Michigan – Equipment Used in Mining Operations Exempt

2/13/2013

SALT Report 2146 – The Michigan state Legislature passed two bills that provide a sales and use tax exemption for the sale of tangible personal property for use as, or at, mineral-producing properties. Specifically, the bill would:

  • Exempt from the collection of taxes any mineral located at an open mine.  However, the exemption will not apply to the surface property or rights in it, surface improvements, or personal property at the open mine.
  • Exempt from the collection of taxes any mineral-producing property subject to the mineral severance tax under the Nonferrous Metallic Minerals Extraction Severance Tax Act.
  • Exempt low-grade iron ore and low-grade iron ore mining property from the collection of taxes under the General Property Tax Act.

Additionally, the Bill provides that the property is exempt only if it is used for exempt purposes and is limited to the percentage of exempt use to total use.

The two Bills went into effect on January 1, 2013.

For Further Information

Michigan State Legislature HB 6010 Act 412 and HB 6011 Act 413