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.
For each person (mining license holder) required to file a return, the mining license tax year is the same as that person’s tax year for federal income tax purposes. The mining license return must be filed on or before the last day of the fourth month following the end of the applicable tax period.
On May 24, 2012, Governor Parnell signed legislation (HB 298) into Law. This legislation, with a retroactive effective date of January 1, 2012, exempts quarry rock, sand and gravel, and marketable earth mining operations from the mining license tax. Anyone who mines quarry rock, sand and gravel, and/or marketable earth exclusively, is no longer required to obtain a mining license or file a mining license tax return for activities conducted on or after the effective date.
More information about the mining license tax may be found in the Tax Division Annual Report.
Curtis M Warren
907-269-1095 - Anchorage