Alaska levies a mining license tax on mining net income and royalties received in connection with mining properties and activities in Alaska. The division collects mining license taxes primarily from businesses engaged in coal and hard rock mining in the state.

Tax rates on mining net income are as follows: No tax if net income is $40,000 or less; $1,200 plus 3% over $40,000; $1,500 plus 5% over $50,000; and $4,000 plus 7% over $100,000.

Mining licensees are required to file an annual return that is due before the first day of the fifth month after the close of the business' fiscal year.

More information about the mining license tax may be found in the Tax Division Annual Report.