Production Exemption for Mining in Idaho

Friday, July 27th, 2018

 
 
Coal miner in an open pit.
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Idaho
General

The Idaho Tax Commission recently released guidance explaining how the production exemption applies to the mining industry.

Idaho's production exemption applies to equipment and supplies used in qualifying mining activities when the purchaser (1) is engaged in qualifying mining activities more than 50% of the time, (2) owns the mined ore, (3) sells the ore or transfers the ore to another for the purpose of sale, and (4) reports profits and losses on an income tax return. Qualifying mining activities include developing a mine with known deposits, operating a mine, drilling holes, blasting, breaking ore for easier removal, removing ore from a mine, backfilling mined areas, and ore processing. The exemption also applies to custom mining, which involves the performance of qualifying mining activities for a miner. The exemption does not apply to ore exploration activities, hobby mining, or the mining of ore for personal or business use.

https://www.ttrus.com/Production_Exemption_for_Mining_in_Idaho


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TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

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