I apologize if this is a duplicate post, but I don't think my previous post went through properly. Hello, Our office conducted a study for a mining company a few years ago. The company requested that the tax impacts from the proposed mine be included in the report. Now, some questions have come up regarding the tax impacts specifically. Some of these questions are quite complex and I'm not sure I know how to answer all of them myself. I was hoping you may be able to help me. As background, the study was conducted in 2015 and used 2013 data for Delta, Dickinson and Menominee counties in the Upper Peninsula of Michigan and Marinette County in Wisconsin. Questions are numbered 1-3, below: 1. In estimating typical-year state and local tax impact, IMPLAN includes the following revenue sources: a. Corporate Profits Tax b. Tax on Production and Imports: Other Taxes c. Tax on Production and Imports: Property Tax d. Tax on Production and Imports: Sales Tax However, sec. 4(1) of the Michigan Nonferrous Metallic Minerals Extraction Severance Tax Act states that a company subject to the severance tax is exempt from: (a) The collection of taxes under the general property tax act, (b) The tax levied under part 2 of the income tax act of 1967, (c) The tax levied under the general sales tax act, and (d) The tax levied under the use tax act of the state of Michigan. Therefore, would all of the taxes included in these estimates, in fact, be paid by the mining company? Should I have reduced these values manually in my analysis? 2.Under the Severance Tax Act, the mining company would pay a tax of 2.75% of the taxable mineral value of the mine. On its website, the company estimates the pre-tax mineral value at $282.2 million (16-year life of mine). Therefore it seems that the state severance tax in round numbers would be $7.8 million ($282 M x .0275), or $500,000 a year. IMPLAN tax impacts report $11M in combined annual state tax impacts. Where would the state severance tax be included in the IMPLAN results (if it is included at all)? 3. Much of the tax revenue in the tax estimates would be paid, not by the company, but by individuals (e.g., personal income taxes, social security employee contributions). How much of the estimated state tax impact of $11M (i.e. which categories) would actually be paid by the mining company itself? Thank you for your help! Monica
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