11 AAC 86.760 - Production royalty

As required by AS 38.05.212, the holder of a mining claim, leasehold location, or mining lease, including a mining lease under AS 38.05.250, shall pay a royalty of three percent of net income, as determined under AS 43.65 and 15 AAC 65, on all minerals produced from land subject to the claim, leasehold location, or mining lease, subject to the following exceptions:

(1) If the holder segregates its gross income, deductions, and expenses under 11 AAC 86.766, the holder's gross income, deductions, and expenses attributable to minerals produced from land owned by the federal government, a borough or municipality, a native corporation, or a private party shall be omitted from the calculation of net income.

(2) Net income must be determined and reported, and the production royalty must be paid, for each calendar year rather than each tax year.

(3) Credit will be given for annual rental paid on a mining claim, leasehold location, or mining lease in production that year. A refund may not be made if the amount of annual rental due and paid exceeds the amount of the production royalty.

(4) A new mining operation is not exempt from production royalties.

Notes

11 AAC 86.760

Eff. 7/26/91, Register 119; am 8/26/98, Register 147

Authority:AS 38.05.211(c)

AS 38.05.212