To revise the taxation of “non-ferrous” mines (including new copper and other mineral mines in the Upper Peninsula). The bill is part of a package that would exempt these mines from property, income, sales and use taxes, and instead levy a “severance tax” on them based on the amount of material extracted. Various credits would be allowed against pre-operational start-up costs, including regulatory compliance costs. Most of the tax revenue would go to the local government, but some would go to a new state “rural development fund”.   Official Text and Analysis.

With the recommendation that the substitute (H-1) be adopted and that the bill then pass.

To clarify that this new tax regime would not apply to the following other minerals: gypsum, lime, limestone,salt, dolomite, basalt, granite, sandstone, shale, clay, stone, gravel, marl, peat, sand, gemstones, coal, substances extracted from potable water or brine, or substances extracted from oil or natural gas.

To strip out a provision that includes in the new tax regime (including its property tax exemption) property on which the ore is processed.

To limit including "buffer lands" around the mind in the proposed tax regime (including its property tax exemption), by limiting these to contiguous land within one-quarter mile of the mine.

To give a portion portion of the proposed new tax to local school districts.

To give 80 percent of the revenue from the proposed tax to local governments (instead of 65 percent), with the rest going to the state school aid fund instead of into a government "rural development fund" proposed as part of this legislative package.

With the recommendation that the bill pass.

To concur with the Senate-passed version of the bill.