Legislation to Help Mining Companies in the U.P. Passed in State House

Filed under: U.P. News Updates |

Mining tax approved by State HouseMARQUETTE, MI – (Great Lakes Radio News)Legislation authored by an Upper Michigan lawmaker designed to help mining companies in the U.P. has been approved by the State House of Representatives.

The package of bills is intended to allow U.P. mining companies to create jobs and become stronger financially while encouraging economic development in the region.

The bills, introduced by 110th District State Representative Matt Huuki, place a 2.75 percent severance tax on gross mineral value on specified minerals such as copper and nickel.  The legislation replaces a series of taxes that mining companies currently pay.

Sixty-five percent of the revenue from the severance tax will be retained by counties, townships, school districts and the school aid fund.  The remaining 35 percent would go into a rural development fund to support long-term regional economic opportunities.

The legislation now goes to the Senate for consideration.

Great Lakes Radio – Delivering reliable and accurate local news to you on air, online and on demand