The Michigan House tonight approved landmark legislation to help Upper Peninsula mining companies create jobs and become stronger financially while encouraging economic development in the region, state Rep. Matt Huuki announced.
House Bills 6007-6012, introduced by 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.
“The tax reforms will help create good-paying jobs for local families, help invigorate our communities and encourage economic development,” said Huuki, R-Atlantic Mine. “The Upper Peninsula will start to take an active role in helping turn around Michigan’s economy under these bills.”
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.
HBs 6007-6012 now go to the Senate for consideration.