Nevada Senate Okays Repeal of Mining Tax Protections

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CARSON CITY, Nev. (AP) - The Nevada Senate has approved a resolution to take mining tax limitations out of the state Constitution.

The Senate on Monday approved Senate Joint Resolution 15 by a vote of 17-4. It now goes to the Assembly.

First approved by the 2011 Legislature, SJR15 would repeal a constitutional provision that allows for the taxation of net proceeds on minerals. A 5 percent cap added is 1989 is calculated after costs for extracting minerals and other business expenses are deducted.

It adopted by the Assembly, it would go to voters in 2014.

Backers say repeal would give state lawmakers flexibility to set the rate for mining taxes. Opponents argue it would discourage mining activities in a state that leads the nation in gold mining.