In the case of metal mines, a taxpayer may compute its
depletion allowance based on the cost of the property, as provided in ORS
317.374(2), or
by using percentage depletion. For purposes of this section, metal mines
include those mines where the metal being extracted occurs in a pure state,
such as gold or silver, or where it is found in combination with other
substances, such as in the case of aluminum obtained from bauxite. The
percentage depletion allowance is equal to 15 percent of the gross income from
the property during the tax year, but shall not in any case exceed 50 percent
of the net income of the taxpayer (computed without allowance for depletion)
from the property. In its first return made under the tax law, the taxpayer
must state, as to each property with respect to which it has any item of income
or deduction (in case of metal mines), whether it elects to have the depletion
allowance for each such property for the tax year computed with or without
reference to percentage depletion. An election once exercised under this
paragraph cannot thereafter be changed by the taxpayer, and the depletion
allowance in respect to each such property will for all succeeding tax years be
computed in accordance with the election so made.
Notes
Or. Admin. Code §
150-317-0450
6-68;
12-31-83, Renumbered from 150-317.290(3); RD 7-1983, f. 12-20-83, cert. ef.
12-31-83; RD 12-1990, f. 12-20-90, cert. ef. 12-31-90; Renumbered from
150-317.374(3),
REV
68-2016, f. 8-15-16, cert. ef.
9/1/2016
Stat. Auth.: ORS
305.100
Stats. Implemented: ORS
317.374
