement mentioned in the first and second
sections of this act, during the time herein
specified, the assessor of such county is here
by authorized and empowered, and 1t is here
by made his duty to proceed to fix and assess
according to his best knowledge and infor-
nation, the amount upon which the tax men,
toned in section three of this act shall be
levied, in the manner now provided by law
relating to the assessment of other property,
and shall add like penalty of twenty per
centum to the amount and value thereof.


Sec. 5. That from and after the passage
of this act, no direct tax shall be levied upon
any placer claim, quartz lead or lode except
to the extent of the price paid for any mining
claim in obtaining patent therefor from the
government of the United States, and the
only taxation of the proceeds thereof shall be
that provided in this act; Pr0vided that this
act shall not be so construed as to exempt
from taxation, improvements consisting of
buildings, erections or machinery placed upon
any quartz lead or lode or used in connection |
Herewith; Provided further, that the Asses |
sor shall, at the time of assessing any person,
firm, corporation or association, have the
power to examine the books and accounts of |
said person firm, corporation or association |
to fully satisfy said assessor that he has been |
furnished with atruthful report; and if salts
fed from such examination that the report is
false, he shall assess the same at the true
amount of the net proceeds so near as he can
arrive at the same, provided that no one by
virtue of the provisions of this act shall be
deprived of his right to appear before the
proper Board of Equalization as other tax
payers under existing laws.


Approved February 81, 1879.