Nevada Governor Reduces Tax Breaks for Mining Industry

By Joel ScanlonJun 19 2011

Nevada Governor Brian Sandoval signed a law reducing tax breaks to the mining industry, killing the tax cap that was in the constitution since 1864. The new law needs the state Taxation Department to report each year to the new commission on the expenses and deductions of each mining company operating in the state.

The bill regarding the tax deductions was signed into law after the lawmakers said that the mining industry was not paying its fair share to the government coffers from its gold production profits. In the last legislative session the Taxation Department had not conducted audits and that led to the ouster of Dino Dicianno, the department‘s executive director.

The new bill which was passed into law is expected to bring in $24 million in taxes to the state over the next two years. The mining companies are now no longer to get tax deductions for fire insurance, marketing costs and severance packages.

The bill was among 30 that were approved by the Republican Governor on Thursday. He also vetoed four of them including one that would have expanded the school breakfast program and another one that would earn felons good behaviour credits for an early release. He also signed away $10 million for the Millennium Scholarship program which is available to persons with intellectual disabilities.