Mining Severance Tax approved
The Michigan Legislature has approved a package of bills to help Upper Peninsula mining companies create jobs and become stronger financially while encouraging economic development in the region.
House Bills 6007-6012, introduced by state Rep. Matt Huuki, place a 2.75 percent severance tax on gross mineral value on specified non-ferrous metallic minerals such as copper and nickel. The tax replaces the property tax, corporate income tax, sales tax and use tax that mining companies currently pay.
“With a more fair and stable taxation system, mining companies will feel secure in investing in the mineral commodities we have in the Upper Peninsula and jobs will be created,” said Huuki, R-Atlantic Mine. “These reform measures will let companies know that the Upper Peninsula is truly open for business. It’s a great opportunity to see the U.P. recover economically.”
The bills allow 65 percent of the revenue from the severance tax to be retained by counties, townships, school districts and the school aid fund. The remaining 35 percent would go into a rural development fund to support long-term regional economic opportunities.
“I want to thank everyone from the Upper Peninsula who got their voices heard and helped shape these measures as they made their way through the legislative process,” Huuki said. “The input from local residents was invaluable. Now our charge is to ensure that the governor signs these bills as soon as possible.”
HBs 6007-6012, which were approved by the Senate on Dec. 13 and by the House early this morning, now go to the governor for his consideration.