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Oct. 07, 2008
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Mining tax increase touted

Attendees at Buckley's Reno forum say plan would aid state

By ED VOGEL
REVIEW-JOURNAL CAPITAL BUREAU

RENO -- Taxes on mining in Nevada should be increased as a way to avoid future cuts in state spending, at least five speakers told a legislator Monday night.

"It is inexcusable not to have any kind of real taxes on gold," retired Reno engineer Jerry Purdy said during a public meeting called by Assembly Speaker Barbara Buckley, D-Las Vegas.

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    • Buckley is holding town meetings across the state to gather input from Nevada residents on how to bail the state out of its worst budget crisis in generations.

    Since January, legislators and Gov. Jim Gibbons have cut state spending by $1.2 billion to make up for revenue shortfalls caused by the economic downturn.

    Gibbons has warned that the state might have to cut spending by another 14 percent when the Legislature goes into session in February.

    Because of continuing shortfalls in state tax revenue, Buckley told a crowd of 200 at the University of Nevada, Reno student union that the cuts could be as high as 20 percent.

    Buckley did not recommend any new tax increases during the meeting. She just said legislators no longer can afford to grant tax exemptions and abatements because every dollar lost means a dollar less for education, health care and public safety programs. She added that the Legislature has approved abatements and exemptions for good purposes through the years without considering the impact of the lost revenue on the state budget.

    Members of the audience pointed out that the mining industry contributes only a small fraction in state taxes at a time when gold prices are booming.

    Richard Siegel, a longtime leader of the American Civil Liberties Union of Nevada, noted a recent report that said the mining industry generated $5.5 billion in income in 2007 and yet contributes less than $100 million in state taxes.

    David Ward, a Reno City Council candidate, also recommended mining tax increases, saying they should be indexed to the price of gold. When gold prices are high, mining would pay more. When prices are low, their taxes would be less.

    Earlier this year when gold topped $1,000 an ounce, Gibbons, a former mining geologist and lawyer, vowed to veto any bill that called for increasing mining taxes in 2009.

    Mining companies paid $62 million in a 5 percent tax on their net revenues in 2006, of which the state's share was $30 million. Nevada mines produce more than two-thirds of the nation's gold.

    "Many states charge a royalty or windfall profits on gold and other finite resources being removed, but not Nevada," Purdy said "When the resource is gone, it's gone forever, along with the mining companies and any windfall profits tax revenue."

    While tax increases are anathema to many legislators and Gibbons during this recessionary period, retired UNR Professor James Hulse noted that in 1955, the Legislature approved the first sales tax -- a 2 percent tax -- in the wake of widespread business opposition. A group of mothers banded together to stress the importance of properly funding education, he said, and they defeated efforts to kill the tax in a ballot question during the 1956 election.

    A similar crisis faces education today, said Hulse, although he did not know what type of tax increase should be considered.

    Contact Capital Bureau Chief Ed Vogel at evogel@reviewjournal.com or 775-687-3901.

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    Roger wrote on October 10, 2008 10:32 AM: Yes, tax those dirty mining companies. They come to a region and leave a toxic mess. They always end up destroying local communities. Make them pay more to clean up thier ugly, toxic mess.


    Brian wrote on October 08, 2008 09:56 AM: Assembly Speaker Barbara Buckley, D-Las Vegas. Buckley has her head in the sand. The mines give money to the schools and public safety. The mines have have paid for building schools.
    The mines cost have gone up over 100%. Cost per ounce was running $128.00 to $130.00. Now it's over $450.00 per ounce. Gold running $832 per ounce minus $450.00(Cost) that leaves $382.00 profit per ounce. That is not Big profit! It would be if their cost was $128.00. Not any longer!
    I stand with Governer Gibbons. He will veto any taxes on the mines. I wish to keep my job in mining. I will not have one any longer if the taxes go up on the mines.
    Buckley get out to real Nevada and find out what the Mines have paid for what the Mines have given to the schools from elementry to collage.
    I am tired of these people who thinks they know anything when it comes to mining.


    Brian wrote on October 08, 2008 08:56 AM: http://www.mineweb.com/mineweb/view/mineweb/en/page34?oid=63589&sn=Detail


    gatorman wrote on October 07, 2008 01:34 PM: Hey glad, how about we just cut out all of the hand outs from the corporate welfare on down to the food stamps. That's my proposal instead of raising taxes. by the way, I am a registered ind. have been since HW Bush.


    GladK wrote on October 07, 2008 12:30 PM: Gotta love you fire-breathing Republicans. In case you fellas hadn't noticed, YOUR politicians love spending money just as much if not more than Democrats. The difference being, some people think it's only fair that taxes cover society's needs, while others would rather just sluff it off to the grandchildren. Thanks for showing us how massive borrowing has made us a great country, all you swell tax-hating patriotic Republicans.


    2zero wrote on October 07, 2008 12:25 PM: Tax lap dances. It is or fastest growing industry.

    Texas did!


    2zero wrote on October 07, 2008 11:18 AM: http://en.wikipedia.org/wiki/Barrick_Gold

    Pine Valley Oil...find an oil rig there?

    WINDFALL tax on mining.


    gatorman wrote on October 07, 2008 10:59 AM: By the way, you ignorant morons on the left may want to buy some gold ( as I have every year since 2002) because your dollars are soon to be even more worthless.


    gatorman wrote on October 07, 2008 10:56 AM: Buckley is the head of Nevada Legal Aid which is a quasi-communist org. that receives its money from extorting the interest on attorney's trust accounts and govt. grants. She wouldn't no eigth grade economics, much less how to operate a business that had to show a profit to survive. Of course, her answer to every problem is raise taxes. We have an industry that makes a profit and is actually adding jobs and the dems want to tax it more to feed the unproductive govt. leeches who already make more than the avg. private sector worker. Thank God for Jim Gibbons having the nuts to stand up to the public employee unions and say no to new taxes.


    Brian wrote on October 07, 2008 10:30 AM: http://www.newmont.com/en/about/history/index.asp

    http://www.elkorose.com/pinevalleyoil.html

    http://en.wikipedia.org/wiki/Railroad_Valley


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