Hmm, looks pretty fair and balanced on this end

Even the mining industry has no readily available, credible justification for keeping the mining tax in the state constitution. At a Senate hearing Tuesday on a resolution to let voters strip mining of its unique, special, protected and sheltered constitutional status so that Nevada could tax the industry responsibly for a change, industry lobbyists announced that they were "neutral" on the issue. For now.

There are dozens -- or more specifically, hundreds of millions -- of reasons to take the mining tax out of the constitution. The arguments in favor of the resolution are self-evident. But I showed up at the hearing anyway, with charts, like this one:



As state Sen. Steven Horsford observed while pointing to the chart and gently asking Nevada mining lobbyists "WTF?" (or words to that effect), Wyoming isn't known for its wild-eyed liberalism.

Of course the Nevada Legislature can't enact federal mineral royalties (about half of which are returned to the state, by the way). That's for Harry Reid to never ever let happen. But Nevada could create a tax system that, for instance, imposes a state severance tax while also allowing counties to levy their own separate taxes on mineral production. And Nevada could create those taxes at rates reflecting a sober acknowledgement of Nevada's singular importance to the world's largest gold mining corporations and the industry's obligation to the state. That's stuff that Nevada can do. If the mining tax is taken out of the constitution.

So this is a job for Captain Obvious. Alas, changing the constitution takes a year or three. Good idea, no earthly excuse for the Legislature not to pass the resolution. Hop to it, chop-chop, etc. But it does nothing to stop a governor consumed with political ambition from permanantly damaging the state in exchange for applause from a roomful of the megawealthy's useful idiots, which is what's happening this year.

For the wonks amongst ye, a couple more charts:

Nevada is special.

Comments

[Douglas Democrat]

And countdown to Goldy's appearance to lecture us how we're in a "get mining" framework in 3...2...1...

[Ex-Vegan]

So the Senate is 11-10 Dems and Assembly is 26-16 Dems, and so if Dems stay cohesive and vote for the amendment this session, under the NV Constitution we'll have to wait until the 2012 election, then the 2013 Legislature to vote on it again, for the mining tax amendment to pass.

If by popular vote, signatures of 10 percent of voters required (from each county by distribution requirement) for it to make the ballot on the "next election," and if it wins by majority vote, it has to be passed again during the next General Election -- likely 2014.

With only two years to wait in the first senario, the Legislature should be able to afford to delay draconian cuts to public education. Kick the can this one last time. You'd think.

Unless, of course, Big Mining gets one Dem to turn in the Senate (assuming the GOP is all against it). Bet they've got a short list.

[...Temujin...Khan..of..the...Yakka...Mongols...]

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...Did I read somewhere that Alaska has a 25 percent extraction tax on oil and minerals , much obliged if someone has info..
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[Scorpiogal]

@ Douglas,
I think Goldy has stopped poking the bear right about now.

[Douglas Democrat]

Good, because everything's worse with bears. Stephen Colbert told me that, so it MUST be true.

[Scorpiogal]

@ Douglas,
Well....Bears ARE Satan's children! ;)

[Dwayne]

Thanks for the detailed information. If I understand your charts correctly, Wyoming collects just under 20% of the gross value of mineral production in state and local taxes, compared to Nevada's take of a bit over 5%. If we collected 20% of the gross on $1.8 billion of revenue, it would increase our tax revenue by about $262 million per year, or $524 million over the next biennium. This is more than the projected $400 million shortfall in general fund revenue from the $6.2 billion for the current biennium ending in June.

How about dedicating increased mineral taxes to higher education? Or even to all levels of education? What better legacy could we derive from a depleting asset?

[faruk]

Various state extraction taxes

http://www.santamariatimes.com/news/opinion/editorial/commentary/article_31b659ac-a121-11df-8605-001cc4c03286.html

[...Temujin...Khan..of..the...Yakka...Mongols...]

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...Thank you Faruk for your reference...Mucho Groucho..
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